Category: 1. Pakistan

SWAT/LOWER DIR: The district administrations on Sunday launched a comprehensive anti-encroachment operation along the Swat and Panjkora rivers on Sunday, following the tragic incident where floods claimed the lives of about 14 tourists, who were having breakfast by the Swat River.

The incident sparked nationwide outrage, with people across the country criticising both the Khyber Pakhtunkhwa government and the district administration for failing to rescue the tourists in time.

In response to the tragedy, the provincial government formed a committee to investigate the causes, and the provincial chief secretary Shahab Ali Shah visited Swat for a meeting with local officials and elected representatives.

During the meeting, the chief secretary ordered the immediate cessation of gravel mining activities in the Swat River and the removal of all illegal structures and encroachments along the river.

Campaign faces opposition from hotel, restaurant owners in Swat

However, the anti-encroachment campaign has faced opposition from hotel and restaurant owners whose properties are situated along the Swat River. They argue that they legally constructed their buildings after acquiring the necessary permits.

Social activists have criticised the government departments for allowing the illegal construction of buildings along the river. “Why did the tehsil municipal administration, the irrigation department, and the district administration permit the construction of illegal buildings?” asked Saad Khan, a social activist from Mingora. “Where were the relevant authorities when these buildings were being built?”

The owners of hotels and restaurants maintain that they followed the proper procedures. “When we constructed our buildings, we obtained permission from the TMA and other local authorities. We invested millions of rupees to establish our businesses, and now, after so many years, the government is demolishing our buildings,” said Ihsanullah, a restaurant owner.

Hotel and restaurant owners threw stones at officials and police, resulting in three government servants being injured. In response, the police arrested eight individuals and filed cases against them.

Meanwhile, the Lower Dir district administration on Sunday decided to launch a crackdown on encroachments and unauthorised constructions along the Panjkora River and other streams in the wake of the recent tragic incident in Swat.

A complete ban has also been imposed on the legal and illegal extraction of sand, soil, and gravel from riverbeds.

The decision was made during an urgently called meeting chaired by deputy commissioner Mohammad Arif.

It was decided that, as per the clear instructions chief secretary Shahab Ali Shah, all forms of construction and the extraction of materials, both legal and illegal, along the Panjkora River would be completely banned.

Furthermore, it was decided to establish a response centre at the office of the additional deputy commissioner (relief), where officials from all relevant departments will be deployed to ensure timely coordination and response.

In line with provincial government directives, rescue teams will be equipped with drones, lifesaving jackets, and other modern rescue equipment. The executive engineer of the irrigation department was directed to establish an early warning system to monitor water levels and potential flood threats.

To ensure effective monitoring of all rivers across Lower Dir, it was also decided to deploy personnel from Rescue 1122, police, Levies, and the district administration on regular patrols. These teams will also be responsible for keeping the public away from riverbanks to avoid any untoward incident.

Meanwhile, in the wake of the recent incident in Swat and amid warnings of potential heavy rainfall and flooding across Khyber Pakhtunkhwa, the Dera district administration has intensified precautionary efforts to safeguard lives and property.

Dera division commissioner Zafarul Islam Khattak and regional police officer Syed Ashfaq Shah, accompanied by deputy commissioner Abdul Nasir Khan and district police officer Sajjad Ahmad Sahabzada on Sunday conducted a comprehensive visit to several critical points along the Indus River.

The officials inspected the water flow and assessed the rising levels, particularly at the Dera-Darya Khan Bridge.

They issued strict directives to immediately prohibit public access to the riverbanks, including recreational activities and bathing in the river.

The commissioner instructed all relevant departments to ensure full compliance with the restrictions and maintain strict monitoring along the river to prevent any untoward incident.

Citizens have been advised to remain vigilant and, in case of any emergency, promptly contact local authorities, Rescue 1122, or civil defence.

In Lakki Marwat, deputy commissioner Zeeshan Abdullah has banned swimming and bathing in all natural water bodies and use, sale and distribution of plastic bags in the district.

An official told Dawn on Sunday that the restrictions had been imposed for one month and the tehsil municipal officers of Lakki, Naurang, Ghaznikhel and Bettani subdivision had been directed to give a wide publicity to the order pertaining to imposition of restrictions.

He said the violators would be dealt with under the law.

Published in Dawn, June 30th, 2025

THEY came for breakfast and a few photographs, perhaps to capture a happy moment beside the River Swat. But within minutes, the calm waters turned violent, sweeping away an entire family in front of helpless onlookers.

As the surging brown torrents of the swollen river pounded the rocks beneath their feet, 14 tourists — men, women and children — stood huddled together, teetering between fading hope and overwhelming despair.

The family, belonging to Daska tehsil in Sialkot, had stopped for breakfast at Relax Hotel, located at the Fizagat picnic point on the outskirts of Mingora.

After their meal, they ventured onto the riverbed to take photographs. As they snapped selfies and recorded videos, the waters suddenly swelled, trapping them on a raised mound of stones and sand, left behind by quarrying work in the riverbed.

The river’s rapids quickly eroded the small, fragile piece of land beneath them. As bystanders captured the unfolding tragedy on their phones under a grey sky, members of the group began to fall into the torrent, one by one. Within minutes, all were swept away.

After 13 lives were lost in a flash flood, officials and experts weigh what could — and should — have been done to prevent the disaster

The short distance to safety — barely 100 metres — proved unreachable.

The incident has ignited public anger and raised serious questions about the provincial government’s emergency response, early warning systems and disaster preparedness.

Dawn spoke with officials and experts to piece together what really happened in Swat and evaluate the government’s role, the effectiveness of the emergency response, preparedness, and early warning systems.

What happened

Eyewitnesses said the group was stranded for over two hours and no one turned up to rescue them. But officials dispute this claim.

Shah Fahad, director general of Rescue 1122, told Dawn that CCTV footage from the hotel shows the tourists entering the riverbed around 9:37am. “The river was dry then, but within minutes, the water surged. By 9:45am, the river had risen dramatically,” he said.

Mr Fahad said the first call for help was received at 9:49am. However, a fatal miscommunication occurred. The operator misunderstood the nature of the emergency, treating it as a medical issue instead of a rescue operation.

An ambulance was dispatched and arrived at 9:56am. When responders realised they were faced with a river rescue, they requested a different vehicle. A disaster rescue vehicle, carrying generators, inflatable boats and other paraphernalia, was dispatched to the scene, but arrived too late.

He said an investigation was underway to find out whether the delay could have been due to operator error, or the caller’s failure to properly convey the nature of the emergency.

But there are slight variations, even in official records. According to information seen by Dawn, the Swat district administration received its first alert at 9:55am, and a Rescue 1122 ambulance arrived at the scene around 10:07am. Rescue efforts began in earnest at 10:15am with a locally made raft using inflated tubes.

By 10:36am, the eroding riverbed gave way and the stranded tourists were swept into the rapids. Video footage shows a raft, locally called a jaalai, approaching four people clinging to each other in knee-deep water. Official accounts claim three of them were rescued.

Several officials and rescue experts told Dawn the River Swat’s rocky, shallow, fast-flowing nature makes it unsuitable for divers or motorboats. Rescue 1122 has a rope gun capable of launching lines up to 100 metres, but it couldn’t be used as there was no anchor point across the river.

Why no helicopter?

A KP government official said a helicopter rescue was considered, but ultimately ruled out due to bad weather.

An emergency response expert told Dawn that 95 per cent of crisis management is preparedness, and only 5pc is the response. “You don’t send divers unless there’s a high chance of survival — and in this case, there wasn’t.”

He regretted that Swat has seen multiple floods since the 2010 floods, but little has been done in terms of community-based disaster risk management (CBDRM). In contrast, the Kalash valleys in Chitral have such systems in place.

“In 2015, the Bumburet valley faced severe flooding, but no lives were lost because villagers upstream warned those downstream. That’s what CBDRM looks like,” he said.

Early warning systems

Swat district spans over 5,000 square kilometres and has a population of 2.6 million. The Meteorological Department maintains three weather observatories here — in Saidu Sharif, Malam Jabba and Kalam.

On June 23, the KP Provincial Disaster Management Authority issued a weather advisory warning of a westerly wave approaching by June 25. It said the wave was likely to intensify on June 25 and directed authorities to take precautionary measures.

Data from the Met Department shows rainfall on June 27 measured 46mm in Saidu Sharif, 42mm in Malam Jabba and 4mm in Kalam. River gauges installed by the Irrigation Department in Khwazakhela recorded a morning discharge of 6,738 cusecs.

A senior Irrigation Department official told Dawn that Kalam valley was outside of the monsoon zone, which extends across Bahrain, Khwazakhela and Matta tehsils.

Another Irrigation Department official said the flash flood likely originated in Khwazakhela and Matta tehsils, fed by tributaries like Chaprial, Ningolay, Baryam and Shawar. Streams from Manglawar and Malam Jabba also contributed.

A telemetry system at Charbagh was reportedly non-functional, though Swat Executive Engineer Inamullah Khan denied its existence there, stressing that only Khwazakhela has such a system.

Former Swat deputy commissioner Shahzad Mehboob, who was transferred on Saturday, said the flood came too quickly for officials to respond. “Small tributaries of the River Swat swelled, and it reached the site within a very short span of time,” he said.

Yet questions remain: did officials in upstream tehsils — Khwazakhela, Matta, Charbagh and Babuzai — warn Mingora authorities in time? Could such a warning have triggered preventative action, avoiding the loss of lives?

On the evening of the tragedy, the KP government suspended the assistant commissioners of Babuzai and Khwazakhela for a delayed response and failure to issue an early warning. The Additional Deputy Commissioner (Relief) was also suspended for failing to make arrangements.

Some officials questioned why life jackets were not dropped near the stranded tourists. Others criticised the lack of on-ground enforcement, stressing that while alerts were issued, field action was lacking.

Published in Dawn, June 30th, 2025

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Header image: Army officials participate in rescue operations, Swat, June 27. — Rescue 1122/File

Noor ud Doha Farooqui
In recent days, social media has become a breeding ground for misinformed commentary and personal vendettas masquerading as political analysis. Among the many targeted has been the former Prime Minister of Azad Jammu and Kashmir, Sardar Tanveer Ilyas Khan, whose recent political decisions have stirred waves across party lines. One particularly absurd claim being circulated is that Sardar Tanveer Ilyas Khan was desperately trying to join the Pakistan Muslim League (N), and that upon being rejected, he had no choice but to join the Pakistan Peoples Party (PPP). The so-called “philosopher” behind this narrative not only misrepresents the facts but exposes his own contradictions and personal bitterness. The Reality: Invitations Came, Not Requests Let’s set the record straight. It wasn’t Sardar Tanveer Ilyas Khan knocking on doors — it was prominent figures from both PPP and PML-N visiting Sardar Palace in hopes of securing his inclusion. These weren’t ordinary visits. Repeated rounds were made, urging him to join for the sake of party strength and regional politics. While PPP was persistent, even Engineer Amir Muqam of PML-N made several attempts. Yet, Sardar Tanveer Ilyas Khan remained patient and deliberate. He chose not to make a hasty decision. Why? Because he wanted to consult the people of his constituency first, placing public will above political pressure — a trait that distinguishes leaders from mere politicians. Absurd Claims of Fear and Family Politics Another laughable notion being spread is that Sardar Tanveer feared backlash from within his own family if he were to join PML-N — particularly from a brother with previous political ties. Such assumptions are not only baseless but insultingly ignorant of the man’s proven political resolve. This is the same Sardar Tanveer Ilyas Khan who, while in power, refused to delay the local government elections despite pressure from the ruling class. The same man who openly defied those calling for postponement, insisting, “If there are to be elections — there will be elections.” Was he afraid then? Was he hesitant when he laid out a development roadmap for Azad Kashmir? If fear was in his character, he would have never stood firm against the entire machinery of influence trying to sway him. To assume he would be intimidated by family dynamics now is nothing short of a joke. Biting the Hand That Once Fed You Among those casting stones is an individual who shamelessly admitted that his company had a media advisory contract with Sardar Tanveer during his premiership. Not only did he enjoy the perks of protocol and access, but he now chooses to repay that generosity with personal attacks and twisted narratives. It’s ironic — the same person who once benefited from Sardar Tanveer’s leadership is now the loudest critic, proving the age-old proverb: “Some people bite the very hand that feeds them.” The Decision to Join PPP: A People’s Mandate When final calls were made, Sardar Tanveer Ilyas Khan chose to join the Pakistan Peoples Party — not out of necessity, but out of alignment with public sentiment. Even till the last moment, high-level attempts were made — phone calls, personal visits — but Sardar Tanveer honored the voice of the people. And now, his presence has transformed the political landscape. With him joining, PPP in Azad Kashmir is no longer just a party — it’s a political force, poised for dominance in the upcoming elections. Preparations are underway for district-wide receptions, honor ceremonies, and more elected representatives are expected to follow his lead. To the So-Called “Philosopher” To those crafting false philosophies rooted in ego and entitlement: the people are watching, and they are not blind. The lies you tell may entertain a few, but they won’t change reality. You may pretend to be a thinker, but your bitterness has stripped away your credibility. As Sardar Tanveer Ilyas Khan prepares to launch his political tour across Azad Kashmir, it is evident: a new era is beginning — one rooted in public service, accountability, and strength. For those with envy in their hearts and betrayal on their tongues, remember: truth doesn’t need validation from the bitter. It lives on in action, service, and legacy.

A car bomb attack in Pakistan has killed at least 13 soldiers and injured civilians.

Pakistani officials said a suicide bomber drove a vehicle packed with explosives into a military convoy in the north-western tribal region of North Waziristan, near the border with Afghanistan, on Saturday.

Pakistan alleged that the militants behind the attack were backed by India, but Delhi quickly denied this.

Dismissing Pakistan’s accusation, Randhir Jaiswal, spokesman for India’s ministry of external affairs, posted on X: “We reject this statement with the contempt it deserves.”

The attack has been claimed by a suicide bomber wing of the Hafiz Gul Bahadur armed group, a faction of the Pakistan Taliban.

Pakistan’s army, however, said the attack was carried out by militants backed by India, without providing evidence.

“In this tragic and barbaric incident, three innocent civilians including two children and a woman also got severely injured,” the Pakistani army said in a statement.

Pakistan’s Prime Minister Shehbaz Sharif condemned the “cowardly act”.

Relations between the two nations have long been strained, but tensions deepened in April after a deadly attack on tourists in Indian-administered Kashmir left 26 people dead.

India blamed Pakistan for sheltering members of a militant group it said were behind the attack, and the incident brought the two nuclear-armed countries to the brink of another war.

In May, India launched a series of airstrikes, targeting sites it called “terror infrastructure in Pakistan and Pakistan-administered Kashmir”.

Pakistan denied the claim that these were terror camps and also responded by firing missiles and deploying drones into Indian territory.

The hostilities continued until 10 May when US President Donald Trump announced that India and Pakistan had agreed to a “full and immediate ceasefire”.

Pakistan has witnessed a surge in terrorist incidents following the collapse of the ceasefire agreement between the government and the Pakistani Taliban in November 2022.

The federal government launched a new power smart mobile application, “Apna Meter, Apni Reading”, aimed at enhancing transparency in electricity billing and empowering consumers to take control of their monthly meter readings, it emerged on Sunday.

Prime Minister Shehbaz Sharif officially inaugurated the app, developed by the Power Division under the leadership of Minister Awais Ahmad Khan Leghari. The app allows users to upload a photo of their meter reading on a specific date, which will then be used to generate their bill.

The move targets key issues such as overbilling, delayed or inaccurate readings, and lack of transparency in the current system. Consumers who submit their readings will override any subsequent company readings for that billing cycle.

The feature is particularly beneficial for subsidised consumers, helping them avoid losing their eligibility due to minor discrepancies. For example, crossing the 200-unit usage threshold by even one unit can spike a bill from Rs2,330 to over Rs8,000.

Pakistan has temporarily closed the Ghulam Khan border crossing with Afghanistan due to security threats, disrupting trade and travel until further notice.

Local officials in Khost province have announced that the Ghulam Khan border crossing has been closed by the Pakistani side due to security concerns and will remain shut until further notice.

According to a press release issued by the Khost governor’s office, officials at the Ghulam Khan crossing were informed by Pakistani authorities on the evening of the previous day that the route would be temporarily closed due to ongoing security threats.

The statement further noted that no specific timeline has been provided for the reopening of the border, and the closure will remain in effect until further notice.

Local authorities have urged all citizens, travelers, and traders to avoid using this route and instead utilize alternative pathways for commuting and transporting their goods.

Ghulam Khan is one of the key border crossings between Afghanistan and Pakistan, playing a crucial role in the transit of goods and the movement of people between the two countries. It holds particular economic and commercial importance for residents of Khost and neighboring areas.

Repeated closures of this route due to security concerns have often created difficulties for traders, drivers, and passengers, negatively impacting trade relations between the two nations.

The ongoing border disruptions continue to strain the already fragile economic ties between Afghanistan and Pakistan, affecting livelihoods and regional trade dynamics.

Authorities on both sides are being urged to establish a sustainable and secure framework for cross-border movement to avoid future economic setbacks and reduce disruptions to civilian life.

There are two major problems with history. Firstly, the historian has to rely on sources in developing a narrative, since history recounts the past and he or she is not witness to that time frame. Secondly, objectivity is the first casualty, however truthful the historian may be, because the biases nurtured over the years inevitably affect the outcome. Nevertheless, I grew up in this era and will try to shed light on it as objectively as possible.

The Zia regime has been criticised for many valid reasons, and the more one studies this period and the demons it created, the more depressing it becomes. From a relatively peaceful and secular country, Pakistan transformed into a land of extremism. Yet one needs to appreciate the threat we faced back then in order to make a fruitful analytical exercise for today’s generation.

It was in March 1980, during a class break at St Anthony’s, when two of my classmates—both sons of army officers—told us that Pakistan faced a serious threat if the Soviet Union invaded. We were only twelve‑ or thirteen‑year‑old children, and the fear of the Russian bear was palpable. When I came home and asked my father, a retired army officer, he tried to comfort me as fathers do, but I overheard him telling my mother, “Let us pray the Soviets stop at Afghanistan.” That was the atmosphere. If General Zia and his government, backed by the international community, had not helped defeat the Soviet Union, the history of Pakistan would have been very different. So let us acknowledge this positive aspect of the Zia regime in safeguarding Pakistan from an Armageddon.

The Afghan jihad began like a sputtering carburettor and gained traction after Ronald Reagan became President of the United States. It led to the mushrooming of madrasas—especially of the Deobandi fiqh—the proliferation of weapons, particularly the Kalashnikov, the birth of non‑state actors revered for their passion to protect Islam and Pakistan against ‘infidels’, the introduction of Islamic laws, the enforcement of religious edicts under pain of punishment, and many other measures taken in the name of religion.

The years 1980–88 can be termed the worst era in our history’s mosaic of terrorism because both sectarian and ethnic violence took root for different reasons during this time

One incident, however, stands apart. The imposition of the Zakat and Ushr Ordinance on 20 June 1980 sparked a major protest by the Shia community. On 5 July 1980, thousands of Shias rallied in Islamabad under the banner of the TNFJ, compelling the government to backtrack and grant them exemption. This was the first large‑scale sectarian mobilisation in Pakistan’s history and, coming a year after the Iranian Revolution, had added impetus.

This episode alarmed the Deobandis and Wahhabis. Fearing Shia ascendancy, the Deobandis, led by Maulana Haq Nawaz Jhangvi, formed Sipah‑e‑Sahaba Pakistan in 1985, the first sectarian organisation to challenge Shia communities openly. Thus began Shia–Sunni sectarian militancy. It spread across Pakistan, turning the previously peaceful month of Muharram into a flashpoint requiring massive deployments of law‑enforcement personnel—a practice that, regrettably, continues today. It was also the first time police officers were routinely stationed at mosques and imambargahs.

The country’s first major Shia–Sunni riots erupted in Karachi during Muharram in 1983, leaving at least sixty people dead. Further disturbances followed over the next three years, spreading nationwide. By 1986, Jhang and Bhakkar had become hotbeds of violence, marked by targeted assassinations of Shia and Sunni clerics. Many believed Pakistan had become a proxy battleground for Saudi Arabia and Iran, the former supporting Deobandis and Wahhabis, the latter the Shias. The worst incident occurred in Gilgit in May 1988, triggered by a dispute over the moon‑sighting, and resulted in hundreds of deaths. This religious divide has haunted us ever since.

One must remember that the Afghan jihad attracted fighters from across the Muslim world and was supported by the West, led by the United States. Pakistan served as their home base—an often‑forgotten fact today. Crucially, al‑Qaeda was founded by Osama bin Laden in Peshawar in 1988 as a broad logistical network for these fighters. Pakistan thus became the breeding ground of sectarian militancy as a direct offshoot of the Afghan jihad.

The second violent contour that developed in this period was ethnic. The Muhajir Qaumi Movement (MQM) evolved from the All‑Pakistan Muhajir Students Organisation (APMSO), founded in 1978 by Altaf Hussain to represent Urdu‑speaking Muhajirs. The party later became the Muttahida Qaumi Movement in 1997, dropping the term “Muhajir”. Its strongholds were the urban areas of Sindh, especially Karachi and Hyderabad.

On 15 April 1985 the death of a twenty‑year‑old student, Bushra Zaidi, who was hit by a bus driven by a Pathan, sparked a new chapter of ethnic violence. Rioting spread throughout Karachi, reflecting a deep‑rooted socio‑economic malaise. Officially fifty people were reported dead and more than three hundred injured, although unofficial estimates put fatalities at two hundred.

Reportedly over 2,600 ethnic riots occurred between 1985 and 1988. Terrorism reared its ugly head as Muhajirs, Pathans, Sindhis and, in some cases, Punjabis all engaged in violence. A hapless state looked on. Weak political leadership and the see‑saw between president and prime minister meant that a situation requiring mature, swift action was badly mishandled. Violence escalated, and ordinary people of every ethnicity suffered, paying the price in blood.

The years 1980–88 can be termed the worst era in our history’s mosaic of terrorism because both sectarian and ethnic violence took root for different reasons during this time. The small saplings we allowed to be planted quickly grew into terrifying behemoths that have haunted us since—and may continue to do so for the foreseeable future.

ISLAMABAD:

Pakistan and China have signed $3.7 billion equivalent commercial loan deals this week, pulling the foreign exchange reserves back to the double-digits from the critically low level of $8.9 billion in last week.

The deals would also help meet a commitment with the International Monetary Fund to close the fiscal year 2024-25 with $14 billion gross foreign exchange reserves.

Official sources told The Express Tribune that the Industrial and Commercial Bank of China (ICBC) and the Bank of China have signed a total $1.6 billion deals on Friday. The money will be disbursed by Monday, which is the last day of the current fiscal year.

At one stage it appeared that China may not sign the $1.6 billion deals this week, which resulted in hectic backdoor economic diplomacy. The sources said that Deputy Prime Minister Ishaq Dar played a critical role in finalising the deals after he was approached by the finance ministry.

Dar first started pursuing the Chinese authorities on May 19 that eventually led to the signing and disbursement of $2.1 billion commercial loan by a syndicate of three Chinese commercial banks this week.

A $2.1 billion or 15 billion RMB syndicate financing loan by three Chinese commercial banks matured a few days ago, which pulled the reserves down to $8.9 billion, said the sources. Unlike rollovers of Chinese cash deposits of $4 billion, the Chinese commercial loans have to be first repaid before these are refinanced on new terms and conditions.

China has given this $2.1 billion money in RMB currency, which is also reflected in the foreign exchange reserves of the central bank. As a result, the foreign exchange reserves jumped to $12.4 billion on Friday, said the sources.

The China Development Bank has given 9 billion RMB, Bank of China 3 billion RMB and ICBC 3 billion RMB. The loan is being extended for a period of three years, said the government sources.

There were still $1.6 billion pending amounts, which were slipping to next fiscal year. Ishaq Dar on Friday received confirmation from the Chinese authorities that the remaining two commercial loans have also been finalized and the money will be disbursed very soon, the sources added.

In total, Pakistan and China have finalized $3.7 billion worth of commercial loans deals in the past few days. The Friday deal included a $1.3 billion loan of the Industrial and Commercial Bank of China (ICBC). The ICBC had given the loan two years ago at floating interest rates, which translated to around 7.5%.

The Bank of China’s $300 million loan was also finalized and will be disbursed in Chinese currency. The move to delink loans from the US dollar is not Pakistan specific rather it is part of the overall Chinese policy to decouple its economy from the US currency.

Pakistan remains dependent on Beijing for remaining afloat, the friendly nation that is constantly rolling over the $4 billion cash deposits, $5.4 billion worth commercial loans and $4.3 billion trade financing facility.

The ADB-backed $1 billion foreign non-Chinese commercial loan was also disbursed last week.

During the week ended on 20th June, the SBP reserves decreased by $2.7 billion to $9.1 billion due to external debt repayments, mainly repayment of commercial borrowing, according to a statement that the central bank issued on Friday. During the current week, SBP has received commercial loans equivalent to $3.1 billion and multilateral loans of over $500 million, it added.

The foreign exchange reserves slipping to below $9 billion mark underscores the vulnerability of the fragile external sector stability. Heavy dependency on foreign borrowings should also be a matter of concern for the government.

The rupee-dollar parity has again started coming under pressure after the central bank went on a heavy buying spree, said the sources. There was also a shortage of foreign currency in the market, which was leading to depreciation of the rupee and compelling commercial banks not to open letter of credits for the imports.

Finance Minister Muhammad Aurangzeb has said that the foreign exchange reserves would close over $14 billion by the end of this fiscal year.

Islamabad has also sought the rescheduling of the government’s concessional loans, preferential buyer credit, and the buyer’s credit from the Export-Import (Exim) Bank of China. China has not agreed to reschedule the buyer’s credit loans, they added.

China has shown willingness to reschedule $1.8 billion worth of government concessional loans and the preferential buyer credit by next month. These loans have been taken for various projects and are over and above the commercial financing that Chinese banks have given to Pakistan.