Pakistan deputy PM discusses security, trade cooperation with Afghan FM in Kabul

This handout photograph taken on April 19, 2025 and released by the Pakistan’s Ministry of Foreign Affairs shows the country’s Foreign Minister and Deputy Prime Minister Ishaq Dar (9L) speaks during a meeting with Acting Afghan Foreign Minister Amir Khan Muttaqi (8R) and other Taliban government officials in Kabul. Dar arrived in Afghanistan on April 19 for a one-day visit to meet senior Afghan Taliban officials, including Prime Minister Hasan Akhund, after Pakistan expelled more than 85,000 Afghans in just over two weeks. (Photo courtesy: Handout/MOFA)
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Updated 19 April 2025
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Pakistan deputy PM discusses security, trade cooperation with Afghan FM in Kabul

  • Ishaq Dar’s visit comes at a time when Pakistan has blamed Afghan officials for ‘facilitating’ cross-border militancy
  • Dar stresses importance of resolving issues such as security, border management between both countries, says FO

ISLAMABAD: Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar on Saturday held discussions involving security, border management and regional trade with Afghanistan’s Foreign Minister Amir Khan Muttaqi, Pakistan’s foreign office said.
Dar arrived in Kabul on Saturday morning for a day-long visit to discuss Islamabad’s security concerns, trade and investment opportunities with Afghanistan amid strained ties between the neighbors. 
His visit takes place amid surging militancy in Pakistan, which Islamabad blames on the Tehreek-e-Taliban Pakistan (TTP) militant outfit. Pakistan accuses the Afghan Taliban of providing them sanctuaries, allegations that Kabul has repeatedly denied. 
Dar’s visit to Kabul also takes place as Pakistan intensifies its campaign to deport what it says are “illegal immigrants,” mostly Afghan nationals, which it has blamed without evidence for being involved in suicide attacks and militancy in the country. Pakistan’s deportation drive has further soured ties between the two nations. 
“The discussions encompassed a comprehensive range of topics pertaining to bilateral relations, underscoring the need to devise strategies for enhancing cooperation across diverse areas of mutual interest, including security, trade, transit, connectivity, and people-to-people contacts,” the foreign office said. 
Dar stressed the importance of addressing all issues between the two countries, particularly those related to security and border management to fully realize the potential for regional trade and connectivity, the foreign office said. 
“Both parties reaffirmed their commitment to fostering mutually beneficial relations and agreed on the importance of maintaining high-level engagement,” the statement said. 
The deputy prime minister will meet Afghanistan’s Prime Minister Mullah Muhammad Hassan Akhund, the foreign office said in an earlier statement. 




This handout photograph taken on April 19, 2025 and released by the Pakistan’s Ministry of Foreign Affairs shows the country’s Foreign Minister and Deputy Prime Minister Ishaq Dar (4R) shaking hands with Afghan government officials upon his arrival in Kabul. (Photo courtesy: Handout/MOFA)

Speaking to the state-run Pakistan Television before leaving for Kabul, Dar acknowledged there has been “coldness” in Pakistan’s and Afghanistan’s ties in recent years. 
“I believe the security of Pakistan, its people, their lives and properties, is very important,” Dar said. “So one of our concerns is regarding terrorism, which we will discuss.”
He said there is also immense potential for economic, trade and investment opportunities between Pakistan and Afghanistan. 
“Our connection with Central Asian states can be established through rail links but that’s not possible unless Afghanistan becomes a partner in this,” he said. 
Dar’s visit is seen as a continuation of Pakistan’s efforts to engage with Afghanistan despite frosty ties, and its aim to address mutual concerns and explore avenues for cooperation with the country. 


Pakistani consortium acquires 75 percent stake in PIA in major privatization move

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Pakistani consortium acquires 75 percent stake in PIA in major privatization move

  • Around 90 percent of $482 million bid amount will be reinvested into PIA to fund fleet expansion and improve services
  • The airline’s sale is a central pillar of Pakistan’s broader economic reform agenda under a $7 billion IMF bailout 

ISLAMABAD: Pakistan on Tuesday concluded the long-awaited privatization of its loss-making national flag carrier, the Pakistan International Airlines (PIA), with Arif Habib Group emerging as the winning bidder in a process the government says will end decades of state-funded bailouts and help revive the loss-making airline.

The consortium, led by Arif Habib Group, secured a 75 percent stake in PIA for Rs135 billion ($482 million) after several rounds of bidding, valuing the airline at Rs180 billion ($643 million).

The sale marks the South Asian country’s most aggressive attempt in decades to reform the debt-ridden carrier, which has accumulated more than $2.8 billion in financial losses.

Following the announcement of successful bidder, Muhammad Ali, chairman of the Pakistan Privatization Commission, said the biggest advantage fo the sale would be that the government will not have to fund the airline.

“It will have new planes and all Pakistanis, who want to travel around the world directly, which we go through transits via different airports today, all of that will be improved, service quality will be better and overall, there will be an impact on employment and GDP [gross domestic product] growth in the country,” he said.

“[We] had to make it at least Rs120-125 billion [investment]. That is why I am very happy to have Rs135 billion [$482 million] bid, out of which 92 percent will go to the company [PIA]. So, around Rs125 billion [$446 million] investment will be made in the company. So, what our target was for the investment, planes, today there are 18 planes, after 4 years, we are looking at 38-40 planes.”

Ali said they hoped the number of passengers traveling through PIA annually would rise to 7 million from the existing 4 million over the next 4 years.

Once considered among Asia’s leading carriers, PIA struggled with chronic mismanagement, political interference, overstaffing, mounting debt and operational issues that led to a 2020 ban on flights to the European Union, United Kingdom and the United States (US) after a pilot licensing scandal. The EU and the UK lifted the bans, providing fresh momentum to the carrier that still remains barred from flying to the US.

Arif Habib, chairman of Arif Habib Group, said they are committed to restoring the airline’s fortunes through fresh capital, fleet expansion and improved management.

“PIA is our national organization. It has seen good days in the past,” Habib told Arab News. “I hope that this new capital will go into the company and the airline’s problems will be solved.”

He said the airline’s fleet would be expanded significantly.

“In the first phase, there will be 38 aircraft and then it will be expanded to 65 aircraft. Depending upon the demand, we will further increase the number of aircraft,” he said, adding that the group would “give confidence to the existing employees and take full advantage of their expertise.”

The airline currently employs 6,480 staff, according to PIA spokesman Abdullah Hafeez Khan.

Government officials say the structure of the privatization deal was designed to prioritize the airline’s revival rather than immediate fiscal gains for the state.

“I hope that PIA will revive in the future. We’ll go back to the glory days,” Ali said.

Under the agreement, the new management is required to invest up to Rs125 billion [$446 million] in the airline, including the acquisition of new aircraft.

Ali clarified the airline’s name would remain unchanged.

“PIA’s name cannot be changed. It will remain Pakistan International Airlines,” he said.

Under the transaction, the government will retain a 25 percent stake, worth around Rs45 billion ($160 million), in the airline.

Ali, however, said the winning bidder has 90 days to decide if it wants to buy the remaining 25 percent share from the government.

Addressing employee concerns, Ali said no staff member would be laid off for at least one year and that existing pay, perks and compensation structures would remain unchanged during this period. Decisions on longer-term staffing will be made later, he added.

Pakistan had prequalified four investor groups in July, but Fauji Fertilizer Company, part of a military-backed conglomerate, withdrew before ahead of the bidding process.

The airline’s sale is a central pillar of Pakistan’s broader economic reform agenda under a $7 billion bailout agreed last year with the International Monetary Fund (IMF).