Islamabad questions growing India, Afghanistan engagement amid militancy surge in Pakistan 

Pakistan's Information Minister Attaullah Tarar address a press conference in Lahore on October 5, 2024. (Government of Pakistan/File)
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Updated 12 January 2026
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Islamabad questions growing India, Afghanistan engagement amid militancy surge in Pakistan 

  • Afghan ministers visited India in October and December last year amid Kabul’s strained ties with Islamabad
  • Islamabad accuses India of supporting militant groups based in Afghanistan who launch attacks against Pakistan

ISLAMABAD: Information Minister Attaullah Tarar on Monday questioned growing engagement between officials from India and Afghanistan, vowing Islamabad would eliminate “terrorism” from the country as it reels from a surge in militancy. 

Afghan Foreign Minister Amir Khan Muttaqi arrived in New Delhi in October last year, marking the first official visit by a Taliban leader to the country since 2021 where he was accorded a warm welcome. In December 2025, Afghanistan’s Public Health Minister Noor Jalal Jalali arrived in India. 

These visits took place amid growing tensions between Pakistan and Afghanistan. Islamabad frequently accuses India of supporting militant groups who carry out attacks in Pakistan, especially in the country’s northwestern Khyber Pakhtunkhwa (KP) and southwestern Balochistan provinces. Pakistan also alleges these militant groups use Afghan territory to launch attacks against it. New Delhi and Kabul both deny Pakistan’s allegations. 

“You can see the Afghan government [officials] every other day go to India and hold negotiations there,” Tarar said during a news conference. “What negotiations are these? What trade do you have with them? What areas of mutual cooperation are there that require such extensive consultations?” 

The minister said the militants who were carrying out attacks in Pakistan want to destabilize the country, accusing them of following a “foreign-funded agenda.”

“What Islam is this, that you take funds from India and conduct blasts here,” he questioned. 

Tarar said the nation remains united in defeating “terrorism,” adding that the government will battle militancy in all its forms. 

“Not only will we counter their narrative, we will also ensure that every Pakistani citizen feels safe,” he added. 

The development takes place as Pakistan grapples with surging militancy. Pakistan military spokesperson Lt. Gen. Ahmed Sharif Chaudhry told reporters during a media briefing last week that the country witnessed 5,397 militant incidents in 2025. 

KP province accounted for 3,811 attacks while 1,557 incidents were reported in Balochistan, he said. The military spokesperson said security forces carried out 75,175 intelligence-based operations (IBOs) in the country last year, killing 2,597 militants. 

“The past year was a landmark and consequential one in the war against terrorism,” he said. 


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

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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.”