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ADB flags telecom investment crisis as Pakistan loses $1 billion in FDI in a year

ADB flags telecom investment crisis as Pakistan loses $1 billion in FDI in a year
Staff members of the Asian Development Bank step out of the Manila-based lender's headquarters on February 17, 2009. (AFP/File)
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Updated 2 min 38 sec ago

ADB flags telecom investment crisis as Pakistan loses $1 billion in FDI in a year

ADB flags telecom investment crisis as Pakistan loses $1 billion in FDI in a year
  • Foreign investment in telecom drops by nearly half within a year
  • ADB urges tax overhaul, spectrum reforms to restore investor confidence

ISLAMABAD: 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 a new report by the Asian Development Bank (ADB).

The dramatic decline reflects growing unease among investors about Pakistan’s digital infrastructure landscape, which suffers from high taxation, poor spectrum allocation, limited fiber penetration and regulatory unpredictability. While demand for mobile Internet continues to grow, with over 138 million mobile broadband users as of late 2024, the enabling environment for investment has worsened, especially amid Pakistan’s macroeconomic volatility.

Fixed broadband penetration remains at just 1.3 percent, and only 14.8 percent of cell towers are connected to fiber, making it difficult to meet rising data demands or prepare for 5G deployment. The report notes that the telecom sector has contributed over PRs1.28 trillion to the national treasury in the past five years, yet sustained investment in digital infrastructure has failed to materialize.

The bank has warned that without urgent reforms, the sector may fail to deliver on its potential as a key enabler of digital transformation and economic growth.

“The telecom sector in Pakistan has experienced a decline in revenues and foreign investment, which reflects a very challenging business environment,” the ADB wrote in its Pakistan Digital Ecosystem Diagnostic Report, released in July 2025.

The report singles out Pakistan’s spectrum auction model as a major constraint. Starting prices are set in US dollars and often considered unaffordable by private operators, discouraging participation and delaying the deployment of next-generation networks.

“The spectrum auction starting prices and commercial conditions need to be reasonable and attractive for operators,” the ADB said. “This would facilitate the timely and cost-effective launch of 5G technology and enable new applications and innovations in the digital economy.”

Taxes imposed by both federal and provincial authorities are described as among the highest globally for the sector. Right-of-way (RoW) fees, charged annually in Pakistan, further burden service providers, unlike in countries like India where such fees are levied only once and at a nominal rate.

To reverse the downward trend, the ADB has recommended a long-term tax policy guarantee, reform of spectrum pricing mechanisms, and a unified national RoW regime. It also called for deeper engagement with provincial governments to generate “anchor demand” for fiber services through public institutions like schools and hospitals in tier 2 and tier 3 cities.

The report emphasizes that the telecom sector must be viewed not only as a commercial domain but as foundational infrastructure for Pakistan’s future. Without decisive action, it warned, digital inequality will widen and Pakistan’s competitiveness will suffer.

“Pakistan’s digital infrastructure is dragging down its overall digital readiness and economic performance,” the ADB concluded.


Pakistan PM sets July deadline for easy loans, tech plan targeting small farmers

Pakistan PM sets July deadline for easy loans, tech plan targeting small farmers
Updated 45 sec ago

Pakistan PM sets July deadline for easy loans, tech plan targeting small farmers

Pakistan PM sets July deadline for easy loans, tech plan targeting small farmers
  • Shehbaz Sharif says farmers with less than 12 acres of land must be prioritized in agri-financing strategy
  • Calls for AI-based solutions, small-scale machinery access to boost exports, value-added production

ISLAMABAD: Pakistani Prime Minister Shehbaz Sharif on Thursday directed authorities to finalize a comprehensive strategy by the end of July to provide easy-term agricultural loans and modern technologies to small farmers, particularly those owning less than 12 acres of land, according to a statement from the prime minister’s office.

Agriculture remains the backbone of Pakistan’s economy, contributing around 19 percent to GDP and employing over 37 percent of the labor force, according to official data. The sector supports more than 60 percent of the rural population through crop production, livestock and related activities.

Despite its size, the sector faces chronic challenges including low productivity due to outdated farming methods and lack of mechanization; water scarcity and inefficient irrigation systems, which worsen during prolonged dry spells; dependence on imported seeds and fertilizers, raising costs for farmers; climate vulnerability, as erratic weather and floods frequently damage crops; and limited access to credit, especially for small farmers, who often rely on informal lenders charging high interest rates

Experts say about 80 percent of Pakistani farmers own less than 12.5 acres of land, making them highly vulnerable to market shocks and rising input costs. Many struggle to access quality seeds, fertilizers and modern tools, hindering yields of key crops such as wheat, cotton and sugarcane.

Chairing a high-level review meeting on agricultural planning and agri-financing in Islamabad, the prime minister said the country’s economic growth was closely tied to its agricultural productivity and the value addition of farmers’ produce.

“The provision of facilities to small farmers for the development of Pakistan’s agriculture sector is among the government’s top priorities,” Sharif was quoted as saying in a statement released by his office. 

“A plan should be presented to provide loans on easy terms for modern agricultural equipment, artificial intelligence solutions, and quality seeds.”

Sharif also instructed relevant ministries to develop a detailed roadmap for giving farmers access to small-scale industrial machinery to help them process their crops and produce export-quality goods.

The PM’s office said the government was accelerating reforms to provide farmers with modern tools, improved seed varieties, AI-based solutions, better water management techniques, and small on-farm industrial units. It added that reforms would also include training and capacity-building initiatives to support agri-processing and boost exports.

Officials briefed the prime minister on ongoing agricultural reforms, the performance of Zarai Taraqiati Bank Limited (ZTBL), and current loan disbursement mechanisms for farmers.

“The prime minister instructed that a comprehensive plan be prepared and presented by the end of this month to provide farmers with easy-term loans and introduce a modern agri-financing system aligned with contemporary requirements,” the statement concluded. 


Pakistan warns of urban flooding, river surges as monsoon toll nears 190

Pakistan warns of urban flooding, river surges as monsoon toll nears 190
Updated 15 min 46 sec ago

Pakistan warns of urban flooding, river surges as monsoon toll nears 190

Pakistan warns of urban flooding, river surges as monsoon toll nears 190
  • 63 killed in 24 hours in Punjab alone, emergency declared in Rawalpindi as 230mm of rain falls in 15 hours
  • NDMA urges evacuations from low-lying areas as flash floods, collapsing roofs pose growing humanitarian risk

ISLAMABAD: Pakistan’s disaster management authorities on Thursday warned of urban flooding and rising river levels in several regions, including Rawalpindi and Islamabad, as relentless monsoon rains battered large swathes of the country, pushing the seasonal death toll close to 190.

The fresh alert came as intense monsoon activity swept across northeastern and central Pakistan, prompting emergency declarations, evacuation adviseries and a heightened state of alert across provincial administrations.

In Punjab, the country’s most populous province, the Provincial Disaster Management Authority (PDMA) said 103 people had died and 393 had been injured in rain-related incidents since the start of the monsoon season in late June.

“In the last 24 hours alone, 63 people have died and 290 have been injured due to monsoon-related incidents,” the PDMA said in a statement. “Monsoon rains have also damaged 128 houses and killed six livestock animals.”

Most of the casualties occurred in densely populated districts such as Lahore, Faisalabad, Okara, Sahiwal and Pakpattan, largely due to roof collapses in structurally vulnerable homes.

Commuters make their way through a flooded street during heavy monsoon rains in Rawalpindi on July 17, 2025. (AFP)

The National Disaster Management Authority (NDMA) said the nationwide death toll stood at 124 on Wednesday. With the latest fatalities in Punjab, it has risen to at least 187.

“Over the next 24 hours, intense rainfall could trigger flash floods in cities and cause surging water levels in streams and rivers,” the NDMA said Thursday. “Heavy downpours are expected to continue in Rawalpindi and Islamabad for the next 24 to 48 hours, raising the risk of flooding in low-lying areas and along Nullah Lai.”

“Residents near the stream are advised to prepare for possible evacuation if warning sirens are sounded and cooperate fully with local authorities,” the statement added.

Authorities have urged people to vacate unsafe structures, avoid flood-prone zones and keep children indoors as flash floods, collapsing roofs and overflowing drains pose acute threats to life in several regions.

The NDMA said it had instructed local agencies to remain on high alert, ensure the availability of rescue and drainage equipment and coordinate early warning efforts. People were advised to make advance arrangements for food, drinking water and emergency supplies.

EMERGENCY IN RAWALPINDI

In Rawalpindi, a city of more than 2 million, over 230 millimeters of rainfall was recorded in just 15 hours, prompting local authorities to declare a state of emergency.

Water levels in the Nullah Lai stream surged to 20 feet at Katarian and 19 feet at Gawalmandi, according to the Water and Sanitation Agency (WASA). A local holiday was declared to minimize public movement in flooded areas.

People wade through a flooded street during heavy monsoon rains in Rawalpindi on July 17, 2025. (AFP)

“Rescue and relief equipment was distributed in advance to district authorities ahead of the monsoon,” the PDMA said.

“In view of the emergency in Rawalpindi, Rescue 1122 currently has 16 OBM [outboard motor] boats, 205 life jackets, 31 ambulances, 19 fire brigades and 4 rescue vehicles on standby.”

Evacuation announcements were being made from mosques in high-risk areas. Authorities called on residents living near Nullah Lai to cooperate with relocation efforts if needed.

In the federal capital Islamabad, rain continued intermittently for several hours. Sanitation workers were deployed to clear clogged drains, assistant commissioners inspected stormwater infrastructure and traffic police were dispatched to manage congestion on waterlogged roads.

FLASH FLOODS IN PUNJAB

In other parts of Punjab, including Chakwal, heavy rainfall caused significant disruption. A cloudburst in Chakwal dropped 423 millimeters of rain, flooding low-lying areas and inundating homes, according to local TV channel Geo News. Rescue operations were launched and evacuations were underway.

In Jhelum, the Pakistan Army conducted an emergency airlift operation after flash floods stranded 40 people in the Deras of Mouza Dhok Biddar and Nakkan Kalan. Due to heavy rainfall, boat rescues were not possible, and helicopters were used to evacuate all individuals safely.

Pakistan contributes less than one percent to global greenhouse gas emissions but is among the countries most vulnerable to climate change. Shifting monsoon patterns, accelerated glacial melt and extreme weather events have increased the frequency and severity of climate-linked disasters.

In 2022, record-breaking monsoon rains combined with glacial melt submerged nearly a third of Pakistan, killing more than 1,700 people and displacing over 8 million. 


Two Pakistani Taliban militants killed in Karachi counterterror raid, police say

Two Pakistani Taliban militants killed in Karachi counterterror raid, police say
Updated 35 min 11 sec ago

Two Pakistani Taliban militants killed in Karachi counterterror raid, police say

Two Pakistani Taliban militants killed in Karachi counterterror raid, police say
  • Weapons, explosives, suicide vest recovered in joint CTD-FIA operation in Keamari district
  • TTP has long maintained presence in Karachi, linked to extortion, killings and major attacks

KARACHI: Two suspected militants from the Tehreek-e-Taliban Pakistan’s (TTP) were killed in an intelligence-led security operation in Karachi, police said Thursday, amid growing concerns about the outfit’s efforts to regroup in urban centers across the country.

The TTP, also known as the Pakistan Taliban, has operated in the southern port city for over a decade, often in coordination with sectarian or ethnic militant outfits. The group has been linked to a series of high-profile attacks, including the 2014 assault on Karachi’s Jinnah International Airport and the 2023 siege of the Karachi Police Office. In addition to violence, the network is known to engage in extortion, targeted assassinations and intimidation campaigns in the city.

The latest operation, carried out jointly by the Counter-Terrorism Department (CTD) of Sindh Police and the Federal Investigation Agency (FIA), took place in the Askani area of Karachi’s Keamari district after authorities said they received “reliable intelligence” regarding a plot to carry out “subversive activities.”

“Two terrorists affiliated with the banned organization Fitna Al-Khawarij (TTP) were neutralized in the gunfight,” CTD official Mazhar Mashwani told Arab News, adding that the identification of the militants was ongoing through biometric and intelligence verification.

Security forces recovered a pistol, a Kalashnikov rifle, explosives and a suicide vest from the site of the operation. The vest was later defused by a bomb disposal unit, Mashwani added.

Criminal cases are being registered under anti-terrorism and explosives laws at the CTD Police Station.

Though large-scale security operations have weakened the TTP’s organizational infrastructure in Karachi, police officials say sleeper cells remain active, often operating in alliance with other militant groups.

Pakistan has experienced a sharp increase in militant violence since November 2022, when a fragile truce between the state and the TTP collapsed. While the violence has been most intense in the Khyber Pakhtunkhwa and Balochistan provinces, the presence of TTP-linked cells in Karachi, the country’s commercial capital, remains a serious security concern.

Islamabad has repeatedly accused Afghanistan’s Taliban-led government of sheltering TTP leaders and fighters involved in cross-border attacks, though Kabul denies the allegation and insists Pakistan address its own internal security challenges.


Pakistan deputy PM to visit Kabul for rail project pact with Afghanistan, Uzbekistan

Pakistan deputy PM to visit Kabul for rail project pact with Afghanistan, Uzbekistan
Updated 32 min 53 sec ago

Pakistan deputy PM to visit Kabul for rail project pact with Afghanistan, Uzbekistan

Pakistan deputy PM to visit Kabul for rail project pact with Afghanistan, Uzbekistan
  • Agreement will launch joint feasibility study for UAP railway link connecting Central Asia to Pakistani ports
  • Pact seen as one of the first tangible outcomes of renewed engagement between Islamabad and Kabul

ISLAMABAD: Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar will travel to Kabul today, Thursday, to sign a framework agreement to conduct a joint feasibility study for the Uzbekistan-Afghanistan-Pakistan (UAP) Railway Project, the foreign office said in a statement.

The UAP Railway Project aims to establish a vital trade and transit corridor linking Uzbekistan with Pakistan via Afghanistan, offering the Central Asian republics direct access to Pakistani seaports. The rail link is expected to significantly boost regional connectivity, facilitate trade and contribute to long-term economic integration and political stability in the broader region.

For Pakistan, which seeks to position itself as a regional connectivity hub, the UAP railway is also strategically important in strengthening economic ties with Central Asia and securing stable transit through Afghanistan, a country whose internal security dynamics continue to impact broader regional development goals.

“The DPM/FM’s visit underscores the importance Pakistan attaches to the successful realization of the UAP Railway Project,” the foreign ministry said in a statement.

“The signing of the Framework Agreement on Joint Feasibility Study between the three participating countries in Kabul will be an important step toward its implementation.”

Uzbekistan and Afghanistan signed an agreement in 2017 to extend a railroad connecting the two countries that would eventually give Uzbekistan a direct link to seaports.

Landlocked Uzbekistan’s access to marine shipping is very limited.

RENEWED ENGAGEMENT

While in Kabul, Dar will also meet Afghanistan’s acting foreign minister and is scheduled to call on the country’s acting prime minister. The meetings will cover a wide range of bilateral issues as well as regional and international developments.

The visit comes amid a tentative thaw in Pakistan-Afghanistan relations, which have been strained in recent years due to a surge in militancy in Pakistan that Islamabad blames on Afghan-based insurgent groups.

Islamabad has repeatedly urged the Taliban-led government to prevent militant groups, particularly Tehreek-e-Taliban Pakistan (TTP), from launching attacks on Pakistani security forces and other targets from Afghan soil. Kabul denies harboring militants.

In December, the Afghan Taliban said bombardment by Pakistani military aircraft in Afghanistan’s eastern Paktika province had killed at least 46 people, most of whom were children and women.

Pakistan has not confirmed the strikes but has said that it is carrying out “anti-terrorist operations” against militants it blames for attacks in Pakistan and who it says have safe havens in Afghanistan, a charge that Kabul denies.

Efforts to repair the fractured ties gained momentum during a China-hosted trilateral dialogue in Beijing in May between the foreign ministers of Pakistan, Afghanistan and China. Islamabad and Kabul agreed in principle to send ambassadors to each other’s country as soon as possible, Chinese Foreign Minister Wang Yi had announced after the summit. 

The upcoming signing of the UAP railway pact, a long-discussed infrastructure project championed by all three governments, is also being seen as one of the first tangible outcomes of renewed engagement between Islamabad and Kabul. 


Pakistan calls Gaza aid system ‘a death trap,’ urges restoration of UN-led relief channels

Pakistan calls Gaza aid system ‘a death trap,’ urges restoration of UN-led relief channels
Updated 17 July 2025

Pakistan calls Gaza aid system ‘a death trap,’ urges restoration of UN-led relief channels

Pakistan calls Gaza aid system ‘a death trap,’ urges restoration of UN-led relief channels
  • Israel dismantled UN-run aid sites, set up a system where hundreds of Palestinians have been killed
  • Pakistan urges global action as Gaza is ‘starved and shattered’ amid failing aid delivery mechanisms

ISLAMABAD: Pakistan’s envoy to the United Nations on Wednesday criticized the current humanitarian aid delivery mechanism in Gaza, saying it had “morphed into a death trap” for civilians, as hundreds of people have been killed while trying to access basic supplies like food and medicine.

Speaking at a UN Security Council briefing on the humanitarian situation in the Palestinian enclave, Pakistan’s Permanent Representative to the UN, Ambassador Asim Iftikhar Ahmed, raised alarm over the dismantling of the earlier UN-coordinated aid system and its replacement by a restricted structure under the Gaza Humanitarian Foundation (GHF), which he said lacked both scale and neutrality.

“The current aid mechanism is clearly failing those it claims to serve,” Ahmed said. “According to the UN Human Rights Office, 798 aid-related killings have occurred since late May, 615 of them at or near distribution sites.

The prior UN-coordinated system of more than 400 well-networked distribution points has been dismantled. In its place, a heavily restricted system under the GHF now operates with just a handful of designated aid sites.”

The Pakistani diplomat noted the situation was forcing desperate civilians to traverse active combat zones in search of basic necessities.

“While some aid has trickled into Gaza, the volume is vastly inadequate,” he added. “Its implementation is flawed, and it falls far short of the standards demanded by international humanitarian law. Most gravely, the system has morphed into a death trap.”

The remarks came amid growing international concern over the humanitarian conditions in Gaza, where more than 58,000 people have been killed and tens of thousands wounded since the start of Israeli military operations in October 2023.

Aid groups and UN agencies have warned that fuel, food and medical supplies are nearing critical shortages, while bureaucratic hurdles and border closures continue to delay relief deliveries.

Ahmed urged the Security Council to back the restoration of “full, unhindered and impartial humanitarian access” through UN-led channels, including the UN Relief and Works Agency (UNRWA) and to push for an immediate and unconditional ceasefire.

“The world cannot stand by as Gaza is starved and shattered,” he said. “Let us not grow numb to the daily toll: it is not just another headline, another ticker, another statistic. Behind each number is a life: a person with a story, a dream extinguished a family torn apart.”