US Treasury Secretary Scott Bessent met Finance Minister Muhammad Aurangzeb a day earlier and welcomed Pakistan’s progress in implementing economic reforms and laying the groundwork for a return to international capital markets, the Treasury said in a statement on Wednesday.
According to a statement, Bessent emphasised the “importance of Pakistan’s work to continue its reforms, become more economically self-reliant, boost growth and strengthen its economic resilience”.
“Secretary Bessent welcomed the progress Pakistan has made in restoring macroeconomic stability and advancing fiscal consolidation, recognising the government’s efforts to implement significant economic reforms,” Treasury said.
The statement added that Bessent also expressed support for Pakistan’s efforts to build greater economic self-reliance and commended the government’s commitment to creating the conditions for a successful return to international capital markets.
The statement, however, did not address Pakistan’s request for a $10 billion exchange stabilisation facility.
Meanwhile, a statement issued by Pakistan’s Ministry of Finance on Tuesday said that Aurangzeb highlighted Pakistan’s journey from macroeconomic stabilisation to sustainable, export-led growth, while noting the economy’s vulnerability to regional geopolitical developments.
The statement added that Senator Aurangzeb sought greater US support for Pakistan’s path to the market, underpinned by improved access to international capital markets, higher foreign exchange reserves and enhanced sovereign credit ratings.
It said both sides reaffirmed their commitment to deepening bilateral economic cooperation, promoting greater US investment and advancing strategic projects.
The proposed $10 billion exchange stabilisation facility would be a financial mechanism under which the US government, through the Treasury’s Exchange Stabilisation Fund, would provide loans or other backstop facilities to Pakistan to bolster its foreign exchange reserves, ease debt pressures, and help stabilise the economy.
Such facilities are primarily used to prevent currency instability and, where necessary, support a partner country’s currency through intervention in foreign exchange markets.
WASHINGTON: A bipartisan group of US senators has introduced legislation aimed at criminalising efforts by foreign governments to intimidate political opponents and activists living in the United States, amid growing concern in Washington over alleged cases of transnational repression involving India.
The Stop Transnational Repression Act of 2026, sponsored by Democratic Senator Adam Schiff and Republican Senator John Curtis, would make transnational repression a specific federal crime for the first time. It would expand the Justice Department and FBI’s authority to investigate and prosecute foreign efforts to suppress dissent on American soil.
Under the proposed legislation, individuals convicted of transnational repression could face an additional prison sentence of up to 10 years and fines of up to $100,000, alongside penalties for any underlying offences. The bill would also strengthen the role of the US Justice Department’s National Security Division and the Assistant Attorney General for National Security in pursuing such cases.
Legislation proposes to makes repression a specific federal crime for first time
The legislation comes as Congress and US law enforcement agencies focus increasingly on a growing pattern of foreign governments attempting to silence critics beyond their own borders.
India, a key US strategic partner, has faced congressional scrutiny following allegations that individuals linked to its government targeted Sikh activists in North America.
In late 2024, the Department of Justice unsealed charges against Indian national Nikhil Gupta, who was accused of attempting to arrange the assassination of a Sikh-American activist in New York at the direction of Vikash Yadav, whom US authorities identified as an Indian government employee.
Yadav was later charged with murder-for-hire, conspiracy and money laundering offences. India has rejected the allegations and announced an internal inquiry.
Canadian authorities have also pursued a separate case involving the killing of Sikh separatist leader Hardeep Singh Nijjar in British Columbia. India has denied involvement in both cases.
France’s parliament on Tuesday was set to approve a bill banning social media access for children under 15, making France the first European country to bar children from apps such as TikTok.
President Emmanuel Macron has championed the ban as a flagship reform of his final term in office and pledged to enforce it by September.
The bill was overwhelmingly approved by the Senate on Tuesday, with 243 votes in favour and two against.
The draft law was expected to be adopted by the National Assembly on Tuesday evening, barring surprises.
A growing number of countries are taking steps to restrict social media access amid multiplying warnings over its harmful effects on children.
“France will become the first country in Europe to introduce a digital age limit to better protect our children online,” French Digital Minister Anne Le Henanff said on X.
The ban would be rolled out in two stages, with under-15s blocked from creating new accounts from September 1. The ban would apply to existing accounts from January 2027, according to the text.
Le Henanff said ahead of the vote that the timeline was realistic, “because age-verification tools already exist” with others still in the works, and the onus was on the platforms to impose the rule.
“For four months, all of us in France will have to prove our age,” she told journalists.
“If someone is under fifteen, the account will be closed.” The minister also gave assurances that users’ personal data would be protected.
Enforcing the measure by September would also ensure that one provision of the bill — a ban on mobile phones in high schools — takes effect at the beginning of the French school year.
‘Largely ready’
France’s public health watchdog last year said platforms such as TikTok, Snapchat and Instagram were harmful to adolescents, particularly girls, though it was not the sole reason for their declining mental health.
Lawmakers agreed on the need for regulation but the two chambers had disagreed on the approach.
French senators had opted for a two-tier system distinguishing between blacklisted platforms flagged as harmful to a child’s development, and those that could still be accessed with parental consent.
But the lower house’s blanket ban prevailed and was expected to pass, despite criticism from some on the left over the age verification process, the speed of its implementation and risks of circumvention as well as privacy concerns.
Exceptions to the ban are provided for sites such as online encyclopedias and educational platforms and the text does not provide for any penalties for children or parents.
“The major platforms are, in my view, largely ready,” lawmaker Laure Miller told AFP.
Watched in Europe
The blacklisting system would have taken more time, including fresh consultations with the European Commission on the criteria, and carried a “small risk” of non-compliance with European law, said centrist senator Catherine Morin-Desailly.
The EU has been mulling a social media ban after a push by member states, including France, Greece and Spain, for limiting access.
Last week, EU chief Ursula von der Leyen said children should have “phased and gradual access” to social media.
The European Commission has also unveiled an age verification app that EU member states, including France, have begun testing in recent months.
After Macron’s government suspended a flagship pensions reform last year, a social media ban could be his last major domestic change before he steps down next year.
France will be closely watched by other European states — it is one of 20 countries worldwide to have proposed or introduced such measures.
In December last year, Australia became the first country in the world to require TikTok, YouTube, Snapchat and other top sites to remove accounts held by under-16s, or to face heavy fines.
When pent-up youth anger propelled India’s Cockroach Janta Party (CJP) to online fame in May, its founder said his supporters were disillusioned with both Prime Minister Narendra Modi’s party and the opposition for failing to address their concerns.
Yet CJP leaders turned to opposition lawmakers and appealed directly for their support on Monday after police used batons and tear gas to disperse protesters marching on parliament to demonstrate against damaging exam leaks and corruption.
Opposition lawmakers were quick to oblige on Tuesday, after many young demonstrators were injured.
Police personnel stand guard as India’s opposition party Indian National Congress stages a sit-in protest calling for Prime Minister Narendra Modi’s resignation outside the latter’s residence in New Delhi on July 21, 2026. — AFP
The show of solidarity with protesters could help opposition parties win valuable young voters and broaden the appeal of the CJP, which has so far focused on demanding the education minister’s resignation over the exam paper leaks.
Tens of thousands of protesters had turned out in Delhi, far more than expected, and images of the authorities’ crackdown spread across social media, prompting nearly all opposition parties to rally behind the movement, which has so far said it will keep out of electoral politics.
An opportunity to gain the youth vote
Analysts said the wider political support for the CJP comes with risks for the movement: concerns central to students, such as preventing exam paper leaks and creating more youth jobs, could be overshadowed by broader political agendas.
But the backing could also help sustain them by providing resources, organisational support and a wider national platform.
For the opposition, which has lost many elections to Modi since he first took office in 2014 on the back of anti-corruption protests, India’s young people represent a significant political opportunity.
Those under 30 are estimated to make up more than half of India’s 1.42 billion population, and many have long been frustrated by a lack of jobs under Modi despite years of strong economic growth.
Cockroach Janta Party (CJP) founder Abhijeet Dipke (back C) looks on during a protest demanding the resignation of India’s Education Minister Dharmendra Pradhan over alleged NEET exam irregularities, in New Delhi on July 21, 2026. — AFP
India’s next parliamentary elections are due by April 2029, but key states like the most populous, Uttar Pradesh, run by Modi’s party, and Punjab, vote next year.
“I think the opposition has got a clear sense that there is a very strong sentiment against the government on this issue at least,” said Sanjay Kumar, professor at the Centre for the Study of Developing Societies in Delhi, referring to the education minister.
“If the movement remains undirected … the chances of a further crackdown on the movement are much higher. So the opposition parties see it as an opportunity and they will try to develop a soft corner among the protesters.”
Some Indian broadcasters sympathetic to the government have already accused the opposition of trying to hijack the movement for limelight.
‘Jump on the bandwagon’
Congress leaders and lawmakers Rahul Gandhi and Priyanka Gandhi Vadra protested outside Modi’s residence late on Tuesday, calling for Education Minister Dharmendra Pradhan’s resignation over the leaks of exam papers for medical courses that affected millions of students and led to a retest.
“An attack on students is an attack on every Indian family,” Rahul said before he was detained by police. “PM Modi believes he can get away without answers, without consequences. He cannot. Not this time. The voice of India’s students will not be ignored.”
Security personnel detain India’s opposition leader Rahul Gandhi (C) as he stages a sit-in protest calling for Prime Minister Narendra Modi’s resignation outside the latter’s residence in New Delhi on July 21, 2026. — AFP
Modi has not spoken publicly about the paper leaks. A cabinet minister said after a meeting of the ruling coalition that Modi told them “strongest possible steps are being taken to protect the interest of the students”.
Many other senior opposition leaders visited protesters camped out in extreme heat about three kilometres from parliament. Some lawmakers and senior politicians provided legal assistance to protesters detained by police, while others sent food and other supplies.
“There is now a one-upmanship among political parties over who can best position themselves as the champion of India’s youth,” said Rasheed Kidwai, political analyst and visiting fellow with the Observer Research Foundation.
“Every political party is acting according to its own electoral calculations, particularly with state elections approaching in Punjab and Uttar Pradesh.” The CJP said it welcomed the political support.
“It’s not a political protest. It’s a movement of the masses; it is a movement of students, and we appreciate the support we are getting from the opposition parties,” a spokesperson said.
“It was CJP which invited the opposition, and now they are coming and giving us the support. It motivates us. We won’t let any politics happen here.”
They need to be mindful, said political analyst Sandeep Shastri.
“Whenever there is a movement like this, and given the visibility it is receiving, it is very tempting for every political formation to jump on the bandwagon,” he said.
“So if political parties join this movement, there is a strong chance that the leaders who actually started it, as well as the issues driving it, will take a back seat.”
THE preparation of the Strategic Trade Policy (STP) for 2026-31 is an opportunity not merely to set fresh export targets but also rethink our export strategy in the light of lessons of the past decade. Any new policy’s credibility depends on fixing structural weaknesses that have repeatedly undermined implementation.
First, policies alone don’t produce results. Pakistan has prepared numerous strategies over the past three decade, but most have fallen short because governance has been weak and institutions ineffective. Good governance is the foundation on which sound economic policies rest. It improves resource allocation, boosts competitiveness, raises productivity, reduces transaction costs and enables efficient functioning of markets. Unless accompanied by governance reforms, the new STP is unlikely to deliver outcomes different from its predecessors.
The new policy should begin with an honest assessment of the previous two STPs. STP 2015-20 envisaged exports of $35 billion by 2020, but actual exports amounted to only $20.5bn. STP 2021-26 targeted exports of $57bn by 2025, but actual exports reached only about $32bn. The government should analyse why earlier policies failed. Were the targets too optimistic? Was production capacity, particularly for non-traditional exports, assessed before targets were set? Were industrial bottlenecks identified and removed? Did the National Export Promotion Board (NEPB), chaired by the prime minister, meet regularly to review progress and resolve implementation issues? Were problems such as excessive taxation, high energy prices, tariff protection, cumbersome regulations and rising cost of doing business effectively addressed?
The review must distinguish between policy failures and external shocks. Covid-19, floods, the Ukraine war and Middle East tensions disrupted global supply chains and global trade, affecting export performance. But they can’t alone explain Pakistan’s stagnation. Domestic policy choices also had a role. Between 2013 and 2018, the exchange rate remained effectively fixed while the real effective exchange rate appreciated steadily, indicating an overvalued currency. During this time, exports were stagnant at around $25bn, imported inputs became more expensive and exports as a share of GDP declined from 13.1 per cent in 2005 to 7.9pc by 2025.
Second is the failure to diversify exports despite repeated policy commitments. Successive STPs identified product and market diversification and technological upgrading as central goals, yet little changed. Textiles, food products and leather still account for over four-fifths of our exports, almost the same proportion as a decade ago. Export destinations, too, remain highly concentrated. The US, EU, China and UAE together account for over 60pc of exports.
The new policy should begin with an honest assessment of the previous two STPs.
The EU illustrates both Pakistan’s success and its missed opportunities. Since gaining GSP-Plus status in 2014, exports to the EU have expanded significantly because of preferential access to about two-thirds of tariff lines. But, Pakistan has failed to diversify beyond traditional cotton textiles. It has not adequately exploited opportunities in synthetic fibre products, technical textiles and other higher-value segments where global demand is growing rapidly. Despite substantial export growth, Pakistan still accounts for only a small fraction of total EU imports.
The broader export basket remains concentrated in low-technology, resource-based products with limited long-term growth prospects. We still lack a meaningful presence in medium- and high-technology sectors such as electronics, engineering goods, pharmaceuticals, chemicals, medical equipment and e-mobility components. These account for a growing share of world trade, offering opportunities for productivity gains and higher wages.
Integration into global value chains offers perhaps the greatest opportunity for export expansion, especially through deep industrial linkages with China. Recent tariff reforms and the Pakistan Single Window initiative are important, but must be implemented consistently. Domestic taxes and tariffs on imported polyester, synthetic fibres and other industrial raw material should be gradually reduced to improve competitiveness. We also need a medium-term industrial policy to encourage investment in upstream industries, including a petrochemical complex that can supply raw materials for synthetic fibres and downstream manufacturing industries. Even the World Bank now recognises that carefully designed industrial policies have an important role in accelerating structural transformation in developing countries.
The third requirement is realism. In an uncertain global environment, single-point export targets have little practical meaning. The new STP should present a range of possible outcomes supported by analysis. Its underlying assumptions should be clear. Industrial, tariff, tax, exchange rate, fiscal, monetary and skills development policies must reinforce and not contradict one another. Regulatory simplification, digitalisation, logistics efficiency, technical skills and higher female labour force participation are equally critical and should be fully reflected in implementation frameworks.
Consultations with exporters should be substantive. Existing and indirect exporters and potential entrants understand regulatory obstacles and market opportunities that policymakers often overlook. Their advice should shape policy design and implementation. The STP should assess emerging global trends including AI, climate change, demographics, geopolitics and supply-chain realignment, to ensure that its assumptions stay robust over the next five years.
Finally, the commerce ministry and NEPB should focus on steps within their direct control. Pakistan must pursue preferential trade agreements with Asean, the GCC, Japan, Korea, the UK, the US, Central Asia and Russia, while seeking more favourable terms under the China-Pakistan Free Trade Agreement. Compliance with the 27 international conventions underpinning GSP-Plus must be a priority.
Export financing should be expanded through instruments like guarantees and export insurance. The Export Facilitation Scheme must be restored with stronger safeguards. The Export Development Fund should finance product development, market diversification, testing, certification, technology upgrading and skills development. The Pakistan Single Window should be extended to cover remaining regulatory agencies. A formal stability clause, committing the government not to make major policy changes without consultation, would boost long-term investment. Finally, strong trade diplomacy needs qualified commercial representatives abroad. Export promotion should be made a central rather than a subsidiary responsibility of foreign service officers and their performance metrics.
Pakistan’s export problem is no longer one of diagnosis. The constraints are well known and the priorities have been identified. The real challenge lies in implementation, coordination and policy consistency. The next STP should be judged not by the size of its export targets but the credibility of its assumptions, the coherence of its implementation strategy and, above all, its ability to produce measurable results.
LAHORE: The water level in the Chenab River is likely to surge significantly over the next couple of days following ongoing rains in catchment areas of Indian-occupied Kashmir and fresh spells of heavy rain in parts of Punjab.
“At the moment, the Chenab River is flowing in medium flood. Its flow may surge and enter the high-flood category following forecasts of heavy rain over the next three to four days in both held Kashmir and Punjab,” a senior official of the Punjab Irrigation Department told Dawn on Monday.
“The situation may turn critical if there are heavy rains, as predicted, in the catchment areas of held Kashmir and Punjab,” he added.
Meanwhile, the Pakistan Meteorological Department’s Flood Forecasting Division (FFD) issued a forecast of high flood levels in major rivers, including the Chenab, and nullahs due to heavy rains expected until July 24.
According to the FFD’s Monday flood bulletin, the flows of all major rivers were likely to increase significantly by July 24 due to a prevailing westerly wave coupled with a strong monsoon incursion from the Arabian Sea and the Bay of Bengal over the catchments of all major rivers.
“High flood levels are expected in River Chenab at Marala, River Jhelum upstream of Mangla and associated nullahs of the Jhelum and Chenab (Dora, Dotta, Dowara, Bhimber, Halsi, Aik and Palkhu) and Ravi (Bein, Bassanter, Deg and Sakki). High flows are also expected in River Kabul and its associated tributaries,” the FFD warned.
It also forecast flash flooding in the hill torrents of DG Khan, streams of Khyber Pakhtunkhwa and northern Balochistan, and urban flooding in Rawalpindi, Jhelum, Gujranwala, Sargodha, Khushab, Sialkot, Gujrat, Narowal, Lahore, Okara, Sahiwal, Bahawalnagar and Faisalabad.
The FFD also mentioned the current situation regarding water flows at various gauging stations.
It observed that the River Indus was flowing at “low and below-low levels” at various stations, including Tarbela, Kalabagh, Chashma, Taunsa, Guddu Sukkur and Kotri.
“The Jhelum is flowing in low to medium flood at Mangla and Rasul, followed by the Chenab flowing in medium to high flood at Marala, Khanki and Qadirabad. The Ravi and Sutlej rivers are flowing in below-low flood,” it added.
Meanwhile, the daily water report issued by the Water and Power Development Authority stated that inflows and outflows in the River Indus at Tarbela were recorded at 232,500 cusecs and 210,000 cusecs, respectively. The inflows and outflows in the Jhelum at Mangla were recorded at 57,400 cusecs and 10,000 cusecs, respectively.
US President Donald Trump on Monday vowed that Israeli Prime Minister Benjamin Netanyahu would not face arrest at a UN summit in New York, after the city’s new mayor said he was investigating the move.
Mayor Zohran Mamdani admitted he was unsure if he had the power to order police to detain a foreign leader but said he was discussing the matter with his legal team ahead of the UN General Assembly in September.
“Benjamin Netanyahu will not be arrested, in any way, shape, or form, while in the United States of America,” Trump said on social media.
“He is fighting against the Islamic Republic of Iran.”
The Hague-based International Criminal Court said in 2024 that it had reasonable grounds to believe Netanyahu was responsible for alleged war crimes and crimes against humanity related to Israel’s offensive in Gaza following the brutal October 7, 2023 cross-border attack by Hamas.
“I believe that Prime Minister Netanyahu belongs in The Hague,” Mamdani told the New York Times on Saturday, referring to the United Nations’ International Court of Justice (ICJ). “He’s a war criminal.”
“And what you will find is that is an opinion that is held by many, purely because of what his actions have wrought over these last many years.”
However, Mamdani said he was unclear on whether he has the legal authority to order the New York Police Department (NYPD), which he oversees, to detain a foreign leader like Netanyahu.
Therefore, his administration was still mulling whether to arrest Netanyahu if he comes to NYC in September, as expected for the 81st session of the UN General Assembly.
“Whatever the law allows me to do in New York City, that’s what we will do, but we won’t be writing our own laws to that end,” Mamdani added.
During his mayoral campaign in September 2025, Democratic Mamdani had said he would order the NYPD to arrest Netanyahu if he arrives in the city.
Netanyahu’s office also dismissed Mamdani’s stance and said the ICC was a kangaroo court.
According to NYT’s Saturday report, Netanyahu also commented on Mamdani’s threat to arrest him, saying he was not concerned. He went as far as even accusing the mayor of supporting Palestinian resistance movement Hamas.
“I think he should look at who he’s condemning, who he’s praising,” the Israeli premier said during an interview this week with Sid Rosenberg, whom the NYT described as a “frequent critic” of Mamdani.
Mamdani had condemned pro-Hamas chants in January, describing the Palestinian group as a “terrorist organisation” when criticised by some circles.
