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Flood-hit India, Pakistan face rising basmati prices amid crop losses

Flood-hit India, Pakistan face rising basmati prices amid crop losses
In this picture, taken on September 2, 2022, farmers plant paddy saplings in a field in flood-hit Sukkur, Sindh province. (Photo courtesy: AFP)
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Flood-hit India, Pakistan face rising basmati prices amid crop losses

Flood-hit India, Pakistan face rising basmati prices amid crop losses
  • India’s northern states of Punjab and Haryana contribute over 80 percent, while Pakistan’s Punjab province accounts for over 90 percent of the total basmati rice production
  • Heavy rainfall in late August and earlier this month caused the Ravi, Chenab, Sutlej, and Beas rivers to overflow, flooding these regions in the two countries

MUMBAI/KARACHI: Heavy rains and widespread flooding in basmati rice-growing regions of India and Pakistan have raised concerns over output of the premium staple, driving prices higher as supplies are expected to fall.

India and Pakistan exclusively grow aromatic basmati rice, which sells for nearly twice the price of regular varieties and is primarily imported by Britain, the Middle East, and the United States.

Floods have severely affected the basmati rice crop, but with waters now receding, losses are expected to remain limited provided there is no additional rainfall, said Nitin Gupta, senior vice president at Olam Agri India.

India’s northern states of Punjab and Haryana contribute over 80 percent of the country’s total basmati rice production, while Pakistan’s Punjab province accounts for more than 90 percent of its output.

Heavy rainfall in late August and earlier this month caused the Ravi, Chenab, Sutlej, and Beas rivers to overflow, flooding these regions.

Initial assessments indicate that crops such as paddy, cotton, and pulses on nearly one million hectares were affected in Punjab and Haryana, said an Indian government official.

In Pakistan’s Punjab province rice, sugarcane, corn, vegetables, and cotton on thousands of hectares were submerged earlier this month.

The floods have hit farmers hard, just as crops such as basmati rice and cotton were nearing harvest, said Ibrahim Shafiq, export manager at Latif Rice Mills Pvt Ltd.

In India and Pakistan, paddy seedlings are usually transplanted in June–July, with harvesting starting in late September.

The industry was expecting a bumper crop, but the damage is likely to reduce supplies and push basmati rice prices higher, Shafiq said.

“Conservative estimates put the damage at 20 percent of basmati rice grown in Pakistan...This would definitely drive up the price for basmati rice in local markets as well as international markets,” Shafiq said.

Traders have raised prices by $50 per ton over the past week, and they could rise further if supply shortages remain significant by the end of the harvest, said Gupta of Olam.

However, some industry officials, including Karachi-based Chela Ram Kewlani, say the current price rise is temporarily fueled by reports of crop damage and is expected to ease once supplies from the new season’s harvest arrive.


Tri-series win confidence builder for Pakistan, says coach Hesson

Tri-series win confidence builder for Pakistan, says coach Hesson
Updated 08 September 2025

Tri-series win confidence builder for Pakistan, says coach Hesson

Tri-series win confidence builder for Pakistan, says coach Hesson
  • Pakistan thumped Afghanistan by 75 runs on a tricky pitch in Sunday’s final in Sharjah
  • Pakistani spinner Mohammad Nawaz claimed a hat-trick in a career-best five-wicket haul

DUBAI: Pakistan coach Mike Hesson believes his team’s victory in a tri-series tournament with Afghanistan and the United Arab Emirates will serve as a “confidence builder” for the Asia Cup starting in Abu Dhabi on Tuesday.

Pakistan thumped Afghanistan by 75 runs on a tricky pitch in Sunday’s final in Sharjah, with Mohammad Nawaz claiming a hat-trick in a career-best five-wicket haul.

“We have beaten Afghanistan in conditions that suited their spin attack, which was a real confidence builder,” said Hesson, who was only appointed white-ball coach in May, on Monday.

“Heading into the Asia Cup this was also very important for us.”

Since Hesson took over, Pakistan have white-washed Bangladesh 3-0 at home and then lost to the same opponents 2-1 in an away series.

Pakistan also won 2-1 against the West Indies in Florida before losing just once, to the Afghans, in five tri-series matches.

“An eight-team Asia Cup is great for Asian cricket and it’s a true test, it expands the game in the region, and it allows us to see players we don’t face often.”

The 17th edition of the Asia Cup will kick off with a Group B match between Afghanistan and Hong Kong in Abu Dhabi on Tuesday.

Six-time Asia Cup champions Sri Lanka and Bangladesh are the other teams in the group.

Eight-time champions and title holders India, Pakistan, Oman and the UAE are in Group A.

India open their campaign with a match against the UAE in Dubai on Wednesday before their high-profile clash with Pakistan at the same venue on Sunday.

“Our pool is challenging with Oman, UAE and India, so we need to adapt quickly. The key is not to get distracted by external pressures,” said Hesson, who coached New Zealand to the ODI World Cup final in 2015.

The top two teams from each group will qualify for the Super Four stage, with the final to be held on September 28 in Dubai.


US aviation watchdog begins audit of Pakistan standards after 5-year US ban

US aviation watchdog begins audit of Pakistan standards after 5-year US ban
Updated 08 September 2025

US aviation watchdog begins audit of Pakistan standards after 5-year US ban

US aviation watchdog begins audit of Pakistan standards after 5-year US ban
  • Pakistan’s national carrier was banned from flying to the US in June 2020 after a plane crash in Karachi killed nearly 100 people
  • The visit will be followed by another by an FAA security team to assess security systems at Pakistani airports, airspace protocols

ISLAMABAD: The United States (US) Federal Aviation Administration (FAA) has started reviewing Pakistan’s aviation standards, a Pakistan Civil Aviation Authority (PCAA) spokesperson said on Monday, with Islamabad eyeing resumption of direct flights to the US after a five-year hiatus.

The Pakistan International Airline (PIA), the national flag carrier, was banned in June 2020 from flying to the European Union (EU), the United Kingdom (UK) and the US, a month after one of its Airbus A-320s plunged into a residential neighborhood in Karachi.

The disaster, which killed nearly 100 people, was attributed to human error by the pilots and air traffic control and was followed by allegations that nearly a third of the PIA pilot licenses were fake or dubious.

Earlier this year, the debt-ridden airline resumed flights to Europe and the UK after a four-and-a-half-year ban on the airline was lifted by the European and British regulators. The airline, however, remains barred from flying to the US.

“A five-member FAA delegation, accompanied by two officials from the US Embassy, began its engagement today (Monday) with the PCAA,” Shahid Qadir, a PCAA spokesperson, told Arab News.

“This report by the FAA safety team will pave the way for the resumption of flight operations to the United States.”

The first session in Karachi was presided over by the PCAA Director-General Nadir Shafi Dar, who gave the FAA officials a comprehensive briefing on the organizational structure, mandate and operational functions, according to Qadir.

The FAA team will conduct structured interactions with relevant PCAA departments and officials this week to review the PCAA’s legal, regulatory and operational framework in line with international standards.

“Their assessment will encompass a wide range of activities, including detailed briefings, verification of regulatory and operational documents, and evaluation of existing systems,” the PCAA spokesperson said.

“The team will then finalize its findings and prepare a formal assessment report to be submitted to the competent authorities in due course.”

The PCAA spokesperson said that no system was flawless and that external reviews often brought observations for improvement.

“So, when we get a report of this assessment, we will improve those things,” he added.

The official said an FAA security team would make another visit by the end of this year to assess security systems at Pakistani airports, airspace protocols, cargo operations, gateways and ground handling.

“Once both reports are completed and all systems have been checked, then we will be in a position to seek permission and if granted, we will be able to proceed for direct flight operations resumption,” he added.

The resumption of direct flights to the US will improve the credibility of the South Asian country as well as its airlines.

“Around 700,000 Pakistani expatriates living in the United States, along with business and leisure travelers, will benefit as direct flights are expected to significantly reduce travel time,” Qadir said.

Muhammad Umair, a Pakistani aviation expert, described the visit as the first step toward resumption of Pakistani flights to the US that would increase both passenger traffic and cargo volume, but cautioned that the process would be lengthy.

“They [FAA] will review all safety and security protocols, identify any gaps, and ask the Pakistani authorities to address them,” he told Arab News, adding that it may take “many months.”

“The arrival of the team shows that things are moving in a positive direction, and this will be economically very beneficial for Pakistani commercial airlines.”


Pakistan weighs spectrum roadmap in talks with industry stakeholders, global telecom body

Pakistan weighs spectrum roadmap in talks with industry stakeholders, global telecom body
Updated 08 September 2025

Pakistan weighs spectrum roadmap in talks with industry stakeholders, global telecom body

Pakistan weighs spectrum roadmap in talks with industry stakeholders, global telecom body
  • Discussions underscored importance of spectrum in growth of IT and telecom services and exports
  • The development comes amid Pakistan’s efforts to accelerate work on 5G spectrum rollout by Dec.

KARACHI: Members of a Pakistani advisory committee on Monday met with telecom industry stakeholders and a global telecom body to discuss a roadmap for spectrum enhancement in the South Asian country, Pakistan’s Finance Division said.

The meeting was presided over by Finance Minister Muhammad Aurangzeb and attended by federal ministers, senior officials of relevant ministries and regulators, representatives of leading mobile operators and Julian Gorman, head of Asia Pacific at GSMA.

The GSMA is a global organization that aims to utilize the mobile ecosystem to discover, develop and deliver innovation that is foundational to positive business environments and societal change, unlocking the full power of connectivity.

During Monday’s meeting, participants from the telecom industry and GSMA shared perspectives on advancing Pakistan’s digital transformation through an effective spectrum policy, according to the Finance Division.

“Discussions underscored the importance of spectrum in enabling growth of IT and telecom services, supporting exports, jobs, and wider digital adoption,” it said.

“Senator Muhammad Aurangzeb welcomed the insights of the industry and GSMA, appreciating the value of global best practices for Pakistan’s spectrum roadmap.”

The development comes amid Pakistan’s efforts to accelerate work on spectrum auction for expanding the telecommunication network and introducing 5G technology by Dec. this year as Islamabad eyes digital transformation in the South Asian country.

Pakistan lost nearly $1 billion in foreign direct investment (FDI) in the telecom sector in just one year, with inflows plunging from $1.67 billion in 2021–22 to $750 million in 2022–23, according to an Asian Development Bank (ADB) report issued in July.

The decline reflected growing unease among investors about Pakistan’s digital infrastructure, wherein fixed broadband penetration was just 1.3 percent, and only 14.8 percent of cell towers were connected to fiber, making it difficult to meet rising data demands or prepare for 5G deployment.

Speaking at Monday’s meeting, Finance Minister Aurangzeb emphasized timely progress on the spectrum process to capture emerging opportunities for Pakistan’s economy and society, according to the Finance Division.

IT and Telecom Minister Shaza Fatima Khawaja and Law Minister Azam Nazeer Tarar reaffirmed the government’s focus on enabling a “digitally connected Pakistan with inclusive, affordable and high-quality connectivity.”


Pakistan arrests dozens at protest over Daesh-claimed suicide attack

Pakistan arrests dozens at protest over Daesh-claimed suicide attack
Updated 08 September 2025

Pakistan arrests dozens at protest over Daesh-claimed suicide attack

Pakistan arrests dozens at protest over Daesh-claimed suicide attack
  • Businesses were shut, demonstrators took to streets across a dozen cities in Balochistan in response to the Sept. 2 bombing
  • Daesh claimed responsibility for the bombing in a stadium parking lot in Quetta, where hundreds of BNP supporters had gathered

QUETTA: Police arrested at least 60 people and deployed tear gas in Pakistan’s poorest province during a strike on Monday, as protesters demanded accountability over a suicide attack claimed by Daesh.

Businesses were shut and demonstrators took to the streets across more than a dozen cities in Balochistan in response to a September 2 bombing at a political rally that killed 15 people.

In provincial capital Quetta, police arrested protesters blocking a road and fired tear gas to disperse them.

“The government has already warned the protesters that although they have their democratic right to protest peaceful, they have no right to force people to be off the roads or disrupt the vehicle traffic and force the people to close their businesses,” senior police superintendent Muhammad Baloch told AFP.

Balochistan, a turbulent province on the border with Iran and Afghanistan, is regularly the scene of violence, often carried out by militants from the regional branch of the Daesh, Islamic State-Khorasan, as well as by IS-Pakistan or Baloch separatists.

Ahead of the strike, the Balochistan National Party (BNP) urged the public to unify across political, tribal and class lines to demand those behind the attack to be exposed.

“Isn’t the state responsible for this? Wasn’t it the duty of the state to protect these innocent people?” said BNP chief Akhtar Mengal.

The Daesh group claimed responsibility for the bombing in a stadium parking lot in Quetta, where hundreds of BNP supporters had gathered for a rally.

Last year was the deadliest in a decade in Pakistan, with a spike in violence along the western border with Afghanistan.

Pakistan’s largest and most resource-rich province, sparsely populated Balochistan is also its poorest, and regularly ranks among the lowest on human development indicator scorecards.

Baloch separatists have been fighting a decades-long insurgency against the Pakistan military with the aim of ending discrimination against the Baloch people on their land, which has been met with a severe counter-terrorism crackdown.


Washington, Islamabad deepen cooperation with mining pact on critical minerals

Washington, Islamabad deepen cooperation with mining pact on critical minerals
Updated 37 min 30 sec ago

Washington, Islamabad deepen cooperation with mining pact on critical minerals

Washington, Islamabad deepen cooperation with mining pact on critical minerals
  • US State Secretary Marco Rubio last month said Washington looked forward to exploring cooperation with Pakistan in critical minerals
  • Pakistan is rich in gold, copper, lithium and other mineral reserves, yet its mineral sector contributes only 3.2% to the country's GDP

ISLAMABAD: Pakistan and the United States (US) have signed an agreement on critical minerals, the US embassy and the government in Islamabad said on Monday, amid deepening cooperation between the two countries.

The agreement was signed between American firm US Strategic Metals (USSM) and Pakistan’s Frontier Works Organization (FWO) at the Prime Minister's House in Islamabad, according to the US embassy in Islamabad.

Missouri-based USSM produces and recycles critical minerals, which Washington says are essential in a variety of technologies related to advanced manufacturing and energy production.

Prime Minister Shehbaz Sharif’s office said the agreement establishes a framework for collaboration across a range of critical minerals essential for the defense, aerospace and technology industries.

“The partnership will begin immediately with the export of readily available minerals from Pakistan, including antimony, copper, gold, tungsten, and rare earth elements. This cooperation lays the foundation for scaling up towards the establishment of a USSM proprietary, highly flexible poly-metallic refinery in Pakistan,” it said.

“The refinery will produce intermediate and finished products dedicated to meeting the rapidly growing demand of the U.S. market. The first phase of this deal is envisaged at approximately $500 million of investments into Pakistan’s critical minerals sector.”

The US delegation, including representatives of USSM and Mota-Engil, another renowned global infrastructure firm, is visiting Pakistan to explore opportunities for expansion of mining operations in Pakistan and to assess potential for value addition in mineral resources and development of supporting infrastructure, according to PM Sharif's office.

The delegates were briefed on Pakistan’s vast mineral reserves, including copper, gold and rare earth elements, at a meeting with PM Sharif, attended by federal ministers and Chief of the Army Staff Field Marshal Asim Munir.

"The visiting companies expressed readiness to invest in establishing value-addition facilities within the country, enhancing mineral processing capacity, and developing large-scale infrastructure projects linked to the mining sector," Sharif's office said.

"In this context, two Memoranda of Understanding (MoUs) focusing on development and processing of critical minerals, including rare earth elements (REEs), and logistics services were signed between the two governments."

US Chargé d’Affaires (CDA) Natalie Baker called the signing of the agreement on critical minerals yet another example of the strength of the US-Pakistan bilateral relationship that will "benefit both countries."

“The Trump administration has made the forging of such deals a key priority given the importance of critical mineral resources to American security and prosperity,” Baker said in a statement issued by the US embassy.

"We look forward to seeing future agreements between U.S. companies and their counterparts in the critical minerals and mining sector in Pakistan."

The next steps for the MoU include forming dedicated teams to explore the full potential of Pakistan’s vast resource base, identifying critical minerals for immediate export, and building an anchor position for a long-term partnership in exploration, extraction, and processing. Importantly, the cooperation will prioritize sustainability, profitability, and environmental responsibility to ensure benefits for the people of both nations, according to Sharif’s office.

In addition, both parties will also explore innovative financing and digital solutions such as tokenization of critical minerals, enabling global investors to participate in Pakistan’s mineral wealth and further accelerating transparency, liquidity, and value creation across the sector.

Critical minerals are a select group of non-fuel minerals and metals essential for modern manufacturing, technological advancements, and the transition to clean energy technologies like solar panels and electric vehicles, but are subject to supply chain vulnerabilities.

While Pakistan is rich in gold, copper and lithium reserves as well as other minerals, its mineral sector contributes only 3.2 percent to the country's GDP and 0.1 percent to global exports, according to official figures.

Last month, Pakistani and the US officials discussed ways to strengthen Pakistan's railways and infrastructure to support mineral extraction and transportation, according to the US embassy. US Secretary of State Marco Rubio said the same month Washington looked forward to exploring cooperation with Pakistan in critical minerals and hydrocarbons.

In July, Pakistan also signed a trade deal with the US after which Washington slashed its tariff on Pakistani goods from 29 percent to 19 percent, while Trump imposed double tariffs on Islamabad's arch-rival India.

Islamabad is currently aiming to tap into its underutilized mineral potential by attracting investment from global mining companies.

In April this year, Pakistan hosted an international minerals summit in Islamabad where top companies and government officials from the US, şÚÁĎÉçÇř, China, Turkiye, the UK, Azerbaijan, and other nations attended. The summit aimed to attract foreign investment in the country’s mining sector.