India conflict fires up Pakistan’s Independence Day fervor, boosts flag sales

India conflict fires up Pakistan’s Independence Day fervor, boosts flag sales
A vendor selling Pakistan's national flags and other accessories poses for a photograph at a market in Karachi on August 12, 2025, ahead of the country's Independence Day celebrations. (AFP)
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Updated 1 min 13 sec ago

India conflict fires up Pakistan’s Independence Day fervor, boosts flag sales

India conflict fires up Pakistan’s Independence Day fervor, boosts flag sales
  • Flag maker reports sales up by up to 50 percent as households and businesses spend heavily on August 14 decorations
  • Traders say brisk Independence Day buying is lifting markets despite inflation squeezing consumer budgets

KARACHI: Pakistan’s largest flag manufacturer, VIP Flags, is expecting around 50 percent growth in sales this year as the public marks the country’s 78th Independence Day with unusual zeal, fueled by celebrations of victory in the May 2025 conflict with India.

The two nuclear-armed neighbors, which have fought three major wars since 1947, engaged in their deadliest fighting in decades this May. The fighting ended on May 10 after US mediation, with Prime Minister Shehbaz Sharif’s government declaring victory and saying it had downed at least six Indian fighter jets.

Officials have since linked the conflict’s outcome to the heightened national fervor surrounding August 14 this year, reflected in booming flag markets and sales of other Independence Day paraphernalia.

“Our business, all the businesses have grown 50 percent,” said VIP Flags CEO Nisar Ahmed Sheikh, adding that much of his stock had been sold to marchers rallying in support of Pakistan’s armed forces during the war with India.

VIP Flags manufactures flags for domestic customers, the armed forces, and international buyers in and the UAE, and holds Guinness World Records for the largest flags made in 2004 and 2008.

Sheikh said sales this year would likely run into millions of units.

“Obviously when people were filled with passion [after the war with India] and started hoisting flags, the flags business saw an uptick and increased compared to last year,” he told Arab News. 

“It is still growing and people are putting flags on their cars, bicycles and motorcycles.”

Sheikh said the surge in sales extended well beyond flags, with market vendors incorporating Independence Day themes into a wide range of products — from shirts, mufflers and headbands to shawls, dresses and children’s clothing — creating a vibrant festive atmosphere.

“People must be spending billions of rupees on this (celebrations) and this spending boosts the economy,” the CEO said. 

In Pakistan’s commercial hub of Karachi ahead of Aug. 14, large and small flags adorned vehicles, houses and office buildings, alongside buntings and night-time illuminations. Meanwhile, federal and provincial governments are holding daily events, with top officials like the prime minister and army chief expected to attend ceremonies in Islamabad on Aug. 13 and 14.

“The last time we saw such a show of national zeal on Independence Day was in Zia’s time,” Sheikh said, referring to former military ruler Zia-ul-Haq. “We see people decorating their houses, vehicles and vicinities with flags and buntings and badges.”

Abdul Wahab, a finisher at one of Sheikh’s factories, said he expected at least a 25 percent income increase this season. 

“We are seeing a rush in the market because of this war we recently fought with India,” said the 26-year-old, who plans to work overtime to meet demand.

For lawyer Bad-e-Saba, the occasion was a chance to pass on a message to the next generation.

“The war we recently won against Hindustan is a matter of great pride for us. We want to convey it to our children so they could know where we are standing against our enemy,” she said.

“We want to tell our enemies that we can take good care of our country and our next generation will do it better.”


Pakistan’s first Islamic digital bank offers 14 percent Independence Day cashback

Pakistan’s first Islamic digital bank offers 14 percent Independence Day cashback
Updated 6 min 3 sec ago

Pakistan’s first Islamic digital bank offers 14 percent Independence Day cashback

Pakistan’s first Islamic digital bank offers 14 percent Independence Day cashback
  • Campaign runs Aug. 13–22 with Rs3,000 cap per customer
  • Cashback credited to accounts within one business day

KARACHI: Pakistan’s first Islamic digital bank is offering a 14 percent cashback on eligible debit card and QR code transactions to mark the country’s 78th Independence Day, in a campaign aimed at promoting cashless and Shariah-compliant payments.

The “Azadi Cashback” promotion, launched by aik, will run from Aug. 13 to Aug. 22 and allow customers to earn up to Rs3,000 ($10.75) in cashback during the period, credited to their accounts within one business day. The offer excludes utility bills, cash withdrawals, peer-to-peer transfers and government payments.

“The cashback is structured as a discretionary gift on the momentous occasion of Pakistan’s 78th Independence Day,” aik said in a statement.

aik, which operates as a digital-only platform, said the promotion supports its mission to provide Riba-free financial services and encourage secure, cashless transactions. It aims to create a banking experience rooted in transparency, ethics and user empowerment.

aik said the Independence Day campaign was part of efforts to “accelerate the adoption of secure digital payments across Pakistan,” combining “convenience with compliance” for users seeking Islamic finance options.

Digital banking is expanding rapidly in Pakistan, driven by high smartphone penetration and government incentives for electronic payments. According to the State Bank of Pakistan, digital retail transactions surged over 50 percent year-on-year in fiscal 2024, with mobile banking emerging as a key growth segment.


Pakistan seeks Gulf, regional backing for global plastics treaty at Geneva talks

Pakistan seeks Gulf, regional backing for global plastics treaty at Geneva talks
Updated 13 August 2025

Pakistan seeks Gulf, regional backing for global plastics treaty at Geneva talks

Pakistan seeks Gulf, regional backing for global plastics treaty at Geneva talks
  • Climate minister meets delegations from , Qatar, UAE and others on sidelines of INC-5.2 session
  • Talks focus on circular economy, resource mobilization for developing nations hit hardest by plastic pollution

ISLAMABAD: Pakistan has stepped up engagement with Gulf and regional partners on a planned global plastics treaty, holding talks with senior officials from , Qatar, the United Arab Emirates and other states at high-level negotiations in Geneva this week, the ministry of climate change said on Wednesday.

The discussions took place during the Fifth Session of the Intergovernmental Negotiating Committee on Plastic Pollution (INC-5.2), part of ongoing UN-led efforts to produce the first legally binding international agreement to curb plastic waste. Negotiations have drawn wide participation from governments, industry and civil society, with particular focus on measures to reduce plastic production, boost recycling, and address the mounting environmental and economic costs of plastic pollution.

Pakistan has positioned itself as a voice for developing countries in the talks, stressing the need for fairness, financial support and technology transfer to help poorer nations tackle the crisis. Gulf states, several of which are major petrochemical producers, are seen as key stakeholders in shaping the treaty’s scope and implementation, both as plastic producers and as potential investors in recycling and waste-management infrastructure.

“The discussions focused on advancing cooperation for a fair and effective Global Plastics Treaty, promoting circular economy solutions, and mobilizing resources to address the disproportionate impacts of plastic pollution on developing countries,” the Pakistani climate ministry said in its statement after Climate Minister Dr. Musadik Malik held an interactive briefing with delegations from , Qatar, the United Arab Emirates, Kazakhstan, Iran, Azerbaijan, Algeria, and Kuwait.

The ministry said the engagements “formed part of Pakistan’s broader diplomatic outreach to build consensus and strengthen partnerships for equitable global environmental action.”

The second part of the fifth session of the Intergovernmental Negotiating Committee to develop an international legally binding instrument on plastic pollution, including in the marine environment (INC-5.2), opened on Aug. 12 in Geneva. The session aims to finalize and approve the text of the agreement and forward it for consideration and adoption at a future Diplomatic Conference of Plenipotentiaries.

INC-5.2 takes place from 5 – 14 August, follows INC 5, which took place in November/December 2024 in Busan, Republic of Korea. 

“Plastic pollution is already in nature, in our oceans and even in our bodies. If we continue as on this trajectory, the whole world will be drowning in plastic pollution – with massive consequences for our planetary, economic and human health,” said Inger Andersen, Executive Director of UNEP. “But this does not have to be our future. Together, we can solve this challenge. Agreeing a treaty text is the first step to beating plastic pollution for everyone, everywhere.”

“We are here today to fulfil an international mandate. This is a unique and historic opportunity for the international community to bridge differences and find common ground. It is not just a test of our diplomacy— it is a test of our collective responsibility to protect the environment, safeguard human health, enable sustainable economies, and stand in solidarity with those most affected by this plastic pollution crisis,” said Luis Vayas Valdivieso, Chair of the INC. 


Mortar kills 2 children, mother in northwest Pakistan where troops are targeting militants

Mortar kills 2 children, mother in northwest Pakistan where troops are targeting militants
Updated 13 August 2025

Mortar kills 2 children, mother in northwest Pakistan where troops are targeting militants

Mortar kills 2 children, mother in northwest Pakistan where troops are targeting militants
  • It was not immediately clear who was responsible for the overnight civilian casualties in Mamund
  • Angered by the deaths, hundreds of demonstrators were refusing to bury bodies and demanding a probe

KHAR, Pakistan: A mortar struck a home and killed two children and their mother in a northwestern Pakistani region where security forces are carrying out a “targeted operation ” against the Pakistani Taliban, residents and a hospital official said Wednesday.

It was not immediately clear who was responsible for the overnight civilian casualties in Mamund, a town in the Bajaur district of Khyber Pakhtunkhwa province bordering Afghanistan.

Naseeb Gul, a medical doctor at a local hospital, said the dead were two children and their mother. Two people were also wounded Tuesday when another mortar hit their home, he said.

Angered by the deaths, hundreds of demonstrators were refusing to bury the bodies and demanding an investigation, according to local villager Mohammad Khalid.

There was no immediate comment from the government or the military.

The latest development came days after security forces launched an offensive in Bajaur to target militant hideouts. The provincial government said the “targeted operation” was launched after tribal elders failed to evict insurgents from the region.

Government officials said the ongoing offensive against the Pakistani Taliban has displaced 25,000 families or an estimated 100,000 people in Bajaur, where authorities eased a curfew on Wednesday, allowing residents to buy essential items.

Thousands of displaced people are currently residing in government buildings, and many other have gone to other safer areas to live with relatives.

The Bajaur offensive is the second operation there since 2009, when the military launched a large-scale campaign against the Pakistani Taliban, also known as Tehreek-e-Taliban Pakistan, or TTP. The TTP is a separate but a close ally of the Afghan Taliban, who seized power in Afghanistan in August 2021.

Many TTP leaders and fighters have found sanctuary in Afghanistan since the Taliban takeover and have been living there openly. Some have crossed the border back into Bajaur to carry out attacks.


Pakistan finance minister eyes cut to key policy rate from 11 percent

Pakistan finance minister eyes cut to key policy rate from 11 percent
Updated 13 August 2025

Pakistan finance minister eyes cut to key policy rate from 11 percent

Pakistan finance minister eyes cut to key policy rate from 11 percent
  • The next policy rate announcement is due on September 15
  • Central bank left its key interest rate unchanged at 11 percent on July 30

ISLAMABAD: Pakistan’s finance minister said on Wednesday that there was more room for the central bank to cut the country’s key policy rate down from 11 percent.

“We are hopeful of progress in terms of the policy rate going south,” Mohammed Aurangzeb said at an event in Islamabad.

The next policy rate announcement is due on September 15, according to the State Bank of Pakistan’s calendar.

The central bank left its key interest rate unchanged at 11 percent on July 30, going against analyst expectations. In a Reuters poll ahead of the policy rate announcement, all 15 analysts said they expected the bank to ease, with nine forecasting a 50 basis-point cut, four predicting a deeper 100 basis-point reduction and two projecting a smaller 25 basis-point cut.

The bank, however, held the rate steady, saying the inflation outlook had deteriorated due to rising energy prices.


Pakistan saves billions through UK-backed governance reforms — BHC

Pakistan saves billions through UK-backed governance reforms — BHC
Updated 13 August 2025

Pakistan saves billions through UK-backed governance reforms — BHC

Pakistan saves billions through UK-backed governance reforms — BHC
  • UK program unlocked about $2.41 billion in public finance across Punjab, KP provinces between 2019 and 2025
  • Punjab’s new contributory pensions scheme projected to save around $9.72 billion over the next 30 years

ISLAMABAD: Pakistan’s provincial governments in Punjab and Khyber Pakhtunkhwa (KP) have saved billions of rupees and unlocked significant new resources for development under a landmark British-backed governance program that concluded this year, the British High Commission said on Wednesday.

The UK’s Sub-National Governance Program, which ran from 2019 to 2025, worked with provincial authorities to improve planning, budgeting and revenue mobilization.

According to the High Commission, the program unlocked over £1.9 billion ($2.41 billion) in public finance, allowing savings to be reinvested into other public services.

In Punjab, a comprehensive pensions reform plan was introduced, shifting to a contributory scheme with both employer and employee payments, expected to save the government of Punjab Rs 2.7 trillion. ($9.72 billion) over the next 30 years. In KP, the program supported an overhaul of waste management systems, introducing sustainable door-to-door collection now being scaled up across the province.

“This program shows what is possible when strong partnerships come together to support long-term reform, changing people’s lives,” British High Commission Development Director Sam Waldock said.

“We’ve strengthened institutions, improved service delivery, and helped Pakistan unlock more of its resources to finance its own development. That has led to direct improvements to the day to day lives of millions — from helping people to access essential cash assistance, to creating waste management systems which makes their surroundings cleaner and more hygienic.”

The statement said the reforms also strengthened social protection systems in Punjab by collecting social and economic data for 35 million residents, enabling the government to better target urgent cash assistance and food subsidies.

The program helped design and roll out initiatives such as Ba-Himmat Buzurg, which offers financial assistance to elderly people with no source of income, and the Himmat Card, which provides financial support for people with disabilities.

The UK’s work on governance reform in Pakistan will now continue under the new National Governance Program, in collaboration with the UN Development Program, with a focus on sustained institutional reform and improved public financial management, including further provincial pension reforms.

The UK is one of Pakistan’s largest bilateral development partners, with cooperation spanning education, health, climate resilience, governance reform and trade. The UK is also home to one of the largest Pakistani diasporas, estimated at over 1.6 million people, who contribute significantly to remittances, business and cultural links.

In 2024, total trade in goods and services between the UK and Pakistan was £4.7 billion ($5.97 billion), up 7.3 percent from the previous year.