World highest railway bridge opens in Kashmir

The world’s highest railway bridge, an ambitious piece of engineering across a mountain valley in Kashmir, was opened Friday by Indian Prime Minister Narenda Modi, just weeks after a deadly tourist massacre in the Himalayan region sparked a brief conflict with neighboring Pakistan.

Modi’s visit to India-administered Kashmir was his first since a brief but deadly conflict between India and Pakistan in April. The nuclear-armed neighbors traded missiles, drones, and artillery shelling for four days after New Delhi blamed the massacre on its neighbor, which Pakistan denies.

Decades in the making, the arched Chenab Bridge sits 359 meters (about 1,180 feet) above the river of the same name – that’s 29 meters (over 95 feet) higher than the top of the Eiffel Tower.

Costing more than US$160 million with a length of 1,315 meters (4,314 feet), the bridge is part of the first railway link between Kashmir and the rest of India.

Modi’s Hindu-nationalist government has moved to integrate the Muslim-majority region with the rest of the country, including revoking a constitutional provision that allowed it to set its own laws in 2019.

The Himalayan region of Kashmir is claimed by India, Pakistan and China. All three administer a part of the region, one of the most militarized zones in the world.

In addition to the Chenab Bridge, Modi also inaugurated the Udhampur-Srinagar-Baramulla Rail Link project, which connects key cities in India-administered Kashmir to the rest of India.

For Modi, who swept to power more than a decade ago on a ticket of nationalism and a promise of future greatness, investments in infrastructure like the Chenab Bridge and the broader rail link project can be seen as a powerful tool for social integration and political influence. Since he was first elected in 2014, the prime minister has rapidly expanded the region’s road and rail connectivity, building networks that connect disparate towns with major cities.

In 2019, New Delhi revoked a constitutional provision giving India-administered Kashmir the autonomy to set its own laws. The southern and eastern portions of the region known previously as the Indian state of Jammu and Kashmir became two separate union territories, bringing them under direct control of New Delhi – a move Modi claimed would promote stability, reduce corruption and boost the economy.

The Chenab Bridge is being hailed as a major win for Modi’s Bharatiya Janata Party government.

His administration has poured billions into upgrading India’s old and outdated transport network, part of its vision to transform the country into a developed nation by 2047.

Among these ambitious projects is the construction of several tunnels and highways in the mountainous Himalayan region which has been criticized by some environmentalists who say the heavy construction could damage fragile topography already feeling the effects from the climate crisis.

Modi’s Char Dham Highway project, a multimillion-dollar infrastructure plan to improve connectivity in the state of Uttarakhand, came under fire in November 2023 when an under-construction mountain tunnel collapsed, trapping dozens of workers inside for several days with little water and oxygen.

In August that year, more than a dozen workers were killed after a bridge under construction collapsed in the northeastern state of Mizoram. In June, a four-lane concrete bridge that was being built across the River Ganges in the eastern state of Bihar collapsed for the second time in just over a year, raising questions about the quality of its construction.

Courtesy: Saudi Gazette

PSX benchmark index up 11.64%WoW

Pakistan Stock Exchange (PS) regained momentum after a ceasefire agreement between Pakistan and India on May 10, 2025, brokered through US mediation. This eased geopolitical tensions and helped stabilize investor sentiment following a week of heightened volatility. The benchmark index closed the week on May 16, 2025 at 119,649 points, recording a gain of 12,474 points, up 11.64%WoW.

On the first trading day of the week, the benchmark KSE-100 index surged by 10,123 points— the highest single-day gain in point terms. Investor confidence was further reinforced by the International Monetary Fund’s approval and disbursement of US$1 billion tranche under the Extended Fund Facility (EFF) and approval of an additional arrangement for the US$1.4 billion under the Resilience and Sustainability Facility (RSF).

On the macroeconomic front, workers’ remittances were reported at US$3.2 billion, resulting in a current account surplus of US$12 million during April 2025. Alongside, Net FDI for the month was reported at US$141 million. Foreign exchange reserves held by State Bank of Pakistan (SBP) increased by US$71 million to US$10.4 billion.

Average daily trading volume was up by 34.8%WoW to 685 million shares as compared to 508 million shares traded in the earlier week.

Other major news flow during the week included: 1) GoP proposed to 10% tax cut for salaried class, 2) Pakistan and Russia consented to set up a steel mill, 3) IFEM on petrol and diesel increased, 4) Prime Minister set up panel for petroleum sector reforms, and 5) Pakistan and India talks in Saudi Arabia to be scheduled shortly.

Vanaspati & Allied Industries, Transport, Refinery, Woollen and Inv.Banks/ Inv.cos/ Securities.cos were amongst the top performers, while Textile Spinning and Jute were amongst the worst performers.

Major selling was recorded by Banks/ DFIs with a net sell of US$20.6 million. Mutual Funds absorbed most of the selling with a net buy of US$39.2 million.

Top performing scrips of the week were: AGL, FCEP, PTC, ATRL and SEARL, while laggards included: PKGP, IBFL, NESTLE, and PGLC.

According to AKD Securities, PSX is expected to remain positive in the coming weeks, with the recent announcement of a ceasefire and release of tranche by IMF likely to be key triggers. The KSE100 is anticipated to sustain its upward trajectory, driven by strong earnings in Fertilizers, sustained ROEs in Banks, and improving cash flows of E&Ps and OMCs, benefiting from falling interest rates and economic stability.

Top pick of the brokerage house include: OGDC, PPL, PSO, FFC, ENGROH, MEBL, MCB, HBL, LUCK, FCCL, INDU and SYS.

Saudi Arabia welcomes Trump's visit

The Council of Ministers welcomed on Monday the official visit of US President Donald Trump to Saudi Arabia, expressing optimism that the visit would strengthen and expand cooperation and the strategic partnership between the two friendly countries across various sectors, in a way serving their mutual interests and visions. Crown Prince and Prime Minister Mohammed bin Salman chaired the Cabinet session in Riyadh.

At the outset of the session, the Crown Prince briefed the Cabinet on the outcomes of recent talks with leaders of several friendly nations, focusing on bilateral relations and issues of mutual interest.

In a statement to the Saudi Press Agency following the session, Minister of State, Cabinet Member for Shoura Council’s Affairs and Acting Minister of Media Dr. Essam bin Saad bin Saeed said that the Cabinet reviewed regional and international developments and reiterated its firm condemnation of the Israeli occupation authorities' announcement regarding their incursion into and control of the Gaza Strip and Palestinian territories, as well as their ongoing violations of international humanitarian law. The Cabinet reaffirmed the Kingdom's unwavering support for the Palestinian cause and the rights of the Palestinian people.

The Cabinet welcomed the ceasefire agreement between Pakistan and India, and affirmed the Kingdom’s continued commitment to working with international partners to achieve lasting peace between the two nations.

The Cabinet discussed progress in cooperation with international organizations and forums, emphasizing that the Kingdom's hosting of the Munich Security Conference Leaders' Meeting in the last quarter of 2025 reflects its commitment to supporting multilateral approaches that promote international peace and security and address global challenges.

The Cabinet regarded the Kingdom’s election as the Arab Group’s representative to the International Civil Aviation Organization (ICAO) Council as a testament to its leading role and ongoing efforts in advancing the aviation sector at the local, regional, and international levels, in accordance with the highest standards of safety and efficiency.

The Cabinet approved the guidelines for green investments. It approved the regulations to organize the General Authority of Civil Aviation. The Cabinet endorsed formation of a working group, headed by the General Directorate of Civil Defense and including members from several entities, to implement a program to raise awareness of meteorological phenomena, the mechanism for avoiding their risks, and the implications of alerts and warnings.

The Cabinet decided that the state would bear the taxes and customs duties on live livestock shipments from Dhul Qada 11, corresponding to May 9, until the end of this year's Hajj season.

The Cabinet approved a memorandum of understanding (MoU) between the Saudi Ministry of Energy and the Italian Ministry of Environment and Energy Security for cooperation in the field of energy, and a general cooperation agreement between the governments of Saudi Arabia and Eswatini.

The Council authorized the minister of foreign affairs or his deputy to discuss and sign with the Vanuatuan side a draft general cooperation agreement between the two governments, in addition to authorizing the minister of education or his deputy to discuss and sign with the US side a draft MoU for cooperation in the field of education and training.

The Cabinet approved a MoU between the Saudi Food and Drug Authority and the Chinese National Medical Products Administration for cooperation in the field of regulating drugs, medical devices, and cosmetics, and another MoU between the Saudi Human Rights Commission and Tajikistan's Commissioner for Human Rights.

The Council approved a MoU between the Saudi Presidency of State Security and the Omani General Secretariat for Communications and Coordination in the field of combating terrorism crimes and their financing, and another MoU for cooperation and news exchange between the Saudi Press Agency and the Senegalese Press Agency.

 

India and Pakistan accuse each other of ceasefire violations

India and Pakistan accused each other of violating an agreed ceasefire on Saturday, just hours after reaching the US-brokered deal aimed at ending one of the most dangerous escalations between the nuclear-armed rivals in decades, reports Reuters.

The ceasefire, which came after weeks of cross-border missile and drone strikes, was announced earlier in the day following negotiations involving top US and regional officials.

India’s Foreign Secretary Vikram Misri said the ceasefire agreement had been breached “repeatedly” and blamed Pakistan for initiating the violations.

Pakistan’s Foreign Ministry rejected the accusation and blamed Indian forces for violating the ceasefire. In a statement, the ministry said Pakistan remained committed to the truce and was “handling the situation with responsibility and restraint.”

The agreement had been announced earlier in the day by US President Donald Trump on his Truth Social platform. “Congratulations to both Countries on using Common Sense and Great Intelligence,” he wrote, hailing the full and immediate ceasefire deal.

Under the terms of the agreement, both sides pledged to halt all military action by land, air, and sea. Military officials from both countries spoke Saturday afternoon to finalize the terms.

Despite the mutual accusations, both governments have expressed interest in pursuing further talks. US Secretary of State Marco Rubio said discussions would soon begin on a broader agreement at a neutral site.

India and Pakistan agree to ceasefire

US President Donald Trump said on Saturday that India and Pakistan had agreed to a "full and immediate ceasefire" after a fourth day of strikes and counter-strikes against each other's military installations, reports Reuters.

Pakistan's foreign minister also said both countries had agreed to a ceasefire "with immediate effect" and India's foreign ministry said it would start at 5.00pm Indian time, 1130 GMT.

"After a long night of talks mediated by the United States, I am pleased to announce that India and Pakistan have agreed to a full and immediate ceasefire. Congratulations to both Countries on using Common Sense and Great Intelligence," Trump said in a post on Truth Social.

The sudden announcement came on a day when fears spiked that the countries' nuclear arsenals might come into play as Pakistan's military said a top military and civilian body overseeing its nuclear weapons would meet. The officials from both sides showed a willingness to take a step back following the day's exchanges, as the combined civilian death toll on the two sides rose to 66.

"Pakistan and India have agreed to a ceasefire with immediate effect," Pakistani Foreign minister Ishaq Dar posted on X.

"Pakistan has always strived for peace and security in the region, without compromising on its sovereignty and territorial integrity."

India's foreign ministry said that the head of Pakistan's military operations called his Indian counterpart on Saturday afternoon and it was agreed that both sides would stop all firing.

The two heads will speak to each other again on May 12, the ministry added.

The fighting began on Wednesday when India carried out strikes on what it said was "terrorist infrastructure" in Pakistani Kashmir and Pakistan, two weeks after 26 people were killed in an attack on Hindu tourists in Indian Kashmir.

Pakistan denied India's accusations that it was involved in the tourist attack. Since Wednesday, the two countries have exchanged cross-border fire and shelling, and sent drones and missiles into each other's airspace.

The countries have been locked in a dispute over Kashmir since they were born after the end of British colonial rule in 1947. Hindu-majority India and Islamic Pakistan both claim Kashmir in full but rule it in part.

They have gone to war three times since, including twice over Kashmir, and clashed several times.

India blames Pakistan for an insurgency in its part of Kashmir that began in 1989 and has killed tens of thousands. It also blames Pakistani Islamist militant groups for attacks elsewhere in India.

Pakistan rejects both charges. It says it only provides moral, political and diplomatic support to Kashmiri separatists.

 

 

India and Pakistan step up military strikes

Pakistan and India launched strikes and counter-strikes against each other's military installations on Saturday, prompting US calls for the nuclear-armed neighbours to begin talks and defuse their escalating conflict, the most intense since 1999.

Fears that the countries' nuclear arsenals might come into play spiked when the Pakistan military said a top military and civil body overseeing its nuclear weapons would meet, but the defence minister later said no such meeting was scheduled.

As tensions remain high, residents across Pakistan and India have rushed to stockpile food and other essential supplies, while families living near the border fled to safer areas. Indian authorities have installed sirens in high-rise buildings in New Delhi, some 650 kilometres (400 miles) from the border.

Pakistan early on Saturday said it had targeted multiple bases in India, including a missile storage site in India's north, in response to prior attacks by the Indian military.

India said there was limited damage to equipment and personnel at four air force stations. The military said there were several high-speed missile attacks on air bases in Punjab state and that India had responded to the attacks.

Five civilians were killed in the attacks in the Jammu region of Indian Kashmir, regional police said. Hindu-majority India and Islamic Pakistan both claim Kashmir in full but rule it in part.

Blasts rang out across Indian Kashmir and the Sikh holy city of Amritsar in neighbouring Punjab until early morning on Saturday. Jammu streets were empty hours after loud blasts were heard and projectiles were seen flying across the city sky.

"Jammu city has never been hit before. Never thought we will be hit like this," said 60-year-old Rajeev Gupta, whose brother was wounded by a shell.

Pakistan said that, before its offensive, India had fired missiles at three air bases, including one close to the capital, Islamabad, but Pakistani air defences intercepted most of them.

Locked in a longstanding dispute over Kashmir, the two countries have engaged in daily clashes since Wednesday when India launched strikes inside Pakistan on what it called "terrorist infrastructure". Pakistan vowed to retaliate.

Pakistan's information minister said in a post on X that Saturday's military operation was named "Operation Bunyanun Marsoos". The term is taken from the Koran and means a firm, united structure.

India has said its strikes on Wednesday, which started the latest round of clashes that have left more than 50 people dead in both countries, were in retaliation for a deadly attack on Hindu tourists in Indian Kashmir last month.

Pakistan denied India's accusations that it was involved in the tourist attack. Since Wednesday, the two countries have exchanged cross-border fire and shelling, and sent drones and missiles into each other's airspace.

Despite growing Western calls for peace, defence experts said the opposite seemed to be happening.

"Operations moving to next level - free use of missiles and drones by both sides," said Pravin Sawhney, a defence author and former Indian Army officer. "And reports that Pakistan Army is moving troops forward. Not good indications of what lies ahead!"

India strikes Pakistan

According to Reuters, India attacked Pakistan and Pakistani Kashmir on Wednesday. Pakistan said it had shot down five Indian fighter jets in the worst fighting in more than two decades between the nuclear-armed enemies.

India said it struck nine Pakistani "terrorist infrastructure" sites, some of them linked to an attack by Islamist militants on Hindu tourists that killed 26 people in Indian Kashmir last month. Islamabad said six Pakistani locations were targeted, killing eight people.

Indian forces attacked the headquarters of Islamist militant groups Jaish-e-Mohammed and Lashkar-e-Taiba, an Indian defence source told Reuters.

"India has demonstrated considerable restraint in selection of targets and method of execution," the Indian defence ministry said in a statement.

Pakistan said Indian missiles hit three sites and a military spokesperson told Reuters five Indian aircraft had been shot down, a claim not confirmed by India.

"All of these engagements have been done as a defensive measure," military spokesperson Ahmed Sharif Chaudhry said. "Pakistan remains a very responsible state. However, we will take all the steps necessary for defending the honour, integrity and sovereignty of Pakistan, at all cost."

 

Kashmir conflict after Pahalgam attack

The most recent conflict between India and Pakistan in the Kashmir region has once again brought the area to the brink of a deep crisis, especially since both nations are armed with nuclear weapons.

India has upped the ante by blaming Pakistan for the tragedy, without providing credible evidence of this country’s alleged involvement in the brutal slaying of tourists.

The recent terrorist attack in Pahalgam in the Indian-administered Kashmir, which resulted in the tragic demise of numerous tourists, has not only intensified India's animosity towards Pakistan but has also garnered global scrutiny regarding the prospects of an extensive military conflict.

Since gaining independence in 1947, Kashmir has been split between India and Pakistan, with each country asserting ownership over the entire region while controlling distinct areas. This division has resulted in ongoing tensions that have escalated into conflict over time.

On Tuesday, at least 26 people were killed by suspected rebels at a resort in Pahalgam, making this the deadliest such attack in a quarter-century in Kashmir. A statement issued in the name of The Resistance Front (TRF), which is said to be part of the Lashkar-e-Taiba armed group, based in Pakistan, claimed responsibility.

The aftermath has prompted notable diplomatic pushback. India has declared its exit from the Indus Waters Treaty, an important water-sharing pact established by the World Bank in 1960, while Pakistan countered by suspending a significant canal irrigation initiative and prohibiting Indian flights from its airspace. 

Pakistani officials have dismissed India's allegations, with Defense Minister Khawaja Asif asserting that "blaming Pakistan won’t address" the issue of Kashmir’s disputed status. 

The Indian government has admitted failing to protect tourists at Pahalgam, Mallikarjum Kharge, president of the All India Congress Committee, said during a speech.

He added that the government confirmed during an all-party meeting on Thursday that a security lapse allowed the attack to happen.

Kharge, who heads the opposition in the upper house of India’s parliament, said a three-phase security plan was in place but ultimately failed.

Amid this volatile situation, Iran has taken on the role of a mediator, understanding the complex geopolitics of the subcontinent and choosing not to take sides.

Iran’s diplomatic initiative is underscored by its historical balancing act between India and Pakistan, maintaining strong ties with both while advocating for regional stability. 

On Friday, Iranian Foreign Minister Abbas Araghchi wrote on his X social account, “India and Pakistan are brotherly neighbors of Iran, enjoying relations rooted in centuries-old cultural and civilizational ties,” adding that “Tehran stands ready to use its good offices in Islamabad and New Delhi to forge greater understanding at this difficult time”.

Given the nuclear-armed status of both India and Pakistan, Iran’s mediation effort represents a crucial attempt to de-escalate tensions and prevent further destabilization in South Asia.

Tehran’s stance reflects its broader regional strategy to promote peace through dialogue and resist external powers’ divisive influences in the Kashmir dispute.

Pakistan said on Saturday it is “fully prepared to cooperate with any neutral investigators” following the Pahalgam attack.

In an editorial published on Saturday, Pakistan’s Dawn news outlet said, “It is time again to give diplomacy a chance as neither Pakistan nor India can afford war.”

The editorial added, “These are dangerous times in the subcontinent, and there is a need for both Pakistan and India to show restraint, and handle the post-Pahalgam developments with sense.

 

PSX witnesses volatility due to rising tension between India and Pakistan

Pakistan Stock Exchange (PSX) remained volatile throughout the week ended Friday 25, 2025, as escalating geopolitical tensions post the Pahalgam attack in Indian Occupied Kashmir and India’s subsequent threats to revoke the Indus Water Treaty with Pakistan further undermined investor sentiment. The KSE-100 index closed the week at 115,469 points, losing 1,846 points, down 1.57%WoW.

Positive news stemmed from the IMF's World Economic Outlook for April 2025, lowering Pakistan's inflation forecast for FY25 to 5.1%YoY and 7.7%YoY for FY26. On the flip side, growth projection for FY25 was revised slightly downward to 2.7%, from 2.8% previously.

The news reports indicate that authorities have reached a preliminary agreement with two foreign commercial banks for a US$1 billion loan facility, at interest rate of 7.6%.

Finance Minister met with representatives from credit rating agency Moody's in an effort to improve Pakistan's credit rating, following a recent upgrade by Fitch.

PKR depreciated 0.09%WoW against the greenback.

Foreign exchange reserves held by State Bank of Pakistan (SBP) decreased by US$367 million to US$10.2 billion as of April 18, 2025.

Other major news flow during the week included: 1) Finance Minister met with IMF chief, 2) Government urged to fully deregulate wheat supply chain, 3) Cabinet recommended to abolish FED on property transfer, 4) Kuwait announced to join Pakistan offshore bids and 5) Pakistan missed wheat production target.

Vanaspati & Allied Industries, Synthetic & Rayon, and Textile Spinning were amongst the top performers, while Refinery, Jute, and Transport were amongst the laggards.

Major selling was recorded by Banks/ DFI with a net sell of US$4.0 million. Organizations and Foreigners absorbed most of the selling with a net buy of US$6.9.

Top performing scrips of the week were: NATF, FCEPL, MUREB, ATLH, and SNGP, while laggards included: BOP, PIBTL, EPCL, AGL, and HUMNL.

According to Pakistan’s leading brokerage house, AKD Securities lower oil prices and favorable standing among exporting peers amid reciprocal tariffs will support Pakistan’s economy and strengthen the outlook for a return to single-digit interest rates in CY25.

The benchmark index is anticipated to sustain its upward trajectory, primarily driven by strong earnings in Fertilizers, sustained ROEs in Banks, and improving cash flows of E&Ps and OMCs, benefiting from falling interest rates and economic stability. Top pick of the brokerage house includes, OGDC, PPL, PSO, FFC, ENGROH, MEBL, MCB, HBL, FCCL, INDU, ILP and SYS.

Prince Faisal talks to Indian and Pakistani counterparts

Saudi Minister of Foreign Affairs Prince Faisal bin Farhan held separate phone calls with his counterparts in Pakistan and India on Friday. He discussed bilateral relations and the evolving regional situation amid rising tensions between the two South Asian nations, reports Saudi Gazette.

The diplomatic outreach followed a deadly militant attack on Tuesday near Pahalgam in the Indian-administered part of Kashmir’s scenic Pesarang Valley.

The assault claimed the lives of at least 26 people and triggered a wave of accusations and retaliatory measures from both sides.

Indian Foreign Minister Subrahmanyam Jaishankar said in a post on social media that he discussed the Pahalgam attack and its cross-border connections with Prince Faisal.

Pakistani Foreign Minister Ishaq Dar also posted on X, stating that the two ministers agreed to maintain consultations and coordination on the unfolding regional developments.

The Kashmir attack, which India has blamed on Pakistan-based militants, has sharply escalated tensions between the two nuclear-armed neighbors. In response, India suspended a key water-sharing treaty, closed a major land border crossing, and halted airspace and trade agreements with Pakistan.

Islamabad, in turn, warned of potential military action, further raising fears of a broader conflict.

India threatens to terminate Indus Water Treaty

India has announced to take a series of retaliatory measures, including its intent to terminate the Indus Waters Treaty. This significant development is likely to heighten geopolitical risks in the region.

The Treaty signed in 1960 between India and Pakistan under the mediation of the World Bank, governs the sharing of the waters of the Indus River and its tributaries. The treaty allocates the three eastern rivers (Ravi, Beas, and Sutlej) to India, and the three western rivers (Indus, Jhelum, and Chenab) to Pakistan, with limited rights for India to use the western rivers for non-consumptive purposes such as hydroelectric power generation.

The treaty has survived multiple conflicts and is considered one of the most successful examples of water-sharing agreements in the world.

If India were to unilaterally withdraw from the treaty, it would likely violate international law, as such agreements are generally considered binding and cannot be terminated unilaterally without consequences.

For Pakistan, any disruption to the flow of the western rivers could have severe implications for agriculture, which is the backbone of its economy, as well as for water availability in key regions. 

 

Iran condemns Kashmir terror attack

Esmail Baqaei, spokesperson for Iran’s Foreign Ministry has condemned Tuesday’s terrorist attack in Pahalgam, Kashmir, which killed and wounded dozens of civilians, including foreign nationals.

Describing the assault as a “severe crime violating all international legal norms and human rights principles,” Baqaei expressed Tehran’s solidarity with New Delhi in an official statement, offering condolences to victims’ families and wishing injured survivors a speedy recovery.

The spokesperson reiterated Iran’s unwavering opposition to terrorism in all its forms, stressing the necessity for strengthened regional and global coordination to eradicate this scourge and hold perpetrators accountable.

He emphasized that Iran, as a steadfast advocate for multilateral anti-terror frameworks, urges immediate action to prosecute those behind the attack.

The attack in South Kashmir's Pahalgam Baisaran Valley, a popular tourist destination, has been described as the deadliest strike on civilians in the subcontinental area since 2019.

Preliminary reports indicate at least 30 deaths and dozens more injuries. 

Jammu and Kashmir Chief Minister Omar Abdullah called the incident “unprecedented in scale” compared to recent civilian-targeted violence, while authorities continue to verify the final casualty figures.

Indian Prime Minister Narendra Modi condemned the attack on X and wrote, “Those behind this heinous act will be brought to justice.”

 

 

India downgrades ties with Pakistan

According to Reuters, India has announced a raft of measures to downgrade its ties with Pakistan on Wednesday, a day after suspected militants killed 26 men at a tourist destination in Kashmir in the worst attack on civilians in the country in nearly two decades.

Diplomatic ties between the nuclear-armed South Asian neighbours were weak even before the latest measures were announced as Pakistan had expelled India's envoy and not posted its own ambassador in New Delhi after India revoked the special status of Kashmir in 2019.

Pakistan had also halted its main train service to India and banned Indian films, seeking to exert diplomatic pressure.

Tuesday's attack is seen as a setback to what Indian Prime Minister Narendra Modi and his Hindu nationalist Bharatiya Janata Party have projected as a major achievement in revoking the semi-autonomous status Jammu and Kashmir enjoyed and bringing peace and development to the long-troubled Muslim-majority region.

On Wednesday, Indian Foreign Secretary Vikram Misri told a media briefing that the cross-border involvement in the Kashmir attack was underscored at a special security cabinet meeting, prompting it to act against Pakistan.

He said New Delhi would immediately suspend the 1960 Indus Waters Treaty "until Pakistan credibly and irrevocably abjures its support for cross-border terrorism."

The treaty, mediated by the World Bank, split the Indus River and its tributaries between the neighbours and regulated the sharing of water. It had so far withstood even wars between the neighbours.

Pakistan is heavily dependent on water flowing downstream from this river system from Indian Kashmir for its hydropower and irrigation needs. Suspending the treaty would allow India to deny Pakistan its share of the waters.

India also closed the only open land border crossing point between the two countries and said that those who have crossed into India can return through the point before May 01, 2025.

With no direct flights operating between the two countries, the move severs all transport links between them.

 

Iran India to expand agricultural trade

Iran and India are poised to enhance their agricultural trade volume beyond the current US$1.0 billion, it was announced by Iran’s Agriculture Minister Gholamreza Nouri Ghezeljeh following a meeting with India's Agriculture Minister Shivraj Singh Chouhan during the BRICS agriculture ministers’ summit in Brazil.

The ministers reviewed previous agreements and reaffirmed their countries’ longstanding cultural, historical, and economic ties. Nouri Ghezeljeh expressed appreciation for India’s support in facilitating Iran’s membership in BRICS and noted that bilateral cooperation is entering a new phase.​

In addition to these developments, Iran and India have agreed to establish a joint agricultural cooperation committee within the next three months. This committee aims to facilitate exports of agricultural products and address issues such as quarantine requirements and customs barriers. The agreement was reached during a meeting between Iran's Deputy Agriculture Minister Mohammad Mehdi Borumandi and Secretary of India's Agriculture and Farmers Welfare Ministry Manoj Ahuja in New Delhi. The officials also agreed to hold the first joint working group on agricultural cooperation between the two countries in the near future. ​

Furthermore, Iran's Deputy Minister of Agriculture Alireza Mohajer has voiced the country's readiness to cooperate with BRICS member countries in the agricultural sector. Speaking at the 14th meeting of the BRICS ministers of agriculture in Russia, Mohajer highlighted Iran's strategic geographical position, being situated at the intersection of the North-South and East-West transit corridors. He noted that Iran can help expand regional and international trade networks in agriculture and is an effective partner in bilateral and multilateral cooperation. ​

These initiatives are expected to streamline future collaborations through BRICS mechanisms, particularly financial instruments designed to bypass conventional barriers and facilitate smoother transactions among member states. Both ministers expressed optimism that deeper engagement between Iran and India—within the BRICS framework and bilaterally—will lead to meaningful developments in agricultural and economic relations.

 

Bangladesh and the US tariff storm

US President Donald Trump yesterday stood in the White House Rose Garden, pointing to an oversized placard with details of levies he is set to impose on imports from America’s trading partners. Trump dramatically ratcheted up his trade war. Bangladesh is among those countries whose labor-intensive export industries will receive a heavy blow.

Under Trump’s “reciprocal tariffs” policy, Bangladeshi exports to the United States now face a 37% levy — a move that threatens to strain trade with its largest single-country export market.

Trump has targeted nations, accusing them of putting disproportionate barriers to American exports. He imposed 10% universal tariffs on all US trade partners as well as additional, heavier duties on 60 countries he deemed the “worst offenders” of unfair trade practices. The universal tariffs will start on Saturday before the country-specific, higher reciprocal tariff takes effect from April 09. 2025.

The penalties unleashed turbulence across world markets and drew condemnation from many countries facing the end of an era of trade liberalization that has shaped the global order for decades.

While significant for Bangladesh, this move aligns with similarly stringent tariffs across the region, suggesting a broader strategic intent rather than targeting Bangladesh alone.

Notably, Vietnam, a close competitor for Bangladesh in the international garment trade, faces an even higher tariff of 46%, despite the Southeast Asian nation’s proactive attempts to mitigate tariff threats by cutting levies on American goods and pledging to increase imports of significant US products.

However, this offers little comfort to Bangladesh. Its economy, heavily reliant on exports to the United States, particularly garments, now faces headwinds.

“For countries like Bangladesh and other developing countries, this shift poses significant challenges, as they may face tougher economic conditions under such an uncertain regime,” Professor Selim Raihan, executive director of the South Asian Network on Economic Modeling, said.

Industry experts in Dhaka fear the sharp increase in tariffs could erode Bangladesh’s competitive edge, potentially diverting US buyers to other countries. Still, the US will remain Bangladesh’s largest single-country export destination, with apparel constituting about 90% of total exports to American markets.

Bangladesh’s exports to the US rose 1.1%YoY to US$8.4 billion in 2024, driven largely by the country’s dominant garment sector, according to data from the United States Trade Representative.

Bangladesh’s imports from the US totaled US$2.2 billion in 2024, a 1.5% decrease from the previous year. As a result, the US trade deficit with Bangladesh widened to US$6.2 billion — a figure that determined the new tariff rate.

“The immediate priority is damage control, as the reciprocal tariffs are already in effect, with no time allowed for a smooth transition. Even goods currently en route to the US will be subject to the new tariffs, raising the critical question, who will bear the cost?” said Zahid Hussain, a former lead economist of the World Bank’s Dhaka office.

Bangladesh’s strategy should aim to shift the tariff burden onto buyers, according to Hussain. “A key advantage is that buyers have limited alternatives, as many of our competitors face similar or even higher reciprocal tariffs. However, fierce competition among [local] sellers poses a significant challenge, enabling wholesale buyers like Walmart and Target to pass the tariff costs onto us,” he said.

To counter this, it is crucial for sellers to collectively agree not to accept a reduction in prices to offset the tariff. The relevant association must closely monitor renegotiated prices and enforce penalties for non-compliance with this agreed position, Hussain said.

“Additionally, we should explore the possibility of qualifying our exports for duty exemptions by emphasizing their status as low-priced essential products.”

Analysts point out this escalation is part of broader regional trade realignment, as neighboring India and Pakistan also face reciprocal tariffs of 27% and 29%, respectively.

India’s export competitiveness would be less impacted than that of key rivals due to its position in the middle of the tariff rates, said the country’s industry bodies and the Federation of Indian Export Organizations.

The tariffs would remain in effect until Trump determined that the “threat posed by the trade deficit and underlying non-reciprocal treatment is satisfied, resolved, or mitigated,” the White House said.

Courtesy: The Bangladesh Chronicle

 

 

India-Mauritius to enhance trade and maritime security

India and Mauritius on Wednesday elevated their relations to an enhanced strategic partnership and finalized eight agreements to step up collaboration in crucial areas such as trade and maritime security, as Prime Minister Narendra Modi announced a new vision for engagement with the Global South.

The two sides unveiled a joint vision for the enhanced strategic partnership that envisages trade settlement in local currencies to derisk bilateral commerce, closer collaboration in space, including the launch of a satellite for Mauritius, and increased defence and security cooperation, including provision of military equipment and joint maritime surveillance.

Modi, who unveiled India’s SAGAR (Security and Growth for All in the Region) vision during a visit to Mauritius exactly a decade ago, announced the vision MAHASAGAR or “Mutual and Holistic Advancement for Security and Growth Across Regions” for India’s engagement with the Global South. This will range from trade for development to mutual security and cooperation in technology sharing and concessional loan and grants.

On the final leg of his two-day visit to Port Louis, Modi participated in the country’s National Day celebrations as chief guest. An Indian military contingent joined the ceremonial parade while helicopters of the Indian Navy were part of the fly-past.

“Today, Prime Minister Navinchandra Ramgoolam and I decided to elevate the India-Mauritius partnership to an enhanced strategic partnership,” Modi said after his talks with the Mauritian leader. With an eye on China’s increased maritime activities in the Indian Ocean, he highlighted the importance of defence cooperation between the two sides in maintaining regional security.

“The Prime Minister [Ramgoolam] and I agree that defence cooperation and maritime security are key pillars of our strategic partnership. A free, open, secure and safe Indian Ocean is our common priority,” Modi said, speaking in Hindi.

Ramgoolam said Mauritius has benefited from Indian aid for its socio-economic development and the new agreements in a wide range of areas such as maritime traffic monitoring, crime investigation, infrastructure and commerce will enhance “already excellent bilateral relations”.

“Our shared vision is to increase our cooperation in existing and emerging sectors such as space research, artificial intelligence, digital health, ocean economy, pharmaceuticals, ICT, fintech and cyber-security,” Ramgoolam said.

Modi said the new MAHASAGAR vision will build on the SAGAR initiative, especially for engagement with the Global South. “It shall encompass the ideas of trade for development, capacity building for sustainable growth and mutual security for a shared future. Under this, we will extend cooperation through technology-sharing, concessional loan and grants,” he said.

In the context of his country’s negotiations with the UK for control of the Chagos Islands, Ramgoolam expressed “deep gratitude for India’s unflinching support to the long-standing struggle of Mauritius to exercise its full sovereignty over its entire territory” and thanked Modi for his “pivotal role” in this area.

Modi added: “We fully respect the sovereignty of Mauritius with regard to Chagos. We will extend our cooperation through forums such as the Colombo Security Conclave, Indian Ocean Rim Association and Indian Ocean Conference.”

Britain said last year it would cede sovereignty of the Chagos archipelago to Mauritius on the condition that the UK and the US could maintain a strategic military base on Diego Garcia. A final agreement has been delayed as the government formed by Ramgoolam after elections last November decided to revisit the matter. India has consistently backed Mauritius’s claim of sovereignty over Chagos Islands.

The two countries finalized eight agreements, including one between the Reserve Bank of India and Bank of Mauritius for a framework on using local currencies for trade settlement, and a credit facility agreement between the Mauritius government and State Bank of India for an Indian rupee-denominated credit line of 487.6 crore for improving water supply in the island nation. This is the first Indian rupee-based credit line for any country.

The joint vision document said a protocol on amending the bilateral Double Taxation Avoidance Agreement will be ratified “at the earliest to harmonize with international standards on treaty abuse”. India has already completed the process while it is still underway on the Mauritian side.

The two sides will also promote investments in ocean economy, pharmaceuticals, IT and fintech to support Mauritius’s efforts to diversify its economy, the document said. Ramgoolam urged Indian businesses to see Mauritius as a gateway for trade opportunities in Africa.

In the field of defence and security, the two sides signed a technical agreement on sharing of white shipping information between the Indian Navy and the Mauritius government to improve maritime domain awareness, and an MoU between the Indian National Centre for Ocean Information Services and the Mauritius Prime Minister’s Office on maritime zone management.

“We are committed to providing our full support for the security of the exclusive economic zone (EEZ) of Mauritius. In this regard, we will extend every possible assistance to meet the needs of the Coast Guard,” Modi said. India will also assist Mauritius in setting up a police academy and national maritime information sharing centre in Mauritius, he said.

The joint vision document noted that India and Mauritius will work closely to counter maritime challenges and safeguard larger strategic interests, and said Modi and Ramgoolam had agreed on the provision of defence and maritime equipment to Mauritius and increased maritime cooperation through “increased deployment of ships and aircraft for joint maritime surveillance”.

In recent years, India has provided helicopters and naval vessels to the security forces of Mauritius and the joint vision document said the two sides will also deepen cooperation for securing Mauritius’s EEZ, including through enhanced use of facilities on Agalega Island that were recently upgraded by India.

India’s Enforcement Directorate (ED) and the Financial Crimes Commission of Mauritius signed an MoU on combating financial crimes, including intelligence-sharing and technical assistance to tackle corruption and money laundering.

In the space sector, the two sides will cooperate for the development and launch of a satellite for Mauritius, including training for Mauritian scientists. They will also work on a project to help Mauritius monitor extreme weather events that will be implemented by the Indian Space Research Organization (ISRO) under the umbrella of Quad.

Modi also highlighted New Delhi’s role as a first responder to crises in the Indian Ocean region and provider of development aid as he and Ramgoolam inaugurated the Atal Bihari Vajpayee Institute of Public Service and Innovation, a health centre and 20 community projects completed with Indian funding.

After helping build the Metro Express, Supreme Court building and social housing, India will cooperate in constructing a new parliament building and launch new community projects worth 500 million Mauritian rupees, Modi said.

Over the past decade, India has provided US$1.1 billion as development assistance to Mauritius, including US$729 million through credit lines and US$427 million as grants.

 

 

 

US mulls plan to disrupt Iranian oil movement

President Donald Trump's administration is considering a plan to stop and inspect Iranian oil tankers at sea under an international accord aimed at countering the spread of weapons of mass destruction, sources familiar with the matter told Reuters.

Trump has vowed to restore a "maximum pressure" campaign to isolate Iran from the global economy and drive its oil exports to zero, in order to stop the country from obtaining a nuclear weapon.

Trump hit Iran with two waves of fresh sanctions in the first weeks of his second-term, targeting companies and the so-called shadow fleet of ageing oil tankers that sail without Western insurance and transport crude from sanctioned countries.

Those moves have largely been in line with the limited measures implemented during former President Joe Biden's administration, during which Iran succeeded in ramping up oil exports through complex smuggling networks.

Trump officials are now looking at ways for allied countries to stop and inspect ships sailing through critical chokepoints such as the Malacca Strait in Asia and other sea lanes.

Previous attempts to seize Iranian oil cargoes have triggered retaliation by Iran.

The US tried to interdict at least two cargoes of Iranian oil in 2023, under Biden. This prompted Iran to seize foreign ships - including one chartered by Chevron Corp, which sent crude prices higher.

The current low oil price environment gives Trump more options to block Iranian oil flows, from sanctions on tanker companies to seizing ships, according to Ben Cahill, an energy analyst at the Center for Energy and Environmental Systems at the University of Texas.

"I think if prices stay below US$75 a barrel, the White House has more latitude to look at sanctions that would affect, you know, supply from Iran and other countries. It would be much harder to do this in a US$92 per barrel environment," Cahill said.

Aggressive US action could cut Iran exports by some 750,000 barrels per day in the short term, he said, but the longer the sanctions are in place, the less effective they are as Iran and buyers figure out ways around them.

A speedy resumption of oil exports from Iraq's semi-autonomous Kurdistan region would help offset any fall in Iranian exports.

Reuters previously reported that the White House is piling pressure on Iraq to allow Kurdish oil exports to restart or face sanctions alongside Iran.

Despite US sanctions in recent years, Tehran's oil exports brought in US$53 billion in 2023 and US$54 billion a year earlier, largely in trades with China, according to US Energy Information Administration estimates.

Iran relies on oil exports to China for vital revenue. Russia, which faces restrictions on oil exports and broader Western sanctions, is similarly focused on shipping oil to buyers in China and India.

Finland and other Nordic countries have warned in recent months of the dangers of ships sailing close to their shores and the environmental risks they pose to their shores in oil spills if there is an accident.

While European countries have spoken about inspections of ships transporting Russian oil suspected of not having valid insurance, little action has been taken and none mooted for vessels hauling Iranian oil.

 

Improving Pakistan-Bangladesh Relations

Bangladesh’s foreign affairs adviser, Touhid Hossain, recently stated that there is no longer any reason for strained relations with Pakistan. This shift in sentiment is underscored by the announcement of Pakistan Deputy Prime Minister Ishaq Dar’s planned visit to Dhaka in April, signaling a thaw in decades of frosty relations.

The change can be traced to August, when Bangladesh's former Prime Minister Sheikh Hasina was ousted after 15 years in power. Her tenure was marked by a strong alliance with India, seen in bilateral agreements, trade, and security collaborations. However, her removal created a diplomatic shift, leading to a cooling of ties with New Delhi and an opening for improved relations with Pakistan.

This shift is significant given the historical grievances stemming from the 1971 Liberation War, which have long impacted relations. Despite this, recent months have seen several high-level engagements between Bangladesh and Pakistan, indicating a thaw. Notably, Nobel laureate Muhammad Yunus, an adviser to Bangladesh’s interim government, met with Pakistani Prime Minister Shehbaz Sharif twice, highlighting the growing importance of ties with Pakistan over India.

Trade is emerging as a key area of cooperation. From August to December 2024, bilateral trade grew by 27%, and both countries signed an MOU in January to establish a joint business council. Similarly, in the defense sector, several high-level meetings between military officials from both countries have focused on regional security, joint military exercises, and arms trading. The term "brotherly countries" used by Pakistan’s military further signals a potential shift in South Asia’s security dynamics.

China also plays a strategic role, being a key partner to both nations. India’s concerns are rising, especially with Bangladesh’s interest in acquiring JF-17 Thunder fighter jets from Pakistan, which could alter the regional balance of power. This development has the potential to deepen the trilateral ties between Bangladesh, Pakistan, and China, prompting India to reassess its diplomatic and military strategies.

India must adapt to the changing dynamics by adopting a pragmatic approach that acknowledges Bangladesh’s evolving priorities while reinforcing historical ties. This will ensure India remains a key player in South Asia’s shifting landscape. Managing these relationships is crucial for all three nations. Bangladesh must balance its new ties with Pakistan and its economic dependence on India, while Pakistan must recognize its economic limitations. India, in turn, must address Bangladesh’s grievances to avoid further alienation.

Handled carefully, this evolving relationship could reshape South Asia, proving that diplomacy can overcome even the most entrenched divides. This moment presents an opportunity for Pakistan, Bangladesh, and India to redefine their futures in a geopolitically complex region.

India-US Relations: Implications for Pakistan

The evolving relationship between the United States and India under the leadership of President Donald Trump demands closer attention of Pakistan’s ruling junta. This developing alliance raises concerns in Islamabad, as the strengthening ties between the two countries may deepen the already strained relations between the US and Pakistan.

Recent developments prompted Pakistan’s foreign office to publicly express its concerns following a meeting between President Trump and Indian Prime Minister Narendra Modi. A major point of contention was Trump’s offer to sell advanced military technologies, including F-35 jets, to India. This could have serious implications for Pakistan’s defense capabilities.

The joint communiqué issued after the meeting highlighted concerns about Pakistan's role in terrorism, calling for Pakistan to “expeditiously bring to justice” those responsible for the 2008 Mumbai attacks and the 2016 Pathankot incident. It further emphasized the need to prevent Pakistani territory from being used for cross-border terrorism.

Additionally, the appointment of S. Paul Kapur, a scholar of Indian origin known for his hawkish stance on Pakistan, as the US representative for South and Central Asia is seen as another sign of Washington’s increasingly critical view of Islamabad. His nomination adds to a growing list of individuals in the new US administration who are vocal critics of Pakistan’s policies.

Some vocal Pakistani expatriates in the United States, who supported Trump during his campaign, have been pushing for a tougher stance on Islamabad. This situation places the Pakistani government in a difficult position, it will once again have to prove its strategic value to US policymakers.

Meanwhile, New Delhi appears to be using its growing economic influence to deflect international scrutiny over its involvement in global assassination and terrorism networks, while simultaneously shifting the blame onto Pakistan.

In light of these challenges, Pakistan must adopt a more proactive approach in diplomacy, actively establish its credibility and strengthen its global position. Despite Pakistan’s long-standing engagement in the global war on terrorism and its ongoing counterterrorism cooperation with the US, the heavy toll on its people in social and economic terms remains largely unrecognized and underappreciated.

Moving forward, Pakistan needs to reassess its foreign and security policies, aligning them more closely with the expectations of its international allies while safeguarding its national interests.

 

US exports 1.91 billion gallons ethanol in 2024

The United States exported 194.42 million gallons ethanol in December, taking export volumes for the full year 2024 to a record 1.91 billion gallons, according to data released by the USDA Foreign Agricultural Service on February 05, 2025. Distillers grains exports were at 1.06 million metric tons in December, to a total 12.23 million metric tons for the full year.

The 194.42 million gallons of ethanol exported in December was up from both the 187.6 million gallons exported the previous month and the 155.4 million gallons exported in December 2023.

The US exported ethanol to approximately three dozen countries in December. Canada was the top destination for US ethanol exports at 62.82 million gallons, followed by the Netherlands at 32.07 million gallons and the Britain at 27.06 million gallons. 

The value of US ethanol exports reached US$421.66 million in December, up from both US$398.46 million in November and US$365.93 million in December of the previous year. 

Total US ethanol exports for 2024 reached 1.91 billion gallons at a value of US$4.31 billion, as compared to 1.4 billion gallons exported in 2023 at a value of US$3.81 billion. Canada was the top destination for US ethanol exports last year, at 674.6 million gallons, followed by the Britain at 243.84 million gallons and India at 187.03 million gallons.  

The 1.06 million metric tons of distillers grains exported in December was up from both the 946,804 metric tons exported the previous month and the 1.02 million metric tons exported in December 2023. 

The US exported distillers grains to nearly three dozen countries in December. Mexico was the top destination for US distillers grains exports at 195,409 metric tons, followed by Colombia at 118,765 metric tons and Vietnam at 104,626 metric tons. 

The value of US distillers grains exports was US$282.97 million in December, as compared to US$228.98 million in November and US$288.41 million in December of the previous year. 

Total US distillers grains exports for 2024 reached 12.23 million metric tons at a value of US$3.2 billion, as compared to 10.78 million metric tons exported in 2023 at a value of US$3.29 billion. Mexico was the top destination for US distillers grains exports last year at 2.54 million metric tons, followed by South Korea at 1.49 million metric tons and Vietnam at 1.02 million metric tons.