Indian delegate walks out as Pakistani PM accuses New Delhi of 'sponsoring' Islamophobia

This UN handout photo shows Imran Khan, Prime Minister of the Islamic Republic of Pakistan, as he virtually addresses the general debate of the 75th session of the United Nations General Assembly, on September 25, 2020, in New York. (AFP)
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Updated 13 June 2021
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Indian delegate walks out as Pakistani PM accuses New Delhi of 'sponsoring' Islamophobia

  • The Pakistani prime minister warns India against any aggression, urges Security Council to prevent ‘disastrous’ conflict 
  • Khan says the illicit financial flows from developing nations to rich economies detrimental to the developing world 

ISLAMABAD: Prime Minister Imran Khan on Friday warned the international community against the threat of Islamophobia, criticizing India’s Hindu nationalist government for sponsoring prejudice against Islam and encouraging hatred toward Muslims.
Addressing the 75th session of the United Nations General Assembly, Khan said that the coronavirus pandemic gave the world an opportunity to bring humanity together, but the contagion was used to fan nationalism, increase global tensions, and give rise to racial and religious hatred and violence against vulnerable minorities in several places.
“These trends have also accentuated Islamophobia,” he said, adding that Muslims were continued to be targeted with impunity in many countries.
Calling India “the one country in the world where state sponsors Islamophobia,” the Pakistani prime minister maintained that “willful provocations and incitement to hate and violence must be universally outlawed.”
According to Indian newspapers and television channels, New Delhi’s delegate walked out of the hall as soon as Khan’s statement was broadcast by the world body.
Meanwhile, the Pakistani leader warned India against any aggression in his virtual address, urging the Security Council to play a role to avoid a “disastrous conflict” between the two nuclear-armed neighbors.
The UNGA session this year is unique in a way that world leaders are not attending in person and instead are sending recorded video statements, which would be introduced by the respective country’s envoy, and then played in the assembly’s hall “as live.”
In his wide-ranging address, Khan noted that Pakistan’s foreign policy was aimed to have peace with the neighboring countries, including India, and settle all outstanding disputes through dialogue.
“I want to make it clear that any attempt by the fascist totalitarian RSS-led Indian government to aggress against Pakistan will be met by a nation that will fight for its freedom to the end,” he said.
The prime minister pointed out that there would be no durable peace and stability in South Asia until the Jammu and Kashmir dispute was resolved on the basis of international legitimacy. Kashmir “has been rightly described as a nuclear flash point,” he said.
Both the nuclear-armed neighbors have fought at least three full-fledged wars over the Himalayan Kashmir valley that they claim in full, though they only rule parts of it.
“In order to divert attention from its illegal actions and atrocities in Indian Occupied Jammu and Kashmir, India is playing a dangerous game of upping the military ante against Pakistan in a nuclearized environment,” the prime minister said.
“The government and people of Pakistan are committed to standing by and supporting their Kashmiri brothers and sisters in their legitimate struggle for self-determination,” he said.
Khan noted that Pakistan had exercised “maximum restraint” despite constant Indian provocations and cease-fire violations along the Line of Control and the working boundary, targeting “innocent civilians.”
“We have consistently sensitized the world community about a false flag operation and another ill-conceived misadventure by India,” he said.
Talking about the illicit financial flows from developing countries to rich countries and to offshore tax havens, the prime minister said the practice was leading to the impoverishment of the developing nations.
“Money that could be used toward human development is siphoned off by corrupt elites,” he said, adding that the quest for getting back the stolen resources was nearly impossible, given the cumbersome procedures.
“If this phenomenon is unaddressed, it will continue to accentuate the inequality between the rich and the poor nations, and eventually spark off a far bigger global crisis than the present migration issue poses,” he said.
“The rich states cannot hold forth on human rights and justice when they provide sanctuary to money launderers’ and their looted wealth,” he said while urging the assembly to build a global framework to stem the practice and ensure speedy repatriation of stolen wealth.
The prime minister said the COVID-19 pandemic had hit the developing countries hard and they would need fiscal space to recover from the crisis.
About Afghanistan, he said that Pakistan fully facilitated the process that culminated in the US-Taliban Peace Agreement on 29 February 2020.
“Pakistan is deeply gratified that it has fulfilled its part of the responsibility,” he said.
The prime minister also described Palestine as a “festering wound,” adding that Pakistan would continue to support a two-state solution with pre-1967 borders, and Al-Quds Al-Sharif as the capital of a united, contiguous and independent Palestinian state.


Economists flag high production costs, low exports as key risks for Pakistan in 2026

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Economists flag high production costs, low exports as key risks for Pakistan in 2026

  • Financial experts urge government to address high interest and taxation rates to attract more foreign direct investment this year
  • Economists note strong performance by Pakistan’s stock market, reduced inflation as key macroeconomic gains in the last year

KARACHI: Pakistani economists and business leaders urged the government on Wednesday to cut high production costs, arrest inflation and increase exports to capitalize on macroeconomic gains in 2025 as the country prepared to ring in the new year.

Prime Minister Shehbaz Sharif this week highlighted his government’s economic achievements over the past two years, saying that inflation had fallen from 29.2 percent to 4.5 percent, while foreign exchange reserves had more than doubled from $9.2 billion to $21.2 billion.

While Pakistan reported some economic gains during the year, such as comparatively low inflation, a $100 million current account surplus in November and a strong performance by the stock market, economist Sana Tawfik said deeper reforms were still needed to address pressing economic issues.

“When we talk about stability and growth, we cannot deny that there are challenges in the economy,” Tawfik, head of research at Arif Habib Limited, told Arab News. “High energy tariffs, interest rates and the broader cost of doing business need to be addressed if Pakistan wants to sustain growth, boost exports and attract foreign investment.”

Pakistan reported consumer inflation at 6.1 percent in November, saying it was projected to remain within the moderate 5.5-6.5 percent range in December.

Muhammad Rehan Hanif, president of the Karachi Chamber of Commerce and Industry (KCCI), agreed that high power tariffs were eroding the effectiveness of Pakistan’s exports.

“Our interest rate is still 10.5 percent, while the region is at six or seven percent,” Hanif lamented. “[While] electricity costs around 12 cents per unit here, compared to about nine cents in Bangladesh.”

The KCCI president also pointed to the country’s poor infrastructure, particularly that of its commercial capital Karachi, as a major challenge for the year ahead.

He said dilapidated roads, poor drainage and poor industrial conditions were damaging Pakistan’s image for visiting buyers and diplomats, discouraging investment.

“Infrastructure is the biggest challenge the industrialists in Karachi are facing,” he explained.

‘EXPORTS ARE OUR LIFELINE’

More troubling for Pakistan is the fact that foreign direct investment (FDI) inflows fell by more than 25 percent to $927 million during the July-November period, as per data from the central bank. Pakistan’s FDI inflows have never surged beyond $3 billion in nearly 20 years.

Economists say high energy costs along with interest and taxation rates are responsible for low FDI in the country.

Hanif stressed the importance of increasing Pakistan’s exports to ensure macroeconomic gains in 2026.

“Exports are our lifeline,” he said. “When 7 to 8 million Pakistanis abroad can generate $37 billion [in remittances], why are 250 million people here exporting only $32 billion?“

Tawfik agreed, saying that shifting to an export-driven economic model was essential for long-term sustainability.

“It is about time that we move from an import-driven economy to an export-driven one,” she said, adding that macroeconomic stability was a prerequisite for restoring investor confidence and attracting FDI.

Meeting the International Monetary Fund’s benchmarks, ensuring timely inflows from creditors and continuing reforms such as privatization of state-owned enterprises (SOEs) will also be critical in 2026, she added.

‘YEAR OF MACROECONOMIC STABILITY’

Despite these challenges, financial experts recognized that 2025 marked a clear improvement for Pakistan compared to the previous two years.

“The year 2025 can be described as a year of macroeconomic stability and overall, we saw some improvement in different macroeconomic indicators,” Tawfik said.

She noted that inflation, which had surged to a record 38 percent in May 2023, had been reduced to single-digit figures in 2025.

Pakistan’s Finance Adviser Khurram Schehzad said this week the Pakistan Stock Exchange has delivered 50 percent-plus returns in US dollar terms since January 2025, making it one of the “best markets in Asia.”

Tawfik said 2026 could see “positive” developments if the government maintains macroeconomic stability.

The economist said she expected growth at around 3.7 percent, inflation to remain within the central bank’s five to seven percent target range and a relatively stable exchange rate with modest depreciation.

However, she cautioned that without addressing high energy costs, easing business conditions and boosting exports, the government could risk squandering its hard-won macroeconomic gains.

“It is important to take all stakeholders on the same page and work in the same direction for overall economic betterment.”