Category: 1. Pakistan

ISLAMABAD:

Moody’s, a global credit rating agency, on Tuesday inquired about the implications of missing a key target of increasing the tax-to-GDP ratio to 10.6% in the last fiscal year, as Pakistan made an emphatic pitch for an upward revision in the current junk rating.

The credit rating agency also asked about progress in trade talks with the United States and whether the central bank was still exercising any control over imports and the exchange rate market, according to officials privy to the meeting details.

Moody’s raised these questions during a session with Pakistan’s Finance Minister Muhammad Aurangzeb. Minister of State for Finance Bilal Kayani and Governor State Bank of Pakistan Jameel Ahmad also attended the session, which would determine whether the rating agency would upgrade Pakistan in its next announcement.

Pakistan’s current Moody’s rating is Caa2 with a positive outlook. This rating was upgraded from Caa3 with a stable outlook in August 2024. But it is still below the investment grade and hampers Pakistan’s smooth entry in the international capital markets to raise debt.

According to the officials, Moody’s asked about the impact of missing the tax-to-GDP ratio in the last fiscal year on this fiscal year’s targets. Aurangzeb said that the Federal Board of Revenue (FBR) would give a separate briefing to the rating agency for addressing any of its concerns, according to the officials.

The FBR’s tax-to-GDP ratio remained at a little over 10.2% as against the target of 10.6% after the FBR could pool only Rs11.745 trillion in taxes in the fiscal year 2024-25. The government missed the annual tax collection target by a margin of Rs1.225 trillion.

After the meeting that Moody’s team was provided with a comprehensive overview of Pakistan’s reform journey, with a particular emphasis on improving the tax-to-GDP ratio through technology-driven tax administration reforms, digitisation of systems, and robust enforcement measures.

The minister emphasised that under the direct oversight of the prime minister — who chairs regular meetings on tax reform — the government was implementing measures to expand the tax base, plug leakages, and enhance compliance. Aurangzeb noted that the Rs2 trillion revenue delta achieved this year had come through autonomous efforts, and the government was firmly committed to reaching a tax-to-GDP target of 13 to 13.5% in the next few years, according to the ministry.

Moody’s also asked about the details of the Pakistan-US trade talks but the government did not share any details except that the deal was expected soon. The sources said that the United States has asked for preferential trade treatment to which Pakistan has proposed to sign a pact.

“Ongoing discussions with the United States on preferential tariff access were noted as making encouraging headway,” the Ministry of Finance stated after the meeting.

There were also questions about the average interest rate that the government used for allocating the Rs8.3 trillion for debt servicing for this fiscal year. Moody’s was informed that a 12% average interest rate had been used for this fiscal year.

Moody’s asked about the movement in the exchange rate and any restrictions on imports. The central bank clarified that the exchange rate was market determined and there were no restrictions on imports.

The rupee has again started coming under pressure and the grey market is resurfacing with a rate that is about Rs7 per dollar higher than the inter-bank rate, according to the exchange market dealers.

According to the finance ministry, the Finance Division provided an in-depth briefing on Pakistan’s macroeconomic outlook, reform agenda, and financial stability.

“Looking ahead, the finance minister expressed optimism that the improving macroeconomic indicators and reform momentum would be positively acknowledged by rating agencies, further strengthening Pakistan’s case to tap international markets and deepen its external sector stability,” said the ministry.

Aurangzeb and his team presented compelling evidence of macroeconomic recovery, including a sharp reduction in inflation, a cut in the policy rate, stabilisation of the exchange rate, a current account surplus, and a surge in foreign exchange reserves — crossing $14 billion by the end of June, stated the ministry.

It added that the improvements in remittance inflows and export performance were also cited as signs of resilience and renewed investor confidence.

During the session, the finance minister apprised the Moody’s team of the significant strides Pakistan has made in stabilising its economy and laying the foundations for sustainable and inclusive growth, it added.

He underlined the successful completion of the final International Monetary Fund (IMF) review under the Stand-By Arrangement, including the disbursement of the second tranche and progress under the Resilience and Sustainability Facility (RSF), as key milestones that have restored confidence in Pakistan’s economic management.

The minister highlighted a series of structural reforms undertaken by the government to anchor long-term stability. These included prudent fiscal measures in the recently announced budget, tariff and trade liberalisation geared towards export-led growth, and concerted efforts to rationalise expenditure.

The meeting further outlined Pakistan’s re-engagement with global financial markets, including the successful arrangement of $1 billion in commercial financing from the Middle Eastern region, plans for an inaugural Panda bond, and Pakistan’s intent to explore the Eurobond and other international debt markets as credit ratings improve.

The finance minister also addressed queries from the Moody’s team and reiterated Pakistan’s commitment to staying the course on macroeconomic reforms, including in areas of privatisation, restructuring of state-owned enterprises (SOEs), and right-sizing of government.

• Then IHC-CJ Minallah struck down Section 20 via short order, didn’t issue detailed judgement in three years
• Files have now been sent back to IHC; legal experts believe he can’t give reasons now as SC judge

ISLAMABAD: More than three years after then Islamabad High Court (IHC) chief justice Athar Minallah struck down Section 20 of the Prevention of Electronic Crimes Act, 2016 (Peca), the decision has found itself in a legal limbo as the judge has yet to issue detailed reasoning for his verdict.

In his order dated April 8, 2022, Justice Minallah declared illegal the provision — introduced by the PTI government — which expanded the definition of defamation to include criticism against institutions and state authorities and proposed an imprisonment of five years.

“The criminalisation of defamation, protection of individual reputations through arrest and imprisonment and the resultant chilling effect violates the letter of the Constitution…,” Justice Minallah had noted in his short order.

As per standard legal practice, a judge issues a short order, outlining the verdict, and gives a detailed order later elucidating their reasoning for reaching the conclusion.

However, Justice Minallah never issued the detailed reasoning. In November 2022, he was made a Supreme Court judge.

The judge kept the case files with him for writing a detailed order and did not return them to the IHC registrar despite his elevation to the top court.

According to court officials, the files were returned recently without any detailed order.

The move has created a legal ‘grey area’ as the IHC is once again hearing a set of petitions filed against amendments introduced to Peca earlier this year by the incumbent government.

Some petitioners, who challenged the fresh amendments, relied on Justice Minallah’s 2022 short order to substantiate their case against criminalisation of defamation.

However, in the absence of detailed reasoning, legal experts term such citation as weak.

While a court official told Dawn the case files might be handed over to a bench for rehearing, legal experts think otherwise.

According to former law minister Farooq H. Naek, a short order is a “perfect judgement”, but in the absence of detailed reasoning, the judgement can be labelled as weak.

He wondered why the files were not returned to the IHC registrar by Justice Minallah for three years.

Legal expert Mohammad Akram Sheikh told Dawn the Supreme Court thoroughly discussed the validity of short orders in a judgment authored by former chief justice Moham­mad Ajmal Mian in 1997.

He pointed out that a short order announced and signed by a judge is considered a valid judicial order.

According to Mr Sheikh, Justice Minallah, now being a Supreme Court judge, cannot give reasoning for his judgement passed in the IHC.

In February 2022, the PTI government had promulgated a presidential ordinance amending the Peca.

The controversial ordinance modified the definition of a ‘natural person’ to include “company, association or body of persons whether incorporated or not, institutions, organisations, authority or any other body established by the government.”

Essentially, it enabled any per­son to lodge a complaint over criticism of a civic body or any government entity or institution.

Two factions of the Pakistan Federal Union of Journalists, Pakistan Broadcasters Asso­cia­tion and other activists challenged the ordinance.

Justice Minallah, in his short order, “allowed” the petitions and struck down Section 20, which dealt with the defamation of a ‘natural person’.

Subsequently, the court decl­ared the ordinance “unconstitutional” and “invalid” and declared it void.

Published in Dawn, July 16th, 2025

ISLAMABAD:

A quiet political storm gathered over the capital on Tuesday evening, as a sequence of high-level meetings sparked widespread speculation about an imminent shift in the country’s political landscape.

In an unusual sequence of back-to-back meetings on Tuesday, Chief of Army Staff Field Marshal Syed Asim Munir called on Prime Minister Shehbaz Sharif at the PM House, shortly before the premier met with President Asif Ali Zardari at the President House as speculation grew over the army chief possibly replacing the president.

The high-level engagements have taken place amid growing speculation about a possible 27th constitutional amendment, with unconfirmed reports suggesting that President Zardari may step down and potentially clear the way for a successor in the Presidency.

The speculation, largely fuelled by social media, also hinted at behind-the-scenes efforts to replace the parliamentary system with a presidential form of government.

However, Defence Minister Khawaja Asif, while talking to The Express Tribune, confirmed that the issue of the president’s resignation and his possible replacement by the army chief had indeed come up in the meeting between President Zardari and PM Shehbaz but dismissed all such reports as unfounded, adding that the speculation stemmed from a media story that was possibly retracted later.

Among other things, Asif also questioned the media’s credibility and its handling of speculative stories. He said it was time for journalists and media outlets to reflect on their own “credibility.” In today’s fast-paced environment, he added, false news spreads halfway around the world before the truth even has a chance to catch up.

Amid intense speculation about a potential shift in the country’s power and political structure, the defence minister categorically refuted all the speculations, saying President Zardari was apprised about the developments and he showed “full confidence” in the government and the current political system.

“Mr President was fully aware of the issue and expressed his full confidence in the government,” Asif told The Express Tribune, saying the PM briefed the President about the unconfirmed story and the subsequent developments. “It’s all kite flying,” he said.

While confirming that PM Shehbaz had a meeting with the field marshal before the PM-led delegation called on President Zardari, Asif said that there was nothing unusual about it as the premier and field marshal routinely meet three times in a week to discuss different issues.

“Army chief has no interest in politics,” Asif said when asked about the army chief’s view on the potential shift in the country’s power structure. The defence minister said that the army chief is already holding the highest office in the military and has earned massive respect for winning the recent war against India. “He [field marshal] doesn’t need anything,” Asif incorporated.

The minister also dismissed the conjectures that there were rifts between the ruling PML-N and PPPP after PML-N emerged as the single largest party in the National Assembly following the Supreme Court’s ruling in the reserved seats matter, saying the two largest parties in the parliament would stay together. “We will keep a united face,” he said, “we are not just partners in power but beyond.”

Following a split mandate in the February 8 general elections, it was the PPPP which had helped the PML-N to form the government in the center after they both had reached an agreement and divided key constitutional offices, including PM, president, governors, chairman and deputy chairman of Senate and speaker and deputy speaker of the National Assembly, between them.

In response to a question about whether the 27th Amendment was still being considered even if there was no change in the presidency or the political structure, Asif said there was no deliberation about any constitutional amendments at the moment.

However, he maintained that introducing a constitutional amendment was a legitimate process and could be used just like it had been on 26 previous occasions.

When asked another question, he also denied that the meeting held at the presidency on Tuesday evening included any discussion on potential legislative business in the coming weeks. “No legislative agenda was discussed during the meeting,” he shared.

According to an official handout issued by the Presidency’s Press Wing following the meeting, Prime Minister Shehbaz Sharif met President Asif Ali Zardari at Aiwan-e-Sadr.

The statement noted that federal ministers Khawaja Asif, Ahsan Iqbal, Azam Nazeer Tarar, Mohsin Naqvi and the PM’s Adviser Rana Sanaullah were also present.

The official release stated that the discussion focused on the country’s political, economic and security situation, including law and order and the ongoing efforts to combat terrorism.

It further said that the premier briefed the president on the government’s economic measures, and both leaders reaffirmed their commitment to working together for national stability, development and prosperity.

The meeting between the top three leaders comes at a time when the so-called hybrid model is no longer operating from behind the curtain, it now stands fully centre stage.

Once a long-suspected framework, the hybrid system now appears to have fully matured and, notably, is no longer a clandestine arrangement but something openly acknowledged, even celebrated.

With Asif publicly hailing the hybrid model as a successful formula and the military chief receiving global recognition typically reserved for elected leaders, it has become increasingly apparent that powerful stakeholders are no longer merely orchestrating from the wings, they are visibly positioned at the centre.

It is against this backdrop that Tuesday’s high-level meetings have fuelled further speculation.

ISLAMABAD: Prime Minister Shehbaz Sharif met President Asif Ali Zardari on Tuesday to discuss the country’s political, security and economic situation, including the upcoming PTI’s protest march on August 5, Senate elections for 11 seats in Khyber Pakhtunkhwa (KP), and the possibility of a change in PTI-led regime in the province.

The prime minister was accompanied by senior cabinet members, including Defence Minister Khawaja Muhammad Asif, Planning Minister Ahsan Iqbal, Law Minister Azam Nazeer Tarar, Interior Minister Mohsin Naqvi, and Adviser on Political Affairs Rana Sanaullah.

A source privy to the meeting told Dawn that the president and the prime minister agreed that no one will be allowed to harm peace in the country in the name of ‘political rally and sit-in’.

It was decided that PTI protesters will not be allowed to enter the federal capital and will be stopped by any means necessary.

A suggestion also came during the meeting that a specified place away from the central parts of the capital could be allocated for the protest of the main opposition—PTI, which is coming out for its main demand of the release of its jailed founder Imran Khan.

The source said that Presi­dent Zardari, widely regarded for his political acumen despite PPP Chairman Bilawal Bhutto Zardari’s formal leadership, is known for securing support from non-allied parties during critical political moments.

According to the source, the president assured the prime minister of his cooperation in making efforts to win the maximum number of Senate seats from KP.

Earlier this month, the Election Commission of Pakistan had finally announced the schedule for the long-overdue Senate elections in Khyber Pakhtunkhwa, setting July 21 as the polling date.

The much-delayed but suspenseful exercise will see elections on 11 seats — seven general and two each reserved for women, ulema and technocrats.

Experts believe the outcome will hinge on how PTI-backed and Jamiat Ulema-i-Islam-F (JUI-F) members vote. If the opposition remains united and PTI-backed members strictly follow party discipline — with JUI-F support — the ruling coalition may win only one general seat.

However, the scenario would shift dramatically if some PTI members defect and JUI-F strikes a deal with the ruling coalition. In that case, the coalition might bag around five seats, potentially gaining a two-thirds majority in the upper house of Parliament. JUI-F already holds five seats in the Senate.

Currently, the ruling coalition has 54 members in the 96-member Senate — 10 short of the two-thirds majority (64 seats).

Published in Dawn, July 16th, 2025

ISLAMABAD: In a surprising twist ahead of the forthcoming Senate elections, Pakistan Tehreek-e-Insaf (PTI) on Tuesday sparked outrage among its most loyal supporters by overlooking veteran party workers in favour of controversial wildcard candidates.

Despite steadfastly backing their party founder through thick and thin, the party’s die-hard loyalists have found themselves sidelined once again.

Instead, Mishal Yusufzai, who was previously removed from her role as adviser on social welfare to the Khyber Pakhtunkhwa Chief Minister, has been chosen to contest the Senate seat vacated by Dr Sania Nishtar.

With 13 seats from Khyber Pakhtunkhwa at stake this July, all eyes are on PTI’s ticket distribution. The Election Commission of Pakistan (ECP) has scheduled voting for 12 seats on 21 July, with the final seat’s vote due on 31 July.

Sources claimed the final decision came directly from the PTI founder during a high-level meeting with the KP Chief Minister’s adviser on information, Barrister Saif. The KP budget was reportedly also a key topic of discussion.

They said in addition to Yusufzai, the approved Senate candidates include PTI leaders Murad Saeed, Faisal Javed, Mirza Afridi, and Pir Noorul Haq Qadri. Azam Swati has been nominated for the technocrat seat, while Robina Naz will contest on the women’s reserved seat, said sources.

The allocation of Senate tickets has ignited a firestorm within PTI ranks. Loyal cadres, who have campaigned tirelessly for years, are fuming at what they see as blatant favouritism. “It’s disheartening to see those who bled for the party pushed aside in favour of political manoeuvring,” said one insider.

Whispers also suggest that some familiar names like Faisal Javed and Mirza Afridi only emerged once the pressure eased – raising serious questions about PTI’s so-called meritocracy.

According to a PTI loyalist, “These repeat picks show PTI is no different from the old guard, where loyalty is sidelined and politics plays favourites.”

Political analysts suggest that these decisions may signal deeper factional divides within PTI, raising questions about the party’s unity as it heads into a crucial electoral test.

Copyright Business Recorder, 2025

ISLAMABAD:

The Election Commission of Pakistan (ECP) on Tuesday disqualified Member of the National Assembly Jamshed Dasti on grounds of possessing a fake academic credentials.

The commission accepted a reference sent by the Speaker of the National Assembly along with two petitions seeking Dasti’s disqualification.

A three-member Election Commission bench, led by ECP Member (Sindh) Nisar Durrani, heard a petition filed by Ameer Akbar concerning the assets and liabilities of MNA Jamshed Dasti.

The Khyber Pakhtunkhwa (KP) member of the Election Commission questioned whether MNA Jamshed Dasti possessed any undisclosed property.

In response, the petitioner’s lawyer argued that Dasti had listed an FA (Intermediate) qualification on his nomination papers, despite not having completed his matriculation.

The petitioner’s lawyer added that Jamshed Dasti had only submitted his matriculation certificate from the Karachi Board in response. Upon hearing this, the Khyber Pakhtunkhwa (KP) member of the Election Commission remarked that the ECP held the authority to disqualify him.

The decision followed the approval of two petitions against him, one of which was a reference filed by the National Assembly Speaker seeking his disqualification.

The Election Commission has also directed authorities to initiate legal proceedings against Jamshed Dasti.

In May, the Election Commission decided to have Jamshed Dasti’s academic credentials authenticated by the Karachi Education Board.

Jamshed Dasti, elected from NA-175 Muzaffargarh in the previous general elections, faced legal proceedings under Articles 62 and 63, as well as Sections 4, 9, and 137 of the Elections Act, 2017. Petitions seeking his disqualification were filed by Ameer Akbar, Zulfiqar Dogar, and Sardar Faizul Hassan.

Meanwhile, the ECP rejected opposition leader Omar Ayub’s request to drop the assets-related case, and adjourned the hearing until July 29.

A five-member bench, led by the Chief Election Commissioner, convened to hear the case concerning Omar Ayub’s assets.

Representing the PTI leader and Leader of the Opposition in the National Assembly, his lawyer contended that asset and liability details are mandated to be submitted by December 31.

According to the rules, the Election Commission is authorized to initiate a complaint against a Member of the Assembly within 120 days of receiving inaccurate asset declarations. However, in this instance, the Commission issued the notice after April 29 this year.

Omar Ayub’s counsel contended that the Election Commission’s notice violated procedural rules and urged its withdrawal. However, the Commission dismissed the request.

Election Commission member Shah Mohammad clarified to Omar Ayub’s legal counsel that the initial notice was issued within the prescribed timeframe and affirmed that the Election Commission had ensured the provision of a fair trial.

Assets worth an estimated Rs25 billion have been recovered and frozen as part of the investigation, with the National Accountability Bureau (NAB) converting its inquiry into a formal investigation in the Rs40 billion Kohistan corruption case, The News reported.

Among the seized assets is a luxury bungalow featured in a popular drama serial, as well as 77 high-end vehicles valued at Rs940 million. The vehicles include Porsche Taycan, Toyota Land Cruiser, Lexus, Fortuner, Hilux Revo, Mark X, BMW, Mercedes, Ford Mustang, and Audi models.

NAB has also confiscated over Rs1 billion in cash and foreign currency, along with more than 3 kilograms of gold. Authorities have frozen Rs5 billion across 73 bank accounts and seized a wide range of immovable assets.

The 109 properties recovered during the investigation include 4 farmhouses, 12 commercial plazas, 2 commercial plots, 30 houses, 12 shops and food courts, 25 flats and penthouses, and 175 kanals of agricultural land. These are spread across Islamabad, Rawalpindi, Peshawar, Abbottabad, and Mansehra, with an estimated combined value of Rs17 billion.

According to NAB officials, key arrests are expected within 24 to 48 hours, with preparations already in progress.

Initial findings indicate that the fraud was executed through coordinated efforts involving government officials, contractors, and banking personnel. The alleged perpetrators diverted large sums from public funds without triggering alarms from any financial regulatory bodies.

NAB says the investigation is ongoing and further developments, including arrests, will follow shortly.

With the future of a crucial water-sharing treaty between India and Pakistan up in the air, one outside party is looking on with keen interest: China.

For 65 years, the Indus Waters Treaty has seen the two South Asian rivals share access and use of the Indus Basin, a vast area covered by the Indus River and its tributaries that also stretches into Afghanistan and China.

For much of that history, there has been widespread praise for the agreement as a successful demonstration of cooperation between adversarial states over a key shared resource. But experts have noted the treaty has long held the potential for conflict. Drafters failed to factor in the effects of climate change, and the Himalayan glaciers that feed the rivers are now melting at record rates, ultimately putting at risk the long-term sustainability of water supply. Meanwhile, the ongoing conflict over Kashmir, where much of the basin is situated, puts cooperation at risk.

With treaty on ice, China steps in

That latest provocation threatening the treaty was a terrorist attack in the Indian union territory of Jammu and Kashmir on April 22, 2025. In response to that attack, which India blamed on Pakistan and precipitated a four-day confrontation, New Delhi temporarily suspended the treaty.

But even before that attack, India and Pakistan had been locked in negotiation over the future of the treaty – the status of which has been in the hands of international arbitrators since 2016. In the latest development, on June 27, 2025, the Permanent Court of Arbitration issued a supplementary award in favor of Pakistan, arguing that India’s holding of the treaty in abeyance did not affect its jurisdiction over the case. Moreover, the treaty does not allow for either party to unilaterally suspend the treaty, the ruling suggested.

Amid the wrangling over the treaty’s future, Pakistan has turned to China for diplomatic and strategic support. Such support was evident during the conflict that took place following April’s terrorist attack, during which Pakistan employed Chinese-made fighter jets and other military equipment against its neighbor.

Meanwhile, in an apparent move to counter India’s suspension of the treaty, China and Pakistan have ramped up construction of a major dam project that would provide water supply and electricity to parts of Pakistan.

So, why is China getting involved? In part, it reflects the strong relationship between Pakistan and China, developed over six decades.

But as an expert in hydro politics, I believe Beijing’s involvement raises concerns: China is not a neutral observer in the dispute. Rather, Beijing has long harbored a desire to increase its influence in the region and to counter an India long seen as a rival. Given the at-times fraught relationship between China and India – the two countries went to war in 1962 and continue to engage in sporadic border skirmishes – there are concerns in New Delhi that Beijing may respond by disrupting the flow of rivers in its territory that feed into India.

In short, any intervention by Beijing over the Indus Waters Treaty risks stirring up regional tensions.

Wrangling over waters

The Indus Waters Treaty has already endured three armed conflicts between Pakistan and India, and until recently it served as an exemplar of how to forge a successful bilateral agreement between two rival neighbors.

Under the initial terms of the treaty, which each country signed in 1960, India was granted control over three eastern rivers the countries share – Ravi, Beas and Satluj – with an average annual flow of 40.4 billion cubic meters. Meanwhile, Pakistan was given access to almost 167.2 billion cubic meters of water from the western rivers – Indus, Jhelum and Chenab.

In India, the relatively smaller distribution has long been the source of contention, with many believing the treaty’s terms are overly generous to Pakistan. India’s initial demand was for 25% of the Indus waters.

For Pakistan, the terms of the division of the Indus Waters Treaty are painful because they concretized unresolved land disputes tied to the partition of India in 1947. In particular, the division of the rivers is framed within the broader political context of Kashmir. The three major rivers – Indus, Jhelum and Chenab – flow through Indian-administered Jammu and Kashmir before entering the Pakistan-controlled western part of the Kashmir region.

But the instability of the Kashmir region – disputes around the Line of Control separating the Indian- and Pakistan-controlled areas are common – underscores Pakistan’s water vulnerability.

Nearly 65% of Pakistanis live in the Indus Basin region, compared with 14% for India. It is therefore not surprising that Pakistan has warned that any attempt to cut off the water supply, as India has threatened, would be considered an act of war.

It also helps to explain Pakistan’s desire to develop hydropower on the rivers it controls. One-fifth of Pakistan’s electricity comes from hydropower, and nearly 21 hydroelectric power plants are located in the Indus Basin region.

Since Pakistan’s economy relies heavily on agriculture and the water needed to maintain agricultural land, the fate of the Indus Waters Treaty is of the utmost importance to Pakistan’s leaders.

Such conditions have driven Islamabad to be a willing partner with China in a bid to shore up its water supply.

China provides technical expertise and financial support to Pakistan for numerous hydropower projects in Pakistan, including the Diamer Bhasha Dam and Kohala Hydropower Project. These projects play a significant role in addressing Pakistan’s energy requirements and have been a key aspect of the transboundary water relationship between the two nations.

Using water as a weapon?

With it’s rivalry with India and its desire to simultaneously work with Pakistan on numerous issues, China increasingly sees itself as a stakeholder in the Indus Waters Treaty, too. Chinese media narratives have framed India as the aggressor in the dispute, warning of the danger of using “water as a weapon” and noting that the source of the Indus River lies in China’s Western Tibet region.

Doing so fits Beijing’ s greater strategic presence in South Asian politics. After the terrorist attack, China Foreign Minister Wang Yi reaffirmed China’s support for Pakistan, showcasing the relationship as an “all-weather strategic” partnership and referring to Pakistan as an “ironclad friend.”

And in response to India’s suspension of the treaty, China announced it was to accelerate work on the significant Mohmand hydropower project on the tributary of the Indus River in Pakistan.

Chinese investment in Pakistan’s hydropower sector presents substantial opportunities for both countries in regards to energy security and promoting economic growth.

The Indus cascade project under the China-Pakistan Economic Corridor initiative, for example, promises to provide cumulative hydropower generation capacity of around 22,000 megawatts. Yet the fact that project broke ground in Gilgit-Baltistan, a disputed area in Pakistan-controlled Kashmir, underscores the delicacy of the situation.

Beijing’s backing of Pakistan is largely motivated by a mix of economic and geopolitical interests, particularly in legitimizing the China-Pakistan Economic Corridor. But it comes at the cost of stirring up regional tensions.

As such, the alignment of Chinese and Pakistani interests in developing hydro projects can pose a further challenge to the stability of South Asia’s water-sharing agreements, especially in the Indus Basin. Recently, the chief minister of the Indian state of Arunachal Pradesh, which borders China, warned that Beijing’s hydro projects in the Western Tibet region amount to a ticking “water bomb.”

To diffuse such tensions – and to get the Indus Waters Treaty back on track – it behooves India, China and Pakistan to engage in diplomacy and dialogue. Such engagement is, I believe, essential in addressing the ongoing water-related challenges in South Asia.

PESHAWAR: Shocking new revelations have rocked Khyber Pakhtunkhwa as details, photos, and videos of luxury vehicles and properties have surfaced in the massive Rs40 billion Kohistan corruption scandal. The National Accountability Bureau (NAB) has upped the case, converting the inquiry into a formal investigation, signaling a major crackdown on corruption.

It has also recovered and frozen assets worth a total of Rs25 billion in this case. They include a luxury bungalow featured in the popular drama serial Pari Zaad, along with 77 high-end vehicles worth Rs940 million, including Mercedes, BMW, Audi, Porsche Taycan, Toyota Land Cruiser, Fortuner, and Hilux Revo. NAB has also taken into custody over Rs1 billion in cash, foreign currency and more than 3 kilograms of gold. It has frozen Rs5 billion across 73 bank accounts and confiscated 30 houses, 25 flats, and 4 farmhouses. Arrests of key figures are expected within the next few hours.

According to officials, NAB has also seized 77 luxury vehicles worth about Rs 940 million, including Porsche Taycan, Toyota Land Cruiser, Lexus, Fortuner, Hilux Revo, Mark X, BMW, Mercedes, Ford Mustang, and Audi. In addition, 109 properties across Islamabad, Rawalpindi, Peshawar, Abbottabad, and Mansehra have been confiscated. These include 4 farmhouses, 12 commercial plazas, 2 commercial plots, 30 houses, 12 shops and food courts, 25 flats and penthouses and 175 kanals of agricultural land. The estimated value of these properties is about Rs17 billion. Official sources say key arrests are likely within 24 to 48 hours, and preparations are underway.

A colossal fraud was meticulously orchestrated through explicit collusion among government officials, contractors, complicit banking authorities and others. The accused acted with chilling audacity, siphoning off billions of rupees from the public exchequer without drawing the attention of any financial regulatory authority.