Pakistan PM vows to expand water storage amid Indian threat to divert river waters

View of a bridge with China and Pakitan's flag over the River Indus, at the site of Dasu Dam or Dasu Hydropower Project, in Kohistan district Kyber Pakhtunkhwa province, near Dasu, Pakistan, on October 6, 2023. (REUTERS/File)
Short Url
Updated 02 July 2025
Follow

Pakistan PM vows to expand water storage amid Indian threat to divert river waters

  • New Delhi suspended the Indus Waters Treaty after a gun attack in Indian-administered Kashmir
  • Prime Minister Sharif welcomes international court ruling rejecting India’s move on river waters

ISLAMABAD: Prime Minister Shehbaz Sharif on Tuesday said the government had decided to fast-track the construction of water reservoirs across Pakistan, citing growing climate risks as well as India’s decision to manipulate transboundary water flows after suspending the decades-old Indus Waters Treaty in April.

New Delhi decided to put the World Bank-backed 1960 treaty “in abeyance” after a militant attack in Indian-administered Kashmir killed 26 people earlier this year, blaming it on Pakistan and stating it would not resume cooperation until Islamabad “irrevocably abjures its support for cross‑border terrorism.” Pakistan denied any involvement in the incident and called for an independent international investigation.

Sharif mentioned his administration’s priority to build water reservoirs during a visit to the National Disaster Management Authority (NDMA) in Islamabad, as heavy monsoon rains battered parts of the country and left more than 50 people dead. He also referred to a recent ruling by the Permanent Court of Arbitration (PCA) in The Hague, which rejected New Delhi’s attempts to suspend the treaty this month.

“But the enemy has certain evil designs against Pakistan,” he was quoted as saying by the state-run Associated Press of Pakistan, as he warned that water could be “weaponized” by India.

“In view of this, the government has decided to fast-track non-controversial water storage projects under the water accord, which provides legal cover for provincial coordination,” he added.

Sharif emphasized the key role of the NDMA in strengthening climate preparedness and resilience, and called for public alert systems to be improved in collaboration with the Pakistan Telecommunication Authority (PTA).

Referring to the devastating floods of 2022, he said Pakistan was among the countries most vulnerable to climate-related disasters.

The prime minister also praised the NDMA for its coordinated emergency response capacity, including recent international relief missions to Türkiye and Myanmar, and expressed hope that real-time data sharing and early warning systems managed by the National Emergencies Operations Center under the NDMA would continue to guide provincial disaster response.


Pakistan stocks hit record high on hopes of rate cut, improved US ties

Updated 19 January 2026
Follow

Pakistan stocks hit record high on hopes of rate cut, improved US ties

  • Benchmark index gains 2,662 points, or 1.44 percent, to close at an all-time high of 187,761 points
  • Engro, UBL, Hub Power, Fauji Fertilizer, Meezan Bank and Service Industries added 1,554 points to index

ISLAMABAD: The Pakistan Stock Exchange (PSX) hit a record high as it surpassed the 187,500-point mark on Monday, with analysts citing improving ties with the United States and expectations of an imminent interest rate cut.

The benchmark KSE-100 index gained 2,662.86 points, or 1.44 percent, to close at an all-time high of 187,761.69 points, up from the previous close of 185,098.83 points, according to PSX data.

The stock gains came a day after President Donald Trump invited Prime Minister Shehbaz Sharif to join the so-called “Board of Peace” for Gaza, amid increasing Pakistan-US diplomatic and economic engagement since Trump’s rise to presidency.

“Falling government bond yields and improving Pakistan-US relations played a catalyst role in record close at PSX,” Ahsan Mehanti, chief executive officer of Arif Habib Commodities, told Arab News.

Meanwhile, Karachi-based market research firm Topline Securities said bulls extended their rally as hopes of a rate cut by the State Bank of Pakistan (SBP) fueled investor sentiment.

“Investor sentiment remained upbeat, largely fueled by rising expectations of an imminent interest rate cut,” it said in a post on X. “Market participants increasingly priced in a 50bps reduction in the upcoming monetary policy, which kept buying interest alive and underpinned broad-based gains.”

In December, the SBP cut its key policy rate by 50 basis points to 10.5 percent, resuming monetary easing after four meetings in a move that surprised many despite International Monetary Fund guidance to keep policy “appropriately tight” to anchor inflation expectations.

Engro Holdings Limited (ENGROH), United Bank Limited (UBL), Hub Power Company Limited (HUBC), Fauji Fertilizer Company Limited (FFC), Meezan Bank Limited (MEBL) and Service Industries Limited (SRVI) collectively added 1,554 points to the benchmark index on Monday, according to Topline Securities.

“Total market volumes stood at 1,195 million shares, while the value of shares traded amounted to Rs63.7 billion,” the research firm said. “[Bank Makramah Limited] BML led the volume chart, emerging as the most actively traded stock with 246 million shares.”