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India succeeds hurting Pakistan’s trade interest in Afghanistan

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Development of Iranian port Chabahar and connecting road to Afghanistan by India has started showing results causing huge trade deficit for Pakistan. A senior Pakistani official has acknowledged that India has succeeded to penetrate in Kabul declining their market share by more than 50 per cent falling to $ 1.2 billion from $ 2.7 billion during last two years.

According to Dawn, Zubain Motiwala, Chairman Pakistan-Afghanistan Joint Chamber of Commerce and Industry who recently visited Kabul said on Friday that the penetration of India and China into Afghan market has limited Pakistan’s option to retain its market share. He said that India subsidises heavily on its exports. Pakistan has been losing even the traditional markets of flour, men and women’s clothes and red meat.

According to Motiwala, India has been providing goods at subsidised rates to capture the market and are providing air tickets with a 75pc rebate. Afghans find it easy to travel to India with cheap tickets and free multiple visas without police checks.

According to Pakistan Bureau of Statistics, exports to Afghanistan dropped to $1.271bn in FY17 from $1.437bn in FY16. Exports in the first quarter of 2017-18 stood at $319 million. Traditionally Kabul was natural market for Pakistani exports which is now changing because of cheaper products from China and India.

Rising India’s medical tourism has also affected Pakistan. Earlier thousands of Afghans used to visit Peshawar for medical treatment but now they prefer going to India due to cheaper treatments. “Medical tourism of Peshawar, which was mainly due to Afghans, is now at zero level; hospitals in Hayatabad are empty,” Motiwala added.

Large numbers of Peshawar traders have also lost their business. Out of 200 flour mills, about 100 have been closed down due to a drastic fall in the export of flour to Afghanistan.

Movement of containers’ traffic from Karachi port to Kabul have also decreased from average 70,000 to just 7000 which reflects the change of trading route for imported goods to Afghanistan.

Dawn report further says that Pakistan was the biggest supplier of shalwar qameez suits to Kabul which is now shifted to the supplies from India and China. This was a traditional Pakistani item in Afghan market.

India succeeds hurting Pakistan’s trade interest in Afghanistan

Earlier on February 9, Eurasian Times had reported that over 80% of Afghanistan’s cargo traffic has shifted from Karachi seaport to Bandar Abbas and Chabahar ports in Iran. The move comes as a result to Pakistan’s new trade tariffs and inauguration of Chabahar port, which is expected to greatly impact the Pakistan’s role in trade transit for Afghanistan.

In October last year, India shipped its first consignment of wheat to Afghanistan by sea through Chabahar port, launching a trade route bypassing Pakistan. The shipment was sent from Kandla seaport. The shipment was taken by trucks to Afghanistan from the Iranian port.

In May 2016, India, Iran, and Afghanistan had signed a historic three-nation deal to develop the strategic Chabahar port and build a transport and trade corridor through Afghanistan that could halve the time and cost of doing business with Europe.

Since 2001 US-led military operation to remove Taliban government in Afghanistan, militant groups used to attack coalition cargo travelling from Karachi to Kabul in Baluchistan province for black mailing US administration and exerting pressure on Pakistan government.

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PM Modi to begin two-day Israel visit, defence and trade in focus

PM Narendra Modi begins a two-day Israel visit aimed at strengthening defence cooperation, trade ties and upgrading bilateral relations to a special strategic partnership.

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Prime Minister Narendra Modi will begin a two-day visit to Israel on Wednesday, with defence and trade cooperation high on the agenda. The visit is expected to further deepen the growing strategic engagement between the two countries.

During the trip, India and Israel are set to upgrade their relationship to a “special strategic partnership”, marking a significant step beyond the strategic partnership established in July 2017 during the Prime Minister’s first visit to the country.

Sources indicated that the new framework would enable expanded collaboration, including joint development of advanced defence systems and a strengthened understanding to support each other during times of need.

High-level engagements in Jerusalem

Mr Modi will be received at the airport by Israeli Prime Minister Benjamin Netanyahu and his wife Sara. The two leaders are scheduled to hold a one-on-one meeting shortly after his arrival.

In Jerusalem, the Prime Minister will interact with members of the Indian community before addressing lawmakers at the Knesset, a distinction reserved for select global leaders.

On Wednesday evening, he will attend a technology exhibition showcasing Israel’s advancements, with leading Israeli industry executives expected to be present. Mr Netanyahu will also host a private dinner in his honour.

Tribute at Yad Vashem and presidential meeting

On Thursday morning, Mr Modi will pay tribute to Holocaust victims at Yad Vashem. He is also scheduled to meet Israeli President Isaac Herzog during the visit.

Defence cooperation and technology partnerships

Several memorandums of understanding are expected to be signed, including a widely discussed agreement in the defence sector. As part of the proposed arrangement, a secrecy mechanism will reportedly be created to facilitate expanded cooperation in previously restricted areas.

Local media reports have indicated discussions around air defence systems and possible integration of India into Israel’s laser-based air defence system, Or Eitan.

Beyond defence, the two nations are expected to formalise cooperation in emerging and disruptive technologies such as artificial intelligence, quantum research and cybersecurity.

In New Delhi, the Ministry of External Affairs said the visit would reaffirm the deep-rooted strategic partnership and provide an opportunity to align efforts in addressing shared challenges while strengthening collaboration between the two democracies.

Defence cooperation has been a cornerstone of India-Israel relations, with Israel supplying a range of military platforms and weapon systems to India in recent years. Bilateral ties have also expanded in fields including scientific research, innovation and cybersecurity.

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Trump says tariffs will replace income tax, criticises Supreme Court setback in key address

Donald Trump has said tariffs collected from foreign nations could eventually replace income tax in the US, while criticising a Supreme Court ruling against his earlier import duties.

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US President Donald Trump has said that tariffs collected from foreign countries could eventually replace the modern system of income tax in the United States, arguing that such a shift would ease the financial burden on American citizens.

Speaking during his annual State of the Union address, Trump defended his sweeping tariff measures, asserting that countries which had “ripped off” the US for years were now paying billions of dollars in duties.

“As time goes by, I believe that tariffs, paid for by foreign countries, will, like in the past, substantially replace the modern-day system of income tax, taking a great financial burden off the people that I love,” he said.

The Republican leader credited tariffs as a key driver behind what he described as an economic turnaround. According to him, the US collected “hundreds of billions of dollars” through import duties, which he said helped secure favourable economic and national security deals.

“Countries that were ripping us off for decades are now paying us hundreds of billions of dollars,” Trump said, adding that the arrangements had resulted in growth and no inflation during that period.

Supreme Court ruling draws sharp reaction

Trump also criticised a recent 6-3 ruling by the Supreme Court of the United States that struck down his earlier sweeping import duties. He termed the verdict “very unfortunate” but maintained that most countries and corporations would continue to honour agreements already negotiated.

He said alternative legal provisions would allow his administration to retain similar tariff measures without requiring new congressional approval. “They’re a little more complex, but they’re actually probably better,” he said, referring to the legal statutes under which the revised duties would be imposed.

Hours after the ruling, Trump signed a fresh order imposing a 15 per cent tariff on imports from around the world. The new measure falls under a law that limits such duties to 150 days and is expected to take effect almost immediately.

Reciprocal tariffs and global backlash

On April 2, Trump announced “reciprocal” tariffs of up to 50 per cent on imports from countries with which the US runs trade deficits, along with a 10 per cent baseline tariff on most other nations. He invoked a 1977 law to declare the trade deficit a national emergency, which he said justified the sweeping import taxes.

Following global backlash, the administration suspended the reciprocal tariffs for 90 days to allow negotiations. According to Trump, several countries agreed to new trade terms during that period, while others faced steeper duties for not complying.

Reiterating his stance, Trump also linked tariffs to what he described as conflict resolution efforts abroad, saying the “threat of tariffs” had helped him settle disputes.

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Trump repeats claim of averting India-Pakistan nuclear war during Operation Sindoor

Donald Trump has claimed that Pakistan’s Prime Minister told him 35 million people could have died during Operation Sindoor if the US had not intervened. India denies any third-party mediation.

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US President Donald Trump has once again asserted that his administration prevented a potential nuclear conflict between India and Pakistan during last year’s military tensions, claiming that Pakistan’s Prime Minister told him that millions of lives were at stake.

Trump cites Pakistan PM in fresh remarks

Addressing a joint session of the US Congress during his State of the Union speech, Trump said he had ended eight wars within the first ten months of his second term, including tensions between India and Pakistan.

“Pakistan and India would have had a nuclear war,” Trump said. “Thirty-five million people, said the Prime Minister of Pakistan, would have died if it were not for my involvement.”

He attributed the remark to Pakistan Prime Minister Shehbaz Sharif, claiming Sharif told him that US intervention helped prevent catastrophic casualties during the crisis.

Repeated claims of mediation

Trump has repeatedly stated that his administration brokered peace between the two South Asian neighbours. Since May 10 last year, he has claimed on multiple occasions — including through social media posts — that Washington facilitated a “full and immediate” ceasefire between India and Pakistan following talks.

The tensions followed India’s launch of Operation Sindoor on May 7. The operation targeted what India described as terror infrastructure in Pakistan and Pakistan-occupied Kashmir. New Delhi said the strikes were carried out in response to the April 22 Pahalgam attack that left 26 civilians dead.

India rejects third-party role

India has consistently denied any external mediation in the cessation of hostilities. According to New Delhi, the understanding to stop military action was reached through direct communication between the Directors General of Military Operations (DGMOs) of both countries.

Indian officials have maintained that no third-party intervention played a role in the talks that led to the halt in hostilities.

Trump’s renewed remarks are likely to draw attention again, given India’s firm stance that the de-escalation was the result of bilateral military-level engagement rather than US-led diplomacy.

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