PSX benchmark index up 3.08%WoW

Pakistan Stock Exchange (PSX) sustained its bullish momentum throughout the week on anticipation of strong earnings during the ongoing results season. The benchmark index touched its all-time high closing at 145,647 points on Thursday, but closed the week at 145,383 points, up 4,348 points, up 3.08%WoW, with meager decline in the last trading session.

Market participation improved with average daily traded volume increasing by 16.3%WoW to 653 million shares, up from 561 million shares a week ago.

Trade deficit for the month of July 2025 rose to US$2.8 billion, up 44%YoY.

Workers’ remittances for July 2025 also rose to US$3.2 billion, up 7%YoY.

Foreign exchange reserves held by State Bank of Pakistan (SBP) decreased by US$72 million to US$14.2 billion as of August 01, 2025.

Key sectoral developments included robust 30%YoY growth in cement dispatches for July 2025, while OMC offtakes reached 1.2 million tons, up 2% YoY.

On the international front, the Trump administration imposed an additional 25% tariff on India, raising reciprocal tariffs to 50%.

Other major news flow during the week included: 1) Pakistan gets 19% tariff after US drives a hard bargain, 2) SBP enhances housing finance limit for microfinance borrowers to PKR5 million, 3) ExxonMobil likely to come back for offshore venture, 4) Pakistan set to initiate dialogue with Qatar on LNG supplies, and 5) Budget deficit drops to 5.4% in FY25 from 6.8% for the same period last year.

Woollen, Jute, insurance, Tobacco, and Food & Personal Care were amongst the top performing sectors, while Synthetic & Rayon, Close-end Mutual Funds, Chemical, Sugar & Allied Industries, and Textile Weaving were amongst the laggards.

Major selling was recorded by Banks/ DFI with a net sell of US$18.8 million. On the other hand, Mutual Funds absorbed most of the selling with a net buy of US$22.9 million.

Top performing scrips the week were: AGL, NESTLE, UNITY, HBL, and BNWM, while the laggards included: GADT, PKGP, FABL, LCI, and IBFL.

According to AKD Securities, the market is expected to remain positive in the coming weeks, with further developments over circular debt expected to drive the market along with upcoming corporate results remaining in the limelight.

The benchmark index is anticipated to sustain its upward trajectory, with a target of 165,215 points by end December 2025, 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.

The top picks of the brokerage house include OGDC, PPL, PSO, FFC, ENGROH, MCB, FCCL, KOHC, INDU, and SYS.

Pleasing Trump may annoy Saudi Arabia

Energy diversification is smart, but foreign policy tact is essential.

Importing US crude oil may please US President Donald Trump, but it could also annoy Saudi Arabia, especially given the special relationship between Pakistan and the Kingdom, which includes:

Long standing energy ties
Saudi Arabia is Pakistan’s largest crude oil supplier, often providing oil on deferred payment (US$3 billion oil credit facility renewed multiple times).

Financial assistance
Saudi Arabia has provided billions in loans, deposits, and grants to support Pakistan’s economy, particularly during IMF negotiations.

Strategic alignment
The Saudi-Pakistan relationship is not just economic but also political and military, including defense cooperation and labor remittances.

Though, to begin with import of crude oil from United will be small, the move could strain ties between Pakistan and Saudi Arabia.

Geopolitical optics
Importing US crude might be seen as Pakistan pivoting westward, especially if framed as part of a larger US trade deal.

Loss of market share

Even a 10% reduction in demand from a long-time buyer like Pakistan might raise commercial and symbolic concerns.

Trust and alignment issues

If the decision isn't communicated diplomatically, Riyadh may perceive it as ungrateful, especially if deferred payment oil continues.

Not necessarily a rupture

Scale is limited
Pakistan is not replacing Saudi oil. The pilot phase is just 10% of imports. It's a diversification move, not a shift in allegiance.

Economic logic
The US crude provides lighter grades and higher gasoline yield, improving domestic refining output. If positioned as a technical decision, it’s easier to justify.

Diplomatic communication
Pakistan can explain this as part of energy diversification—a common practice by many countries—and reaffirm its strategic ties with Riyadh.

Pakistan should do:

Step	Why it matters
Engage Saudi leadership in advance	Avoid surprises and reassure that US crude is a supplement, not a replacement
Reaffirm oil diplomacy	Continue or even expand the deferred payment arrangement with Saudi Arabia
Highlight refining needs	Explain that lighter crude grades improve fuel mix, not reduce strategic ties
Balance optics	Avoid appearing to pivot entirely toward US or using this purely as a bargaining chip in US trade diplomacy

 

Bottom Line

Importing US crude could cause diplomatic unease in Saudi Arabia—especially if it's perceived as Pakistan drifting from its long-standing partner. But the impact can be minimized through: 1) Transparent diplomacy, 2) Economic rationale, and 3) Strategic reassurance

 

Should Pakistan Import US Crude Oil?

Deciding whether Pakistan should import crude oil from the United States depends on multiple strategic, economic, and diplomatic factors. Here’s a balanced assessment based on the latest data and projections:

Pakistan is slated to take delivery of its first-ever US crude oil, one million barrel cargo of light WTI crude from Vitol, expected to arrive in October 2025 at Cnergyico’s refinery in Karachi. This marks a pilot spot cargo—if successful, Cnergyico may import one cargo per month thereafter

The move is part of a broader US–Pakistan trade agreement focused on oil and energy cooperation, and to mitigate threatened 29% tariffs on Pakistani exports.

Advantages of US Crude Imports

Energy source diversification
Breaking reliance on Middle Eastern suppliers - Saudi Arabia and UAE)—who currently account for nearly all of Pakistan’s crude oil imports—enhances energy security and geopolitical flexibility.

Refinery compatibility
Pakistan's largest refinery can process WTI Midland and cactus grades without blending adjustments and may boost gasoline/ middle distillate production, easing import reliance on refined products.

Trade diplomacy tool
Importing US crude may be used strategically in tariff negotiation, potentially lowering or avoiding the 29% US duty on Pakistani exports by helping balance trade flows.

Challenges and Risks

Higher logistics cost
Freight, insurance, and handling add around US$3 per barrel compared to regional supplies. This higher cost may strain forex reserves unless oil price spreads narrow.

Foreign exchange pressure and inflation

Larger import bill could put pressure on currency reserves and stoke inflation, especially if fuel prices are subsidized domestically.

Limited climate if not managed well
US imports should be a strategic supplement rather than a primary sourcing route, since over-dependence on long-distance crude can worsen trade and fiscal balances.

Key Considerations

Factor	Rationale
Volume	Target of 10% of total crude imports, around US$ one billion annually
Pricing Arbitrage	WTI's lighter quality and higher gasoline yield might offset additional logistics cost, assuming favourable price spreads
Refinery Capacity	Cnergyico’s SPM-equipped 156,000 bpd plant is record-compatible; no major technical hurdles noted
Strategic Diplomacy	The imports offer Pakistan leverage in US tariff negotiations and broader market access

The logical reply is that as part of a broader strategy Pakistan should import US crude oil. Use it to boost export negotiation leverage with the US. Diversify sources to improve energy resilience. Leverage light US crude to enhance domestic fuel yields.

Tread carefully

Limiting imports to a test/ pilot phase to assess cost, logistics, and yield economics. Monitoring global price differentials—if WTI premiums shrink relative to Gulf crude, US imports may become more viable long-term. Avoiding overreliance—continue importing most crude from Gulf suppliers with more favorable logistics and financing terms.

Moral of the story

Pakistan is entering a strategic test phase, set to receive one million barrels of US WTI oil in October 2025. If successful, limited monthly imports (10%) can support export negotiations, diversify supply, and potentially improve gasoline yields—even at some added logistical cost. However, unless price arbitrage improves, US crude should remain a tactical supplement, not replace traditional Gulf suppliers.

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

 

Pakistan condemns Israeli ministers storming Al Aqsa mosque

Pakistan on Monday unequivocally condemned the storming of the Al-Aqsa Mosque in occupied East Jerusalem by Israeli ministers, calling Tel Aviv out for its “shameless actions which are inflaming tensions in Palestine and the wider region”.

Early on Sunday, Israel’s far-right National Security Minister Itamar Ben-Gvir, shielded by Israeli police, led a large group of illegal settlers in a provocative march and mass incursion into the Al-Aqsa Mosque compound, coinciding with the Jewish commemoration of Tisha B’Av, Anadolu Agency reported.

According to the Jerusalem Islamic Waqf, at least 1,251 illegal Israeli settlers stormed the mosque compound in the morning hours, performing Talmudic rituals, singing, and dancing under heavy police protection.

Al-Aqsa Mosque is the third holiest site in Islam after Makkah and Madina. Under a delicate decades-old “status quo” arrangement with Muslim authorities, the Al-Aqsa compound is administered by a Jordanian religious foundation, and Jews can visit but may not pray there.

“This sacrilege against one of Islam’s holiest sites is not only an affront to the faith of over a billion Muslims but also a direct assault on international law and the collective conscience of humanity,” Prime Minister Shehbaz Sharif posted on X.

He said that such systematic provocations by the occupying power, coupled with reckless calls for annexation, imperiled the prospects for peace.

The prime minister said that Israel’s “shameless actions” were deliberately inflaming tensions in Palestine and the wider region, pushing the Middle East closer to further instability and conflict.

“Pakistan reiterates its urgent call for an immediate ceasefire, an end to all acts of aggression, and the revival of a credible peace process leading to an independent and viable State of Palestine, with Al-Quds Al-Sharif as its capital, in accordance with international law and relevant UN resolutions,” Shehbaz added.

The Foreign Office also issued a separate statement to condemn the Israeli move.

“The presence and statements of senior Israeli officials, and the repugnant declaration that ‘the Temple Mount is ours,’ are a dangerous and deliberate attempt to provoke religious sentiments across the world, escalate tensions, and alter the status of Al‑Aqsa Mosque,” the statement said.

It said that Israel’s expansionist attempts were a deliberate effort to destabilize the region and sabotage any meaningful path to peace.

“These provocations risk igniting a catastrophic spiral of violence across the region.”

The world must not remain silent in the face of such systemic, illegal, inhumane, and unlawful aggression. Such actions constitute a blatant violation of international human rights and humanitarian laws, the United Nations Charter, as well as various UN and Organization of Islamic Cooperation (OIC) Resolutions.

“We urge the international community, particularly the United Nations, to take immediate and concrete steps to hold Israel accountable for its illegal actions and to protect the religious sanctity of Al‑Aqsa Mosque and the rights of the Palestinian people, in particular the right to self-determination.

“Pakistan reaffirms its unwavering support for the creation of a sovereign, independent, viable, and contiguous Palestinian State based on pre-June 1967 borders, with Al-Quds Al-Sharif as its capital.”

Pakistan has consistently raised its voice for the people of Palestine, calling for an immediate, unconditional and permanent ceasefire in Gaza.

Last month, Pakistan urged the UNSC not to remain “a bystander” amid the deepening humanitarian crisis in Gaza.

 

 

 

 

 

 

Pakistan and Iran term terror main hurdle to prosperity

Pakistan and Iran on Sunday agreed that peace and prosperity in their border regions hinged on effectively combating terrorism, as both countries renewed their commitment to increase annual bilateral trade to US$10 billion.

The consensus was rea­ched during a bilateral meeting at the Prime Mini­ster House in Islamabad and later emphasized at a joint press conference by Prime Minister Shehbaz Sharif and Iranian Presi­dent Masoud Pezeshkian.

“The development of economic and trade ties will be achieved through peace, stability, and tranquility,” Pezeshkian said, underscoring that terrorism remains a key obstacle to mutual prosperity.

“Given the threats from terrorist groups in border areas, both sides emphasized the need to increase cooperation to ensure border security and safeguard the peace and well-being of citizens in border cities,” the Iranian president added.

The nearly 900-kilometre border between the two countries has long faced security threats from proscribed groups, such as Jaish al-Adl and the Baluchistan Liberation Army. Persistent issues, including terrorism, smuggling, and mutual accusations of harbouring militants, have periodically strained ties.

Shehbaz acknowledged that security was paramount for progress in bilateral relations. “There will be zero tolerance for all forms of terrorism. If anyone falls victim to terrorism in Iran, it is the same as someone being affected by terrorism in Pakistan,” he said.

“For peace and development in our region, and along our hundreds of kilometres-long shared border, we must cooperate against terrorism and take effective steps to eliminate the scourge of terrorism once and for all,” Shehbaz added.

While the two leaders voiced their commitment to deepening cooperation, specific operational details were reportedly discussed in President Pezeshkian’s meeting with Chief of Army Staff Field Marshal Asim Munir.

Later in the evening, Pezeshkian met senior Pakistani military leaders, including Chairman Joint Chiefs of Staff Gen Sahir Shamshad Mirza, Air Chief Marshal Zaheer Babar Sidhu, and ISI chief Lt Gen Asim Malik at the presidency before the dinner reception hosted by President Asif Ali Zardari. A naval representative was also in attendance.

The two sides reaffirmed their commitment to raising annual bilateral trade to US$10 billion — a target first set during the late Iranian president Ebrahim Raisi’s visit to Pakistan in April 2024.

“We can easily, in a short time, increase the volume of trade from the current US$3 billion to the projected goal of US$10 billion,” Pezeshkian said during the joint media conference.

Shehbaz echoed the sentiment. “We also jointly hope that the US$10 billion trade target is achieved at the earliest,” he said.

Trade has been constrained by a range of factors, including international sanctions on Iran, security concerns along the border, inadequate infrastructure, and limited economic complementarity.

Diplomatic and political fluctuations, often shaped by broader geopolitical tensions, have also affected the implementation of trade agreements.

While neither leader offered a clear roadmap to resolve these issues, both underscored a shared political will to continue engaging on them.

“Our delegations will take these discussions forward very soon,” Shehbaz said.

Earlier, at the bilateral talks, he had emphasized the need to convene the long-delayed 22nd meeting of the Pakistan-Iran Joint Economic Commission at the earliest. The 21st meeting of the Commission was held in 2022.

Proposals discussed during the talks included facilitating barter trade, increasing export quotas for rice, fruits, and meat, operationalizing cross-border markets, and removing trade barriers.

Border market development remains a key focus. Although the two countries agreed several years ago to establish six such markets, only three have become operational so far.

“The development of transit routes – railway routes and sea routes – the expansion and equipping of border markets, the facilitation of trade, and the establishment of joint free economic zones are critical needs in the relationship between the two countries, and we had constructive discussions on these issues,” Pezeshkian said.

Pakistan and Iran signed and exchanged 12 agreements and memorandums of understanding (MoUs) to enhance cooperation across a broad spectrum of areas. The documents covered trade, transit, science and technology, tourism, agriculture, cultural exchange, maritime safety, and judicial cooperation.

The agreements include collaboration on plant quarantine, joint use of the Mirjaveh-Taftan border crossing, ICT, tourism cooperation for 2025-27, and a joint ministerial statement on finalising a Free Trade Agreement.

“We reached agreements in political, economic, commercial, and cultural fields, and signed documents to facilitate and promote cooperation in commerce, culture, tourism, transportation, and scientific and educational exchanges,” Pezeshkian said.

 

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.

 

Saudi Arabia among world top donors

The Saudi Aid Platform has revealed that the total value of financial assistance provided by Saudi Arabia to around the world is amounted to approximately SR528.4 billion (US$140.9 billion), cementing the Kingdom's position as one of the largest donors globally.

The Saudi official platform revealed that Egypt topped the list of countries that benefited most from Saudi aid, with a total of US$32.49 billion, followed by Yemen with US$27.69 billion, and then Pakistan with US$13.19 billion. The list of countries that benefited the most also included Syria (US$7.53 billion) Iraq (US$7.33 billion) and Palestine (US$5.37 billion).

These figures reflect the Kingdom's commitment to its humanitarian and development role by supporting peoples and countries in confronting humanitarian crises and natural disasters, and achieving sustainable development.

These efforts are part of the realization of Saudi Vision 2030 goals that focus on strengthening international partnerships and establishing the Kingdom as a pillar of regional and international peace and stability, under the leadership of Custodian of the Two Holy Mosques King Salman and Crown Prince and Prime Minister Mohammed bin Salman.

It is noteworthy that the Saudi Aid Platform is the precise electronic reference for the Kingdom's foreign contributions. The platform is divided into three categories: humanitarian, development and philanthropic projects, contributions to international organizations and bodies, and visitors’ services (refugees living inside the Kingdom).

The Saudi Aid Platform, inaugurated by King Salman in 2018, highlights the size and type of assistance provided by Saudi Arabia. The King Salman Humanitarian Aid and Relief Centre (KSrelief) re-launched this platform.

Due to the multiplicity of Saudi donor entities, this platform has become an imperative and effective tool for collecting, coordinating and documenting statistics on international assistance provided by the Kingdom to countries and people in need around the world.

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.

 

Pakistan to sell excess LNG amid supply glut

Pakistan is exploring ways to sell excess liquefied natural gas (LNG) cargoes amid a gas supply glut that could cost domestic producers US$378 million in annual losses, reports Reuters.

The country has at least three LNG cargoes in excess that it imported from top supplier Qatar and has no immediate use for, and is currently selling natural gas at steep discounts to local users.

Power generation from gas-fired power plants, which has historically accounted for a lion's share of LNG use in the country, has declined for three straight years ended 2024, with cheaper solar power use dramatically gaining at the expense of gas-fired generation, data from energy think-tank Ember showed.

Pakistan is currently exploring the possibility of transferring LNG cargoes to rented tankers for "offshore storage and onward sale," state-owned oil and gas producer OGDCL said in a presentation to industry and government.

"Excess LNG in the gas network has resulted in significant production operations impact for local exploration and production companies over last 18 months," OGDCL said, adding that it had forced curtailment of domestic supply.

The domestic industry could suffer US$378 million in losses over the next 12 months at the current rate of curtailment, according to the presentation dated May 29 reviewed by Reuters.

It is not immediately clear if Pakistan's long-term LNG import contracts with QatarEnergy allows for a resale of cargoes. One of the government officials said the country was still exploring ways to do it.

Qatar typically has a destination clause in long-term supply contracts with buyers that restrict where the cargoes can be sold.

Pakistan has already deferred five contracted LNG cargoes from Qatar without financial penalty, shifting delivery from 2025 to 2026, as the country grapples with surplus capacity.

Pakistan's petroleum minister Ali Pervaiz Malik declined to comment on the presentation, but said renegotiating contracts with Qatar was a "complex" process that could take at least a year, and a final decision on initiating it had yet to be made.

"While the existing contract with Qatar allows Pakistan to decline vessels, doing so incurs penalties and other complications," Malik told Reuters.

The glut has stemmed from several gas-fired power plants, previously operating under must-run contracts, now being sidelined, Malik said.

"It was expected that summer season will create extraordinary demand but the trend indicates the opposite," OGDCL said in the presentation.

 

Pakistan assumes UN Security Council presidency

As the world grapples with escalating conflicts, deepening geopolitical rifts, and growing doubts over the efficacy of multilateral institutions, Pakistan assumes the presidency of the United Nations Security Council on Tuesday, taking on a symbolic but strategic role at a particularly fraught moment.

This marks Pakistan’s eighth term on the 15-member body and its first presidency since 2013. Islamabad began its current two-year term as a non-permanent member in January 2025 and will serve through the end of 2026.

Talking to Dawn, Pakistan’s Permanent Rep­resentative to the UN, Ambassador Asim Iftikhar Ahmad, noted the challenges that define the current international landscape.

“Pakistan is going to assume the presidency of the United Nations Security Council at a time of global tumult marked by growing instability, escalating conflicts, complex geopolitical and geostrategic landscape, and serious threats to international peace and security,” he said.

While the presidency rotates monthly and does not carry executive authority, it allows the presiding country to influence the Council’s agenda and tone — a platform that matters at a time when the UNSC is increasingly seen as deadlocked, especially on issues like Gaza and Ukra­i­­ne. With global trust in multilateral mechanisms under strain, Pakistan’s leadership — even if brief — will be closely watched.

The ambassador underscored Pakis­tan’s commitment to its long-held positions on peaceful conflict resolution. “Pakistan has been a staunch and consistent advocate of dialogue and diplomacy… We will bring a principled and balanced perspective to the work of the Security Council,” he said, pledging to strengthen multilateralism and deepen cooperation with other UNSC members.

“We seek to promote transparency, incl­u­sivity and responsiveness during Pakis­tan’s presidency,” said Ambassador Ahmad. “We will closely work with other Cou­ncil members in a spirit of cooperation for collective and timely action… in line with the UN Charter and corresponding to the exp­ectations of the international community.”

 

 

Mari Energies EPS declines 10%YoY

Mari Energies (MARI) held its corporate briefing session on Monday to discuss 9MFY25 results. MARI announced 9MFY25 profit after tax of PKR46.3 billion (EPS: PKR38.54), down 10%YoY.

Key takeaways from the briefing:

MARI has the second highest reserve base in Pakistan, with 2P and 2C reserves currently at 816mmboe, boasting a reserve life of 17 years.  

MARI reported production of approximately 30mmboe during 9MFY25. However, output continues to face headwinds due to gas curtailment stemming from pipeline bottlenecks, a challenge likely to intensify as more gas based captive power plants transition to the national grid. Management is actively engaging with the government to address and resolve the issue.

Update on Waziristan Block:

Production from the Shewa field commenced on March 23, 2025, and is currently yielding around 50mmcfd of gas and 450bpd of oil. However, these figures remain significantly below the tested flow rates of 70mmcfd of gas and 700bpd of oil, primarily due to production curtailments.

MARI has announced a major discovery at the Spinwam well in the Waziristan Block, reporting promising hydrocarbon potential across multiple reservoirs. The company estimates total recoverable reserves at around 799bcf and is currently in the process of finalizing the field development plan.

Update on Mari D&P:

MARI has drilled a total of nine wells in the Ghazij formation, including one exploratory, four appraisal, and four development wells—all of which have been brought online and are currently producing around 35mmcfd of gas. To complete Phase 1 of the development plan, the company intends to drill additional development wells in FY26.

MARI made Shawal discovery in April 2024 which is producing 15mmcfd of gas, 8bpd of oil and 290bpd of water. MARI has planned to drill appraisal wells during FY26 and management expects to increase production to 30mmcfd of gas and 50bpd of oil. 

Management expects production from the HRL reservoir to remain stable over the near to medium term. However, periodic fluctuations may occur due to planned turnarounds at fertilizer plants. Regarding a potential price revision for HRL gas, management noted that the field remains economically viable at current rates, making a price increase unlikely from the government’s perspective.

Update on Offshore Block 5 – Abu Dhabi:

A Production Concession Agreement (PCA) has been signed between PIOL, ADNOC, and SCFEA, under which ADNOC assumes operatorship of the block with a 60% working interest, while the remaining 40% is held by PIOL.

 

 

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.

Pakistan: Encouraging IMF Staff Level Report

The recently released IMF staff level report praises Pakistan’s strong program implementation and stresses the need to prioritize reforms going forward.

These include reforms to strengthen competition and productivity, improve SOEs and public services, increase energy sector viability, broaden the tax base, and build climate resilience.

Several new structural benchmarks have been introduced, which will impact multiple sectors such as Energy and Autos, and these may be part of the upcoming FY26 Budget.

Pakistan’s macroeconomic recovery has been cemented by growing foreign exchange reserves and sharply lower inflation, enabling the State Bank of Pakistan (SBP) to halve the policy rate to 11.0%.

GDP growth in FY26 is expected to reach the long-term average, and modestly accelerate thereafter. The current account is expected to remain in control, aided by lower oil prices and strong remittances.

This may limit pressure on the PKR, even as the IMF has encouraged a more flexible exchange rate.

Containing the fiscal deficit, as ever, will likely prove to be the most challenging. The projected improvement on the fiscal deficit is contingent on tax collection, including the effective implementation of the newly introduced Agriculture Income Tax laws.

That said, climate-related funding by the IMF (US$1.4 billion over the course of the program) can be used for budgetary support, which is a positive. 

As of December 2024, Pakistan had met all seven quantitative performance criteria and five of eight indicative targets. Compliance with structural benchmarks was also generally strong.

Important structural benchmarks that have already been met include approval of the National Fiscal Pact, and introduction of Agriculture Income Tax laws at the provincial level. However, others are still pending including eliminating captive power use in the gas sector. The IMF has now introduced additional structural benchmarks.

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!"