Pakistan expresses concern over suspension of funding to UN Palestinian refugee agency

Displaced Palestinians receive food aid at the United Nations Relief and Works Agency for Palestine Refugees (UNRWA) center in Rafah in the southern Gaza Strip on January 28, 2024. (AFP/File)
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Updated 29 January 2024
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Pakistan expresses concern over suspension of funding to UN Palestinian refugee agency

  • Donors suspended funding after allegations emerged that a few UNRWA employees were involved in Oct. 7 attacks in Israel by Hamas
  • Islamabad says the decision to suspend funding to the UN agency in response to allegations against a small group of staff is ‘unjustifiable’

ISLAMABAD: Pakistan was concerned over a decision by major world donors to suspend funding to the United Nations (UN) Palestinian refugee agency, UNRWA, the Pakistani foreign ministry said on Monday, saying the continuity of the agency’s operations was vital for the survival of the people of Gaza.

The donors, including the US, UK, Australia, Canada and Germany, suspended funding to United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) after allegations emerged that around 12 of its tens of thousands of Palestinian employees were suspected of involvement in the Oct. 7 attacks in Israel by Hamas.

On Friday, the agency, which serves the civic and humanitarian needs of 5.9 million people in the Gaza Strip, West Bank and in vast camps in neighboring Arab countries, it had opened an investigation into several employees and severed ties with those people.

A spokesperson for the agency said on Monday that UNRWA would not be able to continue operations in Gaza and across the region beyond the end of February if funding did not resume.

In response to the developments, the Pakistani foreign ministry said it agreed with statements by UN officials that UNRWA’s current funding would not be sufficient to meet requirements to support the Palestinian people over the next month.

“The timing of this suspension is deeply troubling as it takes place amidst the ongoing war, displacement, and suffering of the people of Gaza who depend on critical aid from UNRWA for their daily survival,“

“It is, therefore, imperative to prioritize the continuity of UNRWA’s operations to sustain the survival of the people of Gaza.”

As the primary humanitarian agency in Gaza, UNRWA serves as a lifeline for over two million people, providing shelter and delivering vital food and primary health care services, even amidst the most intense hostilities.

The UNRWA has already been under financial strain for years. In January last year, it appealed for $1.6 billion in funding, saying its operations were at risk.

The Pakistani foreign ministry said the decision to suspend its funding in response to allegations against a small group of staff is “unjustifiable.”

“Pakistan urges all countries that have suspended their funding for UNRWA to reconsider their decision in order to avoid suspension of the Agency’s humanitarian work,” it said.

“The lives of the people in Gaza hang in the balance and depend on this crucial support.”


Pakistan rice exports slump 40% as India’s return hits pricing power

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Pakistan rice exports slump 40% as India’s return hits pricing power

  • Statistics show non-Basmati shipments have fallen over 50 percent in July-January period
  • Government offers 9 percent tax drawback on premium Basmati exports to support sector

ISLAMABAD: Pakistan’s rice exports fell 40.5 percent to $1.31 billion in the first seven months of the fiscal year, official data showed on Tuesday, as India’s return to the global market squeezed Islamabad’s market share and pricing power.

According to the Pakistan Bureau of Statistics (PBS), non-Basmati exports dropped 50.8 percent to $827.8 million, with volumes falling to 2.0 million tons from 3.15 million tons a year ago. Basmati exports declined 6.62 percent to $477.7 million, with volumes easing to 436,484 tons from 487,278 tons.

The Ministry of National Food Security told a parliamentary committee in two separate meetings in December and January that India’s re-entry into the global rice market was a key factor behind the decline, saying increased Indian supplies had made Pakistani rice less competitive.

Officials told lawmakers that India benefits from free trade agreements and provides substantial support to its rice sector, putting additional pressure on Pakistani exporters.

In response, the Ministry of Commerce last month issued a notification under the “Drawback of Local Taxes and Levies for Rice Order, 2026,” allowing a rebate of 9 percent of the free-on-board (FOB) value for Basmati exports priced above $750 per metric ton.

The government said the measure, announced on January 23, aims to ease liquidity pressures on exporters and improve competitiveness.

While PBS data for July-January shows a 40.5 percent decline, figures from the Federal Board of Revenue (FBR) for July-December show an even steeper 47 percent drop to $973 million from $1.82 billion in the same period last year, reflecting a deficit of over $800 million.

Industry representatives say they are now focusing on market diversification to counter the slowdown.

“Currently Basmati is mainly exported to Middle East and EU. Non-Basmati is exported to Philippines, Indonesia, Malaysia and African countries,” Malik Faisal Jahangir, chairman of the Pakistan Rice Exporters Association, told Arab News last week.

“For the new markets for our non-basmati rice exports, we are looking to increase our volumes to China, Philippines, Indonesia and Bangladesh,” he added.