PM says Pakistan’s nuclear program ‘solely for deterrence,’ calls US sanctions ‘unjustified’ 

Pakistan Prime Minister Muhammad Shehbaz Sharif (center) chairs the federal cabinet meeting in Islamabad on December 24, 2024. (Government of Pakistan)
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Updated 24 December 2024
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PM says Pakistan’s nuclear program ‘solely for deterrence,’ calls US sanctions ‘unjustified’ 

  • Washington last week announced fresh sanctions against entities contributing to Pakistan’s ballistic missile program 
  • Shehbaz Sharif says entire nation united behind Pakistan’s nuclear program, vows government will not compromise on it

ISLAMABAD: Prime Minister Shehbaz Sharif on Tuesday criticized Washington for imposing fresh sanctions on Pakistan’s ballistic missile program, saying it was intended only for deterrence purposes and not for aggressive designs. 

The US State Department announced on Dec. 18 that it was imposing more sanctions related to nuclear-armed Pakistan’s long-range ballistic-missile program, including on the state-owned defense agency that oversees the program. The sanctions freeze any US property belonging to the targeted entities and bars Americans from doing business with them. 

State Department spokesperson Matthew Miller said in a statement that the measures slapped on the National Development Complex (NDC) and three firms were imposed under an executive order that “targets proliferators of weapons of mass destruction and their means of delivery.”

Pakistan’s foreign office responded sharply to the announcement the same day, describing the move as “double standards and discriminatory practices,” warning it endangered regional and international peace and security.

“The sanctions imposed on the National Development Complex and other firms, there is no justification for it,” Sharif told members of the federal cabinet during a meeting. “Pakistan does not harbor any intentions in which its nuclear system is aggressive, it is 100 percent in Pakistan’s defense. It is just deterrence, nothing else,” he added. 

Sharif said Pakistan’s nuclear program did not belong to either him or members of the federal cabinet. Rather, he said it belonged to the 240 million people of the country. 

“There will be no compromise on it [nuclear program] and the entire nation is completely united on this,” the Pakistani premier declared. 

A State Department factsheet said the Islamabad-based NDC had sought to obtain components for Pakistan’s long-range ballistic-missile program and missile-testing equipment. It said the NDC “is responsible for the development of Pakistan’s ballistic missiles,” including the Shaheen family of missiles.

The Bulletin of the Atomic Scientists research organization says the Shaheen series of missiles is nuclear-capable. Pakistan conducted its first nuclear-weapons test in 1998, becoming the seventh country to do so. The Bulletin estimates Pakistan’s arsenal at about 170 warheads.

Islamabad has refused to sign the Non-Proliferation Treaty, the cornerstone of the international system designed to prevent the spread of nuclear weapons.

The other three entities slapped with the US sanctions were Affiliates International, Akhtar and Sons Private Limited and Rockside Enterprise, all located in Karachi, the factsheet said. It said the companies worked with the NDC to acquire equipment.

Relations between the US and Pakistan have seen significant ups and downs. The countries collaborated during the Cold War and in the fight against Al-Qaeda after 9/11.

However, ties have been strained due to coups in the South Asian country by Pakistan’s military, support for the Taliban’s 1996-2001 rule in Afghanistan, and over Islamabad’s nuclear weapons program.


Pakistan capital market transitions to T+1 settlement cycle ahead of multiple advanced markets

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Pakistan capital market transitions to T+1 settlement cycle ahead of multiple advanced markets

  • A T+1 settlement cycle means that securities transactions are finalized and settled one business day after trade date
  • Effective from Feb. 9, all eligible trades at the PSX are now settled on a T+1 basis, replacing the previous T+2 cycle

KARACHI: Pakistan’s capital market has officially transitioned to the Trade plus one (T+1) settlement cycle, a landmark reform that strengthens efficiency, reduces risk and aligns the country with international best practices, the Pakistan Stock Exchange (PSX) said on Tuesday.

A T+1 settlement cycle means that securities transactions are finalized and settled one business day after the trade date, which reduces counterparty risk and improves capital efficiency in the exchange of funds and securities. 

Effective from Feb. 9, all eligible trades at the PSX are now settled on a T+1 basis, replacing the previous T+2 cycle. The transition was implemented under the guidance of the Securities and Exchange Commission of Pakistan (SECP) through close collaboration among all stakeholders, according to the PSX.

It aligns Pakistan’s capital market with leading markets such as the United States, Canada, Mexico, Argentina, Jamaica and China, which have already adopted shorter settlement cycles. Europe, the UK and Switzerland are set to follow by 2027. By moving early, Pakistan has demonstrated its commitment to modernization and investor protection.

“The transition to the T+1 settlement cycle brings important advantages for Pakistan’s capital market. It enables faster access to funds and securities, improving liquidity, while reducing settlement and counterparty risk through shorter exposure periods,” the PSX said.

“Quicker trade finalization enhances efficiency and the reform strengthens investor confidence, particularly among institutional and foreign investors. Together, these benefits support a stronger and more resilient market aligned with global best practices.”

Pakistan’s stock market has touched historic highs in recent months as broad institutional buying boosted investor confidence amid ongoing economic reforms under international lending programs. Pakistani state media reported in Jan. around 135,000 new investors had joined the PSX over the last 18 months.

SECP Chairman Dr. Kabir Ahmed Sidhu commended the PSX, the Central Depository Company and the National Clearing Company of Pakistan for the successful implementation of the T+1 settlement system.

“The reform brings Pakistan’s capital market at par with modern jurisdictions by accelerating trade settlement, reducing counterparty and market risks, and enhancing liquidity,” he was quoted as saying by the PSX.

“The adoption of T+1 will strengthen investor confidence and align Pakistan’s capital market with evolving international standards and global best practices.”