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.


IMF Executive Board to review $1.2 billion loan disbursement for Pakistan today

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IMF Executive Board to review $1.2 billion loan disbursement for Pakistan today

  • Pakistan, IMF reached a Staff-Level Agreement in October for second review of $7 billion Extended Fund, climate fund program
  • Economists view IMF bailout packages as essential for cash-strapped Pakistan grappling with a prolonged macroeconomic crisis

ISLAMABAD: The Executive Board of the International Monetary Fund (IMF) is set to meet in Washington today to review a $1.2 billion loan disbursement for Pakistan, state media reported on Monday.

Pakistan and the IMF reached a Staff-Level Agreement (SLA) in October for the second review of a $7 billion Extended Fund Facility (EFF) and the first review of its $1.4 billion Resilience and Sustainability Facility (RSF). 

The agreement between the two sides took place after an IMF mission, led by the international lender’s representative Iva Petrova, held discussions with Pakistani authorities during a Sept. 24–Oct. 8 visit to Karachi, Islamabad and Washington D.C.

“The International Monetary Fund’s (IMF) Executive Board is set to meet in Washington today to review and approve $1.2 billion in loan for Pakistan,” state broadcaster Pakistan TV reported. 

Pakistan has been grappling with a prolonged macroeconomic crisis that has drained its financial resources and triggered a balance of payments crisis for the past couple of years. Islamabad, however, has reported some financial gains since 2022, which include recording a surplus in its current account and bringing inflation down considerably.

Economists view the IMF’s bailout packages as crucial for cash-strapped Pakistan, which has relied heavily on financing from bilateral partners such as Saudi Arabia, China and the United Arab Emirates, as well as multilateral lenders including the IMF, World Bank, Asian Development Bank and Islamic Development Bank. 

Speaking to Arab News last month, Pakistan’s former finance adviser Khaqan Najeeb said the $1.2 billion disbursement will further stabilize Pakistan’s near-term external position and unlock additional official inflows.

“Continued engagement also reinforces macro stability, as reflected in recent improvements in inflation, the current account, and reserve buffers,” Najeeb said.

Pakistan came close to sovereign default in mid-2023, when foreign exchange reserves fell below three weeks of import cover, inflation surged to a record 38% in May, and the country struggled to secure external financing after delays in its IMF program. Fuel shortages, import restrictions, and a rapidly depreciating rupee added to the pressure, while ratings agencies downgraded Pakistan’s debt and warned of heightened default risk.

The crisis eased only after Pakistan reached a last-minute Stand-By Arrangement with the IMF in June 2023, unlocking emergency support and preventing an immediate default.