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.


Pakistan bank enables Shariah-compliant digital payment facility for passengers at Islamabad airport

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Pakistan bank enables Shariah-compliant digital payment facility for passengers at Islamabad airport

  • Pakistan is a cash-dominated market where a significant portion of transactions in the informal sector are made without any taxes, officials say
  • The move comes amid Pakistan’s efforts to introduce a cashless model at airports under which only digital service providers can provide services

KARACHI: Aik, Pakistan’s first Islamic digital bank, has enabled fully digital payments at Islamabad International Airport to offer travelers and passengers secure, Shariah compliant digital transaction facility.

The development comes amid Pakistan’s efforts to introduce a cashless model at airports across the country, under which only digital service providers can provide services to customers.

Aik, a subsidiary of Bank Islami, said it has onboarded merchants across the Islamabad airport and integrated QR code deployments at key touchpoints to allow passengers and visitors to make secure, seamless, and Shariah-compliant digital transactions at all counters, retail outlets, and service points.

It said the implementation complies with the regulations and framework set by the State Bank of Pakistan (SBP) and is a working model for a large-scale adoption of cashless systems in public infrastructure.

“This deployment reflects our commitment to building practical digital infrastructure that improves everyday transactions,” Aik Chief Officer Ashfaque Ahmed said in a statement.

“By enabling a fully cashless environment at a major national gateway, we are supporting efficiency, transparency, and financial inclusion at scale. This is not only a project; it is a foundation for Pakistan’s cashless future.”

Pakistan is a cash-dominated market where a significant portion of transactions, particularly in the informal sector, are conducted in cash. Officials say many of these transactions are aimed at avoiding taxes.

In recent years, the SBP has taken steps to ensure a transition toward a more cashless economy so that transactions are more traceable, reducing chances of tax evasion and corruption.

By digitizing Islamabad airport, aik said it continues to invest in secure and accessible financial solutions that “expand digital participation and support national economic modernization.”