‘I can solve anything’: Trump offers to mediate Kashmir dispute between India, Pakistan

President Donald Trump speaks during the congressional picnic on the South Lawn of the White House in Washington, US on June 12, 2025. (AP)
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Updated 13 June 2025
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‘I can solve anything’: Trump offers to mediate Kashmir dispute between India, Pakistan

  • Trump last month brokered a ceasefire between India, Pakistan after they engaged in four days of fighting
  • India has always refused outside mediation on disputed Kashmir territory while Islamabad has welcomed it

ISLAMABAD: US President Donald Trump this week reiterated his offer to mediate and resolve the longstanding dispute between India and Pakistan on the disputed Kashmir territory, as tensions between the nuclear-armed neighbors continue to simmer.

India and Pakistan pounded each other with artillery fire, missiles, drone strikes and fighter jets for four days before Trump announced a ceasefire between both sides on May 10. The US informed last month after the ceasefire announcement both India and Pakistan had agreed to meet at a neutral venue to address their differences, though New Delhi has so far publicly ruled out bilateral talks with Islamabad.

Trump said last month he used Washington’s trade ties with both countries to persuade them to back off from further military confrontation and agree to a ceasefire, taking the credit for preventing an all-out nuclear war. Speaking to reporters before signing a bill in the White House’s East Room on Thursday, the American president said Washington was “going to get those two getting together.”

“I told them, India and Pakistan — they have a longtime rivalry over Kashmir — I said, I can solve anything,” he told reporters. “I’ll be your arbitrator.”

India has always refused any outside mediation on Kashmir, the scenic Himalayan region which has a Muslim majority but a sizable Hindu minority. Both India and Pakistan claim the entire region but administer parts of it. The two countries have fought two out of three wars over the territory since 1947.

Trump reiterated his claim that he stopped the war between India and Pakistan last month through “phone calls and trade.”

“And India’s here right now negotiating a trade deal and Pakistan’s coming I think next week,” the US president said.

Tensions escalated between India and Pakistan on April 22 when gunmen attacked and killed 26 tourists in Indian-administered Kashmir at the Pahalgam tourist resort. New Delhi, without offering proof, blamed Pakistan for the attack, alleging it had supported “cross-border terrorism.”

Pakistan denied the allegations and called for a credible, international probe into the incident. Following weeks of tensions, India struck multiple Pakistani cities with missiles on the night of May 6, claiming it had struck “terrorist” camps in the country.

Pakistan denied Indian allegations, saying the missiles had killed innocent children and vowed to retaliate.


Pakistan cuts key rate by 50 bps to 10.5% in surprise move after holding for four meetings

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Pakistan cuts key rate by 50 bps to 10.5% in surprise move after holding for four meetings

  • An IMF staff report last week warned against premature easing, with analysts expecting SBP to hold the policy rate
  • Inflation remains within the bank’s target band, but analysts expect price pressures to rise later in the fiscal year

KARACHI: Pakistan’s central bank cut its key interest rate by 50 basis points to 10.5 percent on Monday, the bank said on its website, breaking a hold on the rate for four meetings in a move that surprised analysts and came despite IMF warnings to avoid premature easing.

All 12 analysts in a Reuters poll had expected the State Bank of Pakistan (SBP) to hold the policy rate at 11 percent.

Monday’s reduction takes the total easing since rates peaked at 22 percent to 1,150 basis points, after the SBP delivered 1,100 bps of cuts between June 2024 and May 2025 and then held the rate steady for four meetings before Monday’s move.

Inflation edged down to 6.1 percent in November from 6.2 percent in October, within the SBP’s 5 percent–7 percent target band, with analysts expecting it to rise again later in FY26 as base effects fade and food and transport prices stay volatile.

An IMF staff report last week warned against premature easing, calling for policy to remain data-dependent to anchor expectations and rebuild external buffers, even as Pakistan received a $1.2 billion disbursement under its loan program.