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Pakistan PM backs Trump鈥檚 Gaza plan, says his leadership vital to ending war

Pakistan PM backs Trump鈥檚 Gaza plan, says his leadership vital to ending war
Pakistan Prime Minister Shehbaz Sharif meeting with US President Donald Trump, at the Oval Office in Washington on September 25, 2025. (Handout/PMO)
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Updated 7 min 47 sec ago

Pakistan PM backs Trump鈥檚 Gaza plan, says his leadership vital to ending war

Pakistan PM backs Trump鈥檚 Gaza plan, says his leadership vital to ending war
  • Trump presented the peace plan for Gaza during his meeting with leaders of Pakistan, 黑料社区 and other Muslim states last week
  • PM Shehbaz Sharif says he strongly believes the implementation of a two-state proposal is essential to ensure lasting peace in region

ISLAMABAD: Pakistan Prime Minister Shehbaz Sharif on Monday backed President Donald Trump鈥檚 20-point plan to end Israel鈥檚 war on Gaza, praising his leadership for efforts to bring an end to the nearly two-year-old Israeli onslaught.

Trump presented the peace plan for Gaza and the Middle East during his meeting with leaders of Pakistan, 黑料社区, United Arab Emirates, Turkiye, Indonesia and other Muslim states last week on the sidelines of the United Nations General Assembly (UNGA) session.

The meeting came in the backdrop of Israel鈥檚 ramping up of its military operations in Gaza, where it has killed over 65,000 people since October 2023, as well as Israeli attacks against other regional states, with Muslim nations demanding the world hold Tel Aviv accountable.

In a post on X, Sharif, whose country does not recognize Israel and calls for an independent Palestinian state with pre-1967 borders, welcomed the US president鈥檚 20-point plan to ensure an end to the war in Gaza.

鈥淚 am also convinced that durable peace between the Palestinian people and Israel would be essential in bringing political stability and economic growth to the region,鈥 the Pakistan premier said.

鈥淚t is also my firm belief that President Trump is fully prepared to assist in whatever way necessary to make this extremely important and urgent understanding to become a reality.鈥

Sharif has gained favor with Trump since publicly endorsing the US president for a Nobel Peace Prize over his role in brokering a ceasefire in a four-day Pakistan-India military standoff in May. Unlike Sharif, PM Narendra Modi has declined to indulge Trump鈥檚 attempt to claim credit for the truce.

On Sept. 25, the Pakistani premier and Army Chief Field Marshal Asim Munir met Trump at the White House, in a high-level engagement aimed at resetting relations between the two countries and expanding cooperation on security, trade and regional peace.

On Sunday, Trump expressed optimism about reaching a deal to end the war in Gaza, saying there is 鈥渁 real chance for greatness in the Middle East.鈥

鈥淚 laud President Trump鈥檚 leadership and the vital role played by Special Envoy Steve Witkoff in bringing an end to this war,鈥 Sharif said in his X post on Monday.

鈥淚 also strongly believe that the implementation of the two-state proposal is essential to ensure lasting peace in the region.鈥


Pakistan cuts growth forecast to 3.9 percent as government鈥檚 flood damage estimates top $1.3 billion

Pakistan cuts growth forecast to 3.9 percent as government鈥檚 flood damage estimates top $1.3 billion
Updated 10 sec ago

Pakistan cuts growth forecast to 3.9 percent as government鈥檚 flood damage estimates top $1.3 billion

Pakistan cuts growth forecast to 3.9 percent as government鈥檚 flood damage estimates top $1.3 billion
  • Preliminary assessment says agriculture sector suffered $546 million in losses from floods
  • Experts warn unplanned relief spending could worsen fiscal pressures under IMF program

ISLAMABAD: Pakistan has slashed its annual gross domestic product (GDP) growth forecast to 3.9 percent from an earlier target of 4.2 percent as devastating monsoon floods this year caused an estimated $1.3 billion (Rs371 billion) in damage, according to a preliminary government assessment seen by Arab News.

The revised outlook highlights how recurring climate disasters are undermining Pakistan鈥檚 fragile economic recovery, even as it implements structural reforms under a $7 billion International Monetary Fund (IMF) program. Monsoon rains and floods have killed over 1,000 people, affected more than 4.5 million since June 26, and submerged millions of acres of farmland and standing crops, according to disaster management authorities.

The damage estimates currently reflect losses only from Punjab province, and assessments in Sindh and other regions are still underway, suggesting the final toll could be significantly higher. The agriculture sector 鈥 which underpins food security and exports 鈥 is the hardest hit, suffering $546 million (Rs155 billion) in losses, with projected growth slowing from 4.5 percent to 4 percent, according to the government鈥檚 early report of damages. 

Crop production has borne the brunt of the loss, with key staples such as wheat, rice and cotton expected to see growth decline from 6.7 percent to 4.5 percent. The industrial sector is projected to sustain more modest losses of $105 million (Rs29.9 billion), with growth revised slightly downward from 4.3 percent to 4.2 percent, while the services sector faces losses of $652 million (Rs186 billion). The transport and storage sector incurred $259 million (Rs74 billion) in damages, and the information and communication sector will contract from 5.0 percent to 4.3 percent, losing $51 million (Rs14.5 billion). Education and health sectors have incurred combined losses of about $19 million (Rs5.6 billion).

Economic experts have urged the government to avoid 鈥渦nplanned expenditures鈥 for relief after the latest disaster that follows the 2022 cataclysmic deluges, which killed more than 1,700 people, affected 33 million and caused an estimated $30 billion in losses.

鈥淚n response to Pakistan鈥檚 appeal [for international assistance] after devastating 2022 floods, funds to the tune of $10.98 billion were committed, but apart from the Saudi oil facility and deferred payment relief, only 25 percent of the remaining amount was actually received,鈥 Dr. Abid Qaiyum Suleri from the Islamabad-based Sustainable Development Policy Institute (SDPI) think tank, told Arab News. 鈥淭he country should locally arrange climate funds annually to deal with floods and other disasters.鈥

Arab News contacted Climate Change Minister Musadik Malik and Finance Adviser Khurram Schehzad for comment on the government鈥檚 assessment and any plans for an international appeal but received no response.

Earlier this year, Pakistan and the World Bank signed a Country Partnership Framework worth $20 billion over the next decade to support the country鈥檚 development priorities, including climate adaptation, social protection and private-sector growth. The financing, which complements the ongoing IMF program, is intended to strengthen the country鈥檚 economic resilience in the face of recurring climate shocks like the latest monsoon floods.

Despite contributing less than 1 percent of global greenhouse gas emissions, Pakistan ranks among the countries most vulnerable to climate change. Experts warn that without urgent adaptation and mitigation measures, the human and economic toll of climate change in Pakistan will only deepen in the years ahead.

But Muhammad Waqas Ghani, head of research at the JS Global brokerage firm, warned the government against fiscal and external risks if it resorted to unplanned relief spending.

鈥淒espite the scale of devastation in 2022, international assistance for Pakistan remained limited,鈥 Ghani said. 鈥淪hould the government now resort to unplanned expenditures on relief, restoration, and subsidies, it will create additional fiscal stress at a time when the country is already operating under strict IMF program targets.鈥

Damages to crops, livestock and textiles, which account for nearly 30 percent of Pakistan鈥檚 consumer price index, pose a 鈥渒ey downside risk to inflation forecasts,鈥 while food imports and reduced textile and rice exports could worsen the external account, Ghani added.


Pakistani province to launch first government-run EV taxi service in December

Pakistani province to launch first government-run EV taxi service in December
Updated 29 September 2025

Pakistani province to launch first government-run EV taxi service in December

Pakistani province to launch first government-run EV taxi service in December
  • The country鈥檚 new EV policy targets 30 percent of all new vehicle sales to be electric by 2030
  • EVs are key to cutting transport emissions accounting for 10 percent of Pakistan鈥檚 carbon output

KARACHI: The Sindh provincial government on Monday announced it will launch Pakistan鈥檚 first government-run electric vehicle (EV) taxi service in December to give public access to modern, eco-friendly and high-quality travel services.

Electric vehicles are vital to reducing transport emissions, which make up about 10 percent of Pakistan鈥檚 carbon output and for cutting a $16 billion annual oil import bill, according to Pakistani government data.

In June, the South Asian country launched its new EV policy that aims to accelerate the country鈥檚 shift toward sustainable transport, reduce fossil fuel dependence and curb climate-warming emissions.

Speaking at a meeting of provincial officials, Sindh Information Minister Sharjeel Memon noted the provincial administration had already introduced eco-friendly EV buses for the first time in Pakistan.

鈥淚n the initial phase, some EV taxis will be reserved exclusively for women,鈥 he was quoted as saying by the provincial information department.

The minister said their Pink Scooty program for women and female students has been widely appreciated by the masses, along with the Pink Bus service for women.

鈥淣ow, with the launch of the Pink EV taxi for women, the Sindh government is introducing the country鈥檚 first EV taxi service,鈥 he added.

Pakistan, which has experienced erratic weather patterns that experts attribute to climate change, has joined a growing list of nations pushing for zero-emission mobility to curb climate change and urban pollution.

The country鈥檚 new EV policy targets 30 percent of all new vehicle sales to be electric by 2030 to cut its reliance on imported fossil fuels. EVs are also expected to offer long-term savings to customers through reduced fuel and maintenance costs.

The South Asian country of over 240 million plans to incentivize EV adoption through tax breaks, subsidies and infrastructure development, including nationwide charging stations.

Memon said the Sindh provincial government will soon run double-decker and additional EV buses to ease transport challenges in Karachi, the provincial capital and the country鈥檚 financial hub.

鈥淲ork is also underway to develop the necessary infrastructure and charging stations for EV vehicles to ensure the project is sustainable and successful,鈥 he added.


Pakistan revenue watchdog says no extension in Sept. 30 deadline to file income tax returns

Pakistan revenue watchdog says no extension in Sept. 30 deadline to file income tax returns
Updated 29 September 2025

Pakistan revenue watchdog says no extension in Sept. 30 deadline to file income tax returns

Pakistan revenue watchdog says no extension in Sept. 30 deadline to file income tax returns
  • The statement comes after some reports suggest the Federal Board of Revenue has extended the deadline in view of recent floods
  • Taxpayers are cautioned that failure to file returns by the due date will result in late-filer status and penalties, the watchdog says

ISLAMABAD: Pakistan鈥檚 Federal Board of Revenue (FBR) on Monday rejected reports of an extension in deadline to file income tax returns for fiscal year 2024-25, saying Sept. 30 is final date for all Pakistanis to submit their wealth statements.

The statement came after some reports suggested the revenue watchdog had extended the deadline in view of the recent floods that killed more than 1,000 Pakistanis, uprooted nearly 3 million people and submerged standing crops on vast tracts of lands.

In a statement issued on Monday, the FBR said that all these reports were false, baseless and misleading and the deadline for filing income tax returns for Tax Year 2025 will not be extended.

鈥淚t is pointed out that a vast majority of taxpayers reside in areas unaffected by floods and have had ample time to discharge their national obligation of filing returns,鈥 it said.

鈥淭axpayers are also cautioned that failure to file returns by the due date will result in late-filer status and imposition of penalties under the law.鈥

The South Asian country has one of the lowest tax-to-GDP ratios in the region, despite a population of more than 240 million, and has often failed to meet its collection targets.

In June, Prime Minister Shehbaz Sharif鈥檚 government set a record-high tax collection target of Rs14.13 trillion ($47.4 billion) for the fiscal year 2025鈥26, marking a 9 percent increase from the previous year.

Officials say meeting this goal is essential to reducing reliance on external debt and ensuring long-term fiscal sustainability.

鈥淔BR urges all eligible taxpayers to act responsibly and file their Income Tax Returns with accuracy and honesty before the deadline of 30th September, 2025 to avoid any legal consequences,鈥 the FBR said, denying reports about a slowdown of its tax returns filing platform, IRIS.

鈥淚n case of extreme hardship, the taxpayers can avail extension of return up to fifteen days with payment of due taxes by 30th September subject to approval by the relevant committee as per law.鈥


Pakistan to direct bulk of $2 billion annual World Bank funds to population challenge

Pakistan to direct bulk of $2 billion annual World Bank funds to population challenge
Updated 29 September 2025

Pakistan to direct bulk of $2 billion annual World Bank funds to population challenge

Pakistan to direct bulk of $2 billion annual World Bank funds to population challenge
  • Pakistan, World Bank have signed $20 billion decade-long partnership to support climate and growth
  • UNICEF, Pakistan discuss collaboration on climate resilience, education and child stunting

ISLAMABAD: Pakistan will channel nearly two-thirds of the $2 billion expected annually from a new World Bank partnership into tackling population growth and its impact on children, Finance Minister Muhammad Aurangzeb told UNICEF鈥檚 representative during a meeting in Islamabad on Monday.

Earlier this year, Pakistan and the World Bank signed a Country Partnership Framework (CPF) for $20 billion in lending to the cash-strapped nation over the coming decade on development issues like the impact of climate change as well as boosting private-sector growth.

Officials say directing most of the funds to population-related interventions will help relieve strain on education, health care, and food systems, as well as improve long-term human capital outcomes.

鈥淭he Finance Minister highlighted the two existential challenges facing the country 鈥 climate change and population growth 鈥 particularly their impact on child stunting and learning poverty,鈥 the Finance Division said in a statement. 

鈥淗e discussed the Country Partnership Framework signed with the World Bank, noting that nearly two-thirds of the USD 2 billion expected every year under the program over the next year would be directed toward addressing population-related challenges.鈥

Pakistan has one of the highest rates of child stunting in South Asia, while more than three-quarters of children cannot read or understand a simple text by age 10, according to UNICEF. These vulnerabilities are compounded by climate shocks, including devastating floods that have displaced millions and destroyed infrastructure.

Aurangzeb stressed the importance of making the best use of available resources and called for greater coordination among federal and provincial governments, UNICEF, and key ministries to identify priority areas and strengthen technical capacity. He said collaboration with partners such as UNICEF and ministries including Climate Change, Population Welfare, and National Health Services was essential for effective project delivery.

According to the statement, UNICEF Representative Pernille Ironside reaffirmed the agency鈥檚 commitment to Pakistan, saying UNICEF is 鈥渁ctively working with relevant ministries and stakeholders across a broad range of sectors, with a particular focus on child care and girls鈥 education.鈥 

She said the agency was following 鈥渁 multi-sectoral approach to community welfare, prioritizing projects in education, health, and climate resilience,鈥 and was exploring ways to further strengthen its role in Pakistan.

Both sides reiterated their resolve to work together to address the challenges facing children and communities and to deepen cooperation for sustainable development.


Pakistan stock market breaches 163,000-mark as mutual fund buying fuels bull run

Pakistan stock market breaches 163,000-mark as mutual fund buying fuels bull run
Updated 29 September 2025

Pakistan stock market breaches 163,000-mark as mutual fund buying fuels bull run

Pakistan stock market breaches 163,000-mark as mutual fund buying fuels bull run
  • The benchmark KSE-100 index rose by 0.98 percent to close at 163,847 points as compared to the weekend close of 162,257 points
  • Data shows mutual funds were hefty net buyers and carried last week鈥檚 momentum to Monday鈥檚 session, giving the market a solid lift

ISLAMABAD: The Pakistan Stock Exchange (PSX) continued its momentum and gained 1,590 to breach the 163,000-point mark for the first time ever, with market analysts saying aggressive institutional buying was behind the bullish trend.

The benchmark KSE-100 index rose by 0.98 percent to close at 163,847 points as compared to the weekend close of 162,257 points, according to the PSX website.

Maaz Mulla, vice president for equity sales at Karachi-based Topline Securities, said the rally was largely driven by aggressive buying from local mutual funds.

鈥淣CCPL (National Clearing Company of Pakistan Limited) data shows that mutual funds were hefty net buyers on Friday and the momentum carried through to today鈥檚 session, giving the market a solid lift,鈥 he said.

The market gained nearly 3,000 points to close the week at an all-time high on Friday as warming United States-Pakistan relations and hopes of an International Monetary Fund (IMF) loan tranche release boosted investor confidence.

Ties have improved between the US and Pakistan as Washington鈥檚 relationship with New Delhi has soured over India鈥檚 increased purchases of discounted Russian oil amid Ukraine war. President Donald Trump this year raised tariffs on India for those oil purchases, while the US and Pakistan reached a landmark trade deal in July to allow Washington to help develop Pakistan鈥檚 largely untapped oil reserves and lower tariffs for Islamabad.

Separately, an IMF mission is currently holding talks with Pakistani officials for the second review of Islamabad鈥檚 $7 billion External Fund Facility (EFF) and first review of the $1.4 billion Resilience and Sustainability Facility (RSF) programs.

But despite the positive, the Pakistani stock market slightly slowed down on Monday as compared to the previous session, with volumes recorded at 1,282 million shares and traded value climbing to Rs65.7 billion ($231 million).

鈥淚nstitutional inflows and improved sentiment ensured the bulls stayed firmly in command, pushing the market higher into new territory,鈥 he said.