India and Pakistan urged to have ‘maximum restraint’ after Kashmir attack

India and Pakistan urged to have ‘maximum restraint’ after Kashmir attack
Indian soldiers stand guard as tourists (back) look on near a clock tower in Srinagar on April 24, 2025. (AFP)
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Updated 25 April 2025

India and Pakistan urged to have ‘maximum restraint’ after Kashmir attack

India and Pakistan urged to have ‘maximum restraint’ after Kashmir attack
  • Relations have plunged to their lowest level in years after gunmen carried out the worst attack on civilians in Indian-administered Kashmir
  • Kashmir has been divided between India and Pakistan since independence in 1947, with both claiming the territory in full but governing in part

NEW DELHI: The United Nations urged India and Pakistan to show “maximum restraint” as the nuclear-armed rivals imposed tit-for-tat diplomatic measures over a deadly shooting in Kashmir.
Relations have plunged to their lowest level in years, with India accusing Pakistan of supporting “cross-border terrorism” after gunmen carried out the worst attack on civilians in contested Muslim-majority Kashmir for a quarter of a century.
“We very much appeal to both the governments... to exercise maximum restraint, and to ensure that the situation and the developments we’ve seen do not deteriorate any further,” UN spokesman Stephane Dujarric told reporters in New York on Thursday.
“Any issues between Pakistan and India, we believe, can be and should be resolved peacefully through meaningful mutual engagement.”
Indian Prime Minister Narendra Modi on Thursday vowed to hunt down the gunmen responsible for killing 26 civilians at the popular tourist site of Pahalgam, after Indian police identified two of the three fugitive gunmen as Pakistani.
“I say to the whole world: India will identify, track and punish every terrorist and their backer,” Modi said, in his first speech since Tuesday’s attack in the Himalayan region.
“We will pursue them to the ends of the Earth.”
Denying any involvement, Islamabad called attempts to link Pakistan to the Pahalgam attack “frivolous” and vowed to respond to any Indian action.
“Any threat to Pakistan’s sovereignty and to the security of its people will be met with firm reciprocal measures in all domains,” a Pakistani statement said, after Pakistan Prime Minister Shehbaz Sharif held a National Security Committee meeting with top military chiefs.
Kashmir has been divided between India and Pakistan since their independence in 1947, with both claiming the territory in full but governing separate portions of it.
Rebel groups have waged an insurgency in Indian-controlled Kashmir since 1989, demanding independence or a merger with Pakistan.
India’s air force and navy both carried out military exercises Thursday.
Indian police say the three gunmen are members of the Pakistan-based Lashkar-e-Taiba group, a UN-designated terrorist organization.
They offered a two million rupee ($23,500) bounty for information leading to each man’s arrest.
A day after the attack, New Delhi suspended a water-sharing treaty, announced the closure of the main land border crossing with Pakistan, downgraded diplomatic ties, and withdrew visas for Pakistanis.
In response, Islamabad on Thursday ordered the expulsion of Indian diplomats and military advisers, canceling visas for Indian nationals — with the exception of Sikh pilgrims — and closing the main border crossing from its side.
Pakistan also warned any attempt by India to stop the supply of water from the Indus River would be an “act of war.”
Pahalgam marks a dramatic shift in recent Kashmiri rebel attacks, which typically target Indian security forces.
Experts say that a military response may still be in the pipeline, with some speculating that it may come within days while others say weeks.
In 2019, a suicide attack killed 41 Indian troops in Kashmir and triggered Indian air strikes inside Pakistan, bringing the countries to the brink of all-out war.
“Whatever little land these terrorists have, it’s time to reduce it to dust,” Modi said on Thursday, after holding two minutes of silence in memory of those killed, all but one of whom was Indian.
India has taken its time to respond to past attacks.
The worst attack in recent years in Indian-run Kashmir was at Pulwama in 2019, when insurgents rammed a car packed with explosives into a police convoy, killing 40 and wounding 35.
Indian fighter jets carried out air strikes on Pakistani territory 12 days later.
Tuesday’s assault occurred as tourists enjoyed tranquil mountain views at the popular site at Pahalgam, when gunmen burst out of forests and raked crowds with automatic weapons.
Survivors told Indian media the gunmen targeted men and spared those who could give the Islamic declaration of faith.
Indian security forces have launched a vast manhunt for the attackers, with large numbers of people detained.
The attack has enraged Hindu nationalist groups, and students from Kashmir at institutions across India have reported experiencing harassment and intimidation.


Pakistan to pilot digital currency, following trend set by Gulf and Asian regulators

Pakistan to pilot digital currency, following trend set by Gulf and Asian regulators
Updated 4 sec ago

Pakistan to pilot digital currency, following trend set by Gulf and Asian regulators

Pakistan to pilot digital currency, following trend set by Gulf and Asian regulators
  • Central bank governor says legislation for virtual assets near final stage, pilot for digital rupee expected soon
  • Central banks globally are exploring use of digital currencies as interest in blockchain-based payments grows

KARACHI/SINGAPORE: Pakistan’s central bank is preparing to launch a pilot for a digital currency and is finalizing legislation to regulate virtual assets, Governor Jameel Ahmad said on Wednesday, as the country ramps up efforts to modernize its financial system.

Central banks globally are exploring the use of digital currencies as interest in blockchain-based payments grows. Pakistan’s move follows similar steps by regulators in China, India, Nigeria and several Gulf states to test or issue digital currencies through controlled pilot programs.

Speaking at the Reuters NEXT Asia summit in Singapore, Ahmad said Pakistan was “building up our capacity on the central bank digital currency” and hoped to roll out a pilot soon.

He was speaking on a panel alongside Sri Lanka’s central bank governor, P. Nandalal Weerasinghe, with both discussing monetary policy challenges in South Asia.

Ahmad added that a new law would “lay down the foundations for the licensing and regulation” of the virtual assets sector and that the central bank was already in touch with some tech partners.

The move builds on efforts by the government-backed Pakistan Crypto Council, set up in March to drive virtual asset adoption. The PCC is exploring bitcoin mining using surplus energy, has appointed Binance founder Changpeng Zhao as a strategic adviser and plans to establish a state-run bitcoin reserve.

It has also held talks with US-based crypto firms, including the Trump-linked World Liberty Financial.

In May, the State Bank of Pakistan clarified that virtual assets were not illegal. However, it advised financial institutions not to engage with them until a formal licensing framework was in place.

“There are risks associated, and at the same time, there are opportunities in this new emerging field. So we have to evaluate and manage the risk very carefully, and at the same time not allow to let go the opportunity,” he said on the panel.

TIGHT GRIP, FALLING RATES

On the monetary policy front, Ahmad said the central bank would continue to maintain a tight policy stance to stabilize inflation within its 5–7 percent medium-term target.

Pakistan has cut its benchmark rate from a peak of 22 percent to 11 percent over the past year, as inflation fell sharply from 38 percent in May 2023 to 3.2 percent in June, averaging 4.5 percent in the 2025 fiscal year just ended, a nine-year low.

“We are now seeing the results of this tight monetary policy transfer, both on our inflation as well as on the external account,” he said.

Ahmad also said Pakistan was not overly exposed to dollar weakness, noting that the country’s foreign debt was mostly dollar-denominated and only 13 percent comprised Eurobonds or commercial loans.

“We don’t see any major impact,” he said, adding that reserves had risen to $14.5 billion from under $3 billion two years ago.

Ahmad said Pakistan’s current three-year $7 billion IMF program, which runs through September 2027, was on track and had already resulted in reforms in fiscal policy, energy pricing and the foreign exchange market.

“We are confident that after that (IMF program), maybe we will not require an immediate (follow-up).”

Pakistan’s central bank governor was asked during the panel whether Pakistan had financing plans lined up for upcoming military equipment purchases, particularly imports from China.

He responded that he was not aware of such plans, and said the central bank’s mandate remained ensuring smooth interbank market functioning and maintaining ample foreign exchange “so that there is no problem as far as trade financing is concerned.”


Turkiye urges dialogue after Pakistan-India tensions, condemns Israeli attacks on Iran and Gaza

Turkiye urges dialogue after Pakistan-India tensions, condemns Israeli attacks on Iran and Gaza
Updated 58 min 11 sec ago

Turkiye urges dialogue after Pakistan-India tensions, condemns Israeli attacks on Iran and Gaza

Turkiye urges dialogue after Pakistan-India tensions, condemns Israeli attacks on Iran and Gaza
  • Fidan praises Pakistan’s “calm attitude” during May tensions, warns of “severe results” of conflict between nuclear-armed states
  • Turkish foreign minister says Israeli strikes on Iran shift focus from Gaza “genocide,” calls for ceasefire, coordinated support for Palestinians

ISLAMABAD: Turkish Foreign Minister Hakan Fidan on Wednesday urged Pakistan and India to pursue “meaningful and efficient dialogue” to avoid future conflict, warning that an air war between the neighbors earlier this year highlighted the “severe” risks of escalation between two nuclear-armed states. 

In May 2025, the most intense India–Pakistan military confrontation in decades erupted following an April 22 attack in Indian-administered Kashmir, which killed 26 people. New Delhi, without providing evidence, said Islamabad was behind the assault, which denies the charge.

India responded on May 7 by launching a series of airstrikes targeting what it called suspected militant infrastructure in Pakistan. Pakistan retaliated with its own drone, artillery, and missile strikes. After four days of hostilities, a US-mediated ceasefire was agreed on May 10, halting the confrontation amid global alarm over the risk of escalation.

“In April-May, there has been tension experienced between Pakistan and India, which we closely followed, and all the international society has seen the wisdom-oriented and calm attitude of Pakistan,” Fidan said during a press conference in Islamabad.

“This tension has been an important indicator that when two nuclear powers come face to face that this is going to have very severe results,” he added. 

“We have actually seen this ceasefire as an important decision, and in order to eliminate similar tensions, we believe that there has to be meaningful and efficient dialogue between the parties. As Turkiye, we’re always ready to support this so that there will be peace and there will not be any clashes.”

Fidan, along with the Turkish defense minister, is visiting Pakistan as part of efforts to deepen bilateral ties and discuss regional security challenges, including the ongoing war in Gaza and rising tensions in the Middle East after Israel’s attacks on Iranian nuclear facilities and other targets last month.

“Unfortunately, the attacks have actually shaken the trust first toward the international regime on the prevention of nuclear expansions, and we have actually conveyed our messages to the parties [US, Iran] for the restart of the nuclear negotiations,” Fidan said.

“We’re in constant contact with Pakistan, and both countries are contacting both parties of the conflict. Turkiye believes that there has to be peaceful resolutions through negotiations, and we will continue to have a constructive contribution to this.”

Commenting on the Israeli military campaign in Gaza, which began in October 2023, Fidan said Turkiye condemned the ongoing Israeli attacks and supported an immediate and lasting ceasefire.

“Israel attacks are, and aggressions are, not just a risk for our region but for the whole world. At this current status quo, we do hope that the ceasefire will be permanent,” he said.

He added that the Israeli strikes on Iran had diverted international attention from what he described as the “massacre in Gaza and the genocide in Gaza.”

“Today, we [Turkiye and Pakistan] also discussed about the joint steps that we can take for our Palestinian brothers,” Fidan said.

“Within this plan, the Israel attacks and aggression should end, and we hope that peace will be brought to Gaza and calm will be established. We will continue to support the Palestinian people and the Palestinian cause.”


Gulf remittances drive record $38.3 billion inflow to Pakistan in FY25,  surpassing IMF loan package

Gulf remittances drive record $38.3 billion inflow to Pakistan in FY25,  surpassing IMF loan package
Updated 09 July 2025

Gulf remittances drive record $38.3 billion inflow to Pakistan in FY25,  surpassing IMF loan package

Gulf remittances drive record $38.3 billion inflow to Pakistan in FY25,  surpassing IMF loan package
  • Remittances rose by around $8 billion from FY24’s $30.25 billion, marking a sharp 27 percent increase
  • topped FY25 remittance sources with $9.34 billion, followed by UAE with $7.83 billion

KARACHI: Pakistan received a record $38.3 billion in workers’ remittances during the last fiscal year, reporting an increase of about $8 billion over a 12-month period that exceeds the country’s ongoing International Monetary Fund (IMF) loan program, according to official data and analysts on Tuesday.

The remittance surge from $30.25 billion in FY24 helped shore up the country’s foreign reserves, prompting experts to says it is likely to push the current account into surplus for the first time in over a decade.

The IMF Executive Board approved a $7 billion Extended Fund Facility (EFF) for Pakistan in April 2024, spanning 37 months, after acknowledging Islamabad’s structural reforms and stabilizing macroeconomic indicators.

The government described the bailout as critical to reviving an economy that had faced a prolonged financial crisis and balance-of-payments stress over the past two years.

“Remittances have actually rescued Pakistan beyond expectations. It was a significant jump of over $8 billion in annual remittances, which is more than the whole IMF program funding,” Shankar Talreja, head of research at Topline Securities Limited, told Arab News after the central bank released remittance figures for the last fiscal year.

“Thanks to the remittances, we will be able to record a current account surplus for the first time after 13 years of deficit and for only the second time in the last two decades,” he added.

According to the State Bank of Pakistan, led all contributors during FY25, with remittances totaling $9.34 billion, followed by the United Arab Emirates at $7.83 billion, the United Kingdom at $5.99 billion and the United States at $3.72 billion.

Remittances from Gulf Cooperation Council (GCC) countries excluding and the UAE totaled $3.71 billion, while EU countries contributed $3.53 billion.

Commenting on the data, Mohammed Sohail, CEO of Topline Securities, wrote on social media: “Record Remittances When Most Needed. In a year marked by economic challenges, overseas workers stepped up: Pakistan received a record USD 38.3 billion in remittances in FY25 — up 27 percent.”

The fiscal year average stood at approximately $3.19 billion per month, well above the average of $2.52 billion in FY24.


Pakistan to launch targeted polio vaccination drive in northern districts next week

Pakistan to launch targeted polio vaccination drive in northern districts next week
Updated 09 July 2025

Pakistan to launch targeted polio vaccination drive in northern districts next week

Pakistan to launch targeted polio vaccination drive in northern districts next week
  • More than 158,000 children to be immunized in four high-risk areas from July 14 to 18
  • Surge in cases raises alarm as Pakistan remains one of two countries where polio is still endemic

KARACHI: Pakistan will launch a targeted five-day polio vaccination campaign next week, aiming to immunize more than 158,000 children in high-risk districts of the northern Gilgit-Baltistan region and northwestern Khyber Pakhtunkhwa province, health authorities said on Wednesday.

The campaign will be conducted exclusively in the Diamer district of Gilgit-Baltistan and the Upper Kohistan, Lower Kohistan, and Kolai-Palas districts of Khyber Pakhtunkhwa, according to the National Emergency Operations Center (NEOC), which oversees Pakistan’s polio eradication efforts.

“Special focus and effective strategies are being applied in high-risk union councils,” the NEOC said in a statement, referring to administrative units where access and vaccine acceptance remain challenging. 

The drive will take place from July 14 to 18.

Polio is a highly infectious viral disease that primarily affects young children and can cause permanent paralysis. There is no cure, but it can be prevented through multiple doses of the oral polio vaccine and a complete routine immunization schedule, experts say.

Pakistan, one of only two countries in the world where polio remains endemic, the other being neighboring Afghanistan, has made significant gains in recent decades. Annual cases have fallen dramatically from an estimated 20,000 in the early 1990s to single digits by 2018.

However, the country has witnessed a worrying resurgence recently. As of July 2025, Pakistan has reported 14 polio cases, including eight in Khyber Pakhtunkhwa, four in Sindh, and one each in Punjab and Gilgit-Baltistan, according to official data. The country reported 74 cases in 2024, raising alarms among health officials and global partners supporting the eradication campaign.

In contrast, only six cases were recorded in 2023 and just one in 2021. 

The latest targeted drive follows smaller vaccination efforts in high-risk areas. A special campaign was conducted last month in six union councils of Khyber Pakhtunkhwa’s Bannu district, where approximately 17,500 children were vaccinated. A similar operation is planned for 11 union councils in North Waziristan, another district with a history of polio transmission.

The government conducted three nationwide polio campaigns earlier this year, in February, April, and May, aiming to reach around 45 million children with the help of over 400,000 frontline workers, including 225,000 women vaccinators.

Despite decades of effort, Pakistan’s eradication drive has faced persistent challenges, including misinformation about vaccines and resistance from conservative religious and militant groups who view immunization campaigns with suspicion. Some clerics have claimed the vaccines are a Western conspiracy to sterilize Muslim children or part of intelligence operations.

Vaccination teams and police providing security have also been targeted in militant attacks, particularly in remote and conflict-affected areas of Khyber Pakhtunkhwa and Balochistan. These threats have at times forced the suspension of campaigns and restricted access to vulnerable populations.

Pakistan launched its national polio eradication program in 1994.


Pakistan, Russia discuss steel mills revival, industrial cooperation at INNOPROM forum

Pakistan, Russia discuss steel mills revival, industrial cooperation at INNOPROM forum
Updated 09 July 2025

Pakistan, Russia discuss steel mills revival, industrial cooperation at INNOPROM forum

Pakistan, Russia discuss steel mills revival, industrial cooperation at INNOPROM forum


ISLAMABAD: Russia and Pakistan discussed plans to modernize a major steel complex and expand industrial cooperation during a high-level meeting on the sidelines of the INNOPROM Annual Industrial Forum in Yekaterinburg, state media reported on Tuesday.

The meeting between Haroon Akhtar Khan, Special Assistant to the Pakistani Prime Minister on Industries and Production, and Russian Trade and Industry Minister Anton Alikhanov focused on reviving Pakistan’s dormant steel industry and enhancing bilateral trade.

INNOPROM is Russia’s largest annual industrial trade fair, bringing together government delegations, business leaders and technology firms from over 30 countries to explore partnerships in manufacturing, engineering and high-tech industries.

“Both sides reviewed technical aspects of modernizing the Pakistan Steel Mills to establish a cutting-edge metallurgical facility,” Pakistan Television (PTV) reported. “The discussions also explored ways to enhance trade ties and promote industrial collaboration between the two countries.”

Earlier this month, Russian Consul-General Andrey B. Fedorov told Arab News Moscow expected to finalize an agreement with Islamabad this summer to construct a new steel mill in Karachi.

The original Pakistan Steel Mills, once the country’s flagship industrial complex, was built in the 1970s with Soviet assistance. While it symbolized national self-sufficiency, the mill has been non-operational since 2015 due to years of financial mismanagement, political interference and mounting losses.

Technical experts from Russia have already inspected the proposed site for the new facility, and another delegation is expected soon to draft a detailed roadmap.

Russia has a long history of industrial cooperation with Pakistan, having previously built key infrastructure projects such as the Guddu Power Station in Sindh in the 1980s, one of the country’s major electricity producers.

Moscow and Islamabad have expanded cooperation in recent years despite global tensions over the war in Ukraine.