Pakistan forms committee to tackle possible economic fallout of Israel-Iran conflict — adviser

Federal Minister for Finance and Revenue, Muhammad Aurangzeb (fourth left), chairs the meeting of the Economic Coordination Committee (ECC) at the Finance Division in Islamabad, Pakistan, on June 2, 2025. (PID/File)
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Updated 15 June 2025
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Pakistan forms committee to tackle possible economic fallout of Israel-Iran conflict — adviser

  • Oil prices jump 7 percent on fears of disrupted Middle East exports
  • Analysts warn of economic and security risks for Pakistan

ISLAMABAD: Prime Minister Shehbaz Sharif has formed a high-level committee led by the finance minister to monitor any possible economic impact of the escalating conflict between Israel and Iran, a senior government adviser said on Sunday, as rising oil prices threaten to add new pressure on the South Asian nation’s fragile economy.

Oil prices have climbed about 7 percent since Friday, with Brent crude closing at $74.23 a barrel after hitting a session high of $78.50, amid fears of supply disruptions if Middle East tensions escalate further.

“The prime minister has constituted a committee under the supervision of the finance minister, which will monitor the situation,” Khurram Schehzad, an adviser at the finance ministry, told Arab News.

“The committee will assess the impact of the changes and volatility in oil prices on fiscal and external sides, and devise a strategy to pacify the impacts on Pakistan’s economy.”

Pakistan relies heavily on imported oil, and any sustained spike in prices could widen its current account deficit and push inflation higher at a time when the country is struggling with low foreign reserves and slow growth.

Israel and Iran launched fresh attacks on each other overnight into Sunday, killing scores. The conflict started on Friday when Israel launched a massive wave of attacks targeting Iranian nuclear and military facilities but also hitting residential areas, sparking retaliation and fears of a broader regional conflict.

A 909 kilometer (565 mile) long international boundary separates Iran’s southeastern Sistan-Baluchestan province from Pakistan’s southwestern Balochistan province. 

“Israel-Iran conflict presents complex challenges for Pakistan as rising oil prices may increase import costs and inflation, influencing monetary policy and growth, while disruptions to key routes like the Strait of Hormuz can affect energy supplies and critical projects,” said Khaqan Najeeb, an economist and former finance ministry adviser.

“It can potentially affect consumer purchasing power and production costs ... Possible disruptions to shipping routes and higher freight charges might result in delays to imports and exports, thereby exerting additional pressure on Pakistan’s external sector.”

DIPLOMATIC BALANCING

As the crisis deepens, analysts widely believe Islamabad should maintain “careful diplomatic balancing” between its ties with Iran and its other partners in the Gulf, as well as the United States.

“Diplomatically, Pakistan has to navigate a balanced and principled stance, honoring its historic ties with Iran alongside its strategic relationships with the US and Gulf partners, emphasizing dialogue and regional stability.”

Former Defense Secretary Lt Gen (retired) Naeem Lodhi said Israel was unlikely to target Pakistan directly but an expanding conflict could complicate matters for Islamabad, adding that it should remain vigilant but avoid “deeper” involvement.

“If the war expands to include more Middle Eastern countries, some of which are friendly to Pakistan, then it would be a difficult proposition for Islamabad... whose side it takes,” Lodhi added. 

Former Foreign Secretary Aizaz Ahmed Chaudhry said Pakistan would respond “forcefully” if directly targeted.

“Israel knows that Pakistan has the capacity to hit back hard,” Chaudhry said, referring to a May 2025 military confrontation with India in which Islamabad retaliated to New Delhi’s strikes, taking down fighter jets and hitting airfields, air bases and other military facilities.

Pakistan’s former ambassador to Iran, Asif Durrani, warned that the crisis could spill over if not contained.

“Not only Pakistan, but the entire Middle East and North Africa (MENA) region can be engulfed if the ongoing spat between Israel and Iran turns into an all-out war,” Durrani said.

However, he said the likelihood of a refugee crisis was limited unless the conflict escalated into a ground invasion.

“A refugee influx is possible if it becomes a full-fledged war, but Israel or the United States are unlikely to commit boots on the ground in Iran,” Durrani added. 

Qamar Cheema, executive director of the Sanober Institute think tank, said Pakistani security forces should increase patrols and surveillance in border districts as the conflict could impact militant groups operating along the Iran-Pakistan border region, such as Baloch separatists and other sectarian outfits.

“Whenever such a situation arises, separatist and sectarian outfits often try to take advantage of it, either by increasing their activities or by shifting them from their hideouts inside Iranian territories,” he said. 

“Their movement is likely to intensify if the threat reaches the border region.”


Pakistan court suspends order seeking YouTube ban on government critics

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Pakistan court suspends order seeking YouTube ban on government critics

  • YouTube has warned 27 content creators their channels may be blocked if they fail to comply with a court order seeking to ban them
  • Digital rights groups warn the move could further erode free speech in Pakistan, where authorities face criticism for silencing dissent

ISLAMABAD: A Pakistani court on Friday suspended an order seeking to ban the YouTube channels of more than two dozen critics of the government including former Prime Minister Imran Khan, a defense lawyer said.

Alphabet-owned YouTube this week told 27 content creators that it could block their channels — including those of journalists and Khan and his opposition party Pakistan Tehreek-e-Insaf — if they failed to comply with a judicial magistrate court order seeking to ban them.

A regional communication manager for YouTube did not respond to a Reuters request for a comment.

The judicial magistrate court in Islamabad had said it was seeking the ban after the National Cyber Crime Investigation Agency criticized the channels in a June 2 report for “sharing highly intimidating, provocative and derogatory contents against state institutions and officials of the state of Pakistan.”

The decision to suspend the order was taken by an additional sessions judge, said Imaan Mazari, the lawyer for two of the YouTube content creators.

In Pakistan, an additional sessions judge is a judicial officer who presides over a sessions court, handling both civil and criminal cases.

“Our submission is that the order has no legal basis. It was a one-sided decision without giving defense a chance to be heard,” Mazari said.

She also said the magistrate court had no jurisdiction over the matter.

The next hearing in the sessions court is on July 21.

In Pakistan’s judicial system, cases start at civil and judicial magistrate courts and appeals are heard in high courts and the Supreme Court.

Digital rights campaigners say that any ban would further undermine free speech in Pakistan, where the authorities are accused of stifling newspapers and television, and social media is seen as one of the few outlets for dissent.


Islamabad, Moscow sign protocol to restore and modernize Pakistan Steel Mills

Updated 11 July 2025
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Islamabad, Moscow sign protocol to restore and modernize Pakistan Steel Mills

  • The Pakistan Steel Mills has been non-operational since 2015 due to years of financial mismanagement, political interference and mounting losses
  • Both sides discussed plans to modernize the major steel complex on the sidelines of the recent INNOPROM Annual Industrial Forum in Yekaterinburg

ISLAMABAD: Pakistan and Russia have signed a protocol to restore and modernize the Pakistan Steel Mills (PSM) in Karachi, Pakistani state media reported on Friday.

The development comes days after the two sides discussed plans to modernize the major steel complex and expand industrial cooperation on the sidelines of the INNOPROM Annual Industrial Forum in Yekaterinburg.

INNOPROM, Russia’s largest annual industrial trade fair, brings together government delegations, business leaders and technology firms from over 30 countries to explore partnerships in manufacturing, engineering and high-tech industries.

The protocol was signed at the Pakistan Embassy in Moscow by Pakistan’s Secretary of Industries and Production Saif Anjum and Russian General Director of Industrial Engineering LLC Vadim Velichko, reaffirming the long-standing industrial partnership.

“The project aims to restart and expand steel production [in Pakistan], marking a new chapter in bilateral cooperation,” read a report on Radio Pakistan broadcaster.

The PSM, once Pakistan’s flagship industrial complex, was built in the 1970s with Soviet assistance. While it symbolized national self-sufficiency, the mill has been non-operational since 2015 due to years of financial mismanagement, political interference and mounting losses.

Moscow is also expected to finalize an agreement with Islamabad this summer to construct a new steel mill in Karachi, Russian Consul-General Andrey B. Fedorov told Arab News this month.

Technical experts from Russia have already inspected the proposed site for the new facility, and another delegation is expected soon to draft a detailed roadmap.

Russia has a long history of industrial cooperation with Pakistan, having previously built key infrastructure projects such as the Guddu Power Station in Sindh in the 1980s, one of the country’s major electricity producers.
Moscow and Islamabad have expanded cooperation in recent years despite global tensions over the war in Ukraine.


Pakistan rain death toll rises to 90 as authorities issue fresh flood warning

Updated 11 July 2025
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Pakistan rain death toll rises to 90 as authorities issue fresh flood warning

  • Heavy rains have also damaged at least 343 houses nationwide
  • Relief operations underway in affected areas, authority says

KARACHI: The death toll from monsoon downpours in Pakistan rose to 90 after three children died in rain-related incidents in the eastern Punjab province, the National Disaster Management Authority (NDMA) said on Friday, amid fresh alert about possible flooding between July 13 and July 17.

Punjab has reported 32 deaths, including 18 children, while the northwestern Khyber Pakhtunkhwa province has recorded 30 deaths, 14 of them children, since the start of monsoon in late June.

The southern province of Sindh has reported 16 deaths and the southwestern Balochistan province has logged 11 fatalities. One man lost his life in Azad Jammu and Kashmir.

“The total number of 90 deceased include 45 children, 29 men and 16 women,” the NDMA said in a report on Friday, adding that another 158 people were injured in incidents across the country.

“Minor flooding is ongoing at Tarbela, Taunsa and Guddu Barrages, while moderate flooding continues at Kalabagh and Chashma.”

Heavy rains have also damaged at least 343 houses nationwide. Of them, 109 were destroyed and 234 incurred partial damages, according to the NDMA.

Flood relief operations have been underway in affected areas, with authorities distributing tents, ration bags, blankets, sandbags, quilts, gas cylinders, mattresses, kitchen sets, mosquito nets, plastic mats, hygiene kits and food packets to affected families.

A total of 24 relief camps have been set up in Punjab and two in Sindh, providing shelter to 176 people, whereas around 245 people have been rescued in 21 operations carried out across the country.

FLOOD ALERT

Taunsa Barrage located on Indus River in Punjab’s Dera Ismail Khan district “may experience moderate flooding,” the NDMA said in a fresh alert on Friday.

There is a risk of minor flooding at Marala and Khanki along the Chenab River and at Nowshera along the Kabul River. Flooding is also expected in the Swat and Panjkora Rivers as well as their adjoining streams.

The NDMA has advised people to exercise caution and avoid crossing streams, bridges and floodwaters.

Pakistan has also rolled out a location-based SMS alert system to warn citizens living in flood-prone areas about imminent weather threats.

Pakistan, home to over 240 million people, is consistently ranked among the countries most vulnerable to climate change. In 2022, record-breaking monsoon rains and glacier melt triggered catastrophic floods that affected 33 million people and killed more than 1,700.


Pakistani father kills daughter over TikTok account, police say

Updated 11 July 2025
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Pakistani father kills daughter over TikTok account, police say

  • TikTok is wildly popular in Pakistan, in part because of its accessibility to a population with low literacy levels
  • Pakistani authorities have repeatedly blocked or threatened to block the app over what they call ‘immoral behavior’

RAWALPINDI: Pakistan police on Friday said a father shot dead his daughter after she refused to delete her account on popular video-sharing app TikTok.

In the Muslim-majority country, women can be subjected to violence by family members for not following strict rules on how to behave in public, including in online spaces.

“The girl’s father had asked her to delete her TikTok account. On refusal, he killed her,” a police spokesperson told AFP.

According to a police report shared with AFP, investigators said the father killed his 16-year-old daughter on Tuesday “for honor.” He was subsequently arrested.

The victim’s family initially tried to “portray the murder as a suicide” according to police in the city of Rawalpindi, where the attack happened, next to the capital Islamabad.

Last month, a 17-year-old girl and TikTok influencer with hundreds of thousands of online followers was killed at home by a man whose advances she had refused.

Sana Yousaf had racked up more than a million followers on social media accounts including TikTok, where she shared videos of her favorite cafes, skincare products, and traditional outfits.

TikTok is wildly popular in Pakistan, in part because of its accessibility to a population with low literacy levels.

Women have found both audience and income on the app, which is rare in a country where fewer than a quarter of the women participate in the formal economy.

However, only 30 percent of women in Pakistan own a smartphone compared to twice as many men (58 percent), the largest gap in the world, according to the Mobile Gender Gap Report of 2025.

Pakistani telecommunications authorities have repeatedly blocked or threatened to block the app over what they call “immoral behavior.”

In southwestern Balochistan, where tribal law governs many rural areas, a man confessed to orchestrating the murder of his 14-year-old daughter earlier this year over TikTok videos that he said compromised her “honor.”


Pakistan seeks Saudi support for desert reclamation, afforestation projects amid climate worries

Updated 11 July 2025
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Pakistan seeks Saudi support for desert reclamation, afforestation projects amid climate worries

  • Pakistan, Saudi Arabia signed an agreement in 2022 to cooperate in nine environmental areas, including desertification and biodiversity
  • Climate Change Minister Musadik Malik says he will soon visit the Kingdom to discuss climate collaboration between the two countries

ISLAMABAD: Pakistan’s Climate Change Minister Musadik Malik has said that his ministry is seeking Saudi Arabia’s support for comprehensive climate projects that include desert reclamation, afforestation and carbon offset initiatives, amid Islamabad’s efforts to deal with climate-related challenges.

Pakistan has 4.2 million hectares of forest and planted trees, which equates to 4.8 percent of its total land area, according to the United Nations’ Food and Agriculture Organization. The country is currently focusing on combating desertification through afforestation, water management and sustainable agricultural practices.

Saudi Arabia, on the other hand, is playing a leading role in global climate action and launched in 2021 the Middle East Green Initiative (MGI) that aims to mitigate climate change impacts by raising $10.4 billion for clean energy, planting 50 billion trees and restoring degraded lands spanning 200 million hectares in the Middle East and North Africa (MENA) region.

In February 2022, the two brotherly countries signed a memorandum of understanding (MoU) to cooperate in nine environmental areas, including pollution control, nature protection, forestry, biodiversity, desertification, hazardous waste management, marine conservation, air quality monitoring and environmental training exchanges.

“I am going to work directly with them [Saudi Arabia] on climate initiatives, on claiming deserts, on building forests, and on [carbon] offsetting,” Malik told Arab News in an interview on Thursday.

“I just need a little bit more time to put a package together.”

He said Saudi Arabia had always extended its unwavering support to Pakistan and he would soon visit the Kingdom to discuss climate collaboration between the two nations.

“It’s on my table right now to put together those projects with carbon offsets, or whatever those initiatives are, and take them there, which are viable, real, doable and meaningful,” Malik said.

Pakistan, home to over 240 million people, is consistently ranked among the countries most vulnerable to climate change and has seen erratic changes in its weather patterns, which have led to frequent heatwaves, untimely rains, floods, storms, cyclones and droughts in recent years.

Malik said his ministry was working on green mobility and recycling initiatives in partnership with Gulf Cooperation Council (GCC) countries, particularly the United Arab Emirates (UAE), to drive climate action to benefit the poor.

“They have sent me a letter about starting a movement on behalf of the entire world south… moving the recycling kind of revolution in a manner which serves the poor people of Pakistan,” he said.

In 2022, deadly floods submerged a third of Pakistan, claimed more than 1,700 lives and affected 33 million people, causing more than $30 billion in economic losses. 

So far this monsoon season, which began in late June, at least 87 people have been killed and 149 others injured in rain-related incidents across Pakistan, with the death toll expected to rise further as heavy rains continue to batter the South Asian nation.

But Malik believed the country was unlikely to face flood-like conditions similar to 2022 as the climate patterns showed a “balancing effect” between glacier melt and rainfall.

“Where the melting is increasing, the rainfalls are projected to decrease,” he said. “The signs, the projections that we have seen, the numbers that we have seen, basically show that hopefully we would have a good, decent, and manageable year.”

Speaking of Pakistan’s early warning systems, the minister acknowledged “serious gaps” in the mechanisms despite previous investments, saying efforts were underway to fix deficiencies that hinder timely disaster alerts.

“The early warning systems, after all of the investments that we’ve done… they are not able to give us warning in a timely manner… those systems are not working,” he said.

Asked about international climate funding to Pakistan post-2022 floods, Malik said the funding was declining due to Pakistan’s “limited absorptive capacity and lack of impactful projects.”

“We did not have a lot of absorptive power and even when funding was available, we did not come up with enough projects,” he said, adding that the country could only draw around $50-$70 million despite $500 million commitments.

He said his ministry had engaged youngsters from environmental sciences background to develop ideas, projects and startups to help attract international funding.

“We are going to come up with lowest cost, highest impact projects, and we are going to go after them,” Malik added.