Category: 1. Pakistan

Incarcerated PTI founder and ex-prime minister Imran Khan has decried the lack of any “meaningful momentum” for the party’s planned August 5 protest and ordered its members to immediately shun all their differences.

Imran, imprisoned since August 2023, is serving a sentence at the Adiala Jail in a £190 million corruption case and also faces pending trials under the Anti-Terrorism Act related to the protests of May 9, 2023. He has issued a nationwide protest call, which will reach its “peak” on Aug 5 to mark the second year of his incarceration in multiple cases.

However, Khyber Pakhtunkhwa Chief Minister Ali Amin Gandapur appeared to disrupt the nationwide protest plans and sow confusion by introducing a new 90-day timeline for what he described as ‘a final push’. PTI Punjab chief organiser Aliya Hamza Malik later voiced her reservations about his announcement.

The resulting discord in the party leadership and ranks had prompted Imran to prohibit his party members from publicly discussing the party’s internal matters.

In a post today on his X account — which is not operated by Imran himself — a message said to be sent on his behalf stated: “Let me make this absolutely clear: every member of the party must immediately set aside all internal differences and focus solely on the movement planned for August 5th. I do not see any meaningful momentum building behind this initiative at present. I am waging a battle against a 78-year-old system, and my greatest success is that despite unprecedented oppression, the public stands firmly with me.”

The message said the people had expressed their trust in the PTI by voting for it in the general elections, even in the absence of an electoral symbol.

“After such a clear mandate, it is the moral and political responsibility of every party member to become the voice of the people. It will be nothing short of disgraceful and condemnable if PTI leaders waste time on internal conflicts at this critical juncture.

“Anyone found engaging in factionalism within the party will be expelled. I am fighting for the future of our generations and every sacrifice I make is for that cause. To create rifts within the party at this time would be a direct betrayal of my mission and vision,” the message warned.

Lashing out at the government, the message said it had “crippled the judiciary” through the 26th Constitutional Amendment.

“The way biased judges are now delivering blatantly unjust verdicts under these courts is visible to the entire nation. We must launch a robust campaign to liberate the judiciary, for no nation can survive, let alone progress, without judicial independence.”

The message claimed “inhumane conditions” were being imposed upon Imran’s spouse and former first lady Bushra Bibi while the PTI founder’s conditions were themselves not good.

“I am enduring the harshest prison term in the country’s history solely for the supremacy of the Constitution and in service of my nation. The level of oppression and authoritarianism is such that even the water I have for ablution is filthy and contaminated with dirt, unfit for any human being.”

Separately, a post from PTI’s central deputy information secretary said the nationwide protest would be led under the banner of the opposition alliance Tehreek Tahafuz Ayeen-i-Pakistan (TTAP).

“All provincial organisations will follow their respective plans of action based on their circumstances.”

Addressing a press conference with other TTAP leaders, Mustafa Nawaz Khokhar said the first step of the protest movement would be an all-party conference in Islamabad on July 31 and the decisions taken then would shape the future plan of action.

Imran’s sons continue US engagements

Meanwhile, Imran’s sons continued their engagements in the United States, where they currently are before visiting Pakistan for their father.

They met Republican Congressman Joe Wilson of South Carolina who had introduced a bipartisan bill in the US House of Representatives in March, calling for sanctions on Pakistani state functionaries over alleged human rights violations, including the “persecution” of their father.

They also met US Congressman Brad Sherman.

“I am concerned to hear that Khan remains isolated from his family, friends, attorneys and doctors. His sons also shared that his physical health may be deteriorating. The people of Pakistan deserve to have their leaders be treated fairly under the law,” he said in a post on X about the meeting.

ISLAMABAD:

Foreign Office has dismissed reports suggesting the recognition of the Afghan Taliban Interim Government, labelling the claims as speculative and refraining from commenting on the issue.

During a weekly media briefing on Thursday, Foreign Office Spokesperson Shafqat Ali Khan addressed questions surrounding the Taliban government’s recognition. “At this point, it is speculative. I cannot comment on that,” Khan stated.

Turning to the visit of Pakistan’s Deputy Prime Minister Ishaq Dar and Interior Minister Mohsin Naqvi to Afghanistan, Khan acknowledged that security issues were at the forefront of discussions, particularly the presence of terrorist sanctuaries on Afghan soil.

“When the Interior Minister goes to a country, security issues are at the top of his agenda. In the aforementioned visits, not only at the Interior Minister level but also at the political level, the issue of sanctuaries enjoyed by terrorists in Afghanistan was a key point. Discussions are ongoing on that, and this is part of the regular dialogue between the two countries,” he explained.

Regarding the state of trade between Pakistan and Afghanistan, Khan highlighted the significance of the bilateral relationship, noting that various issues related to logistics and customs procedures have affected trade. “There have been issues, or multiple issues, ranging from logistics, customs, procedure, etc., impacting trade. So, all of these are being addressed, and you can see the momentum it is generating. There is good progress on trade,” he said.

On the subject of Afghan refugees, Khan clarified that the Ministry of Interior and the Ministry of States and Frontier Regions were the relevant departments dealing with the deadline for Afghan refugees to leave Pakistan. “As soon as any clarity or instructions from the government are received, we will be able to share with you,” he said.

Iran is a very close friend

Discussing the upcoming visit of Iranian President to Pakistan, Khan referred to Iran as “a very close friend, neighbour and a brotherly country.” He confirmed that discussions regarding the dates of the visit are currently ongoing and assured that details would be announced once finalised.

Khan also addressed the scheduled meeting between DPM Ishaq Dar and US Senator Marco Rubio. The meeting is expected to cover a wide range of bilateral issues, including regional and global concerns, particularly the Middle East, as well as the ongoing Pakistan-India situation. “We remain grateful for the role played by the US in de-escalating tensions leading to the ceasefire,” Khan added.

Pakistan warns India

Foreign Office also reaffirmed its stance that any misadventure by India would be met with a “robust posture” from Pakistan, emphasising the country’s confidence in its defence capabilities.

“Regarding any misadventure by India, our posture remains very robust. We are confident in our defence capabilities, and we hope India sees reason. However, if any attack or aggression occurs against Pakistan, we are ready to defend ourselves,” he said.

He stressed that Pakistan is prepared to respond to any aggression from India, pointing to the recent demonstration of military capability in the Marka-e-Haq, and expressed hope that India would recognise the futility of its aggressive stance, warning that such hegemonic impulses would lead nowhere.

“We are confident about our capabilities, and we have demonstrated this in the recent Marka-e-Haq, which should be evident to everyone. The bottom line is that we remain ready, and we hope India will see that bellicosity and hegemonic impulses will not lead it anywhere,” Khan stated.

Reiterating Pakistan’s invitation to India for dialogue, he said, “So we hope that reason prevails and they can see that the route of diplomacy can lead to win-win situation between the two countries. However, he stressed that the decision to engage in talks rests with India.

Pakistan calls for immediate ceasefire in Gaza

On the situation in Syria, Khan reiterated Pakistan’s full support for the country’s sovereignty, independence, and territorial integrity, calling on the international community to intervene and halt Israel’s actions that undermine peace in the region.

“Pakistan stands in full solidarity with the brotherly people of Syria and reaffirms its strong support for lasting peace and stability in the country and in the region,” the spokesperson said.

Read More: Khawaja Asif warns India may attempt another misadventure

On Palestine, he condemned Israel’s continued acts of aggression in Gaza, which have led to the deaths of numerous innocent civilians, including women, children, and the elderly.

Foreign Office has once again called for an immediate and unconditional ceasefire, the end of Israel’s actions against Palestinians, and the lifting of the blockade on Gaza to allow for humanitarian aid to reach those in need.

“Pakistan condemns the continued blatant acts of aggression by Israeli forces in Gaza and Palestine, leading to the deaths of dozens of innocent civilians,” Khan said, reiterating Pakistan’s call for urgent international action.

ISLAMABAD:

Standard & Poor’s credit rating agency upgraded Pakistan by one notch to “B negative” on Thursday, an improvement from its previous standing, though still two positions below investment grade. This move comes due to the implementation of reforms and the abating risks of sovereign default.

S&P Global Ratings raised the long-term sovereign credit ratings from “CCC positive” to “B negative” after a gap of two and a half years, according to an announcement by the agency, one of the three largest credit rating firms.

The agency also assigned a stable outlook to Pakistan. The upgrade has improved Pakistan’s creditworthiness from “very high credit risk, vulnerable to non-payment” to “highly speculative.” Due to its junk credit rating, Pakistan was unable to float international bonds to raise more debt last fiscal year.

S&P stated, “The coalition government led by the Pakistan Muslim League-Nawaz (PML-N) has demonstrated its ability to implement necessary reforms under the IMF programme without significant social unrest.”

The agency noted that the willingness of policymakers to adhere to expenditure controls and continue enhancing the tax revenue base will be crucial in meeting the remaining targets set out in the Extended Fund Facility (EFF) arrangement.

The Ministry of Finance has played a key role in staying on track with the IMF programme, despite facing criticism for making tough decisions necessary to complete the first review of the programme and align the new budget with the Fund’s requirements.

S&P’s ratings upgrade reflects the agency’s view that Pakistan is less reliant on favourable macroeconomic and financial developments to meet its obligations. Pakistan has replenished its foreign reserves over the last 12 months, and near-term default risks have abated, according to S&P.

However, one vulnerable area that emerged is related to the exchange rate, which has led to intervention by the military establishment to prevent the reemergence of the grey market.

S&P highlighted that the Pakistani rupee’s depreciation against the US dollar in recent years contributed to stagnation in the country’s nominal GDP per capita. The agency noted that the rupee stabilised in the last fiscal year, and with rising real growth, it forecasts that GDP per capita will surpass $2,000 by fiscal year 2027.

The rating agency also emphasised that political stability and improvement in security conditions are critical for further upgrades. However, it expects political uncertainty to remain high due to a volatile political environment.

“Pakistani politics has been in flux since the ousting of former Prime Minister Imran Khan through a parliamentary no-confidence motion in April 2022,” S&P noted. “We believe that a stable political environment in Pakistan is a key precondition for improvements in the government’s creditworthiness.”

The security situation has improved since the early 2010s, but the potential for deterioration remains. Border tensions with India, highlighted by the recent outbreak of hostilities following the Pahalgam terrorist attack in May 2025, could escalate beyond the intentions of both sides, the agency warned.

S&P also pointed out risks related to debt-servicing costs, which remain high. The agency said Pakistan’s stable outlook reflects its expectation that external support from key multilateral and bilateral partners, along with improvements in the country’s fiscal position, will persist over the next 12 months to meet considerable debt obligations.

The outlook also reflects expectations that continued economic recovery and government efforts to enhance revenue will stabilise fiscal and debt metrics.

Pakistan’s current account posted a surplus in fiscal 2025, the first surplus in 14 years. The modest annual surplus of 0.5% of GDP was driven by record-high remittances, which totalled $39 billion, or 9.5% of GDP. These developments have strengthened Pakistan’s external metrics and alleviated near-term external stress.

The IMF programme-related reforms have significantly increased the government’s tax revenues by 3% of GDP in the last 12 months.

Alongside expenditure controls, S&P forecasts that the general government deficit will decrease to 5.1% of GDP in fiscal 2026, although this is higher than the government’s budget target.

The agency has projected inflation to stay around 6.5% over the next two to three years. As a result, monetary conditions will ease further, and with lower domestic interest rates, government interest payments will decrease to an average of 41% of revenue over the next three years, from a peak of over 60% in fiscal 2024.

“Nevertheless, Pakistan’s interest-servicing-to-revenue ratio remains one of the highest globally among rated sovereigns,” S&P stated. “The main pressure on debt sustainability is the extremely high interest expense relative to fiscal revenue.”

This remains a significant constraint on the agency’s assessment of Pakistan’s debt burden. S&P sees further deterioration in the debt-to-revenue ratio, projecting it to increase from 443% to 454% in this fiscal year.

Future warning:

“We may lower our ratings if Pakistan’s external or fiscal indicators deteriorate well beyond their current levels,” S&P stated.

Downward pressure would emerge if financial support from key bilateral and multilateral partners erodes quickly, or if usable foreign exchange reserves fall substantially, indicating difficulties in servicing external debt obligations.

Furthermore, should interest rates surge again and substantially add to the government’s already-heavy debt-servicing burden, the agency would view that as an indication of domestic financing stress, it added.