Pakistan junior foreign minister calls for easing sanctions on Afghanistan

Pakistan's State Minister for Foreign Affairs Hina Rabbani Khar talks to Germany’s Welt newspaper. (Photo courtesy: Welt)
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Updated 30 June 2022
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Pakistan junior foreign minister calls for easing sanctions on Afghanistan

  • Taliban takeover last year prompted foreign governments to cut aid
  • Strict enforcement of sanctions has debilitated Afghan banking sector

BERLIN: Pakistan’s junior foreign minister called for an easing of Western sanctions against Afghanistan under the Taliban government, saying the basic functioning of the Afghan economy must not be endangered.

The Taliban takeover last year prompted foreign governments, led by the United States, to cut development and security aid, and the strict enforcement of sanctions has debilitated the country’s banking sector.

In an interview with Germany’s Welt newspaper published on Thursday, junior foreign minister Hina Rabbani Khar said isolating Afghanistan economically was pushing the country into economic collapse.

“If the country remains locked out of international banking and its foreign assets remain frozen, then that is what will happen. We must not promote famine,” she added.

Khar said the Western troop withdrawal from Afghanistan, in which Germany was also involved, had serious repercussions because it was not preceded by a negotiated solution, calling on Germany to play an active political role in easing sanctions.

“In the current situation, it is not a good idea to continue to starve Afghanistan and risk an economic implosion in the country,” she said, adding that economic support was necessary to help the Afghan people.

“How is it that we spent $3 trillion on the war, but today don’t even have $10 billion on Afghan survival? I don’t understand this behavior,” she added.


Pakistani stocks breach 176,000 points barrier as investors expect further rate cuts

Updated 01 January 2026
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Pakistani stocks breach 176,000 points barrier as investors expect further rate cuts

  • Pakistani financial analyst attributes surge to falling inflation, investors expecting further policy rate cuts
  • Pakistan’s finance ministry said Thursday that inflation had slowed to 5.6 percent year-on-year in December 

KARACHI: Pakistani stocks continued their bullish run on Thursday, breaching the 176,000 points barrier for the first time after trading ended, with analysts attributing the surge to investors expecting further cuts in the policy rate. 

The KSE-100 benchmark gained 2,301.17 points at close of business on Thursday, marking an increase of 1.32 percent to settle at 176,355.49 points. 

Pakistan’s central bank cut its key policy rate by 50 basis points to 10.5 percent last ‌month, breaking a four-meeting ‌hold in a move ‌that ⁠surprised ​markets. Pakistan’s consumer price inflation slowed to 5.6 percent year-on-year in December, while prices fell on a monthly basis as per data from the finance ministry. 

“Upbeat data for consumer price index (CPI) inflation at 5.6pc in December 2025 [with] investors expecting a further State Bank of Pakistan rate cuts on falling inflation data,” Ahsan Mehanti, CEO of Arif Habib Commodities Ltd., told Arab News. 

The stock market witnessed a trading volume of 1,402.650 million shares, with a traded value of Rs48.424 billion ($173 million), compared with 957.239 million shares valued at Rs44.231 billion ($158 million) during the previous session.

Topline Securities, a leading brokerage firm in Pakistan, credited the surge to strong buying at the first session.

“This positivity can be accredited to buying by local institutions on the start of the new calendar year,” it said. 

Pakistan’s Finance Adviser Khurram Schehzad highlighted that the bullish trend at the stock market reflected “strong investor confidence.”

“With lower inflation, affordable fuel, stronger reserves, rising digitization and a buoyant capital market, Pakistan’s economic outlook is clearly improving--supporting greater confidence, better investment sentiment and more positive momentum for 2026,” he said on social media platform X.