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Pakistan says fuel stocks sufficient, vows vigilance as Israel-Iran conflict rattles markets

Pakistan says fuel stocks sufficient, vows vigilance as Israel-Iran conflict rattles markets
Oil tankers park in a terminal amid a countrywide strike by the All Pakistan Oil Tankers Association near a port in the Pakistani city of Karachi on July 26, 2017. (AFP/ file)
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Updated 16 June 2025

Pakistan says fuel stocks sufficient, vows vigilance as Israel-Iran conflict rattles markets

Pakistan says fuel stocks sufficient, vows vigilance as Israel-Iran conflict rattles markets
  • Committee to monitor petroleum pricing and supply in response to Israel’s attack on Iran holds inaugural meeting
  • Pakistan relies heavily on imported oil, global price swings can drain its foreign reserves and fuel domestic inflation

KARACHI: Pakistan currently holds adequate stocks of petroleum products and faces no immediate risk of supply disruption, the finance ministry said on Monday, while warning that continued vigilance was needed as Middle East tensions pushed oil markets into fresh volatility.

The statement came after the inaugural meeting of a committee formed by Prime Minister Shehbaz Sharif last week to monitor petroleum pricing and supply in response to an ongoing military confrontation between Israel and Iran. 

Oil markets have been volatile amid the escalation, with Brent crude prices jumping about 7 percent last Friday to near $75 per barrel, but edging down on Monday, as renewed military strikes by both nations over the weekend left oil production and export facilities unaffected.

Concern is focused on potential disruptions in the Strait of Hormuz, through which roughly one‑fifth of global oil transits, and weak supply growth from Iran, which produces about 3.3 million barrels per day. Analysts caution any sustained spike could drive up global freight rates, insurance premiums and inflation, particularly in energy‑importing countries like Pakistan.

“The committee expressed satisfaction that Pakistan currently holds adequate stocks of petroleum products and there is no immediate risk of supply disruption. Nonetheless, members emphasized the need for continued vigilance given the rapidly changing regional context,” the finance ministry said after the first meeting of the committee, chaired by Finance Minister Muhammad Aurangzeb.

The ministry added that to ensure timely response and effective coordination, a working group would monitor developments on a daily basis, and the full committee would meet weekly to review the situation and submit recommendations to the prime minister. 

“The Government of Pakistan remains fully committed to maintaining energy security, stabilizing markets, and protecting the national interest during this critical time,” the statement added.

The committee has been entrusted with monitoring the forward/futures prices of petroleum products and the predictability of supply chains, determining the foreign reserve implications of price volatility in the short and medium term, suggesting a plan, if and when required, to ensure there were no supply disruptions and the market was well supplied, and carrying out a detailed analysis of the fiscal impact in the event of a protracted conflict.

Pakistan relies heavily on imported oil, and any sustained spike in prices could widen its current account deficit and push inflation higher at a time when the country is struggling with low foreign reserves and slow growth.

The Israel-Iran conflict started on Friday when Israel launched a massive wave of attacks targeting Iranian nuclear and military facilities but also hitting residential areas, sparking retaliation and fears of a broader regional conflict. Over 220, mostly civilians have been killed in Iran so far, while Israel has reported 23 deaths in retaliatory strikes by Tehran.

Pakistan and Iran share a 909 kilometer (565 mile) long international boundary that separates Iran’s southeastern Sistan-Baluchestan province from Pakistan’s southwestern Balochistan province. 

“Israel-Iran conflict presents complex challenges for Pakistan as rising oil prices may increase import costs and inflation, influencing monetary policy and growth, while disruptions to key routes like the Strait of Hormuz can affect energy supplies and critical projects,” Khaqan Najeeb, an economist and former finance ministry adviser, told Arab News last week. 

“It can potentially affect consumer purchasing power and production costs ... Possible disruptions to shipping routes and higher freight charges might result in delays to imports and exports, thereby exerting additional pressure on Pakistan’s external sector.”


Pakistan unveils Wheat Policy 2025-26 to ensure fair prices, stable reserves

Pakistan unveils Wheat Policy 2025-26 to ensure fair prices, stable reserves
Updated 28 sec ago

Pakistan unveils Wheat Policy 2025-26 to ensure fair prices, stable reserves

Pakistan unveils Wheat Policy 2025-26 to ensure fair prices, stable reserves
  • Under the new policy, the federal and provincial governments will acquire strategic reserves of about 6.2 million tons from the 2025-26 wheat crop
  • The procurement will be made at international import price of Rs3,500 ($12) per maund to ensure profit to farmers, maintaining market competitiveness

ISLAMABAD: The Pakistani government has unveiled its Wheat Policy 2025-26 that aims to ensure fair prices for farmers and maintain stable strategic reserves to safeguard national food security, Prime Minister Shehbaz Sharif’s office announced Sunday.

Under the new wheat policy, the federal and provincial governments will acquire strategic reserves of about 6.2 million tons from the 2025-26 wheat crop, according to PM Sharif’s office.

The procurement will be made at Rs3,500 ($12) per maund as per the international import price of wheat, which will ensure fair price and profit to farmers while maintaining market competitiveness.

“The government is well aware of the difficulties faced by farmers,” Sharif was quoted as saying at a meeting of provincial and regional representatives and stakeholders.

“The policy will play a significant role in ensuring food security for the people of Pakistan.”

The development comes weeks after floods in Pakistan’s breadbasket Punjab province destroyed 30 percent of the country’s wheat stocks, a senior official of a leading business forum said.

Pakistan was ranked as the world’s eighth-largest wheat producer by the US Department of Agriculture (USDA) last year. It said the country had produced 31.4 million tons of the crop that year, which amounted to 4 percent of the world’s total wheat production.

Agriculture contributes 24 percent to Pakistan’s gross domestic product, according to the Pakistan Bureau of Statistics. The USDA has estimated Pakistan’s wheat production this year at 28.9 million tons from 9.1 million hectares till August, 8 percent down from last year’s 31.4 million tons.

The new policy reflects a unified effort by federal and provincial stakeholders to strengthen the agricultural economy and support the farming community, according to Sharif’s office.

National Food Security Minister Rana Tanveer Hussain will head a national committee, comprising representatives from all provinces, to monitor implementation and coordination of new policy measures.

“Under the [new] policy, there will be no restrictions on inter-provincial movement of wheat to ensure its availability across Pakistan,” the PM’s office said.


’Market is almost dead’: Traders in Pakistani border town decry border closures due to Afghanistan clashes

’Market is almost dead’: Traders in Pakistani border town decry border closures due to Afghanistan clashes
Updated 4 min 8 sec ago

’Market is almost dead’: Traders in Pakistani border town decry border closures due to Afghanistan clashes

’Market is almost dead’: Traders in Pakistani border town decry border closures due to Afghanistan clashes
  • Key border crossings of Chaman, Torkham were closed for trade last week amid deadly Pakistan-Afghanistan clashes
  • Traders in Chaman say closure of key crossing causing unemployment, business losses on both sides of the border

CHAMAN/BALOCHISTAN: Hajji Abdul Bari Achakzai’s office wears a deserted look. The empty chairs in his office in the southwestern Pakistani city of Chaman reflect the impact that border closures, triggered by clashes between Pakistan and Afghanistan, have had on bilateral trade in both countries.

Pakistan and Afghanistan saw fierce fighting on Oct. 11, when Afghan forces struck multiple Pakistani military posts. Afghanistan officials claimed to have killed 58 Pakistani soldiers in response to what they said were repeated violations of Afghan territory and airspace. Pakistan’s military gave lower figures, saying it lost 23 soldiers and killed more than 200 “Taliban and affiliated terrorists” during retaliatory fire along the border.

The clashes caused border closures between Pakistan and Afghanistan last week, through the northwestern border crossing in Torkham and southwestern Chaman crossing in Balochistan, effectively halting trade and the movement of people between the two countries.

Seventy-year-old Achakzai’s family has been in the business of importing and exporting goods from Chaman since the past 60 years. The border closures have taken a toll on his business and affected Chaman, he said.

“Due to these repeated border closures, Chaman has reached near-total unemployment,” Achakzai told Arab News on Saturday.

Pakistan is a key exporter of goods, mainly fresh fruits, rice, flour and other edible items to Afghanistan, while it imports dry fruits and other scrap material from the country.

Islamabad has repeatedly accused the administration in Kabul of failing to take action against militant outfits such as the Tehreek-e-Taliban Pakistan (TTP) and the separatist Balochistan Liberation Army (BLA), which it alleges carry out attacks targeting Pakistan from Afghan soil. Kabul denies the allegations.

The TTP have become emboldened since the Taliban returned to power in Afghanistan in 2021, carrying out attacks against Pakistani security forces. These attacks have caused repeated clashes between Pakistani and Afghan border forces, triggering frequent border closures.

Both countries agreed to a ceasefire in Doha on Saturday, though tensions remain heightened, amid closure of border crossings.

As per the Pak-Afghan Joint Chamber of Commerce and Industry (PAJCCI), the annual Pakistan-Afghan trade volume has declined from $2.5 billion dollars to $10 million during the last two fiscal years.

Apart from Torkham in the northwest, the Chaman–Spin Boldak crossing is one of the busiest and most strategically important trade routes between Pakistan and Afghanistan.

“Chaman used to be a key route for trade between Kabul-Karachi and Hirat-New Delhi and this transit point remained a source of income for us,” Achakzai noted.

Zia Ul Haq Sarhardi, senior vice president of the PAJCCI, said recent tensions between Pakistan and Afghanistan are causing losses worth billions of rupees that cannot be estimated accurately. He described the escalation in tensions as a “major tragedy.”

“I don’t see the border will reopen easily this time because the Pak-Afghan bilateral relations have been worsening,” Sarhardi said.

Muhammad Ayoub Meerani, president of the Quetta Chamber of Commerce and Industry (QCCI) in Balochistan’s capital city, blamed the Pakistani government’s policies for declining trade with Afghanistan. 

“Afghanistan’s landlocked market has moved away from us and into the hands of Iran, Uzbekistan, and other countries,” Meerani told Arab News.

“Even small, perishable items are not being exported from here causing millions of dollars’ damages to the business community of Balochistan.”

He called on both countries to end their conflict and for border trade to resume.

DESERTED MARKETS

Local traders remain busy hunting for customers in Chaman, where Naimatullah Achakzai, 36, runs a shop selling dry fruits on Taj Road.

“The market is almost dead,” he said. “Around 60 percent of the goods in our shop come from Afghanistan, like almonds, raisins, cashews, walnuts, and all kinds of dry fruits. We bring them from across the border and supply them throughout Pakistan.”

He warned that if the situation persists, around 2 million people in Chaman and Afghanistan’s Spin Boldak border town would be “devastated.”

Hajji Jamal Shah Achakzai, president of the traders’ association in Chaman district, agreed.

“Our entire livelihood depends on the border. Goods that used to go out and come in from the border are now almost non-existent,” he said.

“Chaman has suffered heavy losses. If the situation continues, people will start migration from this bordering town.”


Pakistan environmental agency launches plan to curb vehicular emissions, smog in capital

Pakistan environmental agency launches plan to curb vehicular emissions, smog in capital
Updated 19 October 2025

Pakistan environmental agency launches plan to curb vehicular emissions, smog in capital

Pakistan environmental agency launches plan to curb vehicular emissions, smog in capital
  • The new framework combines strict enforcement with long-term transition to cleaner fuels and electric vehicles
  • Pakistani urban centers routinely rank among most polluted cities, with vehicular emissions as one of main reasons

ISLAMABAD: The Pakistan Environmental Protection Agency (Pak-EPA) has rolled out a comprehensive Vehicular Emission Control Action Plan (VECAP) for the Islamabad Capital Territory (ICT), the climate change ministry announced on Sunday, marking a major policy initiative to combat air pollution and smog in the capital city.

The plan, unveiled by the climate ministry in coordination with the capital administration, Islamabad Transport Authority and Traffic Police, outlines both short- and long-term measures to regulate exhaust emissions, modernize urban transport and improve air quality in the capital.

After the heat-trapping industrial emissions, the rapidly increasing vehicular emissions have emerged as one of the leading sources of choking air pollution in Islamabad, according to Saleem Shaikh, a climate change ministry spokesman.

These emissions release high levels of carbon monoxide, nitrogen oxides, hydrocarbons and fine particulate matter (PM2.5), which contribute significantly to respiratory and cardiovascular illnesses.

“This ambitious action plan provides a clear and viable roadmap to cleaner, healthier air for Islamabad’s citizens,” Shaikh said in a statement. “It moves beyond temporary measures and builds a structured, long-term framework that combines enforcement with innovation and public engagement through awareness and advocacy.”

The short-term phase (0–18 months) focuses on strong enforcement and community awareness. Under this phase, Pak-EPA and the Islamabad Traffic Police will conduct regular and surprise roadside inspections to ensure compliance with National Environmental Quality Standards (NEQS).

The plan mandates 100 percent NEQS compliance for all government transport fleets within the specified timeframe and introduces third-party emission testing for private and commercial vehicles through certified laboratories. Vehicle owners will be required to obtain mandatory emission compliance certificates, which will be linked with registration and transfer processes.

Pakistan’s main urban centers routinely rank among the most polluted cities in the world, with vehicular emissions remaining one of the top contributors to air pollution. This severe air pollution also undermines economic productivity and diminishes the quality of life for millions of residents.

Shaikh said city-wide public awareness campaigns would be launched through television, radio and digital media to promote regular vehicle maintenance and discourage the use of smoke-emitting vehicles at all levels. Officials have recently fined 215 vehicles and impounded 32 others for violating emission limits, he added.

Special focus would now be placed on diesel-run buses, trucks and water tankers, while all petrol vehicles would be checked for catalytic converters, according to the climate change ministry. Burning of trash and solid waste would also be strictly prohibited and those found involved will be fined under the Pakistan Environmental Protection Act provisions.

“Above all, public participation is key,” Shaikh said. “Cleaner air cannot be achieved by enforcement alone. Citizens, transporters and institutions must all contribute by maintaining vehicles, avoiding open burning, and supporting the shift toward low-emission mobility.”

Sharing details of the long-term phase (18–60 months) of the EVPP, Shaikh said they would concentrate on a structural shift toward cleaner fuels and technologies in this stage.

“Under this long-term phase to overcome air pollution challenges in the capital, a Comprehensive Electric Vehicle Promotion Programme (EVPP) will be launched to establish EV charging stations across Islamabad, introduce a 10 percent EV quota in government fleets, and offer incentives such as tax exemptions and dedicated EV lanes,” the climate change ministry official said.

“The ministry’s overarching goal is to make Islamabad a model city for clean and climate-smart transport. This is part of Pakistan’s broader commitment to achieving sustainable urban air quality and reducing greenhouse gas emissions.”

Pakistan ranks among nations most vulnerable to climate change and has seen erratic changes in its weather patterns, which have led to frequent heat waves, untimely rains, storms, cyclones, floods and droughts in recent years. This year, monsoon floods killed 1,037 people and caused initial losses worth $1.31 billion.

Experts have warned that without urgent adaptation and mitigation measures, the human and economic toll of climate change will only deepen in the years ahead.

Discussing implementation of the new framework, Shaikh said it would be executed through multi-agency coordination, involving joint efforts of Pak-EPA, ICT Administration, Excise and Taxation Department, Capital Development Authority (CDA), Oil and Gas Regulatory Authority (OGRA), and Islamabad Traffic Police.

This collaborative approach combines policy reform, enforcement and technology adoption to deliver lasting environmental benefits, according to the official.

“The success of this plan will depend on sustained institutional support, inter-agency cooperation and active public participation,” he said. “Cleaner air for Islamabad is achievable only when every stakeholder, from policymakers to commuters, plays their role responsibly for the sake of their own and environmental health but also for the health of future generation and city’s environmental sustainability.”


Future of Pakistan-Afghanistan ceasefire hinges on Kabul’s ability to rein in TTP — analysts

Future of Pakistan-Afghanistan ceasefire hinges on Kabul’s ability to rein in TTP — analysts
Updated 19 October 2025

Future of Pakistan-Afghanistan ceasefire hinges on Kabul’s ability to rein in TTP — analysts

Future of Pakistan-Afghanistan ceasefire hinges on Kabul’s ability to rein in TTP — analysts
  • Clashes erupted between the neighbors on Oct. 11 after Pakistan conducted airstrikes on Kabul following the killing of a dozen soldiers
  • Pakistan has long accused Afghanistan of harboring groups such as TTP and separatist Baloch Liberation Army, Kabul denies the allegation

ISLAMABAD: Foreign affairs and security analysts on Sunday said the durability of a ceasefire reached between Pakistan and Afghanistan depends on the Taliban’s ability to rein in the Tehreek-e-Taliban Pakistan (TTP), warning that any failure could force Islamabad to act against the militant group and further harm bilateral ties.

Pakistan and Afghanistan reached a ceasefire agreement in Doha on Saturday night after days of fierce clashes ad airstrikes between the two sides, which killed dozens of people on both sides and pushed already frayed relations between the neighbors to a new low.

Pakistan has long accused Afghanistan of harboring militant groups such as the TTP and the separatist Baloch Liberation Army (BLA), which carry out attacks against its security forces and civilians. Kabul denies the allegations, but the issue has remained a major sticking point between the two countries.

Border clashes erupted between the neighbors on Oct. 11 after Pakistan conducted airstrikes on Kabul following the killing of a dozen Pakistani soldiers in Khyber Pakhtunkhwa province that borders Afghanistan. The skirmishes and strikes continued intermittently before the two sides reached a ceasefire in Doha.

“It really depends on the Taliban as the ball is now in their court after they gave an understanding and undertaking in the presence of Turkish and Qatari officials,” Brig. (retired) Masud Ahmad Khan, a security analyst, told Arab News.

“It is the Taliban’s responsibility, but I have doubts since they do not have full control and there is a strong possibility that the TTP may reject their demands or proposals.”

Relations between Islamabad and Kabul have sharply deteriorated over a surge in militancy in Pakistan’s western regions. The two countries share a 2,611-kilometer (1,622-mile) long, porous known as the Durand Line, which Afghanistan has never recognized.

The TTP, which has had a close relationship with the Afghan Taliban, has been behind some of the deadliest attacks in Pakistan since late 2000s. The group has stepped up its attacks against Pakistani security forces and law enforcement agencies since the Taliban’s return to power in Afghanistan.

Khan believed that Pakistan will not further tolerate cross-border attacks originating from Afghanistan, which have completely suspended trade between the two countries.

“The rules of engagement are clear,” he said. “Pakistan will strike there, if the attacks continued.”

The two sides agreed that the series of “terrorist activities from Afghanistan on Pakistani soil” will cease immediately, according to Pakistani Defense Minister Khawaja Asif who was part of the peace talks in Doha. Both countries agreed to respect each other’s territory.

Former Pakistani foreign secretary Aizaz Ahmed Chaudhry called the ceasefire a welcome development but expressed doubts about its sustainability, citing the Afghan Taliban’s “past record of not honoring such commitments.”

“Their past record is such that they have often violated the agreements, but I hope that this time they will honor this agreement because peace will serve both countries,” he said, adding that India has used Afghanistan’s soil for creating trouble in Pakistan and there is “documentary evidence” of it.

Islamabad has long accused Kabul of allowing the use of its soil and India of backing militant groups for attacks inside Pakistan. Kabul and New Delhi have consistently denied these allegations.

Asif Durrani, another former Pakistani diplomat, said Pakistan “cannot lower its guard” and has to respond if attacks continued.

“Afghanistan is a sovereign state and can have relations with any country, but Pakistan would be justified in expecting Afghanistan not to allow its soil to be used by India against Pakistan,” he told Arab News, adding that Islamabad has faced a “two-front situation” for the past two decades and has the capacity to tackle it if forced upon.

Dr. Qamar Cheema, executive director of the Sanober Institute think tank that focuses on South Asia affairs, said the key issue is whether the Afghan Taliban can control the TTP.

“Their [Afghan Taliban] failure to do so will seriously question the regime’s legitimacy, control and sovereignty in its own territory,” he said.

Cheema noted that Afghanistan is a landlocked country and depends upon Pakistan for the import and export of goods.

“It ultimately depends on whether the Afghan government chooses cooperation with Pakistan or allows non-state actors to hold its people and government hostage,” he added.


Growing India-Taliban ties anger neighboring Pakistan

Growing India-Taliban ties anger neighboring Pakistan
Updated 19 October 2025

Growing India-Taliban ties anger neighboring Pakistan

Growing India-Taliban ties anger neighboring Pakistan
  • Pakistan and Afghanistan agreed to ceasefire in Doha on Oct. 19 after deadly border clashes since last week
  • Afghanistan and Pakistan have had frosty relations since withdrawal of US-led troops, return of Taliban government

KABUL: As fighting between Pakistan and Afghanistan escalated into rare, bloody combat this month, Islamabad pointed fingers at another adversary, accusing India of fueling the conflict.

Pakistan’s Prime Minister Shehbaz Sharif said that New Delhi had “incited” the Afghan Taliban, while his Defense Minister, Khawaja Muhammad Asif, described Kabul as acting like a “proxy of India.”

Existential archrivals, Pakistan and India have fought repeated wars since partition cleaved the subcontinent at the end of British rule in 1947.

They have also long swapped claims of stoking militancy in each other’s territory as part of alleged destabilization campaigns.

But in recent months, Islamabad has warily watched India cosy up to Taliban-governed Afghanistan, even as its own relations with Kabul sharply deteriorated.

The diplomatic reconciliation culminated in the Taliban foreign minister’s arrival in New Delhi on October 9, the first visit by a top Taliban leader since the hard-liners returned to power in 2021.

As India rolled out the red carpet for UN-sanctioned minister Amir Khan Muttaqi, explosions rocked Kabul as well as a market near the Pakistan border.

Wahid Faqiri, an Afghan expert in international relations, said rapprochement between India and the Taliban had compelled Pakistan to react.

By inviting the Taliban foreign minister for a week of talks, New Delhi aimed to “aggravate the ongoing tension between Pakistan and Afghanistan,” he said.

While the October 9 explosions officially went unclaimed, the Taliban government accused Islamabad of an “unprecedented” incursion, and retaliated with its own offensive.

The exchanges set in motion more than a week of deadly artillery barrages and drone strikes — the worst violence between the South Asian neighbors in years.

After an initial truce collapsed, a second ceasefire was inked on October 19.

’BLAMING ITS NEIGHBORS’

One-time allies Afghanistan and Pakistan have had frosty relations since the withdrawal of US-led troops and return of the Taliban government.

Initially, Islamabad struck an optimistic tone, with then-intelligence chief Lt. General Faiz Hameed giving public assurances that “everything will be fine.”

But Islamabad has since continuously accused the Taliban authorities of providing a safe haven to militant groups as deadly terror attacks in Pakistan surge.

The Pakistani Taliban (TTP) and its affiliates are behind much of the violence — largely directed at security forces.

In October alone, over 100 security personnel and police officers were killed in attacks carried out by assailants from Afghanistan, a Pakistani security source told AFP.

For two years now, the rising violence in Pakistan has also helped fuel a mass deportation campaign, with millions of Afghan migrants and asylum seekers blamed for driving up crime and pushed back across the border.

Former Pakistani diplomat Maleeha Lodhi said the Taliban foreign minister’s trip to New Delhi may have been an “irritant, but wasn’t the motivation for the Pakistani reprisals.”

“The principal driver for Pakistan’s ire and frustration with the Taliban authorities is their refusal to rein in TTP,” she said.

Pakistan’s military has also accused New Delhi of supporting the TTP.

India’s foreign ministry denies the charge, and instead accuses Pakistan of trying to evade responsibility for its domestic turmoil and security problems.

“It is an old practice of Pakistan to blame its neighbors for its own internal failures,” it said.

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The bonhomie between New Delhi and Kabul was initially “difficult to justify” in India due to the dominant public perception of Islam as contrary to Prime Minister Narendra Modi’s popular Hindu nationalism, said Praveen Donthi, an analyst at International Crisis Group (ICG).

The absence of women journalists at an initial press conference during Muttaqi’s visit also sparked strong criticism, but public opinion shifted, Donthi said, when the Taliban minister expressed “solidarity” with India over an April 22 terrorist attack in Pahalgam.

That attack in the flashpoint Kashmir region precipitated a four-day war between the nuclear-armed foes, with New Delhi accusing Islamabad of backing the “terrorists.”

The Afghan minister’s solidarity may have bought him some fans in India, but it aggravated Islamabad, with the joint statement describing the disputed region as “Jammu and Kashmir, India” — suggesting Indian sovereignty.

At the end of the Afghanistan-India exchange, New Delhi announced it would upgrade its diplomatic mission in Kabul to a fully fledged embassy.

That represented another stepping stone toward the Taliban government’s ultimate goal of formal international recognition, a move only Moscow has made and that analysts say remains far off for India.

For now, the rekindling is a significant win for the Taliban authorities, and a pointed shift in the complex India-Pakistan-Afghanistan relations.