Pakistan rejects US move to sanction firms for aiding its ballistic missile program 

Pakistani military helicopters fly past a vehicle carrying a long-range ballistic Shaheen III missile during the military parade to mark Pakistan's National Day in Islamabad on March 25, 2021. (AFP/File)
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Updated 20 April 2024
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Pakistan rejects US move to sanction firms for aiding its ballistic missile program 

  • US sanctions four international companies for supplying missile-applicable items to Pakistan’s ballistic missile program
  • Pakistan’s foreign office questions double standards of allowing advanced military technologies to some countries

ISLAMABAD: Pakistan’s foreign office spokesperson on Saturday rejected Washington’s move to impose sanctions on four international firms for providing missile-applicable items to its ballistic missile program, saying Islamabad is against the “political use” of export controls. 

In a press release issued late Friday, the US State Department announced sanctions against three Chinese companies and one Belarus-based firm on charges they supplied items to Pakistan’s ballistic missile program.

The companies listed by the US for sanctions are the China-based Xi’an Longde Technology Development Company Limited, Tianjin Creative Source International Trade Co. Ltd, Granpect Company Limited and Belarus-based Minsk Wheel Tractor Plant.

Pakistan’s foreign office spokesperson responded by saying that commercial entities have been sanctioned in the past on allegations of having links to Pakistan’s ballistic missile program “without sharing any evidence whatsoever.”

“Pakistan rejects political use of export controls,” the foreign office spokesperson said in a statement. It added that the same jurisdictions that claim to exercise non-proliferation controls have waived off licensing requirements for advanced military technologies for some countries.

“This is leading to arms build up; accentuating regional asymmetries, and undermining the objectives of non-proliferation and of regional and global peace and security,” it said. 

The statement said Islamabad had repeatedly pointed out that such items have legitimate civil commercial uses, urging Washington to avoid “arbitrary application of export controls.”

“There is need for discussions between concerned parties for an objective mechanism to ensure access to technology in pursuit of socio-economic development,” the spokesperson said.

“Pakistan has always been ready to discuss end-use and end-user verification mechanisms so that legitimate commercial users are not hurt by discriminatory application of export controls.”

The sanctions mean all property and interests in property of the companies in the US or in possession or control of American citizens are blocked and must be reported to the US Treasury Department’s Office of Foreign Assets Control (OFAC), the State Department has said.

They also mean that all transactions by American citizens, or those within (or transiting) the US that involve any property or interests in property of the companies, are prohibited unless authorized by a general or specific license issued by OFAC.


Islamic Development Bank, Pakistan sign $603 million loan deals to fund development projects

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Islamic Development Bank, Pakistan sign $603 million loan deals to fund development projects

  • The projects concern Sukkur-Hyderabad motorway, poverty graduation of flood-affectees and out-of-school children
  • The poverty graduation project will be implemented in 25 districts, including five districts most affected by floods

ISLAMABAD: Pakistan and the Islamic Development Bank (IsDB) have signed three loan agreements worth about $603 million to finance multiple development projects, the Pakistani information ministry said on Tuesday.

The agreements relating to M-6 Sukkur-Hyderabad Motorway Project, Poverty Graduation of Extremely Poor and Flood Affected Households Project (PGEP), and the Out-of-School Children project in Azad Jammu and Kashmir were formalized in Islamabad, following talks between Pakistan’s Economic Affairs Minister Ahad Cheema and an IsDB delegation, led by Vice President Dr. Rami Ahmad.

Under the agreements, IsDB will provide financing of $475 million for the M-6 Sukkur–Hyderabad Motorway, a key link to the proposed Peshawar-Karachi Motorway. Pakistan signed the second agreement with IsDB to launch the Poverty Graduation of Extremely Poor and Flood

Affected Households (PGEP) project, aimed at transitioning ultra-poor households from dependency on cash assistance to sustainable livelihoods, resilience and economic self-reliance.

“PGEP has a total outlay of $134.2 million, of which IsDB will contribute USD 118.4 million. The Project will be implemented in 25 districts (20 districts selected based on Multidimensional Poverty Index (MPI 2024) and 5 most flood-affected districts of the 2022 and 2025 floods,” the information ministry said.

“The project aims to reach 160,866 households and create 100,000 employment opportunities through integrated asset transfers, interest-free loans, skills development, rainwater harvesting, climate-smart agriculture, and business service providers’ interventions. The PGEP reflects the Government’s commitment to shifting from consumption-based safety nets to graduation-focused, resilience-driven development, aligned with national priorities and the Sustainable Development Goals (SDGs).”

IsDB will provide another $10 million for the Out-of-School Children project in Azad Jammu and Kashmir, which would help bring about 60,000 children back into classrooms and support training for 4,000 teachers.

“The minister for economic affairs acknowledged and appreciated the continued IsDB support for Pakistan,” the information ministry said. “The IsDB vice president expressed that IsDB was keen on further expanding cooperation with Pakistan in the areas of mutual interest.”

In May last year, IsDB announced funding a Pakistani project to reactivate out-of-work women doctors, while the bank announced a $100 million loan to support Pakistan’s polio eradication efforts in Dec. 2023.