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ISLAMABAD: The Pakistani delegation has made it clear to Afghan officials that there will be “no compromise” on Islamabad’s demands related to “cross-border terrorism,” a Pakistani security official said on Monday, following talks between the two sides in Istanbul. 

The talks in Istanbul, which began on Saturday, mark the latest attempt by Pakistan and Afghanistan to prevent a relapse into violence after deadly border skirmishes between the neighbors this month killed dozens of people on both sides.

Clashes erupted between the neighbors earlier this month after Pakistan conducted airstrikes on Kabul following the killing of a dozen Pakistani soldiers. The skirmishes and strikes continued intermittently before a ceasefire was reached in Doha on Oct. 19. Pakistan has repeatedly urged Afghanistan to rein in militants on its soil and prevent them from carrying out attacks against it. Kabul denies the allegations. 

In the talks held in Istanbul, Islamabad presented its “final position” to the Afghan side that the “ongoing patronage of terrorists by the Afghan Taliban is unacceptable,” according to the Pakistani security official. Islamabad demanded Kabul take “concrete, verifiable” steps against militant groups, mainly the Tehreek-e-Taliban Pakistan (TTP). There was no immediate comment from the Afghan side on the discussions.

“The Pakistani delegation has made it clear that no compromise is possible on our core demands on cross-border terrorism,” the Pakistani security official said, citing anonymity. 

The official said the “stubbornness, lack of seriousness and non-cooperative attitude” of the Afghan Taliban was “getting evident” to other participants of the dialogue as well, especially to Turkiye. 

“The host country interlocutors are making all-out efforts to bring the Taliban delegation to understand realities, acknowledge evidence and cooperate seriously so that the talks can be fruitful,” the official added. 

FRESH VIOLENCE NEAR AFGHAN BORDER

The statement came hours after Pakistan’s military said five soldiers and 25 TTP militants were killed in two separate engagements near the country’s border with Afghanistan on Saturday night.

“It is significant to point out that these infiltration attempts by Fitna al Khwarij (TTP militants) are being carried out at a time when delegations of Pakistan and Afghanistan are engaged in talks in Türkiye, casting doubts on intentions of interim Afghan government with regards to addressing the issue of terrorism emanating from its soil,” the Inter-Services Public Relations (ISPR), the military’s media wing, said in a statement.

The security official said the arguments presented by the Afghan side in Istanbul were “opposite to ground realities,” accusing Kabul of following “someone else or another agenda.”

“This agenda is not in the interest of the stability of Afghanistan, Pakistan and the region,” the official said.

While the official did not name any third country, ties between Pakistan and Afghanistan have nosedived at a time when India, Pakistan’s arch-rival, has increased its diplomatic engagement with Kabul.

The Taliban-led government in Afghanistan has denied providing sanctuaries to TTP militants on Afghan soil and urged Pakistan to resolve its security issues internally. It has also accused Islamabad of violating Afghanistan’s territorial sovereignty with airstrikes in Kabul and other cities earlier this month. 

ISLAMABAD: Pakistan is taking policy measures to increase the ease of doing business in a bid to boost growth, investment and employment opportunities in the South Asian country, the country's finance adviser said on Sunday.

The South Asian country of more than 241 million people is currently navigating a tricky path to economic recovery under a $7 billion International Monetary Fund (IMF) program since averting a default in 2023.

Besides introducing structural reforms relating to expansion of the country's tax base and privatization of loss-making entities, the government of Prime Minister Shehbaz Sharif is striving to boost foreign investment and trade.

Khurram Schehzad, an adviser to the finance minister, said the government has reduced energy costs from Rs38/unit to Rs23/unit, interest rate to 11% from an all-time high of 22% in June last year among other measures.

"The direction is clear: lowering the cost of doing business to make way for growth, investment and jobs," Schehzad said on X, adding that the tax structure has been rationalized, while the government is ensuring faster approvals and simpler procedures to increase regulatory ease for businesses.

Pakistani tax authorities have shifted their focus from salaried individuals and corporate sector to bringing people, who do not file their wealth statements, by increasing compliance and enforcement.

For the first time in 14 years, the South Asian country posted a current account surplus of $2.1 billion (0.5% of GDP) in the outgoing fiscal year 2024-25 that ended in June, marking a sharp turnaround from a $2 billion deficit in FY2023-24, driven by a 27% increase in remittances and a 16% drop in services deficit.

The government is now pursuing privatization, tax and energy sector reforms, and an accelerated digitalization drive to strengthen the economy. These measures are designed to improve fiscal stability and rebuild confidence among both investors and international lenders.