ֱ

Pakistan, US push to finalize trade deal following Trump’s tariff decision

Pakistan, US push to finalize trade deal following Trump’s tariff decision
A State Department contractor adjust a Pakistan national flag before a meeting between U.S. Secretary of State John Kerry and Pakistan's Interior Minister Chaudhry Nisar Ali Khan on the sidelines of the White House Summit on Countering Violent Extremism at the State Department in Washington on February 19, 2015. (REUTERS/File)
Short Url
Updated 17 June 2025

Pakistan, US push to finalize trade deal following Trump’s tariff decision

Pakistan, US push to finalize trade deal following Trump’s tariff decision
  • Finance Minister Aurangzeb holds a virtual meeting with US Commerce Secretary Howard Lutnick
  • Both sides agree to hold technical-level talks in the coming days under a mutually agreed roadmap

KARACHI: Pakistan and the United States have agreed to move forward with negotiations aimed at finalizing a trade deal “at the earliest,” as Finance Minister Muhammad Aurangzeb and US Commerce Secretary Howard Lutnick held a virtual meeting to discuss recently imposed American “reciprocal tariffs,” Pakistan’s finance ministry said on Tuesday.

Last month, Islamabad announced it had formally launched talks with the US following the imposition of steep tariffs by President Donald Trump’s administration on several countries, including Pakistan.

The duties, which Washington says are meant to correct trade imbalances and ensure fair treatment of American goods, have been widely criticized as a blow to global economic recovery efforts in the aftermath of the COVID-19 pandemic.

Pakistan has been hit with a 29 percent tariff on its exports to the US at a time when the country is trying to drive economic growth through increased exports.

“Further to Pak-US negotiations on US reciprocal tariffs, a virtual meeting took place between Mr. Muhammad Aurangzeb, Pakistan’s Finance Minister, and Howard Lutnick, United States’ Commerce Secretary on 16th June, 2025,” the finance ministry said in its statement.

“Both sides resolved to carry forward their negotiations through a constructive engagement to finalize the trade deal at the earliest,” it added.

The ministry informed the discussion focused on strengthening trade and investment and deepening economic ties between the two countries.

Both sides agreed to hold further technical-level discussions in the coming days, based on a mutually agreed roadmap.

The United States is Pakistan’s largest export market, and analysts warn that the new tariffs could undermine Islamabad’s fragile economic recovery.

According to Pakistan’s central bank, the country exported $5.44 billion worth of goods to the US in 2024. From July 2024 to February 2025, exports stood at $4 billion, up 10 percent compared to the same period last year.

Nearly 90 percent of Pakistan’s exports to the US are textiles, a sector likely to bear the brunt of the tariff impact.

Trade experts have also cautioned that the duties could erode Pakistan’s competitiveness, especially if regional players such as China, Bangladesh and Vietnam shift focus to European markets, intensifying competition in alternative destinations.


Pakistan plans rail link to Reko Diq by 2028 as PM sets up committee for project

Pakistan plans rail link to Reko Diq by 2028 as PM sets up committee for project
Updated 17 June 2025

Pakistan plans rail link to Reko Diq by 2028 as PM sets up committee for project

Pakistan plans rail link to Reko Diq by 2028 as PM sets up committee for project
  • Reko Diq, one of the world’s largest undeveloped copper-gold deposits, plans production in three years
  • PM Sharif says extending railway connectivity will boost the mining and mineral sector in Balochistan

ISLAMABAD: Pakistan plans to upgrade its railway infrastructure and extend the network to Reko Diq, a massive copper and gold mining project in southwestern Balochistan province, as Prime Minister Shehbaz Sharif on Tuesday instructed officials to set up an inter-ministerial committee for the project.

The move aims to support future cargo and transport needs, particularly as Reko Diq, one of the world’s largest undeveloped copper-gold deposits, is set to begin production within three years.

The mine is being developed by Barrick Gold, which holds a 50 percent stake, with the remaining share held jointly by Pakistan’s federal and provincial governments. The company has projected the project will generate up to $74 billion in free cash flow over its expected 37-year lifespan.

“The Prime Minister directed that Reko Diq be connected to the railway network by 2028,” Sharif’s office said in a statement circulated after the meeting. “The Prime Minister instructed the formation of an inter-ministerial committee to explore financing options for the upgrade and expansion of the railway system.”

“The committee will present concrete proposals regarding the financing required for the development of Pakistan Railways and its extension to Reko Diq,” it added.

Calling railways a “backbone” of Pakistan’s economy and communications network, the prime minister said it was an affordable, fast and environmentally friendly mode of transport.

He added extending rail connectivity to Reko Diq would boost the mining and minerals sector in Balochistan and create new employment opportunities for residents in the province.

The mineral-rich but underdeveloped province of Balochistan is vital to Beijing’s $65 billion China-Pakistan Economic Corridor (CPEC), the flagship Pakistan arm of President Xi Jinping’s Belt and Road Initiative.

However, while the province is viewed as vital for Pakistan’s economic future, it remains marred by separatist violence, posing serious challenges to the implementation of large-scale infrastructure and mining projects.

The railway network, despite being a key mode of transport for the province’s widely dispersed population, has also come under threat from militant attacks.

Earlier this year, armed separatists took a passenger train hostage in Balochistan, triggering a military rescue operation in which security forces said all the militants were killed.


Pakistan army chief lauds overseas Pakistanis’ economic role during US visit

Pakistan army chief lauds overseas Pakistanis’ economic role during US visit
Updated 17 June 2025

Pakistan army chief lauds overseas Pakistanis’ economic role during US visit

Pakistan army chief lauds overseas Pakistanis’ economic role during US visit
  • Field Marshal Asim Munir meets Pakistani community members in Washington
  • He calls for collaboration with diaspora to support Pakistan’s development

KARACHI: Chief of Army Staff (COAS) Field Marshal Syed Asim Munir appreciated the economic contributions of overseas Pakistanis during an interaction with the community members from his country in Washington DC, according to a statement from the military’s media wing, Inter-Services Public Relations (ISPR), on Tuesday.

Munir is currently visiting the United States to strengthen bilateral military and strategic ties. This marks his second visit to the US since assuming charge as army chief in November 2022. His first visit was in December 2023, during which he met senior American civilian and military officials.

Pakistan and the United States have shared a defense relationship dating back to the Cold War era. Over the decades, Washington has worked closely with Pakistan’s military leadership and civilian governments on issues ranging from regional stability and counterterrorism to cooperation in Afghanistan.

“Field Marshal Syed Asim Munir, NI (M), Chief of Army Staff (COAS), is on an official visit to United States,” the ISPR said. “During the visit, the COAS interacted with the Overseas Pakistani community in Washington DC. The COAS received a warm reception and welcome from the overseas Pakistanis, who gathered in large numbers to meet with the Chief of Army Staff.”

“During the interaction,” the statement added, “the COAS expressed his deep appreciation for the vital and most significant role being played by overseas Pakistanis for being ambassadors of Pakistan. He acknowledged their contributions to Pakistan’s economy, and global reputation by contributing actively through remittances, investments and higher achievements in other domains.”

The ISPR said members of the diaspora shared their experiences and suggestions during the engagement.

Munir emphasized the importance of continued cooperation with overseas Pakistanis, calling for collaborative efforts to address common challenges and support Pakistan’s development.

The participants of the gathering applauded the armed forces of Pakistan for the “outstanding performance” during the recent military standoff with India.

The interaction concluded with a “renewed sense of purpose and commitment,” the military said, adding that both sides pledged to work together toward a more secure and resilient Pakistan.

According to media reports over the weekend, supporters of jailed former Prime Minister Imran Khan held a protest outside the Pakistan Embassy in Washington on Saturday, citing Munir’s presence in the US capital and calling for “restoration of democracy” in their home country.

Khan has been in prison since August 2023 following his arrest on corruption charges. He has consistently denied wrongdoing and claims the legal cases against him are politically motivated to keep him out of Pakistan’s political arena.

His party, Pakistan Tehreek-e-Insaf (PTI), has accused the military of orchestrating his government’s ouster through a parliamentary no-confidence vote in April 2022.

PTI also alleged the move was carried out under pressure from the United States, a claim denied by all parties involved.


Pakistan’s solar surge lifts it into rarefied 25% club

Pakistan’s solar surge lifts it into rarefied 25% club
Updated 17 June 2025

Pakistan’s solar surge lifts it into rarefied 25% club

Pakistan’s solar surge lifts it into rarefied 25% club
  • Pakistan has boosted solar power generation by over three times global average so far this year, solar capacity imports up more than fivefold since 2022
  • Solar power made up 25% of utility-supplied electricity in 2025, making Pakistan among 20 nations sourcing quarter or more monthly electricity supplies from solar 

LITTLETON, Colorado: Pakistan is rapidly emerging as a key leader in solar power deployment, and not just within emerging economies.

The South Asian country has boosted solar electricity generation by over three times the global average so far this year, fueled by a more than fivefold rise in solar capacity imports since 2022, according to data from Ember.

That combination of rapidly rising capacity and generation has propelled solar power from Pakistan’s fifth-largest electricity source in 2023 to its largest in 2025.

What’s more, so far in 2025 solar power has accounted for 25% of Pakistan’s utility-supplied electricity, which makes it one of fewer than 20 nations globally that have sourced a quarter or more of monthly electricity supplies from solar farms.

EXCLUSIVE CLUB

Over the first four months of 2025, solar farms generated an average of 25.3% of Pakistan’s utility electricity supplies, Ember data shows.

That average compares with a solar share of 8% globally, around 11% in China, 8% in the United States, and 7% in Europe.

And while the average solar shares in the Northern Hemisphere will climb steadily through the summer months, very few countries will even come close to securing a quarter of all utility electricity supplies from solar farms any time soon.

Indeed, only 17 countries have ever registered a 25% or more share of monthly utility electricity supplies from solar farms, according to Ember.

Those nations are: Australia, Belgium, Bulgaria, Chile, Cyprus, Denmark, Estonia, Germany, Greece, Hungary, Latvia, Lithuania, Luxembourg, the Netherlands, Pakistan, Portugal and Spain. That list is heavily skewed toward Europe, where the power sector shock from Russia’s full-scale invasion of Ukraine in 2022 sparked urgent and widespread power-sector reform and the rapid roll-out of renewable generation capacity.

Indeed, Australia and Chile are the only nations aside from Pakistan that are outside Europe, and all included nations boast a far higher gross domestic product (GDP) per capita than Pakistan.

IMPORT DRIVE

The chief driver of Pakistan’s solar surge has been an accelerating import binge of solar capacity modules from China.

Between 2022 and 2024, Pakistan’s imports of China-made solar components jumped fivefold from around 3,500 megawatts (MW) to a record 16,600 MW, according to Ember.

Pakistan’s share of China’s total solar module exports also rose sharply, from 2 percent in 2022 to nearly 7 percent in 2024.

And that import binge has continued into 2025.

Over the first four months of the year, Pakistan imported just over 10,000 MW of solar components from China, compared with around 8,500 MW during the same period in 2024.

That rise of nearly 18% in imported capacity has lifted Pakistan’s share of China’s solar exports to new highs too, with Pakistan accounting for around 12% of all of China’s solar exports so far this year.

SOLAR-CENTRIC

The frantic deployment of imported solar modules across Pakistan in recent years has upended the country’s electricity generation mix.

So far in 2025, solar is by far the single largest source of electricity, followed by natural gas, nuclear reactors, coal plants and hydro dams.

As solar farms were the fifth-largest supply source for electricity just two years ago, solar’s pre-eminence so far this marks a sharp swing toward renewables within the country’s utility network.

In addition, the country is committed to much more growth in renewable energy generation capacity through the rest of this decade.

Pakistan is targeting 60% of electricity supplies to come from renewable sources by 2030, according to the International Trade Administration.

Through the first four months of 2025, renewable energy sources generated 28% of the country’s electricity, so energy planners are aiming for a more than doubling in that share by the end of the decade.

With solar modules representing the quickest and cheapest means to meet those goals, further rapid build-out of the country’s solar farm system looks likely, which will cement Pakistan’s status as a global solar superpower.


Pakistan urges global action on rising ‘Islamophobia’ at UN hate speech event

Pakistan urges global action on rising ‘Islamophobia’ at UN hate speech event
Updated 17 June 2025

Pakistan urges global action on rising ‘Islamophobia’ at UN hate speech event

Pakistan urges global action on rising ‘Islamophobia’ at UN hate speech event
  • The event was organized by Morocco and the UN Office on Genocide Prevention
  • Pakistan expresses commitment to inclusion, calls diversity a collective strength

ISLAMABAD: Pakistan’s top diplomat at the United Nations on Monday called for a collective international response to rising “Islamophobia,” warning that unchecked hate speech and extremist narratives were fracturing societies and threatening global peace and stability.

Speaking at a high-level event to mark the International Day for Countering Hate, Ambassador Asim Iftikhar Ahmad said growing intolerance, fueled by politicized media and digital platforms, was targeting not only Muslims but also people of various races, genders and nationalities.

The International Day for Countering Hate is observed each year on June 18, following its institutionalization by the UN in 2023 in response to the global rise in hate-driven violence, incitement and disinformation.

Monday’s event at the UN was hosted by Morocco and the Office on Genocide Prevention.

“The surge in Islamophobia through discriminatory laws, defamation of religious symbols and orchestrated vilification are particularly alarming trends,” Ahmad said. “Media platforms, especially those aligned with dominant political forces, have enabled this hate.”

“Similar tactics now target other marginalized communities,” he continued. “We also observe rising racism and xenophobia fueling division and exclusion. These trends demand urgent collective response.”

Pakistan’s Ambassador to the United Nations Asim Iftikhar Ahmad speaks during a special briefing to mark the International Day for Countering Hate, at the UN Headquarters in New York on June 16, 2025. (Photo courtesy: X/@PakistanUN_NY)

Ahmad welcomed the recent appointment of the UN Special Envoy on Combating Islamophobia, an institutional step initiated through a resolution presented by Pakistan on behalf of the Organization of Islamic Cooperation (OIC) in March last year.

Muslim countries, in recent years, have collectively raised their voice against acts of desecration such as the public burning of the Qur’an in several European countries.

Many of these incidents have coincided with the political rise of far-right parties, which have capitalized on anti-immigrant sentiment and targeted Islam and Muslim communities.

Muslim states have called for an end to such practices and have advocated for legal measures to prevent the desecration of religious symbols, arguing that such acts have no connection to free speech and must be addressed under international frameworks protecting religious and cultural dignity.

The Pakistani envoy said the appointment came at a critical time and urged full implementation of the UN Strategy and Plan of Action on Hate Speech.

He also condemned digital platforms and algorithmic systems, saying they reward sensationalism and amplify identity-based hate, warning that truth was being sacrificed in politicized media environments.

Ahmad reaffirmed Pakistan’s commitment to promoting respect, inclusion and peaceful coexistence, saying that diversity must be seen as a collective strength.


Pakistan, 19 other nations call for nuclear-free Middle East as Israel-Iran war escalates

Pakistan, 19 other nations call for nuclear-free Middle East as Israel-Iran war escalates
Updated 17 June 2025

Pakistan, 19 other nations call for nuclear-free Middle East as Israel-Iran war escalates

Pakistan, 19 other nations call for nuclear-free Middle East as Israel-Iran war escalates
  • The statement stresses the need to refrain from targeting IAEA-monitored nuclear facilities
  • It calls for ceasefire, seeks maritime security, freedom of navigation under international law

ISLAMABAD: Pakistan and 19 other countries on Tuesday issued a joint statement condemning Israel’s military attacks on Iran as a violation of international law, while calling for a nuclear-free Middle East and a return to diplomacy following a comprehensive ceasefire and de-escalation.

The statement came after Israel launched surprise airstrikes on Iranian nuclear and military facilities on Friday, in the middle of Tehran’s ongoing nuclear negotiations with Washington.

Israel and Iran traded missile fire for a fifth consecutive day on Tuesday, as US President Donald Trump warned Tehran residents to “immediately evacuate” and cut short his participation at a G7 summit in Canada.

The US Defense Department confirmed the redeployment of “additional capabilities” to the region, with the USS Nimitz leaving Southeast Asia amid reports of its new Middle East mission. The Chinese embassy in Tel Aviv also urged its citizens to evacuate Israel immediately.

Amid these developments, 20 countries, including Pakistan, ֱ, the United Arab Emirates, Türkiye, Qatar and Oman, voiced a “categorical rejection” of Israel’s military action and warned of its destabilizing implications.

“[There is an] imperative need to halt Israeli hostilities against Iran, which come during a time of increasing tension in the Middle East, and to work toward de-escalation, to achieve a comprehensive ceasefire and restoration of calm,” the statement said.

It called for “the urgent necessity of establishing a Middle East Zone Free of Nuclear Weapons and Other Weapons of Mass Destruction, which shall apply to all States in the region without exception in line with relevant international resolutions, as well as the urgent need for all countries of the Middle East to join the Treaty on the Non-Proliferation of Nuclear Weapons (NPT).”

The statement further stressed the importance of refraining from targeting nuclear facilities safeguarded by the International Atomic Energy Agency (IAEA), warning that such actions violate international humanitarian law and the 1949 Geneva Conventions.

The signatories also emphasized that negotiations remain the only viable path toward a sustainable resolution of the Iranian nuclear issue and called for a swift return to diplomatic engagement.

All the countries stressed the importance of protecting freedom of navigation and maritime security in accordance with international law, fearing that tensions could spill over into shipping lanes vital to global trade.

“Diplomacy, dialogue, and adherence to the principles of good neighborliness, in accordance with international law and the UN Charter, remain the only viable path to resolving crises in the region,” it continued. “Military means cannot bring about a lasting resolution to the ongoing crisis.”