Indian army says talks with Pakistan’s military operations chief delayed

Indian Army Director General of Military Operations Lt. Gen. Rajiv Ghai address during a press conference in New Delhi, on May 12, 2025. (AFP)
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Updated 12 May 2025
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Indian army says talks with Pakistan’s military operations chief delayed

  • There were no reports of explosions or projectiles overnight, with Indian army saying Sunday was first peaceful night in recent days
  • Before ceasefire on Saturday, Pakistan and India had fought with missiles and drones during four days of intense confrontation last week 

ISLAMABAD: India and Pakistan have delayed until Monday evening talks between their military operations chiefs to discuss the next steps after a ceasefire, the Indian army said, as New Delhi reopened airports and shares rose in the nuclear-armed rivals.

A fragile 48-hour-old truce appeared to be holding on Monday after both sides blamed the other for initial violations on Saturday night, hours after the US-brokered deal was first announced. There were no reports of explosions or projectiles overnight, after some initial ceasefire violations, with the Indian Army saying Sunday was the first peaceful night in recent days along their de facto Line of Control border.

Saturday’s ceasefire followed four days of intense fighting with drones and missiles and gun fire exchanges across the Line of Control that divides the disputed Kashmir valley into parts administered by India and Pakistan. Dozens were reported killed. 

The Indian army said on Monday both sides’ director generals of military operations would speak by telephone in the evening, a delay from an initial timing of noon (0630 GMT), but gave no reason.

“In spite of some minor damage, all our military bases and systems continue to remain fully operational,” India’s director general of air operations, Air Marshal A.K. Bharti, told a media briefing.

A day earlier, Lt. Gen. Rajiv Ghai, the director general of military operations, said India’s armed forces struck nine militant infrastructure and training facilities, including sites of the Lashkar-e-Taiba group that India blames for carrying out major militant strikes in India and the disputed region of Kashmir.

At a televised news conference on Sunday, Pakistan military spokesman Lt. Gen. Ahmad Sharif Chaudhry said Pakistan’s armed forces targeted a total of 26 Indian military installations in response to India’s missile strikes which were launched before dawn Wednesday.

He said the military had vowed it would respond to the Indian aggression, and it has fulfilled its commitment to the nation. Sharif warned that any threat to Pakistan’s sovereignty or territorial integrity would be met with a “comprehensive, retributive, and decisive” response.

He said Pakistan exercised “maximum restraint” during the counterstrike, employing medium-range missiles and other munitions, and that no civilian areas were targeted inside India.

MARKETS INCH UP

Pakistan halted trading on Monday for an hour after its benchmark share index rose nearly 9 percent, having recovered most of its losses in the past three sessions after India’s first strikes last Wednesday. 

Late on Friday, the International Monetary Fund approved a fresh $1.4-billion loan to Pakistan under its climate resilience fund and approved the first review of its $7 billion program.

Pakistan’s benchmark share index closed up 9.4 percent on Monday, while India’s blue-chip Nifty 50 index closed 3.8 percent higher in its best session since February 2021.

Before the ceasefire took hold on Saturday, the arch rivals had targeted each other’s military installations with missiles and drones, as relations turned sour after India blamed Pakistan for a militant attack that killed 26 tourists on Apr. 22. Pakistan denies the accusations and has called for a neutral investigation.

Saturday’s truce was first announced by US President Donald Trump. US officials also said the two nations had agreed to hold talks on a broad set of issues at a neutral site though no date has been announced yet. 

Kashmir has been a bone of contention between the two countries since independence from British colonial rule in 1947. Both countries claim the Muslim-majority region in full but govern only parts of it. They have fought two of their three wars since 1947 over the disputed territory. 

Islamabad has thanked Washington for facilitating Saturday’s ceasefire and welcomed Trump’s offer to mediate on the Kashmir dispute with India but New Delhi has not commented on US involvement in the truce or talks at a neutral site.

- With inputs from Reuters


Pakistan launches privatization process for five power distributors under IMF reforms

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Pakistan launches privatization process for five power distributors under IMF reforms

  • Power-sector losses have pushed circular debt above $9 billion, official documents show
  • Move is tied to IMF and World Bank conditions aimed at cutting subsidies and fiscal risk

KARACHI: Pakistan has appointed financial advisers and launched sell-side due diligence for the privatization of five electricity distribution companies, marking a long-awaited step in power-sector reforms tied to International Monetary Fund (IMF) and World Bank programs, according to official documents shared with media on Monday.

The five companies, namely Islamabad Electric Supply Company (IESCO), Faisalabad Electric Supply Company (FESCO), Gujranwala Electric Power Company (GEPCO), Hyderabad Electric Supply Company (HESCO) and Sukkur Electric Power Company (SEPCO), supply electricity to tens of millions of customers and have long been a major source of financial losses for the state.

Pakistan’s power sector has accumulated more than Rs2.6 trillion (about $9.3 billion) in circular debt as of mid-2025, driven largely by distribution losses, electricity theft and weak bill recovery, according to official government data cited in the documents. The shortfall has repeatedly forced the government to provide subsidies, adding pressure to public finances in an economy under IMF supervision.

“The objective is to reduce losses, improve efficiency and limit the government’s fiscal exposure by transferring electricity distribution operations to the private sector,” the documents said, adding that sell-side due diligence for five distribution companies is under way as a prerequisite for investor engagement.

Two utilities, the Quetta Electric Supply Company and Tribal Areas Electric Supply Company, are excluded from the current privatization phase due to security and structural constraints, the documents said.

Power-sector reform is a central pillar of Pakistan’s IMF bailout program, under which Islamabad has committed to restructuring state-owned enterprises, improving governance and reducing budgetary support. The World Bank has also linked future energy-sector financing to progress on structural reforms.

Electricity distribution companies in Pakistan routinely report losses exceeding 20 percent of supplied power, far above international benchmarks, according to official figures. These inefficiencies have been a persistent obstacle to economic growth, investment and reliable power supply.

Previous attempts to privatize power distributors have stalled amid political resistance, labor union opposition and concerns over tariff increases. While officials have not announced a timeline for completing transactions, the launch of due diligence marks the most concrete step taken in years. International lenders and investors will now be closely watching whether Pakistan can translate this phase into completed sales, a key test of its ability to deliver on IMF-backed reforms.

In a related development in Pakistan’s privatization agenda, the government last month concluded the long-delayed sale of a 75 percent stake in national flag carrier Pakistan International Airlines (PIA) in a publicly televised auction. A consortium led by the Arif Habib Group emerged as the highest bidder with a Rs135 billion ($482 million) offer for the controlling stake, in a transaction officials have said will end decades of state-funded bailouts and inject fresh capital into the loss-making airline.