Pakistan’s finance minister seeks faster disbursements under Saudi oil facility in talks with SFD chief

ISLAMABAD: Pakistan on Wednesday voiced concern over the killing of civilians in Indian-administered Kashmir, after at least 26 people were gunned down by unidentified assailants at a tourist site in the region’s deadliest attack on non-combatants in decades.
The shooting occurred Tuesday afternoon in Pahalgam, a popular resort town in the Anantnag district, when armed men emerged from forest cover and opened fire on crowds of mostly domestic tourists.
Indian officials said the attack bore the hallmarks of an organized militant assault, though no group claimed responsibility for it. Survivors described a calculated and prolonged attack, with gunmen selectively targeting men and sparing women.
“We are concerned at the loss of tourists’ lives in an attack in Anantnag district of Indian Illegally Occupied Jammu and Kashmir,” the foreign office of Pakistan said in a statement.
“We extend our condolences to the near ones of the deceased and wish the injured a speedy recovery,” it added.
Indian Prime Minister Narendra Modi, who cut short a state visit to Saudi Arabia in response, called the attack a “heinous act” and pledged that the perpetrators would be brought to justice.
Such attacks have historically strained ties between India and Pakistan, two nuclear-armed rivals with a long-standing dispute over Kashmir. In 2019, a suicide bombing in Pulwama killed 40 Indian paramilitary personnel and triggered cross-border air strikes, pushing the neighbors to the brink of war.
New Delhi has repeatedly blamed Islamabad for backing militant groups operating in the region, an allegation Pakistan denies, insisting it supports only the political aspirations of Kashmiris.
On Wednesday, India’s army also reported killing two gunmen in a separate incident near the Line of Control, the de facto border separating the Pakistani and Indian sides of Kashmir, in Baramulla district, describing it as a foiled infiltration attempt.
Kashmir has been divided between India and Pakistan since 1947, with both countries claiming it in full. A violent separatist insurgency has simmered in the Indian-administered part since the late 1980s, although militant violence had declined in recent years.
Tuesday’s attack has also promoted global reaction, with US President Donald Trump and EU chief Ursula von der Leyen condemning the violence and pledging support for India in pursuing the assailants.

KARACHI: Pakistan’s foreign investment declined by 19% to $1.3 billion during the first nine months of this fiscal year through March, recent data from Pakistan’s central bank said, with analysts attributing the slump to political uncertainty and lack of ease of doing business.
As per the State Bank of Pakistan’s (SBP) latest data, foreign direct investment (FDI) in Pakistan rose by 14% to $1.64 billion in the same period, compared to $1.44 billion the country attracted a year ago. 

However, the total foreign investment also includes foreign portfolio investment (FPI), which are foreign investments in a country’s stocks, bonds and other securities. The SBP said FPI dropped by a staggering 514% as foreigners sold $269 million of the country’s equity and debt during July-March this fiscal year. Last year, foreign investors were holding $65 million in Pakistan’s stocks and bonds during the same period.

Pakistan’s government has said the country is on its path to economic progress. Pakistan formed the Special Investment Facilitation Council (SIFC) in 2023 after coming to the brink of a sovereign default. The SIFC is a civil-military body that aims to attract foreign investment in minerals, agriculture, livestock, tourism, defense and other important sectors.

“Although the SIFC has been instrumental in generating leads for foreign investment, the actual materialization of flows has been weak due to hurdles in executing these,” Shankar Talreja, director of research at brokerage firm Topline Securities Limited, told Arab News on Friday. 
Prime Minister Shehbaz Sharif has tasked his government to increase exports to $60 billion in the next five years, seeking to boost its foreign exchange reserves.  
However, the country’s foreign reserves have declined to $10.6 billion during the week ended Apr. 11, as per the SBP’s figures. The amount is hardly enough to cover two months of imports whereas the International Monetary Fund (IMF) wants Pakistan to increase its reserves to support three months of imports. 
Pakistan’s Information Minister Attaullah Tarar and the finance ministry’s spokesperson Qamar Sarwar Abbasi did not respond to Arab News’ request for comments. 
While Sharif’s government has signed various memoranda of understanding (MoUs) with several countries over the past year, it has not been able to attract even $3 billion in investment since the last two decades, since FY09, as per the central bank’s data. 
Talreja said some foreign companies wanted to make major investments in Pakistan’s refinery sector but frequent changes in the country’s tax structure led to a “hue and cry” from them.
“The ease of doing business is quite low in Pakistan due to higher taxes and frequent bubbles in the economy led by inconsistent macro policies,” Talreja explained. 

‘ZERO GROWTH IN PER CAPITA INCOME’
Financial analyst Sana Tawfik said besides political uncertainty and a high cost of doing business, Pakistan’s fragile balance of payment position has been a permanent concern for risk-averse investors. 

These investors have seen Islamabad approach the IMF for frequent financial bailouts whenever it has tried to achieve an import-driven 5-6 percent growth, she said. 
“Pakistan’s macroeconomic situation is no doubt improving but then we have to see how sustainable this improvement is,” Tawfik, the head of research at Arif Habib Limited, told Arab News.