India: Calls to boycott US goods

From McDonald's and Coca-Cola to Amazon and Apple, US-based multinationals are facing calls for a boycott in India as business executives and Prime Minister Narendra Modi's supporters stoke anti-American sentiment to protest against US tariffs, reports Reuters.

India, the world's most populous nation, is a key market for American brands that have rapidly expanded to target a growing base of affluent consumers, many of whom remain infatuated with international labels seen as symbols of moving up in life.

India, for example, is the biggest market by users for Meta's WhatsApp and Domino's has more restaurants than any other brand in the country. Beverages like Pepsi and Coca-Cola often dominate store shelves, and people still queue up when a new Apple store opens or a Starbucks cafe doles out discounts.

Although there was no immediate indication of sales being hit, there's a growing chorus both on social media and offline to buy local and ditch American products after Donald Trump imposed a 50% tariff on goods from India, rattling exporters and damaging ties between New Delhi and Washington.

Manish Chowdhary, co-founder of India's Wow Skin Science, took to LinkedIn with a video message urging support for farmers and startups to make "Made in India" a "global obsession," and to learn from South Korea whose food and beauty products are famous worldwide.

"We have lined up for products from thousands of miles away. We have proudly spent on brands that we don't own, while our own makers fight for attention in their own country," he said.

Rahm Shastry, CEO of India's DriveU, which provides a car driver on call service, wrote on LinkedIn: "India should have its own home-grown Twitter/ Google/ YouTube/ WhatsApp/ FB -- like China has."

To be fair, Indian retail companies give foreign brands like Starbucks stiff competition in the domestic market, but going global has been a challenge.

Indian IT services firms, however, have become deeply entrenched in the global economy, with the likes of TCS and Infosys providing software solutions to clients world over.

On Sunday, Modi made a "special appeal" for becoming self-reliant, telling a gathering in Bengaluru that Indian technology companies made products for the world but "now is the time for us to give more priority to India's needs."

 

 

 

 

 

Trump threats to India may prove hoax calls

The crude oil market's rather sanguine reaction to the US threats to India over its continued purchases of Russian oil is effectively a bet that very little will actually happen, reports Reuters.

President Donald Trump cited India's imports of Russian crude when imposing an additional 25% tariff on imports from India on August 06, which is due to take effect on August 28.

If the new tariff rate does come into place, it will take the rate for some Indian goods to as much as 50%, a level high enough to effectively end US imports from India, which totalled nearly US$87 billion in 2024.

As with everything related to Trump, it pays to be cautious given his track record of backflips and pivots.

It's also not exactly clear what Trump is ultimately seeking, although it does seem that in the short term he wants to increase his leverage with Russian President Vladimir Putin ahead of their planned meeting in Alaska this week, and he's using India to achieve this.

Whether Trump follows through on his additional tariffs on India remains uncertain, although the chances of a peace deal in Ukraine seem remote, which means the best path for India to avoid the tariffs would be to acquiesce and stop buying Russian oil.

But this is an outcome that simply isn't being reflected in current crude oil prices.

Global benchmark Brent futures have weakened since Trump's announcement of higher tariffs on India, dropping as low as US$65.81 a barrel in early Asian trade on Monday, the lowest level in two months.

This is a price that entirely discounts any threat to global supplies, and assumes that India will either continue buying Russian crude at current volumes, or be able to easily source suitable replacements without tightening the global market.

The track record of the crude oil market is somewhat remarkable in that it quickly adapts to new geopolitical realities and any price spikes tend to be short-lived.

The Russian invasion of Ukraine in February 2022 sent crude prices hurtling toward US$150 a barrel as European and other Western countries pulled back from buying Russian crude.

But what Trump is proposing now is somewhat different. It appears he wants to cut Russian barrels out of the market in order to put financial pressure on Moscow to cut a deal over Ukraine.

There are effectively only two major buyers for Russian crude, India and China.

China, the world's biggest crude importer, has more leverage with Trump given US and Western reliance on its refined critical and other minerals, and therefore is less able to be coerced into ending its imports of Russian oil.

India is in a less strong position, especially private refiners like Reliance Industries which will want to keep business relationships and access to Western economies.

India imported about 1.8 million barrels per day of Russian crude in the first half of the year, or about 37% of its total, according to data compiled by commodity analysts Kpler.

About 90% of its Russian imports came from Russia's European ports and was mainly Urals grade.

This is a medium sour crude and it would raise challenges for Indian refiners if they sought to replace all their Urals imports with similar grades from other suppliers.

There are some Middle Eastern grades of similar quality, such as Saudi Arabia's Arab Light and Iraq's Basrah Light, but it would likely boost prices if India were to seek more of these crudes.

If Chinese refiners were able to take the bulk of Russian crude given up by India, it may allow for a re-shuffling of flows, but that would not appear to be what Trump wants.

Trump and his advisers may believe there is enough spare crude production capacity in the United States and elsewhere to handle the loss of up to 2 million bpd of Russian supplies.

But testing that theory may well lead to higher prices, especially for certain types of medium crudes which would be in short supply.

It's simplistic to say that higher US output can supply India's refiners, as this would mean those refiners would have to be willing to accept a different mix of refined products, including producing less diesel, as US light crudes tend to make more products such as gasoline.

For now the crude oil market is assuming that the Trump/ India/ Russia situation will end as another TACO, the acronym for Trump Always Chickens Out.

But the reality is likely to be slightly messier, as some Indian refiners pull back from importing from Russia, some Chinese refiners may buy more and once again the oil market goes on a geopolitical merry-go-round.

  

Significance of Iranian President's visit to Pakistan

The world knows that Iran was the first country to recognize Pakistan’s independence in 1947 and open its embassy in Karachi, which was then the capital of Pakistan. Likewise, Pakistanis were the first to officially recognize the victory of the Islamic Revolution in Iran in 1979.

The people of both countries share cultural, linguistic, historical, and religious ties, and have supported each other in both bitter and sweet moments throughout history. The cultural commonalities between the two nations are such that citizens of either country do not feel estranged or alien when traveling to the neighboring country.

In Tehran, prominent places such as Mohammad Ali Jinnah Highway and Pakistan Street exist. Likewise, in major Pakistani cities, including Karachi, street signs bearing names like Iran Avenue and streets named after Iranian poets like Ferdowsi, Saadi, Hafez, Khayyam, and others can be found.

Islamabad, the capital of the Islamic Republic of Pakistan, hosted Dr. Pezeshkian, President of Iran, and his accompanying delegation from August 02 to 03, 2025. This was, in fact, Pezeshkian’s first official visit to Pakistan since winning Iran’s 14th presidential election.

It is worth noting that in April 2024, the martyred Ayatollah Raisi also made a three-day visit to Pakistan, including the cities of Lahore, Karachi, and Islamabad, where he was warmly welcomed by the people and officials of that country. Following the helicopter crash and martyrdom of Ayatollah Raisi and his companions, Prime Minister Shehbaz Sharif of Pakistan, along with other officials, traveled to Tehran to pay their respects and attend the memorial ceremony.

In May of this year, Shehbaz Sharif once again visited Tehran to express his gratitude for Iran’s stance regarding the India-Pakistan war. Therefore, Dr. Pezeshkian’s recent visit was in response to Shehbaz Sharif’s invitation and, essentially, a reciprocation of his visit to Tehran.

Dr. Pezeshkian began his official visit in Lahore, the capital of Punjab province, by paying respects at the mausoleum of Allama Iqbal, the Pakistani philosopher and poet. It is said that over 8,000 verses of Iqbal’s poetry comprising 70% of his total works are written in Persian.

During the continuation of the visit in Islamabad, the Iranian delegation met with the Prime Minister, President, Foreign Minister, Army Chief, Speakers of the Senate and National Assembly, and Pakistani business community, seeking to implement the "Neighbor First" policy in practice. 

The current volume of annual trade between the two countries is about US$3 billion, yet many economic and commercial potentials remain untapped. During this recent visit, 12 cooperation agreements were signed in areas such as transportation, science and technology, tourism, and free trade, which, if implemented, could significantly boost bilateral relations.

One indicator of strong political relations is the frequent travel of officials between countries. In less than two years, top officials from Iran and Pakistan have visited each other’s countries four times, not including the meetings held on the sidelines of key regional and international summits. These frequent meetings highlight the close bond and significance of the relationship particularly now, when there is a growing need to expand cooperation.

Over the past few decades, Iran-Pakistan relations have enjoyed relative stability, and mutual visits and exchanges between officials have been a regular occurrence. What gives special importance to the recent presidential visit to Pakistan is the unique political situation and the developments that have taken place in recent months in South and West Asia and even globally.

The four-day war between India and Pakistan in May 2025, as two nuclear powers, created a highly sensitive situation in the region. Although brief, the consequences of this conflict continue to affect both countries and the broader region and world.

Additionally, the ongoing war and genocide in Gaza have significantly influenced global politics. In this context, the stances of Islamic countries such as Iran and Pakistan are of great importance. Tehran and Islamabad have consistently adopted shared, firm positions and have emphasized full support for the Palestinian cause. The 12-day imposed war by Israel on Iran drastically altered the geopolitics of the region and the Islamic world.

Pakistan’s positions as one of the largest and most influential Muslim nations and a nuclear power have been crucial, and the Iranian public and officials have always appreciated Pakistan’s brave and brotherly stance.

Islamabad's officials have expressed their appreciation, in various ways, for Iran’s goodwill and initiative in offering to mediate between the two countries, and for the highly important visit of Iran’s Foreign Minister Dr. Araghchi to Pakistan and India to reduce the tensions.

A key factor linking Iran and Pakistan’s foreign policies is the sensitivity of public opinion in both nations toward the Palestinian issue and their mutual opposition to Zionist occupation and crimes in Gaza. This shared stance is rooted in the principled policies laid down by the founding leaders of both nations, Imam Khomeini and Muhammad Ali Jinnah and continues today. Currently, there is deep concern over the joint illegal actions of the Zionist regime and the United States against Iran’s nuclear facilities, and the potential for similar scenarios to be repeated elsewhere.

The condemnation of the Zionist regime’s aggressive attack on Iran by Pakistan’s permanent representative at the UN Security Council, as a non-permanent member and rotating president, was well-received. Pakistan’s support for dialogue and negotiation and its affirmation of Iran’s right to nuclear knowledge were also reflected in the joint press conference held by Shehbaz Sharif and Dr. Pezeshkian.

Iranian and Pakistani officials have come to a shared understanding that the 900 plus km border between the two nations should transition from being a security border to an economic one. The two sides have created joint mechanisms to improve coordination in the fight against terrorism. There exists an ocean of untapped potential in both countries, which requires serious political will to activate. The travel of hundreds of thousands of Pakistani pilgrims as part of religious tourism is one such opportunity.

Currently, two land borders at Rimdan and Mirjaveh are operational, facilitating travel for tourists and traders. Strengthening infrastructure is essential for increasing travel between the two peoples. People-to-people ties and citizen interactions can play a critical role in raising awareness of each other’s capabilities. 

Meeting mutual needs given that the two economies complement each other should be a top priority for private sectors and businesspeople in both nations. Much of what Iran imports from other countries is easily accessible in Pakistan, and Pakistan exports goods that Iranians also import from various sources.

Pakistan can meet many of its needs through Iranian producers and benefit from the proximity and low logistics costs. There is an urgent need to upgrade the joint Iran-Pakistan Chamber of Commerce to play a more significant role.

An Iranian proverb says, “A good neighbor is better than a distant relative.” Pakistan is both a good neighbor and a good relative and we Iranians are grateful for this valued neighbor.

Courtesy: Tehran Times

 

Upcoming visit of Iranian President to Pakistan

Iran-Pakistan relationship are unique — one defined not simply by geography, but by centuries of shared civilizational experience, religious affinity, cultural kinship and converging strategic interests. The two sovereign nations can gain from an enduring partnership — and even more to contribute to the future of the region.

The upcoming state visit of Iranian President Masoud Pezeshkian to Pakistan reflects this growing momentum. It builds upon a history of high-level engagement that includes the late President Ebrahim Raisi’s landmark visit to Islamabad and Prime Minister Shehbaz Sharif’s reciprocal visit to Tehran.

These exchanges, along with sustained diplomatic consultation between senior officials of both the countries, represent a deepening alignment that extends well beyond ceremonial diplomacy. These reflect a conscious, strategic choice to elevate the bilateral relationship into one of regional consequence.

Iran and Pakistan share a 900-kilometre border that is more than a line dividing two states; it is a bridge that has connected peoples and civilizations for centuries. Through this frontier flowed not only trade, but ideas, languages, poetry and faiths that continue to animate our societies today.

From the celebration of Nowruz to shared Sufi traditions, the depth of cultural and spiritual interconnection has forged an enduring sense of familiarity and trust that forms the bedrock of political cooperation.

As two proud Muslim nations, Iran and Pakistan are anchored in the principles of Islam -- justice, compassion and solidarity. These values are not only sources of internal cohesion; they serve as guiding lights for international engagement. The two countries stand together in support of causes such as the Palestinian struggle, to speak out against injustice and to promote peace through cooperation and mutual respect.

Their economic complementarities offer enormous potential. Pakistan’s agricultural dynamism and Iran’s abundant energy resources, coupled with shared interest in connectivity, provide a natural basis for integration.

In addition to sectoral synergies, both nations share a long-term interest in fostering an open, equitable, and interdependent regional economy. By aligning visions, Iran and Pakistan can build a sustainable economic partnership grounded in mutual resilience, technological progress and inclusive growth. Such cooperation can play a transformative role in lifting communities, creating employment and promoting a model of development that benefits the wider region.

At a time transnational threats continue to endanger their security, Iran and Pakistan remain vigilant against terrorist networks operating in border regions. Coordination in counterterrorism is not an option; it is an imperative.

Beyond local threats, both countries face broader strategic concerns arising from aggressive postures in the region. The Israeli regime’s ongoing genocide in Gaza, its occupation of Syria and Lebanon, and its recent unprovoked attacks on Iranian territory underscore the urgency of a collective response to belligerent forces that thrive on instability and domination. Responsible states cannot afford silence. It is time to strengthen coordination, deepen security cooperation and articulate a clear and united stance in international forums.

Iran deeply appreciates the principled position taken by the Government of Pakistan in unequivocally condemning the June 2025 Israeli and American military aggression against Iranian territory. At a time Western powers chose to stand on the wrong side of history, Pakistan stood firmly for international law, regional stability and solidarity with its neighbour.

Equally moving was the heartfelt support expressed by the people of Pakistan, whose spontaneous outpourings of compassion resonated deeply across Iranian society. The Iranian people watched with gratitude as their Pakistani brothers and sisters raised their voices in their support. This display of empathy and unity will never be forgotten. It reaffirmed the profound depth of our bond and the strength of the values we share.

Iran and Pakistan also enjoy a record of close cooperation across multilateral institutions. At the UN, the two have consistently worked together to defend the rights of the Palestinian people and advance sustainable development goals.

Within the Organization of Islamic Cooperation, we advocate for addressing the pressing challenges of the Muslim Ummah. As active members of the Shanghai Cooperation Organization, the Economic Cooperation Organization, and the D-8, pursue shared objectives in connectivity, economic integration, and regional peace.

Coordinated diplomacy amplifies their voice on the global stage and helps steer international discourse towards justice, equity, and multilateralism. This collaboration is not limited to crisis management. It also reflects a broader strategic convergence.

Both Iran and Pakistan uphold principles of sovereignty, non-interference, and the peaceful resolution of disputes. Both are committed to a regional order in which Muslim nations shape their own destinies and cooperate toward collective prosperity.

Their partnership holds promise in trilateral and broader regional settings as well. With Afghanistan as their mutual neighbour, the two share an interest in stabilizing the country and ensuring that peace and development replace conflict and extremism. By integrating their economic strategies and leveraging geostrategic positions, Iran and Pakistan can help transform the region into a hub of cooperation rather than competition.

The creation of functional trade and transit corridors, grounded in mutual benefit, brings tangible dividends to our peoples and reaffirms our leadership in crafting a forward-looking regional architecture.

The path ahead calls for unity, clarity of purpose, and a willingness to transform shared aspirations into lasting institutions and practical achievements. Enhancing diplomatic dialogue, expanding economic ties, fostering educational and cultural exchanges and institutionalizing cooperation on security and development will give real depth and resilience to our relationship.

President Pezeshkian’s visit provides an opportunity not only to reaffirm commitments but to reimagine possibilities. In doing so, the two may draw inspiration from Allama Iqbal — Pakistan’s national poet and a profound admirer of Persian thought — who reminded us that the soul of nations is shaped not in fleeting political cycles, but in enduring moral and spiritual visions. His words resonate still: “Nations are born in the hearts of poets; they prosper and die in the hands of politicians.”

Iran-Pakistan friendship is not merely a relic of the past; it is a strategic investment in the future. In unity, they find strength. In cooperation, they find purpose. And in mutual respect, they find the foundation for lasting peace and shared progress.

 

China embarks on world largest hydropower dam

Chinese Premier Li Qiang announced construction had begun on the world's largest hydropower dam, on the eastern rim of the Tibetan Plateau, at an estimated cost of US$170 billion, the official Xinhua news agency said.

Commencement of the hydropower project, China's most ambitious since the Three Gorges Dam on the Yangtze, was seized by Chinese markets as proof of economic stimulus, sending stock prices and bond yields higher on Monday.

Made up of five cascade hydropower stations with the capacity to produce 300 billion kilowatt-hours of electricity annually, equal to the amount of electricity consumed by Britain last year, the dam will be located in the lower reaches of the Yarlung Zangbo. A section of the river tumbles 2,000 metres (6,561 feet) in a span of 50km (31 miles), offering huge hydropower potential.

India and Bangladesh have already raised concerns about its possible impact on the millions of people downstream, while NGOs warned of the risk to one of the richest and most diverse environments on the plateau.

Beijing has said the dam will help meet power demand in Tibet and the rest of China without having a major effect on downstream water supplies or the environment. Operations are expected sometime in the 2030s.

China's CSI Construction & Engineering Index jumped as much as 4% to a seven-month high. Power Construction Corporation of China  and Arcplus Group PLC  surged by their 10% daily limit.

"From an investment perspective, mature hydropower projects offer bond-like dividends," Wang Zhuo, partner of Shanghai Zhuozhu Investment Management said, while cautioning that speculative buying into related stocks would inflate valuations.

The project will drive demand for construction and building materials such as cement and civil explosives, Huatai Securities said in a note to clients.

Shares of Beijing-listed Hunan Wuxin Tunnel Intelligent Equipment Co, which sells tunnel construction equipment, surged 30%. So did shares of Geokang Technologies Co, which makes intelligent monitoring terminals.

Cement maker Xizang Tianlu Co and Tibet GaoZheng Explosive Co, producer of civil explosive materials, both jumped their maximum 10%.

The Chinese premier described the dam as a "project of the century" and said special emphasis "must be placed on ecological conservation to prevent environmental damage," Xinhua said on Saturday.

Government bond yields rose across the board on Monday, with the most-traded 30-year treasury futures falling to five-week lows, as investors interpreted the news as part of China's economic stimulus.

The project, overseen by the newly formed state-owned China Yajiang Group, marks a major boost in public investment to help bolster economic growth as current drivers show signs of faltering.

"Assuming 10 years of construction, the investment/ GDP boost could reach 120 billion yuan (US$16.7 billion) for a single year," said Citi in a note. "The actual economic benefits could go beyond that."

The Three Gorges, which took almost two decades to complete, generated nearly a million jobs, state media reported, though it displaced at least a similar number of people.

Authorities have not indicated how many people would be displaced by the Yarlung Zangbo project.

The Yarlung Zangbo becomes the Brahmaputra River as it leaves Tibet and flows south into India and finally into Bangladesh. NGOs say the dam will irreversibly harm the Tibetan Plateau and hit millions of people downstream.

The chief minister of Arunachal Pradesh, Pema Khandu, said earlier this year that such a colossal dam barely 50km from the border could dry out 80% of the river passing through the Indian state while potentially inundating downstream areas in Arunachal and neighbouring Assam state.

 

BRICS leaders gather at Rio de Janeiro

According to Reuters, leaders of the growing BRICS group of developing nations were set to gather in Rio de Janeiro on Sunday, calling for reform of traditional Western institutions while presenting the bloc as a defender of multilateralism in an increasingly fractured world.

With forums such as the G7 and G20 groups of major economies hamstrung by divisions and the disruptive "America First" approach of US President Donald Trump, expansion of the BRICS has opened new space for diplomatic coordination.

"In the face of the resurgence of protectionism, it is up to emerging nations to defend the multilateral trade regime and reform the international financial architecture," Brazilian President Luiz Inacio Lula da Silva told a BRICS business forum on Saturday.

BRICS nations now represent over half the world's population and 40% of its economic output.

The BRICS group gathered leaders from Brazil, Russia, India and China at its first summit in 2009. The bloc later added South Africa and last year included Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia and the United Arab Emirates as full members. This is the first leaders' summit to include Indonesia.

"The vacuum left by others ends up being filled almost instantly by the BRICS," said a Brazilian diplomat who asked not to be named. Although the G7 still concentrates vast power, the source added, "It doesn't have the predominance it once did."

However, there are questions about the shared goals of an increasingly heterogenous BRICS group, which has grown to include regional rivals along with major emerging economies.

Stealing some thunder from this year's summit, Chinese President Xi Jinping chose to send his prime minister in his place. Russian President Vladimir Putin is attending online due to an arrest warrant from the International Criminal Court.

Still, many heads of state will gather for discussions at Rio's Museum of Modern Art on Sunday and Monday, including Indian Prime Minister Narendra Modi and South African President Cyril Ramaphosa.

Over 30 nations have expressed interest in participating in the BRICS, either as full members or partners.

Brazil, which also hosts the United Nations climate summit in November, has seized on both gatherings to highlight how seriously developing nations are tackling climate change, while Trump has slammed the brakes on US climate initiatives.

Both China and the UAE signaled in meetings with Brazilian Finance Minister Fernando Haddad in Rio that they plan to invest in a proposed Tropical Forests Forever Facility.

Expansion of the BRICS has added diplomatic weight to the gathering, which aspires to speak for developing nations across the Global South, strengthening calls for reforming global institutions such as the United Nations Security Council and the International Monetary Fund.

The growth of the bloc has also increased the challenges to reaching consensus on contentious geopolitical issues.

Ahead of the summit, negotiators struggled to find shared language for a joint statement about the bombardment of Gaza, the Israel-Iran conflict and a proposed reform of the Security Council.

To overcome differences among African nations regarding the continent's proposed representative to a reformed Security Council, the group agreed to endorse seats for Brazil and India while leaving open which country should represent Africa's interests, a person familiar with the talks told Reuters.

The BRICS will also continue their thinly veiled criticism of Trump's US tariff policy. At an April ministerial meeting, the bloc expressed concern about "unjustified unilateral protectionist measures, including the indiscriminate increase of reciprocal tariffs."

 

Understanding US and Russian policies towards Taliban

Russia has become the first country to recognize Taliban government in Afghanistan. It is on record that the United States and Russia have had different policies toward Taliban due to their distinct strategic interests, historical experiences, and regional alliances. Here’s a breakdown of some of the key reasons behind this divergence:

The United States has fought Taliban directly for over two decades after 9/11, viewing them as terrorist allies of al-Qaeda. This includes the US led NATO invasion of Afghanistan in 2001 to topple the Taliban regime.

Interestingly, Russia has not fought Taliban directly but has a history of conflicts in Afghanistan during the Soviet invasion (1979–1989), where the US and others supported the Mujahideen, some of these are now termed Taliban).

Russia sees Taliban as part of the post-Soviet regional security dynamic, not necessarily as a direct enemy.

Most interesting is the US perspective because it considers Taliban a threats to US homeland and allies. The history shows that Afghans/ Taliban never attacked the United States. It is also said that Osama bin Laden was a Saudi, which supported Mujahideen in averting the USSR attack on Afghanistan to get access to the warm waters.

The US, which never wanted to leave Afghanistan believes that Taliban rule could once again turn the country into a safe haven for global jihadis like al-Qaeda or ISIS-K. Some analysts openly say that be it al-Qaeda or ISIS-K, these are ‘B’ teams of CIA.

The prime focus of Russia is more on Central Asian stability and drug trafficking from Afghanistan. Russia fears spillover of extremism into its southern borders but engages pragmatically with Taliban to keep its influence in the region.

Both the US and Russia are keen in engaging with Taliban. The US was initially hostile, but later engaged diplomatically, courtesy Doha talks, culminating in the 2020 US-Taliban agreement. After the 2021 withdrawal, the US maintains non-recognition and economic sanctions, demanding women rights, inclusivity, and action against terrorism.

As against, Russia has hosted Taliban delegations for talks in Moscow and calls for inclusive governance but does not condition engagement as strictly as the US. Russia did not officially recognize the Taliban either, but it was more flexible in diplomacy.

Strategic Interests

The US claims, to that many do not agree, that the super power is busy in global fight against terrorism and avoids getting entangled again in the Afghan conflict. Since withdrawal of troops the US has kept Taliban under pressure through sanctions and diplomatic isolation, including freezing foreign exchange reserves of Afghanistan.

The prime Russian interest is, ending US hegemony in the region. It also wants to protect its interests in Central Asia (Tajikistan, Uzbekistan and Turkmenistan). On top of all Russia seems to be keen in developing regional alliances that include Taliban as a reality, not a pariah.

Over the decades, the United States has maintained its hegemony through regional alliances, working closely under the NATO umbrella. The US policy towards Taliban is part of a broader Western approach tied to liberal values and counterterrorism.

Realizing its limitations Russia works closely with China, Iran, Central Asian republics. It often coordinates with anti-Western powers and is less constrained by democratic or human rights norms.

To get control over countries two of the world’s largest super powers, the United States as well as Russia have often used arsenal power. As against this China has used diplomacy and economic assistance to establish its influence.

During the election campaign Donald Trump had promised to pull the United States out of wars, but his unconditional support to Israeli genocide in Gaza and direct attacks on Iran prove he is also the tout of military complexes and would never like to end wars where the United States is involved directly or indirectly.

 

India refuses to sign joint statement at China

According to Saudi Gazette, India refused to sign a joint statement at the Shanghai Cooperation Organization (SCO) summit in China as it did not reflect the country's concerns on terrorism, India's foreign ministry has said.

Spokesperson Randhir Jaiswal said on Thursday that India's desire for its concerns to be reflected was "not acceptable to one particular country".

While he did not share more details, Indian media reported that Delhi refused to sign the statement after it omitted the Pahalgam attack, a deadly militant attack that killed 26 tourists in Indian administered Kashmir.

India has blamed its neighbour, Pakistan for sheltering a militant group it blames for the attack. Pakistan has rejected the allegations.

China, Russia and four Central Asian countries formed the SCO in 2001 as a countermeasure to limit the influence of the West in the region. India and Pakistan joined in 2017.

The latest signing ceremony took place during the SCO defence ministers' meeting in China, held ahead of the leaders' annual summit this autumn.

According to media reports, India perceived the joint statement as being "pro Pakistan" after it omitted the Pahalgam attack but mentioned militant activities in Baluchistan.

Pakistan has accused India of backing the Baluchistan freedom movement, which India denies.

After the meeting, India's Defence Minister Rajnath Singh urged the SCO to hold the perpetrators of cross-border terrorism accountable, though he didn't explicitly mention Pakistan.

"Some countries use cross-border terrorism as an instrument of policy and provide shelter to terrorists. There should be no place for such double standards. SCO should not hesitate to criticize such nations," he said in a statement.

The Pahalgam attack in April brought the two nuclear-armed countries to the brink of another war.

In May, India launched a series of airstrikes, targeting sites it called "terror infrastructure in Pakistan and Pakistan administered Kashmir".

Pakistan denied the claim that these were terror camps and also responded by firing missiles and deploying drones into Indian territory.

The hostilities between the two countries continued until May 10 when President Donald Trump announced that India and Pakistan had agreed to a "full and immediate ceasefire", brokered by the United States.

India has consistently denied any intervention by the United States.

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.”