India rejects Trump’s claim his trade concessions de-escalated tensions with Pakistan

US President Donald Trump gestures as he walks to board Air Force One to depart for Rome, Italy, to attend Pope Francis’ funeral, at Joint Base Andrews in Maryland, US, on April 25, 2025. (REUTERS)
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Updated 13 May 2025
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India rejects Trump’s claim his trade concessions de-escalated tensions with Pakistan

  • The India, Pakistan militaries last week engaged in one of their most serious confrontations in decades
  • Trump told reporters on Monday he had offered to help both nations with trade if they agreed to de-escalate

NEW DELHI: The Indian government on Tuesday rejected US President Donald Trump’s claim that he helped broker a ceasefire between India and Pakistan in exchange for trade concessions.

Addressing a weekly news conference, Randhir Jaiswal, the spokesman for India’s foreign ministry, said top leaders in New Delhi and Washington were in touch last week following the Indian military’s intense standoff with Pakistan, but there was no conversation on trade.

“The issue of trade didn’t not come up in any of these discussions,” Jaiswal said, referring to the conversations held between US Vice President JD Vance and Indian Prime Minister Narendra Modi, as well as between US Secretary of State Marco Rubio and his Indian counterpart, S. Jaishankar.

Following Saturday’s understanding reached between India and Pakistan in what was a US-mediated ceasefire to stop military action on land, in the air and at sea, Trump told reporters on Monday that he offered to help both the nations with trade if they agreed to de-escalate.

“I said, ‘Come on, we’re going to do a lot of trade with you guys. Let’s stop it. Let’s stop it. If you stop it, we’ll do a trade. If you don’t stop it, we’re not going to do any trade’,” Trump said.

“And all of a sudden, they said, ‘I think we’re going to stop’,” Trump said, crediting trade leverage for influencing both the nations’ decision. “For a lot of reasons, but trade is a big one.”

The militaries of India and Pakistan had been engaged in one of their most serious confrontations in decades since last Wednesday, when India struck targets inside Pakistan it said were affiliated with militants responsible for the killing of 26 tourists last month in Indian-administered Kashmir.

After India’s strikes in Pakistan, both sides exchanged heavy fire along their de facto border, followed by missile and drone strikes into each other’s territories, mainly targeting military installations and air bases.

The escalating hostilities between the nuclear-armed rivals threatened regional peace, leading to calls by world leaders to cool down tempers.

Trump said he not only helped mediate the ceasefire, but also offered mediation over the simmering dispute in Kashmir, a Himalayan region that both India and Pakistan claim in entirety but govern in part. The two nations have fought two wars over Kashmir, which has long been described as the regional nuclear flashpoint.

New Delhi also rejected Trump’s offer for mediation on Tuesday.

“We have a longstanding national position that any issues related to the federally controlled union territory of Jammu and Kashmir must be addressed by India and Pakistan bilaterally. There has been no change to the stated policy,” Jaiswal said.


Saudi Arabia leads Pakistan’s December remittances as inflows rise 16.5%

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Saudi Arabia leads Pakistan’s December remittances as inflows rise 16.5%

  • Remittances reach $3.6bn in December, central bank says
  • Flows from Gulf countries remain backbone of Pakistan’s external financing

KARACHI: Workers’ remittances to Pakistan rose sharply in December with inflows led by Saudi Arabia, according to State Bank of Pakistan data released on Friday, providing critical support to the country’s foreign exchange reserves and balance of payments. 

Remittances, a key source of hard currency for Pakistan, have remained resilient despite global economic uncertainty, helping cushion the country’s current account, support the rupee and stabilize foreign exchange reserves at a time when Islamabad remains under an International Monetary Fund (IMF) bailout program.

According to the State Bank of Pakistan’s official data, workers’ remittances reached a record $38.3 billion in fiscal year 2024-25 (July 2024–June 2025), up from about $30.3 billion the year before, reflecting strong labor migration to Gulf countries and improved formal banking channels. Economists say remittances are especially vital for Pakistan because they finance imports, support household consumption and reduce reliance on external borrowing.

“Workers’ remittances recorded an inflow of $ 3.6 billion during December 2025,” the central bank said in a statement.

“In terms of growth, remittances increased by 16.5 and 12.6% on y/y and m/m basis respectively.”

On a cumulative basis, remittances also posted solid growth in the current fiscal year.

“Cumulatively, with an inflow of $ 19.7 billion, workers’ remittances increased by 10.6% during H1FY26 compared to $ 17.8 billion received during the same period last year,” the statement said.

Saudi Arabia remained the single largest source of inflows in December with $813.1 million, followed by the United Arab Emirates at $726.1 million, the United Kingdom at $559.7 million and the United States at $301.7 million, according to the central bank.

Millions of Pakistanis work abroad, particularly in Saudi Arabia and the United Arab Emirates, sending money home to support families and local economies. The government and central bank have encouraged the use of formal channels in recent years, helping improve transparency and sustain inflows.