
US reaffirms counterterrorism cooperation with Pakistan amid warming ties
'We remain committed to countering terrorism in all its forms,' the US embassy in Islamabad said in a statement following the meeting.
The engagement came a day after Washington added the proscribed Balochistan Liberation Army (BLA) and its Majeed Brigade to its Foreign Terrorist Organisation list, a move long sought by Islamabad. The designation underscored strengthened cooperation against terrorist threats, including IS-Khorasan and Tehreek-e-Taliban Pakistan.
Co-chaired by Special Secretary (UN) Nabeel Munir and US Acting Coordinator for Counterterrorism Gregory LoGerfo, the dialogue emphasised building stronger institutional frameworks and addressing emerging threats, including the misuse of new technologies.
The talks follow a string of high-level engagements in recent months, including Army Chief Field Marshal Asim Munir's two visits to Washington and FM Ishaq Dar's meeting with US Secretary of State Marco Rubio.
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Business Recorder
14 hours ago
- Business Recorder
What falling out with the US means for India?
At the start of this year, relations between India and the United States appeared to be on an upward trajectory. In February, just a month after Donald Trump's return to the White House, Prime Minister Narendra Modi stood alongside his long-time friend at the White House, pledging to raise bilateral trade to $500 billion by 2030 and signalling the possibility of a comprehensive trade agreement. This bonhomie wasn't restricted to just trade – it reflected on defence cooperation, energy trade, and the Indo-Pacific security framework. Modi invited Trump to India for the planned Quad leaders' summit later this year, a gesture intended to cement the personal rapport between the two leaders. That optimism began to unravel in May when tensions between India and Pakistan flared dangerously. In a brief but intense escalation, Pakistan claimed to have shot down six Indian fighter jets and destroyed a BrahMos missile storage facility in Indian-Illegally Occupied Jammu and Kashmir. Both sides came perilously close to wider conflict before agreeing to a ceasefire on May 10. Trump publicly took credit for brokering the deal, calling it a personal diplomatic success. India, however, disputed that narrative, insisting it was a mutually agreed arrangement without US mediation. This disagreement planted the first seeds of mistrust. In June, the unease deepened when Trump invited Pakistan's army chief, Field Marshal Asim Munir to the White House for a high-profile lunch. The meeting, followed by announcements of a favourable US-Pakistan trade arrangement, an oil reserve development deal, new cooperation on cryptocurrency regulation, and Washington's acceptance of Pakistan's long-standing demand to designate the Balochistan Liberation Army and its Majeed Brigade as terrorist organisations, signalled a strategic warming between Washington and Islamabad. Days before the Trump-Munir meeting, Modi and Trump held a tense phone call on June 17. According to reports, the conversation further soured their relationship, unravelling years of carefully built goodwill. The economic blow By August, the rupture had translated into hard measures. Trump slapped 25% tariffs on Indian imports, accusing New Delhi of maintaining 'strenuous and obnoxious' trade barriers. Days later, he doubled the rate to 50%, the highest for any Asian partner, citing India's continued purchases of Russian crude as undermining the US sanctions regime against Moscow. He ruled out further negotiations until India cut its Russian oil imports. This escalation came despite five rounds of talks toward an interim trade deal, in which India had shown willingness to increase US energy and defence purchases and lower tariffs on American industrial goods. Political miscalculations and disagreements over agricultural norms and quotas ultimately doomed the talks, leaving $190 billion in annual trade and a $46 billion deficit unresolved. The tariff hike threatens India's $87 billion export engine to the US, 18% of its total exports and over 2% of its GDP. Industry experts warn of a 40-50% drop in shipments, especially in labour-intensive sectors such as textiles, jewellery, and automobiles. Small and medium-sized enterprises face a severe loss of competitiveness, while economists have trimmed GDP growth forecasts by as much as 1%. Market reaction has been swift: a weaker rupee, the risk of imported inflation, capital flight by foreign portfolio investors, and higher borrowing costs for foreign-currency debt. Strategic fallout The dispute undermines New Delhi's ambitions in the Indo-Pacific. While the foreign ministers of Australia, Japan, the US, and India recently met in Washington, the Quad leaders' summit now looks unlikely. Instead, India risks drifting closer to Russia, its long-time defence partner, and even exploring limited engagement with China, which Modi is set to visit later this month. For Washington, this marks a reversal of a 25-year strategy of building up India as a counterweight to China's rise. For New Delhi, it is a reminder of the volatility of personal diplomacy: the same leader who embraced Modi in Ahmedabad in 2020, before 100,000 cheering spectators, is now wielding tariffs as leverage. Political setback for Modi Domestically, the rupture is damaging for Modi. His image as a global statesman, reinforced by his perceived closeness to Trump, has been a key part of his appeal to India's middle class. The opposition Congress party has seized the moment, branding him 'Narendra Surrender' for failing to protect Indian trade interests. Even Hindu nationalist groups in the US, once among Trump's staunch supporters, feel abandoned by Washington's turn. With his Bharatiya Janata Party (BJP) having lost its parliamentary majority in the last election, Modi now faces questions about his handling of both foreign and economic policy. His perceived inability to counter China's assertiveness while losing favour in Washington could become a central vulnerability. The stakes At stake is more than just a trade dispute. The episode jeopardises three decades of India's economic ascent and its strategic positioning as an emerging power backed by a US partnership. Whether this moment leads to strategic drift, realignment toward other powers or eventual rapprochement with Washington will shape India's trajectory for years to come. The above article was contributed by Syed Ahmed Raza Rizvi, Senior Sub-Editor at Business Recorder (Digital).


Express Tribune
16 hours ago
- Express Tribune
US, China extend tariff truce, calming tensions
The United States and China have announced to extend the suspension of 24 percentage points of reciprocal tariffs on each other's goods for another 90 days, starting August 12, 2025, in a move seen as an effort to stabilise strained economic ties between the world's two largest economies. The decision, announced in a joint statement on Tuesday, followed talks in Stockholm on July 28-29 led by Chinese Vice Premier He Lifeng, US Treasury Secretary Scott Bessant, and US Trade Representative Jamison Greer. It builds on commitments made during earlier rounds in Geneva on May 12 and London on June 9-10, under a negotiation framework designed to manage disputes without escalating into a trade war. Under the arrangement, both sides will retain a 10% tariff on a range of goods while continuing to suspend an additional 24% ad valorem tariff. The US suspension applies to imports from mainland China as well as Hong Kong and Macao. In Washington, the move modifies measures introduced under Executive Order 14257 of April 2, 2025, which had imposed steep tariffs as part of a broader economic pressure strategy. Beijing will amend its counter-tariff measures, first announced under Tax Commission Announcement No 4 of 2025, and pause certain non-tariff actions in line with the Geneva declaration. While markets and manufacturers welcomed the extension, analysts stressed it is more of a ceasefire than a breakthrough. "This is not a peace treaty; it's a ceasefire," said an international trade analyst in Washington. "Both governments are buying time to keep talks alive, but the fundamental differences are still there." The extension comes as both economies confront domestic headwinds. The US is grappling with slowing growth, high borrowing costs, and a politically charged election season in which trade with China is a divisive issue. China is contending with a sluggish post-pandemic recovery and a troubled property sector. "Neither side can afford a new tariff escalation right now," a Beijing-based economist said, framing the move as a pragmatic step driven by necessity rather than a convergence of political visions. For Washington, the truce could help avoid adding price pressures for consumers and businesses. For Beijing, it may shore up investor confidence and secure export markets. Chinese Vice Premier He Lifeng emphasised during the Stockholm talks that a stable, healthy, and sustainable China-US economic relationship serves not only the two countries' respective development goals but also contributes to global economic growth and stability. Since their imposition in repeated tit-for-tat fashion, tariffs have increased costs for consumers and businesses, disrupted supply chains, and added long-term uncertainty that has dampened innovation and investment. Although some US politicians argue that tariffs bring in revenue, economists argue that the gains are outweighed by reduced economic output and slower growth. The tariff truce, first agreed earlier this year, rolled back triple-digit rates to more manageable levels, calming tensions in sectors such as electronics, machinery, and agricultural goods. US importers and Chinese exporters alike have used the pause to stabilise contracts, manage inventories, and adjust pricing strategies. The Sweden talks hold significance far beyond bilateral trade. Both economies remain deeply intertwined despite strategic rivalry, and their decisions ripple through global supply chains and commodity markets. Countries in Asia and Europe linked to the two economies could see short-term stability as a result of the pause in tariff escalation. "Reducing tariffs and stabilising trade is not a zero-sum game," said a Beijing-based trade researcher. "It's a foundation for sustainable growth benefiting workers, consumers, and producers on both sides."


Express Tribune
16 hours ago
- Express Tribune
Trade deficit widens 44% in July
Listen to article As Pakistan's trade deficit widened 44% in July due to a sharp rise in imports, Planning Minister Ahsan Iqbal on Tuesday expressed hope that it would be a "temporary dip," likely to be offset by an increase in exports driven by higher imports of raw materials. While launching the first monthly development report for the fiscal year 2025-26, the minister said the benefit of the lowest US tariffs on Pakistan in the region would depend on exporters' ability to seize the opportunity by penetrating foreign markets. The 44% higher trade deficit in July "is a temporary dip and will be offset by the increase in exports" in coming months, Iqbal said, when asked if the sudden jump was linked to the government's policy of opening the economy for foreign competition. The government reduced import tariffs in the budget as part of conditions set by the International Monetary Fund (IMF) and the World Bank. The Pakistan Bureau of Statistics (PBS) reported last week that the trade deficit rose to $2.7 billion, or 44% higher, in July. Authorities said it was too early to assess the impact of trade liberalisation, noting one possible reason for the surge in imports was that importers had delayed consignments to benefit from reduced rates starting in the new fiscal year. Iqbal said the government had revised the initial trade liberalisation plan by lowering duties only on items that could boost exports. He added that macroeconomic stability had strengthened, with exports posting a 17% increase in July, which was a reflection of external sector stability. In July, exports grew by 16.9%, reaching $2.7 billion from $2.3 billion in the same month last year, according to the Planning Commission's monthly report. It added that foreign remittances rose 7.4% last month to $3.2 billion, indicating growing confidence among overseas Pakistanis in the government's economic management and overall stability. When asked about the impact of the US trade deal, under which Pakistan agreed to zero tariffs on over 4,100 tariff lines in exchange for a 19% additional customs duty rate, Iqbal said exporters should capitalise on the lowest tariffs on Pakistan compared to the region. Former US President Donald Trump imposed a 19% additional tariff on Pakistani exports, compared to around 20% for the region, except India which faces a 50% additional tariff. The Pak-US trade deal should not be viewed merely in terms of the number of tariff lines receiving relief, said Dr Imtiaz Ahmad, Pakistan's chief economist, but in the context of a gradual increase in foreign direct investment. The government hopes investors from regional countries will set up operations in Pakistan to export goods to US and EU markets. However, the fine details of the trade deal, including rules of origin, are yet to be finalised. The national development report stated that Pakistan entered the new fiscal year with stronger economic performance, marked by improved fiscal management, a turnaround in the external sector from deficit to surplus, falling inflation, and renewed investor confidence. Despite the IMF's warning of slower global growth and persistent downside risks, Pakistan has achieved macroeconomic stability, said Iqbal. He added that at a time when global uncertainty weighs on developing economies, Pakistan's policy-driven turnaround signals a notable shift in its economic trajectory and a promising start to FY2026. Strong fiscal consolidation reduced the deficit to 5.4% of GDP in FY2025, down from 6.9% the previous year. The external sector posted a $2.1 billion current account surplus, driven by higher exports and record remittances, he said. Iqbal further stated that revised accounts from the Accountant General of Pakistan Revenue (AGPR) showed total development spending in the last fiscal year rose to Rs1.068 trillion, which is a new record. The government had earlier reported Rs1.048 trillion in spending in the fiscal operations data released by the Ministry of Finance last week. The Public Sector Development Programme (PSDP) spending now equals 98% of the total annual development budget. In FY2025, 260 projects were monitored, with 40 of strategic nature evaluated. For FY2025-26, the target is to monitor 251 projects and evaluate 50, he said. Iqbal again criticised the finance ministry's strategy of releasing 40% of the total budget in the last quarter, which he argued leads to wastage and strains budgetary resources. "We are in discussions with the Finance Division to withhold only 30% of the total budget for the last quarter and disburse the rest in the first three quarters," said Iqbal. The finance ministry's current quarterly release strategy allows 15% spending in the first quarter, 20% in the second, 25% in the third, and 40% in the last quarter.