Pakistan 'defers' plans to resume Indian imports until disputed Kashmir’s autonomy restored

Pakistan laborers unload sacks of onion imported from neighboring India at Pakistani border Wagah near Lahore Pakistan on May 14, 2013. (AP/File)
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Updated 01 April 2021
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Pakistan 'defers' plans to resume Indian imports until disputed Kashmir’s autonomy restored

  • Foreign minister says ‘impossible’ to normalize relations with India until New Delhi revises August 5, 2019 decision to strip Kashmir’s special status
  • Pakistan’s Economic Coordination Committee had on Wednesday given the go-ahead for imports from India

ISLAMABAD: Pakistan has decided to defer plans to allow limited imports of sugar, cotton and wheat from India, a top minister said on Thursday, following what is being seen as a political backlash against the move in the South Asian nation.

Pakistan’s Economic Coordination Committee had on Wednesday given the go-ahead for imports from India, with Finance Minister Hammad Azhar telling reporters the government had made the decision in the public interest when questioned why trade was resuming despite no change in New Delhi’s position on Kashmir — a disputed territory ruled in part but claimed in full by both nations.

Interior Minister Sheikh Rashid Ahmed told reporters the decision to allow Indian imports had been “deferred” until New Delhi restored Indian-administered Kashmir’s special status.

In a video message after a cabinet meeting to review the decision on Indian imports, Foreign minister Shah Mahmood Qureshi said: 

“It was everyone’s unanimous decision, including the prime minister’s, that until India does not revise the August 5, 2019 unilateral decision [to revoke the special autonomy of Kashmir], normalizing relations with India will not be possible.”

Pakistan’s major opposition parties have already expressed concern over the government’s announcement on Wednesday.

Former senator Sehar Kamran from the opposition Pakistan Peoples Party said trade with India and restorations of relations “cannot be done at the cost of Kashmir.”

“Any peace initiative can only progress if the people of Kashmir get their right to self-determination as per the United Nations resolutions,” she told Arab News. “At a time when people of Kashmir are facing oppression and suppression, what kind of relationship we are trying to build with India? Naturally, there are concerns and apprehensions.”

Raja Zafar ul Haq, a senior leader of the opposition Pakistan Muslim League-Nawaz party, echoed Kamran’s sentiments.

“The government didn’t bring this matter to parliament or discuss it with political parties and Kashmiri leadership,” he told Arab News. “This will not have a positive impact on the country.”

Earlier this week, Prime Minister Imran Khan responded to a letter by his Indian counterpart Narendra Modi on the occasion of Pakistan’s Republic Day on March 23, saying the government and people of his country wanted peaceful and cooperative relations with all neighbors, including India.

“Durable peace and security in South Asia is contingent upon resolving all outstanding issues between India and Pakistan, particularly the Jammu and Kashmir dispute,” Khan said in his letter.

Qureshi this week also acknowledged progress in relations between the two South Asian neighbors, saying there had been “positive developments” such as the announcement of a cease-fire on the disputed Kashmir border in February and the resumption of water talks last month. 

India and Pakistan have fought three wars since gaining independence from British colonial rule in 1947.


Pakistan, IFC review steps to unlock private investment, jobs

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Pakistan, IFC review steps to unlock private investment, jobs

  • Talks focus on public-private partnerships, mobilizing private capital
  • Government flags IT, agriculture, mining, health care as priority sectors

KARACHI: Pakistan’s finance minister on Thursday reviewed ways to deepen cooperation with the International Finance Corporation (IFC) to mobilize private investment, expand public-private partnerships and support job creation, the finance ministry said in a statement.

Finance Minister Muhammad Aurangzeb met an IFC delegation led by Khawaja Aftab Ahmed, the lender’s director for the Middle East, Pakistan and Afghanistan, as Islamabad seeks to translate recent macroeconomic stabilization into sustained private-sector growth.

Pakistan has made progress under an International Monetary Fund–backed reform program, easing immediate default risks and restoring a measure of macroeconomic stability. But officials say the next phase hinges on reviving investment, expanding exports and creating jobs, particularly as fiscal space remains tight and development spending constrained.

“Both sides agreed on the need to align investment and advisory support with Pakistan’s medium-term development priorities, with a clear focus on job creation, sustainability, and export-oriented growth,” the finance ministry said.

According to the statement, the IFC briefed the minister on its expanding engagement in Pakistan across investment and advisory operations, including local-currency financing, private-sector investments and sustainability-oriented initiatives. Particular emphasis was placed on the IFC’s role in strengthening public-private partnership frameworks, including projects aimed at improving urban services, infrastructure performance and resource efficiency.

Aurangzeb outlined the government’s strategy of creating enabling ecosystems rather than direct state intervention, identifying priority areas such as the digital and information technology economy, agriculture and agri-value chains, minerals and mining, health care and skills-based human capital exports.

Both sides also discussed closer coordination within the World Bank Group to deploy advisory, financing and risk-mitigation instruments more effectively, while stressing the importance of timely execution of approved transactions to maintain investor confidence.

Pakistan’s engagement with the International Finance Corporation is part of a broader long-term partnership aimed at catalyzing private sector-led growth. Since its early involvement in the country, IFC has deployed a range of equity and loan investments across sectors including renewable energy, infrastructure, manufacturing and agribusiness, with cumulative investments reaching an estimated $13 billion over several decades. 

In recent years, IFC has boosted financing for strategic initiatives such as Pakistan’s first sustainable aviation fuel facility in Punjab, where it is providing up to $35 million in equity and debt capital to generate jobs, support exports and reduce carbon emissions.