Saudi Arabia, US seek de-escalation of Pakistan-India tensions

This picture, taken on April 27, 2025, shows vehicles carrying Pakistani citizens returning to their country queue up at the India-Pakistan Wagah border post, about 35 km from Amritsar. (AFP)
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Updated 01 May 2025
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Saudi Arabia, US seek de-escalation of Pakistan-India tensions

  • Riyadh urges neighbors to resolve disagreements through diplomatic channels, strive for stability and peace for their people and region 
  • Tensions have surged following attack on tourists in Indian-administered Kashmir that New Delhi blames on Pakistan, which denies the charge 

ISLAMABAD: Saudi Arabia has expressed concern over heightened tensions between nuclear-armed neighbors Pakistan and India amid exchanges of fire along their disputed border separating Kashmir and fears of an Indian military incursion, state news agency SPA reported on Wednesday.

Relations have plummeted following a deadly attack on tourists in Indian-administered Kashmir on Apr. 22 that New Delhi has said Pakistan was involved in. Islamabad denies the charges. Fears have risen since that India may conduct limited airstrikes or special forces raids near its border with Pakistan.

Pakistan’s information minister said on Tuesday night the country had “credible intelligence” India intended to carry out military action against it in the “next 24-36 hours on the pretext of baseless and concocted allegations of involvement in the Pahalgam incident.”

“The Kingdom appealed to both nations to de-escalate, avoid further escalation, resolve their disagreements through diplomatic channels, uphold the principles of good neighborliness, and strive for stability and peace for the welfare of their people and region,” SPA said.

Separately, US Chargé d’Affaires Natalie Baker called on Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar in Islamabad to discuss regional developments, the Pakistani foreign office said. 

“The US Cd’A conveyed the US desire for de-escalation and that it will stay engaged with both countries on the evolving situation,” the statement said. 

Meanwhile United Nations Secretary-General Antonio Guterres spoke separately on Tuesday with Pakistan’s Prime Minister Shebaz Sharif and India’s Foreign Minister Subrahmanyam Jaishankar.

“The Secretary-General also expressed his deep concern at rising tensions between India and Pakistan and underscored the need to avoid a confrontation that could result in tragic consequences. He offered his Good Offices to support de-escalation efforts,” UN spokesperson Stephane Dujarric said. 

The US State Department has also said Washington was in touch with both India and Pakistan while urging them to work toward what it called a “responsible solution.” 

In public, the US government has expressed support for India after the attack but has not criticized Pakistan.

Since the attack, in addition to soldiers shooting over the Line of Control frontier that divides disputed Kashmir between the two nations, India and Pakistan have announced tit-for-tat diplomatic measures that included cancelation of visas and a recall of diplomats. 

New Delhi also suspended a crucial water-sharing treaty with Islamabad and ordered its border shut with Pakistan. In response, Pakistan has closed its airspace to Indian airlines.

Kashmir is disputed between India and Pakistan since 1947, with both ruling it in part but claiming it in full. 


Pakistan issues over $7 billion sukuk in 2025, nears 20 percent Shariah-compliant debt target

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Pakistan issues over $7 billion sukuk in 2025, nears 20 percent Shariah-compliant debt target

  • Finance Adviser Khurram Schehzad says this was the highest-ever Sukuk issuance in a single calendar year since 2008
  • Pakistan’s Federal Shariat Court ordered in 2022 the entire banking system to transition to Islamic principles by 2027

ISLAMABAD: Pakistan’s Finance Adviser Khurram Schehzad on Monday said the country achieved a landmark breakthrough in Islamic finance by issuing over Rs2 trillion ($7 billion) sukuk this year, bringing it closer to its 20 percent Shariah-compliant debt target by Fiscal Year 2027-28.

A sukuk is an Islamic financial certificate, similar to a bond, but it complies with Shariah law, which forbids interest. Pakistan’s Federal Shariat Court (FSC) had directed the government in April 2022 to eliminate interest and align the country’s entire banking system with Islamic principles by 2027.

Following the ruling, the government and the State Bank of Pakistan (SBP) have undertaken a series of measures, including legal reforms and the issuance of sukuk to replace interest-based treasury bills and investment bonds.

“In 2025, the Ministry of Finance (MoF) through its Debt Management Office, together with its Joint Financial Advisers (JFAs), successfully issued over PKR 2 trillion in Sukuk,” Schehzad said on X, describing it as “the highest-ever Sukuk issuance in a single calendar year since 2008 by Pakistan.”

Pakistan made a total of 61 issuances across one-, three-, five- and 10-year tenors, according to the finance adviser. The country also successfully launched its first Green Sukuk, a Shariah-compliant bond designed to fund environment-friendly projects.

He said the Green Sukuk was 5.4 times oversubscribed, indicating investor demand was more than five times higher than the amount the government planned to raise, which showed strong market confidence.

“The rising share of Islamic instruments in the government’s domestic securities portfolio (domestic debt) underscores strong momentum, growing from 12.6 percent in June 2025 to around 14.5 percent by December 2025, clearly positioning the MoF to achieve its 20 percent Shariah-compliant debt target by FY28,” Schehzad said.

“This milestone also reflects the structural deepening of Pakistan’s Islamic capital market, sustained investor confidence, and the strengthening of sovereign debt management.”

He said Pakistan was strengthening its government securities market by making it more resilient, diversified, and future-ready, supported by a stabilizing macroeconomic environment, a disciplined debt strategy, and a clear roadmap for Islamic finance.