A Palestinian youth holds up Molotov cocktail and stones during riots in Ramallah after Israeli right-wing opposition leader Ariel Sharon’s visit to Al-Aqsa Mosque. AFP
A Palestinian youth holds up Molotov cocktail and stones during riots in Ramallah after Israeli right-wing opposition leader Ariel Sharon’s visit to Al-Aqsa Mosque. AFP

2000 - The Second Intifada

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Updated 19 April 2025
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2000 - The Second Intifada

2000 - The Second Intifada
  • The uprising reversed the gains of the grassroots First Intifada and relieved the international community of its obligations to help end the occupation of Palestine

AMMAN: The Second Palestinian Intifada, also known as the Al-Aqsa Intifada, began in late September 2000, following the collapse of the Camp David Summit and a controversial visit by Israeli opposition leader Ariel Sharon to the Haram Al-Sharif, the site of Al-Aqsa Mosque. 

Unlike the largely nonviolent First Intifada, this uprising marked a significant turn toward militarization, resulting in mistakes and challenges that have profoundly shaped the Israeli-Palestinian conflict ever since. 

During the First Intifada, Palestinians employed peaceful grassroots strategies that garnered global sympathy and put pressure on Israel diplomatically. 

In contrast, the militarized tactics of the Second Intifada — including suicide bombings and attacks on Israeli civilians — alienated many international supporters and reinforced negative stereotypes of Palestinians as the perpetrators of violence. 

This shift undermined the moral high ground previously held by Palestinians and allowed Israel to frame its own actions as acts of self-defense against terrorism, rather than as an occupying force suppressing a people’s right to self-determination. 

Internal divisions within the Palestinian leadership compounded the challenges. The Palestinian Authority, under Yasser Arafat, struggled to maintain control as militant factions, including Hamas and Islamic Jihad, gained influence. These groups operated independently, often clashing with the PA’s objectives and undermining its authority. 

How we wrote it




Arab News’ front page covered clashes erupting the day of Ariel Sharon’s Al-Aqsa visit, igniting the Second Intifada.

The lack of a unified strategy not only weakened the Palestinian cause but also emboldened Israel to exploit the divisions. The inability of the PA to present a cohesive front further eroded its legitimacy among Palestinians, many of whom felt betrayed by what they perceived as corruption and ineffectiveness within their own leadership. The popular support for armed attacks meant that even young activists from the more moderate centrist ruling party, Fatah, were motivated to carry out some assaults against Israeli soldiers. 

Arafat’s ambiguous stance on armed resistance — neither fully endorsing nor condemning it — led to confusion and a lack of direction. This ambiguity allowed Israel to accuse the PA of complicity in the violence, and justify military operations that devastated Palestinian infrastructure and deepened the occupation. 

The destruction of key public institutions, including schools, hospitals and police stations, left Palestinian society in disarray, with long-term repercussions still felt today. 

It is estimated the violence resulted in the deaths of more than 6,000 Palestinian and more than 1,000 Israeli combatants and civilians. According to the Israeli human rights organization B’Tselem, of the 6,371 Palestinians killed by Israeli forces in the 10 years from 2000 to 2010, at least 2,996, including 1,317 minors, were noncombatants. Of the 1,083 Israelis killed, 741 were civilians. 

From an economic perspective, the Second Intifada was a catastrophe. The Israeli military response included widespread closures and curfews, and the destruction of infrastructure, crippling the Palestinian economy. Unemployment and poverty rates soared, creating a humanitarian crisis that further fueled resentment and despair. 

The economic devastation not only hurt Palestinian livelihoods but weakened the ability of the PA to govern effectively, as it became increasingly reliant on foreign aid to sustain basic services. 

Key Dates

  • 1

    Camp David Summit brings together US President Bill Clinton, Israeli Prime Minister Ehud Barak and Palestinian Authority President Yasser Arafat but ends without agreement. It was an attempt to continue negotiations on the Middle East peace process and end the Israeli-Palestinian conflict.

    Timeline Image July 11-25, 2000

  • 2

    Israeli opposition leader Ariel Sharon visits Al-Aqsa Mosque, triggering the Second Intifada. Israel reoccupies the Palestinian territories amid fighting between the Palestinian resistance and Israeli army.

  • 3

    Sharon takes office as prime minister.

  • 4

    Saudi Crown Prince Abdullah bin Abdulaziz announces the Arab Peace Initiative, which calls for Israel to withdraw from occupied territories in return for Arab recognition of Israel’s right to exist. It is adopted by the Arab League.

    Timeline Image March 28, 2002

  • 5

    Israel begins construction of a wall to create a barrier separating the West Bank.

    Timeline Image June 16, 2002

  • 6

    Israeli parliament approves a Gaza disengagement plan proposed by Sharon.

  • 7

    Mahmoud Abbas secures landslide victory in Palestinian Authority presidential election after death of Arafat. He pledges to end the occupation and make peace.

  • 8

    Abbas meets Sharon, in Sharm El-Sheikh, Egypt, for the first time since becoming president. They declare a truce.

    Timeline Image Feb. 8, 2005

  • 9

    Israeli military forces leave Gaza after 38 years of occupation. Two years later, Israel imposes a land, air and sea blockade that continues to this day.

While the First Intifada successfully leveraged media coverage to highlight the plight of Palestinians under occupation, the focus of the Second Intifada on violent resistance shifted the narrative. Western media often portrayed Palestinians as aggressors, overshadowing legitimate grievances about occupation, settlement expansions and human rights abuses. This hindered efforts to gain support for international pressure on Israel to change its policies. 

The Second Intifada also highlighted a generational divide within Palestinian society. Younger Palestinians, disillusioned by the Oslo Accords and the lack of tangible progress, were more inclined toward armed resistance. 

Meanwhile, illegal Jewish settlements in the West Bank proliferated during this period, a clear and highly visible sign that Israeli authorities had no intention of ever ending the occupation of Palestine. 

In contrast, older generations who had witnessed the success of nonviolent strategies during the First Intifada were skeptical of a more militarized approach. This generational rift weakened the cohesion of the Palestinian struggle, making it more difficult to mobilize unified action. 

The Second Intifada provided Israel with an opportunity to tighten its grip on the occupied territories. Under the guise of combating terrorism, Israeli authorities expanded settlements, constructed the 712-kilometer-long separation wall, and implemented policies that further fragmented Palestinian communities. 

The wall, in particular, has had a lasting impact, serving to effectively annex large swaths of Palestinian land and render the prospect of a contiguous Palestinian state increasingly untenable. Coupled with checkpoints, the wall, which remains the single largest obstacle in the West Bank, restricts the movement of Palestinians, entrenches territorial and social fragmentation, undermines livelihoods, and hinders access to basic emergency, health and educational services. 

These measures, justified as security necessities, served to entrench the occupation and made the goal of a two-state solution more elusive than ever. 




Israeli policemen aim their guns at stone-throwing Palestinians in an east Jerusalem neighborhood during clashes. AFP

Such activities and restrictions have intensified since the Oct. 7 cross-border attacks by Hamas; Israeli authorities added 86 new obstacles to movement that affect the lives of 3.3 million Palestinians across the West Bank, including East Jerusalem, according to 2024 data from the UN Office for the Coordination of Humanitarian Affairs. 

There are now 793 obstacles to movement in the West Bank, including 89 round-the-clock checkpoints and 149 that operate part time, during the day. In addition, 150 communities own farmland from which they have been isolated by the wall. Previously they could access this land through 69 agricultural gates controlled by Israeli forces, but they have been barred from working the land since October 2023, resulting in significant losses of income, particularly from olive groves and other seasonal crops. 

The Second Intifada also created a precedent for settler violence. Emboldened by the Israeli government’s harsh crackdown on Palestinians, settlers in the West Bank carried out attacks on Palestinian farmers, homes and villages, often with impunity. 

The attacks continue to escalate. In 2024, UNOCHA recorded 1,420 attacks by Israeli settlers on Palestinians and their properties in the West Bank, the highest number since it began tracking the figures in 2006. During 2023 and 2024 alone, Israeli forces and settlers killed 1,003 Palestinians in the West Bank, according to UNOCHA. Settler violence is now a persistent feature of the conflict, further exacerbating tensions and deepening Palestinian mistrust of both the Israeli government and the international community. 

The Second Intifada stands as a cautionary tale of the perils of militarization, internal divisions and the failure to adapt strategies to shifting realities. While the uprising underscored the depth of Palestinian frustration and the injustices of the occupation, its methods ultimately weakened the Palestinian cause and allowed Israel to solidify its control over the occupied territories. 




Flanked by security, former Israeli PM Ariel Sharon visits the Al-Aqsa mosque compound in Jerusalem’s Old City, a site also revered by Jews as Temple Mount. The visit ignited the Second Intifada. AFP

Moving forward, Palestinians must reflect on the lessons of the Second Intifada, as well as the Oct. 7 attacks, to chart a more effective course. A renewed emphasis on nonviolent resistance, coupled with efforts to unify the Palestinian leadership and regain international support, could provide a path toward achieving their aspirations. 

At the same time, the international community must recognize its role in perpetuating the status quo and take meaningful steps to address the root causes of the conflict. Without accountability and a genuine commitment to justice, the mistakes and challenges of the Second Intifada are doomed to be repeated, perpetuating a cycle of violence and suffering that benefits no one. 

The Palestinian armed resistance is the product not only of the continuing Israeli occupation, but also the inaction of the international community and the absence of any political horizon. Without any hope for a better future, Palestinians mistakenly resorted to armed attacks, which delayed rather than accelerated the end of occupation. 

The price of the armed struggle, whether the Second Intifada or the Oct. 7 attacks by Hamas, has been high, not only in terms of lives lost and the destruction of Palestinian livelihoods and property, but because it also relieved the international community of its obligation to work on efforts to end the Israeli occupation and allow Palestinians to exercise their inalienable political rights. 

  • Daoud Kuttab is a columnist for Arab News, specializing in Middle Eastern, and more specifically, Palestinian affairs. He is the author of the book “State of Palestine NOW: Practical and logical arguments for the best way to bring peace to the Middle East.”


Saudi Arabia steps up dugong conservation

Saudi Arabia steps up dugong conservation
Updated 6 min 37 sec ago
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Saudi Arabia steps up dugong conservation

Saudi Arabia steps up dugong conservation
  • Found in the country’s warm coastal waters, the species is considered an important marker of the health and stability of marine ecosystems
  • During Saudi Arabia’s Environment Week, the dugong featured prominently in events

RIYADH: The dugong, or Dugong dugon, a marine mammal classified as vulnerable, remains a key indicator of marine biodiversity in Saudi Arabia. 

Found in the country’s warm coastal waters, the species is considered an important marker of the health and stability of marine ecosystems, the Saudi Press Agency reported. 

During Saudi Arabia’s Environment Week, the dugong featured prominently in events, drawing attention to ongoing conservation efforts and the responsibilities shared by researchers, environmental advocates, and policymakers.

The National Center for Wildlife is leading initiatives to protect the dugong from further population decline. These efforts by the center include satellite tracking and scientific research to monitor its distribution in Saudi Arabia’s territorial waters. 

Additionally, national plans are in place to manage and rehabilitate the species’ natural habitats, supporting long-term sustainability and the conditions necessary for dugong reproduction and survival. 

On the international front, Saudi Arabia continues to strengthen global cooperation in marine conservation. 

In 2013, the Kingdom signed an agreement to protect dugongs and their habitats and has taken part in initiatives such as the Pacific Year of the Dugong, launched in 2011.

Throughout Environment Week, the center presented recent studies and carried out public outreach activities. 

Educational programs were provided to students, visitors, and marine life enthusiasts, emphasizing the dugong’s ecological role and the importance of preserving its habitat.

The center also showcased modern tracking technologies used to study the species and its movements, the SPA reported.


Pakistan praises Islamic Development Bank’s anti-polio efforts, with $587 million disbursed since 2013

Pakistan praises Islamic Development Bank’s anti-polio efforts, with $587 million disbursed since 2013
Updated 13 min 46 sec ago
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Pakistan praises Islamic Development Bank’s anti-polio efforts, with $587 million disbursed since 2013

Pakistan praises Islamic Development Bank’s anti-polio efforts, with $587 million disbursed since 2013
  • PM’s focal person for polio eradication, Ayesha Raza Farooq, meets IsDB delegation in Islamabad
  • IsDB is one of largest financiers of Pakistan’s anti-polio program, announced $587 million loan in 2023

ISLAMABAD: Pakistani prime minister’s aide on polio eradication, Ayesha Raza Farooq, on Tuesday acknowledged the Islamic Development Bank’s (IsDB) financial and strategic contributions to sustain its anti-polio program in the country. 

The IsDB has contributed over $587 million to eradicate poliovirus from Pakistan since 2013, making it one of the largest financiers of the country’s anti-polio program. It announced a loan of $100 million in December 2023 to support Pakistan’s polio eradication efforts. 

Farooq met a high-level delegation of the IsDB’s Regional Hub in Turkiye at the National Emergency Operations Center (NEOC) in Islamabad on Tuesday, the Pakistan Polio Eradication Programme said. 

“The Islamic Development Bank has been a pillar of strength for the Pakistan Polio Eradication Programme, especially during its most challenging phases,” Farooq was quoted as saying by Pakistan’s anti-polio program. 

“Your financial and strategic contributions have been instrumental in sustaining the program and ensuring that vaccination campaigns reach the most vulnerable children across the country.”

Pakistan is only one of two countries worldwide where polio remains endemic. The Pakistani government launched a seven-day nationwide campaign on Monday to vaccinate over 45 million children against the disease. 

Dr. Walid Mohamad Abdelwahab, director of the IsDB’s regional hub in Turkiye, reaffirmed the institution’s support for Pakistan in achieving a polio-free future, the statement said. He commended Pakistan for its efforts and collaboration in the fight against polio, it added. 

The delegation briefly visited the NEOC control room following the meeting, where they were informed about the national reach of the campaign. The IsDB delegation was told the campaign would cover over 45.4 million children through the efforts of more than 400,000 frontline health workers via door-to-door vaccinations.

“IsDB commended the Government of Pakistan’s relentless efforts and reaffirmed its support in reaching the last mile of polio eradication,” Pakistan’s anti-polio program said.

In 2024, Pakistan reported an alarming 74 polio cases. The country’s polio program, launched in 1994, has faced persistent challenges including vaccine misinformation and resistance from some religious hard-liners, who claim immunization is a foreign conspiracy to sterilize Muslim children or a guise for Western espionage. 

Militant groups have also repeatedly targeted and killed polio vaccination workers during nationwide drives.


Saudi Arabia tops emerging markets’ venture capital funding, overtakes Singapore 

Saudi Arabia tops emerging markets’ venture capital funding, overtakes Singapore 
Updated 16 min 26 sec ago
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Saudi Arabia tops emerging markets’ venture capital funding, overtakes Singapore 

Saudi Arabia tops emerging markets’ venture capital funding, overtakes Singapore 

RIYADH: Saudi Arabia has overtaken Singapore as the premier destination for venture capital funds across emerging markets after it secured $391 million in the first quarter of 2025.

The 53 percent year-on-year rise helped propel the Kingdom to becoming the highest-performing country across the Middle East, Africa, Pakistan, Turkiye, and Southeast Asia in terms of total funding during the three-month period, as revealed in the latest analysis by venture data platform MAGNiTT. 

While the standout $160 million series E round by fintech unicorn Tabby contributed significantly to the overall figure, the broader investment ecosystem showed resilience with non-MEGA deal funding, which are transactions below $100 million, rising 9 percent quarter-on-quarter. 

“This consistency signals a strengthening pipeline backed by sovereign LPs (limited partners) like SVC (Saudi Venture Capital), a growing cohort of accelerators, and successful exits like Rasan’s IPO (initial public offering),” according to MAGNiTT’s report. 

Saudi Arabia leads MENA funding and deal activity 

Saudi Arabia led the EVMs and continued its dominance in the Middle East and North Africa region. 

The Kingdom captured 58 percent of all MENA venture funding and accounted for 41 percent of transactions, far outpacing regional peers. 

According to MAGNiTT, the Kingdom achieved an 87 percent year-on-year increase in non-mega deal funding and a 437 percent rise in series A and B rounds, supported by sizable transactions such as those by Ula.me and Merit Incentives, each raising $28 million. 

The rise in Saudi venture capital investment comes amid a broader rebound in the MENA region. 

Total funding across MENA reached $678 million in the first quarter of 2025, a 58 percent increase year on year, despite a 21 percent decline in deal count to 133 transactions. 

The surge was supported by improved investor sentiment following late 2024 interest rate cuts across the Gulf, along with sustained sovereign fund activity and flagship ecosystem initiatives such as LEAP 2025. 

In terms of historical share, Saudi Arabia’s ascent has been significant. It expanded its share of MENA venture funding to 58 percent in the first quarter of the year, up from 39 percent in 2024 and 51 percent in 2023. 

This upward trajectory has positioned the Kingdom as the central engine of regional VC activity, reversing a period during which the UAE held the lead. 

The ecosystem shift also reflects a structural change in capital allocation. The first quarter saw non-mega deals rise for the fourth consecutive quarter, and early-stage investments in series A and B rounds increased by 50 percent quarter-on-quarter. 

In contrast, Southeast Asia reported its weakest early-stage quarter in seven years, with Singapore’s funding falling by 61 percent year on year to $377 million. 

The gap signals a shift in global investor preference as capital increasingly flows toward markets like Saudi Arabia, where macroeconomic stability, proactive policy, and institutional backing provide a conducive environment for venture growth. 

With 54 deals completed, the Kingdom reported the smallest year-on-year decline in deal count among the region’s top three markets, supported by a robust early-stage pipeline. 

Fintech dominates sector activity 

Fintech remained the most active and well-funded sector across MENA, particularly in Saudi Arabia, contributing 30 percent of all deals and capturing 57 percent of total regional funding. 

The sector saw a 362 percent year-on-year increase in funding, totaling $384 million, driven by Tabby’s $160 million MEGA round and strong underlying demand for digital finance solutions. 

Notably, 35 percent of all fintech deals in the first quarter of 2025 were in the $5 million to $20 million range, up 24 percentage points from the same period last year, demonstrating increasing maturity and scalability across the sector. 

Enterprise Software was the second most transacted and funded vertical, propelled by activity in Saudi Arabia and the UAE, accounting for 75 percent of all sector deals. 

Within this segment, the productivity apps sub-sector achieved record performance with six deals, including Merit Incentives’ $28 million and Qeen.ai’s $10 million rounds. The enterprise category posted a 112 percent annual growth in funding to reach $61 million. 

Saudi Arabia drives top-tier transactions and investor participation 

While deal volume across MENA dropped 21 percent year on year to just 133 transactions — one of the lowest quarterly figures in five years — Saudi Arabia defied the trend, maintaining strong early-stage momentum.

MAGNiTT noted that deal activity in the up to $1 million bracket declined 8 percentage points year on year to just 31 percent, while deals in the $5 million to $20 million and over $20 million brackets saw increases of 4 percentage points and 3 percentage points, respectively. 

This reallocation of capital reflects investors’ growing appetite for scale-ready startups in more advanced funding stages. 

Pre-seed to pre-series A activity in the Kingdom saw a 14 percent increase, highlighting the nation’s strengthening foundation for long-term growth. 

The shift in capital allocation patterns also reinforced Saudi Arabia’s strategic focus. 

The share of deals in the $1 million to $5 million range rose to 46 percent, the highest proportion in five years, mirroring a broader pivot across MENA toward larger, more scalable investment opportunities. 

Simultaneously, the lowest-value ticket size, $0 to $1 million, fell to 31 percent of deals, down 8 percentage points from the previous year. 

Five of the region’s 10 largest deals originated from the Kingdom, including Tabby’s round, the sole mega deal of the quarter, alongside significant rounds by Zension, with $30 million and Merit Incentives. 

According to MAGNiTT, this concentration of large-ticket transactions underscores the depth of investor confidence in the Saudi startup ecosystem.

Investor engagement in the Kingdom was also evident in the breakdown of top deals. The nation hosted more top-10 deals than any other MENA country, with fintech leading as the most represented industry. 

Blue Pool Capital and Hassana Investment Co. emerged as the most prominent backers, jointly deploying an estimated $53.3 million across key transactions, with fintech accounting for four of the top 10 deals. 

Exit environment strengthens on record M&A activity 

Saudi Arabia’s momentum was further underscored by a robust exit environment, with the MENA region recording 21 exits, up 163 percent year on year, marking the strongest quarter for mergers and acquisitions since MAGNiTT began tracking. 

The Kingdom’s IPO pipeline also improved, adding another layer of attractiveness to its startup ecosystem. 

While the regional rebound was attributed to easing inflation, improved liquidity, and pre-US tariff optimism, MAGNiTT emphasized that: “Saudi Arabia’s IPO and M&A momentum are now integral to the region’s exit environment.” 

Despite this surge, the median time to exit via M&A lengthened to six years, up from five in 2024, reflecting continued challenges for early-stage startup liquidity. 

Geopolitical risks introduce uncertainty to venture outlook 

Despite strong regional performance, MAGNiTT highlighted emerging risks that could disrupt momentum. 

“While Q1 2025 was a positive start to the year … that momentum is now under threat,” said Philip Bahoshy, CEO of MAGNiTT. 

He added that the new US tariff policies have created uncertainty in both the public and private markets over the last couple of weeks, which can create a challenge for decision-makers who are likely to be in a risk-off mindset.

“In venture capital, this uncertainty is likely to impact three areas: the deployment of capital from LPs to VCs, VCs’ willingness to make decisions in uncertain times, and finally, startups’ ability to raise funds,” said Bahoshy.

He noted that while global volatility persists, long-term fundamentals in EVMs remain strong. 

“Despite global headwinds, emerging venture markets continue to present compelling long-term opportunities. MENA, in particular, is uniquely positioned for sustained growth thanks to deep pools of local capital, pro-entrepreneurship policy, and active sovereign support,” Bahoshy added. 

“As global investors diversify beyond traditional markets, regions like MENA and Southeast Asia are poised to attract fresh capital — particularly in tech-led sectors that are strategically positioned and less exposed to tariff volatility,” the CEO said.


Bangladesh’s largest private airline starts Riyadh flights as demand grows

Bangladesh’s largest private airline starts Riyadh flights as demand grows
Updated 29 min 20 sec ago
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Bangladesh’s largest private airline starts Riyadh flights as demand grows

Bangladesh’s largest private airline starts Riyadh flights as demand grows
  • US-Bangla Airlines offers 5 weekly flights on Dhaka–Riyadh route
  • First private Bangladeshi carrier to operate flights to the Kingdom

DHAKA: US-Bangla Airlines, the largest airline in Bangladesh by fleet size, has launched direct flights from Dhaka to Riyadh amid increasing demand for travel to Saudi Arabia.

The inaugural flight from Hazrat Shahjalal International Airport to King Khalid International Airport took off on Monday, with 423 passengers on board.

The flights will run five times a week on an Airbus 330 aircraft, with plans to gradually expand to daily service.

“Today, also, we are flying with full occupancy. There is always demand for destinations in the Middle East,” Kamrul Islam, the carrier’s general manager for public relations, told Arab News on Tuesday.

“We are receiving very good responses from the passengers ... The route will soon be served by daily flights.”

The airline is tapping into the growing market for Middle East travel. Flights to Saudi Arabia have been too few to accommodate the needs of some 3 million Bangladeshi workers in the Kingdom and hundreds of thousands of people traveling for the annual Hajj and Umrah pilgrimages.

In August last year, it launched daily flights to Jeddah, becoming the first — and so far the only — private Bangladeshi airline to fly to the Kingdom.

“Our aim is to start flight operations gradually in all the destinations where Bangladeshi migrants live,” Islam said.

“In the near future, we are planning to begin flight operations to Dammam and Madinah. Our plan is to begin these flights by the next year. It takes six to seven months of preparations to launch a new station.”

Founded in 2010, US-Bangla Airlines started as a domestic carrier and has lately expanded its routes to go international. The Riyadh route marks the airline’s 14th international destination and sixth in the Middle East.

“Every destination in the Middle East is a base for Bangladeshi migrants,” Islam said.

“We are currently operating also to other places in the region, like Dubai, Sharjah, Abu Dhabi, Muscat, and Doha.”

With its latest acquisition of new Airbus A330 and Boeing 737 aircraft last year, the carrier has become the largest airline in Bangladesh by fleet size.

With the additions, the US-Bangla fleet now consists of 24 aircraft, while the national flag carrier Biman has 21.


Pakistan looks to boost US imports, remove non-tariff barriers to escape Trump measures

Pakistan looks to boost US imports, remove non-tariff barriers to escape Trump measures
Updated 33 min 29 sec ago
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Pakistan looks to boost US imports, remove non-tariff barriers to escape Trump measures

Pakistan looks to boost US imports, remove non-tariff barriers to escape Trump measures
  • Pakistan’s government mulling options which range from importing crude oil from the US to abolishing tariffs on American imports
  • Islamabad is trying to appease the US to seek reprieve from the 29 percent reciprocal tariffs imposed by President Donald Trump last month

ISLAMABAD: Finance Minister Muhammad Aurangzeb told Bloomberg this week Pakistan is looking to buy more goods from the US and remove non-tariffs barriers to escape President Donald Trump’s high tariffs.

Pakistan’s government is mulling options, which range from importing crude oil from the US to abolishing tariffs on American imports, as Islamabad attempts to offset a trade imbalance that has triggered higher tariffs from Washington. 

“It’s a bigger canvas that we are looking at in terms of engaging the US,” Aurangzeb said in an interview with Bloomberg News on Monday ahead of the IMF-World Bank spring meetings in Washington. “We will constructively engage, and we will have a formal delegation coming in.”

Pakistan is looking to buy more cotton and soybean from the US, the finance chief said, adding that it is also in talks to tear down non-trade barriers to open its markets to more US products.

“We can also look at if there are any issues with respect to non-tariff discussion, whether there are any onerous inspections at our end for US products, we can obviously view that.”

Islamabad is trying to appease the US to seek reprieve from the 29 percent reciprocal tariffs imposed by Trump. While those levies are on hold until July, Pakistan has said it will send a trade delegation to Washington in the coming months to bridge the trade gap. 

The US is Pakistan’s largest export market with over $5 billion in annual exports as of 2024, while Pakistan’s imports from the US are about $2.1 billion.

The finance minister said the country is also open to foreign direct investments from US firms in its recently opened minerals and mining sectors.

Aurangzeb, a close aide of Prime Minister Shehbaz Sharif, is in the US for a nearly week-long trip to participate in the Spring Meetings of the International Monetary Fund and the World Bank. The former JPMorgan Chase & Co. banker said that the crisis-ridden nation will tap the international capital markets to secure more funds for a sustainable growth.

“What we are looking for is how we get away from a boom-and-bust cycle which Pakistan has gone through and get on to a sustainable growth path,” he told Bloomberg. 

Pakistan is preparing to debut its first-ever Panda bond in the range of $200 million to $250 million that will likely take place in the fourth quarter of this year, the minister added.

Authorities are trying to rebuild Pakistan’s tattered economy after it came close to a default in 2023. Last month, the South Asian nation won an initial nod for a $2.3 billion IMF loan that will give it funding visibility until 2027. 

Last week, Fitch upgraded Pakistan’s credit rating, citing confidence that the South Asian country will be able to sustain reforms under the IMF loan program.