Indian FM’s visit to Pakistan unlikely to thaw frosty ties, experts say

India's Foreign Minister Subrahmanyam Jaishankar speaks during a press conference after the Quad Ministerial Meeting with his counterparts from the US, Japan and Australia at the Iikura Guest House in Tokyo on July 29, 2024. (AFP/File)
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Updated 14 October 2024
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Indian FM’s visit to Pakistan unlikely to thaw frosty ties, experts say

  • Jaishankar has said he will not discuss bilateral relations during Pakistan visit
  • High-level trip may still contribute to ‘slight improvement’ to India-Pakistan ties  

NEW DELHI: External Affairs Minister S. Jaishankar’s visit to Islamabad is unlikely to thaw frosty relations between India and Pakistan as both countries struggle with their domestic issues, experts said on Monday ahead of the first such trip by a high-level Indian official.

The Ministry of External Affairs confirmed last Friday that Jaishankar will be leading the Indian delegation to attend the summit of the Shanghai Cooperation Organization — a 10-member trans-regional economic and security body established by China and Russia — from Oct. 15 to 16 in the Pakistani capital. 

Jaishankar has said he will not discuss bilateral relations during the visit. 

India has fought three wars with its nuclear-armed neighbor, including two over control of the disputed Kashmir region in the Himalayas.

India controls Jammu and Kashmir, which is part of the larger Kashmiri territory that has been the subject of international dispute since the 1947 partition of the Indian subcontinent into Hindu-majority India and Muslim-majority Pakistan.

Both countries, which claim Kashmir in full and rule in part, further downgraded their diplomatic ties in tit-for-tat moves in 2019, after India unilaterally stripped Jammu and Kashmir of its limited constitutional autonomy. In protest, Pakistan also suspended all bilateral trade. 

“It would contribute in certain ways in thawing the relationship that has been frozen for the last 10 years and may provide an opportunity for India to construct, begin conversation with Pakistan,” Sanjay Kapoor, analyst and political editor, told Arab News. 

Yet Pakistan’s political instability and security challenges are also a drawback to potential bilateral engagements, said Prof. Harsh V. Pant, vice president of the Observer Research Foundation in New Delhi. 

“Pakistan is in such a febrile that who to talk to is a big question,” he told Arab News.

“The way political challenges are rising for the Pakistani government, they are quite substantive and there is no way in which a unified machinery exists … even if India wants to have a conversation with Pakistan and take that conversation forward.” 

Unless “something fundamental shifts” in Islamabad concerning its approach to regional security and terrorism, Pant said that India will not be “very incentivized to engage with Pakistan.”

Cross-border terrorism was a top-of-mind issue for the Indian government, said Manish Chand, president of the think tank Center for Global India Insights. 

“Pakistan has not done anything tangible, concrete” to address Delhi’s concerns over the matter, he told Arab News, adding that any dialogue with Islamabad also depended on the Indian public perception and mood, after Prime Minister Narendra Modi’s Bharatiya Janata Party lost its absolute majority in parliament in June. 

“This government, the BJP, does not want to be seen as soft on Pakistan or cross-border terror, so they don’t want to take a political chance because that would mean that it could be they will face cracking political scrutiny,” Chand told Arab News. 

Despite the challenges, Jaishankar’s trip should still be seen as a “very positive gesture” that may lead “to a slight improvement” in bilateral relations, which “may eventually lead to some tangible move leading to reengagement at some level or revival of the dialogue process,” he said. 

But Prof. Siddiq Wahid, a Srinagar-based political analyst, said engaging with Pakistan is not a priority for the Indian government. 

“The current Indian government is hampered by itself-image of India in the world. That self-image is of a major global player. As a result it thinks that time is on its side and it does not have to deal with Islamabad,” he told Arab News.

“Meanwhile, the regional rivalry between Delhi and Islamabad continues to fester.” 


Veon Group invests $20 million in Pakistan’s Mobilink Bank to accelerate digital Islamic banking

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Veon Group invests $20 million in Pakistan’s Mobilink Bank to accelerate digital Islamic banking

  • The investment builds on $15 million capital deployed by Veon in January 2025
  • The capital will be used to scale the bank’s micro, small and medium enterprises

KARACHI: Global digital operator Veon Group has announced an investment of $20 million in Pakistan’s Mobilink Bank to support its growth and digital Islamic banking expansion in Pakistan, it said on Friday.

Mobilink Bank is a part of Veon Group, a global digital operator that provides services to over 150 million connectivity customers and over 140 million monthly active digital users. The Nasdaq-listed company operates across five countries that are home to more than 6 percent of the world’s population.

The investment builds on $15 million capital deployed by Veon in January 2025 and underscores its confidence in Mobilink Bank’s growth momentum and its integrated digital financial ecosystem with JazzCash, amid the rapid expansion of Pakistan’s digital banking and microfinance sector, according to Veon Group.

The capital will be used to scale Mobilink Bank’s micro, small and medium enterprises (MSME) financing portfolio, advance its Islamic banking offerings, and strengthen its evolution into a technology-driven, digitally native bank, with a continued focus on expanding regulated financial access for underserved communities.

“This investment will accelerate the expansion of our shariah-compliant Islamic banking offerings, helping small businesses formalize cash flows, access regulated credit, and build long-term financial resilience,” said Haaris Mahmood Chaudhary, president and chief executive officer of Mobilink Bank.

“As a future-ready digital bank, our focus remains on delivering practical, technology-enabled financial solutions that empower entrepreneurs — particularly women and underserved communities — across Pakistan.”

Mobilink Bank’s expanding deposit base and MSME-oriented lending portfolio are enabling small businesses to transition from informal cash usage to regulated banking, while targeted women-centric financial products and green financing initiatives support inclusive growth and resilience in the face of Pakistan’s climate and economic challenges, according to a statement issued by Veon Group.

Mobilink Bank, together with JazzCash, which serves over 57 million customers and is supported by a nationwide network of more than one million merchants and agents, anchors one of Pakistan’s largest digital financial ecosystems. During the year, JazzCash processed gross transaction value exceeding Rs15 trillion ($53 billion), underscoring the scale, resilience, and impact of fintech in advancing financial inclusion, social mobility, and responsible digital innovation across Pakistan.

The investment reflects Veon Group’s broader digital strategy of strengthening high-impact financial ecosystems through technology-led solutions and disciplined capital deployment, positioning Mobilink Bank as a key contributor to Pakistan’s evolving financial sector, according to the global digital operator.

“This continued stream of investment from VEON underscores our long-term commitment to Pakistan and confidence in the structural shift underway in the country’s digital financial services ecosystem,” Veon Group Executive Committee Member and Chairman Mobilink Bank, Aamir Ibrahim, was quoted as saying.

“It strengthens Mobilink Bank and JazzCash’s ability to execute on our strategic priorities, invest in resilient technology infrastructure, and contribute to the development of inclusive and sustainable digital banking.”