‘No country should suffer terror’: US condemns attack on Chinese workers in Pakistan

Security personnel inspect the site of a suicide attack near Besham city in the Shangla district of Khyber Pakhtunkhwa province on March 26, 2024. (AFP)
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Updated 27 March 2024
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‘No country should suffer terror’: US condemns attack on Chinese workers in Pakistan

  • Five Chinese nationals working on Dasu dam project in Khyber Pakhtunkhwa province killed in suicide bombing 
  • Attack being widely seen as attempt to undermine a relationship on which Islamabad’s financial survival depends

ISLAMABAD: Washington has condemned a suicide bombing that killed five Chinese nationals working on a dam project in the South Asian country’s northwestern Khyber Pakhtunkhwa province on Tuesday, saying no country should have to suffer “acts of terror.”
A suicide bomber rammed an explosives-laden vehicle into a convoy of Chinese engineers that was on its way from Islamabad to a camp in Dasu, the site of a major dam project, Bakht Zahir, a local police officer in the Shangla district where the attack took place, told Arab News. 
He said the five Chinese nationals killed were construction workers and engineers. The Pakistani driver of the vehicle was also killed in the attack. 
The attack is being widely seen as an attempt to undermine a relationship on which Islamabad’s financial survival largely depends as Beijing is investing over $65 billion in energy, infrastructure and other projects in Pakistan as part of the China Pakistan Economic Corridor (CPEC) under its wider Belt and Road initiative. Hundreds of Chinese engineers and technicians work on the projects, many of which are based in Pakistan’s Khyber Pakhtunkhwa and southwest Balochistan provinces. 
Khyber Pakhtunkhwa borders Afghanistan and has been the site of renewed attacks by militants, mainly the Pakistani Taliban, in recent years. Attacks by separatist militants in Balochistan have also been on the rise.
“We condemn the attack on a convoy of PRC [People’s Republic of China] engineers in Pakistan,” US State Department spokesperson Matthew Miller said at a news briefing. 
“We are deeply saddened by the loss of life and injuries sustained, and share our heartfelt condolences with those affected by the attack. The Pakistani people have suffered greatly at the hands of terrorists, and I’ll note that PRC nationals in Pakistan have also been the victims of terrorist attacks, and no country should suffer the acts of terror.”
China has demanded that the Pakistan government “conduct a thorough investigation into the attack, severely punish the perpetrators, and take practical and effective measures to protect the safety of Chinese citizens,” Beijing’s embassy in Islamabad said in a statement on Tuesday, as Pakistani officials pledged a speedy investigation. 

“CHINESE INTERESTS”
No group immediately claimed responsibility for the bombing, which is the third major attack in Pakistan in a week.
Last week, militants attacked Balochistan’s strategic Gwadar port, which China is developing as part of CPEC. All eight militants and two Pakistani soldiers were killed in the attack, officials said. 
The second attack, on a naval base in Balochistan’s Turbat region, took place this week on Monday night, in which one Pakistani paramilitary soldier and five militants were killed. 
Chinese interests in Pakistan have been targeted by both religiously motivated and separatist militants in the past as well.
In July 2021, a blast on a bus carrying workers to the Dasu dam construction site killed 13 people, including nine Chinese workers. Pakistan had blamed that attack on the intelligence agencies of rival neighbors India and Afghanistan. Both countries denied the accusations.
A female suicide bomber affiliated with a separatist group killed three Chinese teachers in Karachi in April 2022 along with their local driver.
In August 2023, militants attacked a Pakistani military convoy near Gwadar as it was escorting a delegation of Chinese nationals to a construction project. The Pakistan army said at the time two militants were killed and no harm was caused to any military personnel or civilians.


Pakistan secures $1.2 billion as IMF clears reviews, flags gains on stability and reforms

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Pakistan secures $1.2 billion as IMF clears reviews, flags gains on stability and reforms

  • IMF praises Pakistan’s policy implementation despite challenging global environment and climate-driven shocks
  • The Executive Board urges faster energy, SOE and governance reforms for macroeconomic and fiscal sustainability

KARACHI: The International Monetary Fund (IMF) approved Pakistan’s second review under its Extended Fund Facility (EFF) and the first review of its Resilience and Sustainability Facility (RSF), said a statement on Tuesday, unlocking about $1.2 billion in new financing while praising the country’s progress in stabilizing the economy despite recent floods.

The decision taken by the IMF Executive Board allows Islamabad to draw $1 billion under the EFF and $200 million under the RSF, bringing total disbursements under both arrangements to about $3.3 billion. The Fund said Pakistan’s policy implementation had improved financing conditions, strengthened reserves and preserved stability even as the country faced a challenging global environment and climate-driven shocks.

Under the 37-month EFF, approved last year in September, the IMF noted strong fiscal performance, including a primary surplus of 1.3 percent of GDP, a rebound in gross reserves to $14.5 billion by end-FY25 from $9.4 billion a year earlier and progress on rebuilding confidence. It noted a surge in inflation due to flood-related food price spikes but said it was expected to ease.

“Pakistan’s reform implementation under the EFF arrangement has helped preserve macroeconomic stability in the face of several recent shocks,” IMF Deputy Managing Director Nigel Clarke said. “Real GDP growth has accelerated, inflation expectations have remained anchored, and fiscal and external imbalances have continued to moderate.”

Clarke said Islamabad’s commitment to meeting its FY26 primary balance target while also addressing urgent post-flood relief signaled strong fiscal intent. He urged continued tax policy simplification and base broadening to build space for climate resilience, social protection and public investment.

The IMF official maintained a tight monetary stance should be continued to keep inflation within the State Bank Pakistan’s target range, while allowing exchange-rate flexibility and deepening the interbank market.

Additionally, he said financial regulation enforcement and capital market development were essential for a resilient financial sector.

The IMF also flagged energy sector reforms as “critical to safeguarding viability,” noting that timely tariff adjustments had helped curb circular debt but that Pakistan must now focus on reducing electricity production and distribution costs and addressing operational inefficiencies in both the power and gas sectors.

The statement also welcomed the publication of Pakistan’s Governance and Corruption Diagnostic report, a detailed IMF-supported assessment that maps out where government systems are vulnerable to inefficiency or misuse and recommends reforms to improve transparency, accountability and service delivery.

Further priorities include the privatization of state-owned enterprises and strengthening economic data quality.
Clarke said reducing Pakistan’s climate vulnerability was vital for long-term stability, referring to the RSF, a financing tool that provides long-term, low-cost loans to help countries address climate risks.

“The RSF arrangement is supporting efforts to strengthen natural disaster response and financing coordination, improve the use of scarce water resources, raise climate considerations in project selection and budgeting, and improve the information on climate-related risks in financing decisions,” he said.

Pakistan faced a prolonged economic crisis in recent years before it began implementing stringent IMF-recommended reforms, which have driven a gradual improvement in macroeconomic indicators over the past two years.

The country also remains one of the world’s most climate-vulnerable nations despite contributing less than one percent of global greenhouse-gas emissions.

It has endured a series of extreme weather events in recent years, most notably the 2022 super-floods that submerged one-third of the country, displaced millions and caused an estimated $30 billion in losses.

This year’s floods killed over 1,000 people and caused at least $2.9 billion in damage to agriculture and infrastructure, underscoring the scale of climate pressures facing the economy.

Economic experts told Arab News a day earlier that the Fund’s disbursements under the two loan programs would support the cash-strapped nation, which has relied heavily on financing from bilateral partners such as Saudi Arabia, China and the United Arab Emirates, as well as multilateral lenders.

“It obviously will help strengthen the external sector, the balance of payments,” said Samiullah Tariq, group head of research at Pakistan Kuwait Investment Company.

Another analyst, Shankar Talreja, head of research at Karachi-based Topline Securities, said the move was likely to send a positive signal to domestic and international investors about the government’s commitment to its reform agenda.

“This will help strengthen reserves and will eventually help a rating upgrade going forward,” he said.