ISLAMABAD: The United Kingdom on Sunday urged de-escalation of tensions between Pakistan and India over a militant attack in Indian-administered Kashmir, according to the Pakistani foreign ministry, amid fears that the two nuclear-armed neighbors may go to another war.
The statement came after Pakistani and Indian troops exchanged fire in disputed Kashmir for a third night in a row, officials said Sunday, as relations between the nuclear-armed rivals plunged to their lowest level in years.
New Delhi has accused Islamabad of involvement in the latest attack in a scenic tourist resort of Pahalgam on April 22, in which 26 tourists were killed. Pakistan has denied involvement and says it is ready to take part in a credible and transparent investigation.
Amid escalating tensions, Pakistani Deputy Prime Minister Ishaq Dar spoke to UK’s Foreign Secretary David Lammy and shared the current regional situation, and Indian accusations and unilateral measures, including the suspension of the Indus Waters Treaty.
“He reiterated Pakistan’s unwavering resolve to defend its national interests while continuing to promote peace and stability in the region,” the Pakistani foreign ministry said in a statement.
“UK Foreign Secretary David Lammy emphasized the importance of de-escalating the situation through dialogue and peaceful resolution of issues.”
The development came as Indian military held naval drills — releasing images of warships firing missiles — while the country’s security forces pressed on with their hunt for those behind the April 22 attack at a tourist hotspot in Pahalgam in Kashmir.
The military blamed Pakistan for the “unprovoked” firing of small arms along Kashmir’s Line of Control that separates the two countries.
“(Our) own troops responded effectively with appropriate small arms fire,” it said of the latest incident.
Speaking to reporters on Sunday in Islamabad, Pakistan’s information minister, Attaullah Tarar, said there was “no official confirmation” of any clashes at the border with India.
Kashmir has been divided between India and Pakistan since their independence from British rule in 1947. Both rule it in part but claim it in full and have fought two wars over the Himalayan territory.
This is the second time since 2019 when the two nuclear-armed nations have come close to war over Kashmir.
UK urges de-escalation as Pakistan-India crisis deepens over Kashmir attack
https://arab.news/rpec6
UK urges de-escalation as Pakistan-India crisis deepens over Kashmir attack
- The development comes as Indian military holds naval drills and releases images of warships firing missiles
- Deputy PM Ishaq Dar reiterates Pakistan’s resolve to defend its interests while promoting peace in the region
IMF staff to visit Pakistan Feb. 25 for key loan reviews as reforms stabilize economy
- Talks to cover third review under $7 billion bailout and climate resilience program
- Analysts warn tax shortfall, power tariff cuts could face scrutiny by lender
KARACHI: An International Monetary Fund (IMF) staff team will visit Pakistan from Feb. 25 to begin discussions on key program reviews, the lender said on Thursday, as authorities seek to lock in recent economic stabilization after a prolonged financial crisis.
The talks will cover the third review under Pakistan’s $7 billion Extended Fund Facility (EFF) bailout and the second review under the Resilience and Sustainability Facility (RSF), which supports countries dealing with climate vulnerabilities.
Pakistan has spent the past year implementing tough fiscal and structural reforms — including tax increases, subsidy cuts and a tighter monetary policy — to stabilize a fragile economy that faced record inflation, dwindling foreign reserves and default fears in 2023.
“We do have a staff team that is expected to visit Pakistan starting February 25th for discussions on the third review under the EFF and the second review under the RSF,” IMF communications director Julie Kozack said at a regular press briefing.
The IMF says the program aims to restore macroeconomic stability, rebuild external buffers and make Pakistan more resilient to climate shocks following devastating floods in recent years.
Kozack said Pakistan’s policy implementation had already produced measurable improvements.
“Pakistan’s policy efforts under the EFF have helped stabilize the economy and rebuild confidence,” she said.
She noted fiscal indicators were improving in line with program targets.
“Pakistan currently has a primary fiscal surplus of 1.3 percent of GDP in FY25, which was in line with program targets. Headline inflation has been relatively contained. And Pakistan posted its first current account surplus in 14 years in FY2025.”
Pakistani authorities have also cited improving macroeconomic trends.
Governor State Bank of Pakistan Jameel Ahmad has said growth could reach about 4.75 percent in the fiscal year ending June, while inflation, which peaked above 38 percent in May 2023, has fallen sharply over the past year following interest rate hikes and fiscal tightening.
The IMF official added that governance reforms remain a major component of the program.
“The governance and corruption diagnostic assessment report was recently published,” Kozack said.
“It includes proposals for reforms, including simplifying tax policy design, levelling the playing field for public procurement, and improving the asset declaration transparency.”
The upcoming review will determine whether Pakistan remains eligible for continued disbursements under the bailout program and help reinforce investor confidence.
Analysts say the review is likely to pass but may involve difficult negotiations on fiscal discipline and energy policy.
“This is expected to be a smooth sailing, however questions might arise,” Shankar Talreja, head of research at Karachi-based Topline Securities Limited, told Arab News.
Experts say the IMF could question whether Islamabad consulted the lender before reducing electricity tariffs by about Rs4 per unit for export-oriented industries, a move designed to support manufacturing but with fiscal implications.
He also flagged a revenue gap.
“Pakistan has missed” the IMF’s revenue target by Rs336 billion ($1.2 billion), he said.
“Tax revenue shortfall which is one of the indicative targets which Pakistan has missed.”
Muhammad Waqas Ghani, head of research at JS Global Capital Limited., said the next review may be “tough”:
“Although (Pakistan’s) macroeconomic indicators have improved since the start of the program, the IMF is still expected to press firmly on energy reforms and circular debt before clearing the next tranche, which the government is likely to secure after tough negotiations.”
