Pakistan engages UAE amid looming threat of military conflict with India

Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar (right) meets his UAE counterpart Sheikh Abdullah bin Zayed Al-Nahyan in Islamabad, Pakistan, on April 21, 2025. (UAE Ministry of Foreign Affairs)
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Updated 29 April 2025
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Pakistan engages UAE amid looming threat of military conflict with India

  • Pakistan has reached out to top officials in China, Saudi Arabia, Iran, Egypt and others amid mounting concerns over military escalation
  • UAE foreign minister stresses exercising restraint, peaceful resolution of disputes, importance of regional stability, Pakistan’s foreign office says

ISLAMABAD: Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar has spoken with his UAE counterpart Sheikh Abdullah bin Zayed Al-Nahyan, the foreign office said on Tuesday, as Islamabad approaches friendly countries amid surging tensions with nuclear-armed neighbor India.

The two nations downgraded diplomatic ties in the aftermath of a deadly militant attack on tourists in India-administered Kashmir last week that new Delhi says Pakistan was involved in. Islamabad denies official complicity. 

The attack killed 26 people and triggered outrage in India along with calls for action against Pakistan. India has long accused Pakistan of backing militancy in Kashmir, a region both nations claim and have fought two wars over. Islamabad says it only provides diplomatic and moral support to Kashmiris in their struggle for self-determination.

Tensions continued to boil this week, with border forces trading fire for a fifth night in a row at the Line of Control (LoC) that divides Kashmir territory between India and Pakistan, the Indian Army said on Tuesday. 

Pakistan meanwhile is reaching out to top officials in China, Saudi Arabia, Iran, Egypt and other nations amid mounting concerns over a military escalation with experts and officials both speaking of the possibility of limited airstrikes by India or special forces raids near the border.

“The two leaders discussed recent regional situation and matters of mutual concern,” the foreign ministry said after Dar’s telephone conversation with Al-Nayhan, adding that he briefed him about Pakistan’s response to India’s “unfounded allegations, inflammatory rhetoric, and unilateral actions.”

India and Pakistan have both announced a flurry of punitive measures to downgrade ties since last Tuesday’s attack, with India suspending a key water-sharing treaty and Pakistan closing its airspace to Indian planes. Both have also halted a special visa program, asked defense advisers to return home and reduced staff at embassies. 

According to the Pakistani statement, the UAE dignitary “emphasized the importance of upholding regional stability, promoting dialogue, exercising restraint and peaceful resolution of disputes.”

“Both leaders committed to maintaining close coordination & consultations in light of evolving regional situation,” the statement concluded. 

In an interview to Reuters on Monday, Defense Minister Khawaja Asif said Islamabad had approached friendly countries, including Gulf states and China, and also briefed Britain, the United States and others on the situation.

“Some of our friends in the Arabian Gulf have talked to both sides,” Asif said, without naming the countries.

China said on Monday it hoped for restraint and welcomed all measures to cool down the situation. Asif said the United States was thus far “staying away” from intervening in the matter.

Riyadh and Tehran have also offered to mediate and help in de-escalation. 

The last time India conducted an aerial strike against Pakistan was in 2019, when it retaliated for a suicide bombing in Pulwama in Indian-administered Kashmir in which at least 40 Indian paramilitary police were killed. Pakistan had denied complicity in that assault and the Indian strikes were followed by Pakistan’s downing of an Indian fighter jet and capturing of an Indian pilot, bringing the two neighbors to the brink of an all-out war.

In the past, New Delhi has accused Islamabad of backing militants who carried out the 2008 Mumbai attacks, which killed more than 166 people, including foreigners. Pakistan denies the accusations.

Diplomatic relations between Pakistan and India were weak even before the latest conflict as Pakistan had expelled India’s envoy and not posted its own ambassador in New Delhi after India revoked the semi-autonomous status of Kashmir in 2019.


Pakistan reports current account surplus in Jan. owing to improved trade, remittances

Updated 17 February 2026
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Pakistan reports current account surplus in Jan. owing to improved trade, remittances

  • Pakistan’s exports crossed the $3 billion mark in Jan. as the country received $3.5 billion in remittances
  • Last month, IMF urged Pakistan to accelerate pace of structural reforms to strengthen economic growth

ISLAMABAD: Pakistan recorded a current account surplus of more than $120 million in January, the country’s finance adviser said on Tuesday, attributing it to improved trade balance and remittance inflows.

Pakistan’s exports rebounded in January 2026 after five months of weak performance, rising 3.73 percent year on year and surging 34.96 percent month on month, according to data released by the country’s statistics bureau.

Exports crossed the $3 billion mark for the first time in January to reach $3.061 billion, compared to $2.27 billion in Dec. 2025. The country received $3.5 billion in foreign remittances in Jan. 2026.

Khurram Schehzad, an adviser to the finance minister, said Pakistan reported a current account surplus of $121 million in Jan., compared to a current account deficit of $393 million in the same month last year.

“Improved trade balance in January 2026, strong remittance inflows, and sustained momentum in services exports (IT/Tech) continue to reinforce the country’s external account position,” he said on X.

Pakistan has undergone a difficult period of stabilization, marked by inflation, currency depreciation and financing gaps, and international rating agencies have acknowledged improvements after Islamabad began implementing reforms such as privatizing loss-making, state-owned enterprises (SOEs) and ending subsidies as part of a $7 billion International Monetary Fund (IMF) loan program.

Late last month, the IMF urged Pakistan to accelerate the pace of these structural reforms to strengthen economic growth.

Responding to questions from Arab News at a virtual media roundtable on emerging markets’ resilience, IMF’s director of the Middle East and Central Asia Jihad Azour said Islamabad’s implementation of the IMF requirements had been “strong” despite devastating floods that killed more than 1,000 people and devastated farmland, forcing the government to revise its 4.2 percent growth target to 3.9 percent.

“What is important going forward in order to strengthen growth and to maintain the level of macroeconomic stability is to accelerate the structural reforms,” he said at the meeting.

Azour underlined Pakistan’s plans to privatize some of the SOEs and improve financial management of important public entities, particularly power companies, as an important way for the country to boost its capacity to cater to the economy for additional exports.

“This comes in addition to the effort that the authorities have made in order to reform their tariffs, which will allow the private sector of Pakistan to become more competitive,” the IMF official said.