Pakistan calls for ‘sustained dialogue’ to address issues with Afghanistan amid militancy surge

Pakistan’s deputy prime minister and foreign minister, Ishaq Dar (center), chairs a meeting on Afghanistan in Islamabad, Pakistan, on March 24, 2025. (Foreign Office)
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Updated 24 March 2025
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Pakistan calls for ‘sustained dialogue’ to address issues with Afghanistan amid militancy surge

  • The statement follows a visit by Pakistan’s special envoy to Afghanistan amid fraught ties between the two neighbors over a surge in militancy in Pakistan
  • The discussions in Kabul encompassed all issues of mutual concern, including peace and security, trade and economic cooperation, Islamabad says

ISLAMABAD: Pakistan’s deputy prime minister and foreign minister, Ishaq Dar, has called for a “sustained dialogue” between Pakistan and Afghanistan to address a surge in militancy and other issues, the Pakistani foreign ministry said on Monday.

The call for the dialogue followed a recent three-day visit to Afghanistan by Pakistan’s special representative, Ambassador Muhammad Sadiq Khan, to discuss bilateral relations with authorities in Kabul.

Pakistan-Afghanistan relations have soured lately due to security, political and border issues, with Islamabad accusing the Taliban-led Afghan government of sheltering anti-Pakistan militants behind cross-border attacks. Kabul denies these claims.

Tensions escalated this month after a train hijacking by the Baloch Liberation Army (BLA) group in Pakistan’s Balochistan province, which killed over 60 passengers, security personnel and militants. Pakistan said BLA fighters remained in contact with their handlers in Afghanistan while holding the passengers hostage for a day.

“DPM [Dar] emphasized the importance of sustained dialogue with the interim Afghan government to address Pakistan’s concerns and promote bilateral relations,” the Pakistani foreign ministry said in a statement.

Ambassador Sadiq gave a detailed briefing to Dar regarding his engagements with Afghan authorities, including Acting Afghan Foreign Minister Amir Khan Muttaqi.

"During the meeting [with Muttaqi], both sides exchanged views on all issues of mutual concern, including peace and security, trade and economic cooperation, as well as people-to-people contacts," the Pakistani foreign ministry said.

"The Special Representative reaffirmed Pakistan’s commitment to continued engagement and mutually beneficial ties with Afghanistan, and underscored the importance of addressing all issues of concern, particularly security, to further consolidate bilateral ties... the two sides also reinforced the commitment to a mutually beneficial bilateral relationship, with a view to achieving lasting regional peace and stability."

Pakistan has been battling twin insurgencies — one mounted by religiously motivated groups like the Tehreek-e-Taliban Pakistan (TTP) in the country’s northwestern Khyber Pakhtunkhwa (KP) province and the other by ethnic Baloch separatists in Balochistan. Both provinces border Afghanistan.

Islamabad says the takeover of Kabul by the Afghan Taliban in 2021 has emboldened the TTP and other militant groups who have safe havens in Afghanistan. Afghan officials deny the allegation and insist that Pakistan’s security issues are an internal matter of Islamabad.

During his visit to Afghanistan, Ambassador Khan also met with Acting Afghan Commerce Minister Nooruddin Azizi and discussed with him bilateral trade and economic relations as well as cooperation in the areas of transit and connectivity. 

"The two sides agreed to harness full potential of regional trade and connectivity for the mutual benefit of both countries," the Pakistani foreign ministry said.

"The DPM/FM expressed satisfaction at the discussions held with the Afghan side and issued directions to further consolidate bilateral ties, including through high-level engagement and enhancement of trade and transit cooperation."


Pakistan’s Engro executes $475 million Islamic financing deal to expand telecom infrastructure

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Pakistan’s Engro executes $475 million Islamic financing deal to expand telecom infrastructure

  • Islamic banking accounts for over a fifth of Pakistan’s banking assets amid a shift toward Shariah-compliant finance
  • The deal brings more than 10,000 telecom towers under Engro’s control, enabling their shared use by multiple operators

KARACHI: Pakistan’s largest conglomerate Engro Corp. has completed a Rs133 billion ($475 million) Islamic financing deal to acquire telecom tower company Deodar, expanding its telecom infrastructure business as the country seeks to strengthen digital connectivity, the company said on Friday.

The transaction, structured entirely through Shariah-compliant financing, brings more than 10,000 telecom towers under Engro’s control and marks one of the largest Islamic financing deals in Pakistan’s infrastructure sector.

Engro, which has major interests in energy, fertilizers, food and petrochemicals, said the acquisition would allow it to scale shared telecom infrastructure, under which a single tower can host multiple mobile network operators, lowering costs and reducing duplication as Pakistan prepares for next-generation digital services.

“My congratulations to the Dawood family and Engro, the Islamic bankers and conventional banks through their Islamic windows on being able to put together a deal of this size,” State Bank of Pakistan Governor Jameel Ahmed said at a ceremony marking the transaction, referring to the company and its chairman. “This is a great achievement which has been supported by the banks.”

The deal was supported by a group of local banks, including United Bank Limited and Meezan Bank, Engro said, highlighting the increasing role of Islamic financing in funding long-term investment in Pakistan.

Islamic banking, which operates without interest and is based on profit-and-loss sharing structures, accounts for more than a fifth of Pakistan’s banking assets, and authorities have said they aim to transition the financial system toward Shariah compliance over the coming years.

The acquisition of Deodar, which was originally carved out of mobile operator Jazz, also aligns with government efforts to digitize the economy by expanding broadband access and supporting digital payments, e-commerce and online public services, though progress has remained uneven due to infrastructure and regulatory challenges.