Tag: China-Pakistan relations

  • Modi accuses Pakistan of supporting cross-border terrorism at SCO Summit

    Modi accuses Pakistan of supporting cross-border terrorism at SCO Summit

    This year, the Shanghai Cooperation Organisation’s (SCO) summit was hosted by India, where Indian Prime Minister Narendra Modi launched thinly veiled accusations against Pakistan, saying “some countries” are “terror havens“.

    Pakistan’s Prime Minister Shehbaz Sharif was in attendance, along with other SCO member countries leaders, such as Xi Jingping and Vladimir Putin.

    The SCO is a Eurasian political, economic and security organisation, which unites China, Russia, India, Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Uzbekistan, and, as of yesterday, Iran. It’s currently the world’s largest regional bloc in terms of geographic scope and population.

    Addressing the online summit, Dawn reports Modi to have said, “Some countries use cross-border terrorism as an instrument of their policies, provide shelter to terrorists. SCO should not hesitate to criticise such nations. There should be no place for double standards on such serious matters.”

    India claims that a part of the China–Pakistan Economic Corridor passage passes through a ‘disputed’ region. Modi told leaders that “terrorism has become a major threat to regional and global peace. Dealing with this challenge requires decisive action. Regardless of its form or manifestation, we must unite in our fight against terrorism.”

    Pakistan PM Shehbaz Sharif responded in turn, saying that the SCO stands for observance of the UN principles of sovereignty, territorial integrity and people’s right to self-determination, considered a reference to the Kashmir dispute.

    “UNSC resolutions offer us a workable framework for the resolution of longstanding disputes in the region,” Dawn reported Shehbaz to have said. “These must be addressed immediately and settled amicably before it is too late.”

    Kashmir has been a contentious point between the two countries since partition, but especially since India abolished Articles 370 and 35A in 2019. These articles were decades-old and provided a measure of autonomy to the disputed Muslim-majority region.

    In the earlier SCO summit in May, Pakistan’s Foreign Minister Bilawal Bhutto criticised India’s decision to scrap the special status of the disputed region of Kashmir, saying New Delhi’s unilateral move in 2019 had undermined the possibility of holding talks between the neighbours.

    India has also accused Pakistan’s military of backing Kashmiri rebels, a claim Islamabad has denied.

  • Pakistani rupee gains against US dollar amidst hopes for IMF deal

    Pakistani rupee gains against US dollar amidst hopes for IMF deal

    Pakistani rupee on Monday gained against the US dollar due to two key developments: the country secured $500 million from the Industrial and Commercial Bank of China and there was optimism around a potential deal with the International Monetary Fund (IMF).

    During intraday trading, the local currency witnessed an increase of Rs3.46 against the greenback in the interbank market, with the exchange rate at around 11:45 pm being Rs275.

    However, last week the rupee made even greater gains against the US dollar. The State Bank of Pakistan reported a 2.38 per cent appreciation, equivalent to Rs6.63, in the interbank market, with the local unit closing at Rs278.46 on Friday.

    According to the General Secretary of the Exchange Companies Association of Pakistan (ECAP), Zafar Paracha, the hype around the earlier dollar appreciation was caused by the country’s financial institutions and international players manipulating rates.

    Paracha noted that the destabilized currency damages Pakistan’s image and discourages foreign direct investment and local investors. He anticipated that with the IMF agreement and inflows from friendly countries, the dollar should remain in the range of Rs260 to Rs265.

    He also highlighted that Pakistan’s political condition has been impacting the dollar rates, which is a new phenomenon. He mentioned that increasing Pakistan’s tax base, not tax rates, is crucial, and the government should reduce expenditures and subsidies given to elites.

    According to Geo, there is hope for a deal with the IMF, with a government official expressing optimism about striking a deal, and another official expecting to reach a staff-level agreement with the IMF in the coming days, although the Fund has not provided a timeframe for finalizing the agreement.