US defense secretary holds call with Pakistan army chief to discuss regional developments

The collage of images created on October 5, 2023, shows Pakistan Army Chief General Asim Munir (left) and United States Defense Secretary Lloyd Austin. (Photo courtesy: Pakistan Army and US Department of Defense)
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Updated 04 October 2023
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US defense secretary holds call with Pakistan army chief to discuss regional developments

  • A statement issued in Washington says the two officials ‘discussed areas of mutual interest’
  • The Pakistan army’s media wing has not issued a statement to share details of conversation

ISLAMABAD: United States Defense Secretary Lloyd Austin held a phone call with Pakistan’s Chief of Army Staff General Asim Munir, a brief statement issued in Washington announced on Tuesday night.

The US statement did not share details of the conversation between the two officials, though their exchange comes at a time when both countries are trying to rebuild relations that came under strain during the government of former prime minister Imran Khan.

The ex-premier accused the administration in Washington of orchestrating his downfall in a no-trust vote since he was trying to pursue an independent foreign policy. The US official have, however, repeatedly denied the claim.

“Secretary of Defense Lloyd J. Austin III spoke by phone today with Pakistan’s Chief of Army Staff Gen. Asim Munir,” Pentagon Press Secretary Brig. Gen. Pat Ryder said in a brief statement. “Secretary Austin and Gen. Munir discussed areas of mutual interest as well as recent regional developments.”

Pakistan army media wing, ISPR, is yet to issue a statement about the phone call.

However, the caretaker administration gave a deadline to all illegal immigrants, mostly Afghan nationals, to leave the country by the end of the month.

The decision was announced after two militant attacks on a mosque and a religious procession left more than 60 people dead in the country’s western provinces bordering Afghanistan.

Officials in Islamabad have frequently blamed the proscribed Tehreek-e-Taliban Pakistan (TTP), whose leadership is said to be based in the neighboring state, for launching such attacks.

The country’s caretaker interior minister Sarfaraz Bugti also blamed Afghan nationals for their involvement in several militant attacks during a media briefing.

“From January till now, there have been 24 suicide bombings [in Pakistan],” he said. “Of those 24, 14 suicide bombings were carried out by Afghan nationals. They were Afghans who attacked us.


Pakistan opens real-time digital payment system to exchange companies as reserves edge up

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Pakistan opens real-time digital payment system to exchange companies as reserves edge up

  • Raast enables low-cost transfers between banks, microfinance firms and electronic money wallets
  • Pakistan’s overall foreign reserves stand at $21.25 billion as central bank holdings rise $16 million

KARACHI: Pakistan’s central bank on Thursday allowed exchange companies to route home remittances through its instant payment system, Raast, saying the move aims to promote digital transactions and improve the efficiency of inflows, as the country’s foreign exchange reserves rose modestly in the latest week.

The State Bank of Pakistan (SBP) said in a statement that the country's total liquid foreign reserves stood at $21.25 billion as of Jan. 9, while the central bank’s own reserves rose $16 million to $16.07 billion.

The statement said the decision to extend Raast to exchange companies forms part of the central bank’s broader push to strengthen digital payments infrastructure and support a shift toward a cashless economy.

“Building an innovative and inclusive digital financial services ecosystem is one of the key objectives of State Bank of Pakistan under its Strategic Plan 2023-2028,” the SBP said.

“In furtherance of this vision, SBP has now allowed Exchange Companies (ECs) to utilize ‘Raast,’ a state-of-the-art payment system launched by SBP in 2021, to facilitate remitters and beneficiaries of home remittances,” it added.

Raast, a real-time digital payment system, allows instant and low-cost transfers between banks, microfinance institutions and electronic money wallets.

“Through this enablement, the beneficiaries receiving remittances through ECs can receive their funds in their accounts and wallets ... in a safe and efficient manner,” the statement said.

Pakistan relies heavily on workers’ remittances from abroad and has been seeking to channel more inflows through formal banking systems by strengthening digital and regulated payment networks, as authorities try to curb informal mechanisms such as hawala and hundi, underground value transfer systems that move money outside the banking sector.