ISLAMABAD: Federal Minister for Finance and Revenue Miftah Ismail on Wednesday highlighted the structural problems of the country’s economy, saying that Pakistani companies preferred to import parts of their products instead of manufacturing them indigenously at home.
The government recently imposed a temporary ban on the import of luxury items since it was facing a massive current account deficit along with dwindling forex reserves and a rapidly depreciating currency.
The finance minister issued the statement against the same backdrop while addressing a conference of business leaders in the federal capital where he specifically mentioned the country’s cellphone and automobile manufacturers.
“We have given subsidies and 10 percent duty advantage to mobile industry to manufacture phones in Pakistan but their value addition is not more than five percent,” he said. “They get all of their parts from outside and only assemble them here. We have given double duty protection than its value addition and the same thing holds true for car manufacturing companies as well.”
Ismail noted that automobile manufacturers had been working in Pakistan for more than 30 years, but they had not exported vehicles worth a single dollar.
“Pakistani companies are selling inside the country only, though they should try to sell [their products] in rich markets of the United States, Europe and far eastern countries,” he added. “They sell locally to earn more profit because it is a protected market.”
The minister pointed out that out of Pakistan’s $30 billion exports, around $20 billion were generated by the textile sector.
“We import $80 billion worth of goods from abroad which is unsustainable,” he continued. “Our industries have to increase exports instead of only making local sales.”
Ismail also maintained that agriculture was the backbone of Pakistan’s economy, though he added it needed more innovation by adopting advanced Agri-Tech.
“My focus is to strengthen our agriculture as we have imported $450 million tons of wheat this year and more is still required,” he said.
The money spent on the import of wheat, the minister continued, could be used to support farmers and introduce latest technology in the sector.
ISLAMABAD/GILGIT: Authorities beefed up security by deploying additional police contingents and sealing off most roads leading to government buildings in Islamabad, Karachi and Skardu on Monday after violent protests in the aftermath of Iranian Supreme Leader Ayatollah Ali Khamenei’s killing led to the deaths of at least 24 people in Pakistan.
At least 10 people were killed and 73 others sustained injuries on Sunday in clashes with law enforcement outside the US consulate in Karachi. Hundreds of protesters had gathered outside the consulate, with videos showing angry crowds armed with sticks as they smashed doors and windows.
In Islamabad, protesters entered the Red Zone which houses key government and diplomatic offices in the capital, prompting authorities to fire tear gas to disperse them. Similarly, people gathered outside the press club in the northwestern city of Peshawar to protest Khamenei’s killing as well.
Skardu in Pakistan’s northern Gilgit-Baltistan (GB) region saw violent clashes on Sunday as well, as protesters set fire to and vandalized several buildings, including United Nations (UN) regional offices. Clashes with law enforcers caused the deaths of at least 14 people in the region, among them a soldier, a senior official told Arab News.
“Seven protesters were killed in Gilgit and seven in Skardu,” GB Caretaker Information Minister Ghulam Abbas confirmed. “One was soldier martyred in Skardu while the injured there were around 50.”
Police and Paramilitary vehicles stand outside the U.S. Consulate General, a day after a protest following news of U.S. and Israeli strikes on Iran that killed Supreme Leader Ayatollah Ali Khamenei, in Karachi, Pakistan, March 2, 2026. (Reuters)
The minister said the station house officer and deputy superintendent of police in Skardu were also injured, along with two soldiers, while 10 properties were damaged in the clashes. He said police have registered complaints against the culprits for the violence.
“Schools are closed on Monday and courts’ activities will also be closed,” Abbas said. “A curfew has also been imposed for three days initially in Skardu and Gilgit cities from Mar. 2 to Mar. 4.”
The flare-up also prompted authorities to call in the army in Skardu under Article 245 of the Pakistani constitution, state media reported on Sunday.
Meanwhile, Islamabad Traffic Police said entry into the Red Zone area will remain open for people only through the Margalla Road and another route through Marriott Hotel.
“All other entry points leading toward the Red Zone will remain closed,” it said in its advisory.
People ride past shipping containers on a road leading to the U.S. Consulate General, a day after a protest following news of U.S. and Israeli strikes on Iran that killed Supreme Leader Ayatollah Ali Khamenei, in Karachi, Pakistan, March 2, 2026. (Reuters)
A spokesperson for the Karachi Traffic Police said in a press release that the MT Khan Road, from PIDC road to the Mai Kolachi Road railway crossing, will remain closed on Monday for general traffic due to security reasons.
The US consulate, which was the scene of clashes between protesters and police, is located on Mai Kolachi Road near MT Khan and PIDC.
“The general public is requested to cooperate with law enforcement agencies and traffic police to avoid inconvenience and difficulties,” the Karachi Traffic Police spokesperson said.
MIDDLE EAST TENSIONS
The violence on Sunday came hours after Iranian authorities confirmed Khamenei was killed in coordinated strikes carried out by the US and Israel, dramatically escalating tensions in the Middle East and triggering protests in several countries.
According to US officials, the operation targeted Revolutionary Guard command facilities, air defense systems, missile and drone launch sites, and military airfields. The US military said it suffered no casualties and reported minimal damage to its bases despite what it described as “hundreds of Iranian missile and drone attacks.”
Iran retaliated by launching missiles and drones toward Israel and targeting US military installations in Bahrain, Kuwait, Qatar and the UAE. The Emirati government said its air defense systems intercepted dozens of Iranian missiles and drones, but debris from the interceptions caused material damage in Abu Dhabi and Dubai, and at least one civilian, a Pakistani national, was killed. It issued rare emergency alerts urging residents to seek shelter, underscoring how the conflict has rippled far beyond Iran’s borders.
The Israeli military said dozens of Iranian missiles were fired toward Israeli territory, many of which were intercepted. Israel’s Magen David Adom rescue service said a woman in the Tel Aviv area died after being wounded in a missile strike.
