On the one hand, Pakistan keeps China entangled by highlighting the potential of the CPEC; on the other, it abides by the dictates of the IMF to get new loans and delays CPEC projects.

Ishaq Dar, the Deputy Prime Minister and Foreign Minister of Pakistan, recently said that “Pakistan and China share a converging vision on regional and global issues.” Dar’s silver-tongue didn’t spell out the “vision”; he doesn’t have one. Pakistan doesn’t have one. That is the reason for its consistent loan-seeking and reliance on foreign bailouts to keep the country’s economy afloat.

Islamabad has been knocking at every possible door with its begging bowl. It holds the record of taking the maximum number of loans from the International Monetary Fund (IMF) – 23 in a short span of over 75 years since joining the financial body in 1950.

A part of Dar’s statement highlighted the true intention behind Pakistan’s relationship with China. Dar said that the ties between Islamabad and Beijing have “grown from strength to strength into a robust economic and strategic partnership”. The downside of the latter part of the statement is that it is overwhelmingly one-sided, heavily favouring Pakistan.

Pakistan has been shrewd in buttering up China to extract maximum economic help from the Chinese. Celebrating Pakistan-China’s 75th anniversary of diplomatic relations with much fanfare remains part of the same policy. Even the Senate passed a resolution praising China for its support for Pakistan. The latter, in turn, has led to Beijing’s entanglement in Pakistan’s economic mess.

Pakistan has become a rentier state, living off financial support provided to it by others. It has time and again failed abysmally to reform its economic structure. From the money coming from outside the country, the ruling elite and the military establishment siphon off a large chunk. Some portion of it is used to manage macroeconomic indicators, to keep hopes of the local population alive and, at the same time, keep money flowing in from countries like China, Saudi Arabia, Qatar and international financial institutions.

Islamabad’s relations with China are emblematic of what can be called Pakistan’s rent-seeking policy. For example, the China-Pakistan Economic Corridor (CPEC) has been presented by Islamabad as a “game changer” for the country. The project has been seen as vindicating “ironclad friendship” between Pakistan and China. It is sold to build infrastructure, create jobs, and transform the country’s economic structure for lasting suitability.

Hardly anything concrete has been achieved from the billions of dollars of investment from China. In the last few years, about $8 billion in potential investment was lost due to the failure to woo foreign investors. An editorial in Dawn vindicates the larger failure of the project: “The gap between ambition and delivery is too wide to ignore. The fact that only four SEZs have moved beyond the planning stage in over a decade exposes the deeper failure of execution.” This remains important as 75 per cent of the CPEC was supposed to go into the development of new and old Special Economic Zones (SEZs) that could have boosted outputs to be transported on the corridor to other countries, helping in increasing exports.

Pakistan’s decision not to establish SEZs was taken because the IMF had set no SEZ condition for new loans. On the one hand, Pakistan keeps China entangled by highlighting the potential of the CPEC; on the other, it abides by the dictates of the IMF to get new loans and delays CPEC projects. In this way, it keeps both sponsors hooked.

Despite all hyperbolic talks and symbolism about the potential of the project, given Pakistan’s structural constraints for economic reforms and security threats for foreign investors, CPEC has underperformed in achieving whatever goals it was supposed to achieve. Already, various issues are being raised over the CPEC. Many projects started since it was rolled out in 2014 have not been completed; work on many goes slowly, and many are yet to take off. And whatever has been completed has not yielded economic benefits.

China has realised that. The Chinese have expressed their frustration with Pakistan time and again. The Chinese were “not happy with the current progress of CPEC projects” and wanted the government of Pakistan to work to remove bottlenecks in the implementation of the project. Later, China’s concerns were compounded by increasing armed attacks in Balochistan, also targeting Chinese investments and nationals working on various projects and political instability in Pakistan, asking Pakistan to overcome its political crisis. None of these issues has been addressed. In fact, armed attacks in Balochistan have increased, and political instability remains.

There is a difference in the views of CPEC as well. While for Pakistan the CPEC is projected as a solution to all its problems, for China, it is part of larger Belt and Road Initiative (BRI). Therefore, expectations of the two are consequently different. Both, China and Pakistan, however, are aware of the fact that the CPEC is not meeting the desired expectations. Still, they keep selling it, in Pakistan particularly, by overstating its potential. Both countries have their interests in doing so; more so, Pakistan.

Pakistan’s foreign exchange reserves always fall short of the country’s needs to pay for imports and pay back loans to countries and institutions. Pakistan has mostly suffered a current account deficit; lately, again in April, the current account deficit was $324 million. That being the case, Pakistan needs two things: continuous foreign financial aid and its deferment, since it cannot pay back loans on time.

That is the reason Pakistan wants to be in China’s good books: it does so by showering praise on China and highlighting the potential of CPEC, which it knows very well has not been achieved. By rolling a narrative about “iron-clad” relationship, “all-weather” friendship, etc., Pakistan seeks keep China hooked on to the Pakistani dream. Time to time, high level visits and requests from the Pakistani side aim to convince China about investing its fortunes in Pakistan. The recent visit by President Asif Zardari to China was also aimed at securing Chinese assurance to stay engaged economically under CPEC.

Pakistan is eternally busy dragging China into various sectors of its economy. After welcoming Chinese investment in infrastructure, industry and agriculture, Pakistan has now opened the defence sector to China. During Zardari’s visit, it was clear that Islamabad wanted to present provinces as new potential investment options. He went on to sign memorandums of understanding (MoUs) on agriculture technology, water desalination, and tea production, with a focus on provincial-level collaboration: at least two agreements were signed with the Sindh Government.

Even China seems to know it well and has lost its enthusiasm in CPEC. Given the failure of CPEC to achieve its goals, its consistently rising costs, and the security threats to the investment, China now wants to protect the huge investment at all cost. To do so, it has announced new small projects — more to keep a watch on the current investment than being hopeful of securing benefits from them. China has not so far announced any major investment, knowing that previous ones have not yielded desired dividends.

Pakistan has been trying to increase its labour-intensive exports but faces tough competition from countries like Bangladesh and Vietnam. Any possible success in this sector would depend on credible policy determination and a viable business environment. Both these are lacking in Pakistan. And given the mindset of the Pakistani ruling elite, they are likely to continue their rent-seeking policy vis-à-vis China by playing various cards, like offering new sectors for investment, of late.

It is unlikely, however, that the inscrutable but highly mercantile Chinese will fall for Pakistani charm in the realm of economics. This would mean that while Pakistan-China will try to remain geopolitically together, geo-economic bonding between the two will not be as strong as Pakistan would like the world to believe.  

Disclaimer: Views expressed by writers in this section are their own and do not reflect Milli Chronicle’s point-of-view.

The accident occurred in Afghanistan’s eastern Laghman province along the Kabul-Nangarhar highway, a key transport route linking the capital Kabul with the country’s eastern regions.

The passengers were among Afghan nationals returning from neighboring Pakistan amid ongoing deportations and migration enforcement measures that have accelerated cross-border movements in recent years.

Abdul Malik Niazai, spokesperson for the Laghman provincial governor, said the truck plunged into a ditch after overturning. He reported that 10 children and five women were among those killed in the crash.

Aminullah Sharif, the provincial director of public health, confirmed the death toll at 22 and said approximately 36 people were injured. The wounded were transported to hospitals in neighboring Nangarhar province for treatment.

Officials said preliminary information indicated the driver fell asleep before the vehicle veered off the road and crashed. Authorities did not immediately provide details on the truck’s capacity or whether passengers were being transported in conditions compliant with transport regulations.

The victims were among thousands of Afghans who have recently returned from Pakistan, which launched a crackdown on undocumented migrants in 2023 and has since deported or pressured large numbers of Afghans to leave. Iran has also intensified expulsions of Afghan migrants, contributing to a sustained flow of returnees into Afghanistan.

Millions of Afghans have returned from Pakistan and Iran in recent years, including many who were born abroad or had spent decades living and working in the two neighboring countries.

In a separate incident, officials in eastern Nuristan province said a vehicle plunged into a river late on Friday, injuring its driver and leaving four passengers missing. Rescue teams continued search operations on Saturday.

Road accidents remain a persistent challenge across Afghanistan, where aging infrastructure, poorly maintained roads and limited enforcement of traffic regulations contribute to high rates of fatal crashes.

The men have been trapped for 10 days inside the cave after entering the site to search for valuable minerals before rising floodwaters blocked their exit. Five survivors were located alive on Wednesday, while two members of the group remain unaccounted for.
Rescuers successfully evacuated the first survivor on Friday after a complex operation through submerged and narrow cave passages.

Officials said the remaining four men were not yet ready for extraction and that efforts were continuing to lower water levels and improve conditions for a safe evacuation.

“One person has made it out safely, and we will not stop until the remaining four make it home too,” Thai cave diver Norrased Palasing, who is participating in the operation, said in a social media post on Saturday.
Video footage released by rescuers showed the first survivor emerging from flooded tunnels with assistance from divers before being wrapped in a thermal blanket and moved to safety.

Authorities did not identify which of the five survivors was evacuated.

The trapped villagers have been supplied with water, soft food and emergency blankets, though footage recorded inside the cave indicated their physical condition had deteriorated during the prolonged ordeal.

The rescue operation has drawn specialists from Laos, Thailand, Japan and Malaysia, with Indonesian, French and Australian experts also reported to have joined the effort. Several members of the international team previously participated in the high-profile 2018 rescue of a youth football team trapped in a cave in northern Thailand.

Rescuers face difficult conditions inside the cave system. According to Thai rescue worker Kengkaj Bongkawong, teams must navigate more than 200 meters of narrow, twisting, flooded passages before reaching a submerged tunnel that leads to the trapped men.

The operation is complicated by poor visibility, confined spaces and the challenge of guiding survivors with no diving experience through underwater sections of the cave. Video released by rescuers showed divers instructing the trapped men on the use of breathing equipment and underwater survival techniques ahead of their evacuation.

Search efforts for the two missing villagers are expected to focus on deeper sections of the cave beyond the area where the survivors were found.

Rescue officials said the area is heavily flooded, increasing the risks for divers conducting the search.
The cave is located in the mountainous province of Xaisomboun, approximately 120 kilometers north of the Lao capital, Vientiane.

The Myanmar leader was welcomed in the eastern Indian state of Bihar before beginning a visit to Bodh Gaya, one of Buddhism’s holiest pilgrimage sites where tradition holds that the Buddha attained enlightenment.

India’s foreign ministry described the visit as a reflection of the longstanding spiritual, historical and people-to-people connections between the neighboring countries. Foreign ministry spokesperson Randhir Jaiswal said the trip underscored ongoing cooperation and the importance both governments place on bilateral relations.

Min Aung Hlaing is scheduled to hold talks in New Delhi on Monday with Indian Prime Minister Narendra Modi and President Droupadi Murmu. Discussions are expected to focus on expanding cooperation across strategic, economic and developmental sectors.

Indian officials said the visit also includes a significant commercial component, with the Myanmar president due to meet business representatives and later travel to Mumbai, India’s financial center. The talks are expected to examine opportunities to increase trade and investment links between the two countries.

According to Indian government figures, bilateral trade between India and Myanmar totaled approximately $1.95 billion during the 2025-26 fiscal year, highlighting the growing economic relationship between the neighbors.

The visit comes at a significant moment in Myanmar’s political transition. Min Aung Hlaing was sworn in as president in April, maintaining leadership of the country from a civilian office five years after the military seized power in a coup. His inauguration was attended by representatives from several regional countries, including India, China and Thailand, reflecting the importance neighboring states place on engagement with Myanmar.

For India, stronger ties with Myanmar carry strategic importance because of their shared border, regional connectivity projects and security cooperation in northeastern India. Enhanced economic engagement could also support New Delhi’s broader efforts to deepen links with Southeast Asia through its regional outreach initiatives.

Speaking at the Shangri-La Dialogue in Singapore, Hegseth said the United States possesses sufficient military capabilities and munitions stockpiles to restart operations if required, while emphasizing that the administration remains committed to pursuing a diplomatic settlement.

“Our ability to recommence if necessary ,we are more than capable,” Hegseth said, adding that US military inventories are adequately positioned both in the region and globally.The remarks come as negotiators from Washington and Tehran continue efforts to overcome key differences that have stalled a broader agreement aimed at extending an early-April ceasefire and establishing a permanent framework to end hostilities.

Hegseth said President Donald Trump remains committed to securing what he described as a strong agreement that would prevent Iran from obtaining a nuclear weapon. Trump said on Friday he would convene advisers in a secure White House facility to make a final decision on a proposal that would extend the current truce by an additional 60 days.

The conflict, launched by the United States and Israel on February 28, has resulted in thousands of deaths, primarily in Iran and Lebanon, while disrupting global energy markets through the effective closure of the Strait of Hormuz, one of the world’s most important oil transit routes.

Despite the Middle East conflict, Hegseth rejected suggestions that Washington’s strategic focus had shifted away from the Indo-Pacific. He said the United States is expanding its defense-industrial capacity to increase weapons production and maintain readiness across multiple theaters simultaneously.

At the same forum, Hegseth urged Asian allies to increase defense spending in response to China’s growing military capabilities, describing Beijing’s military expansion as a source of concern for regional security.

He argued that a stronger network of capable regional partners is necessary to preserve the balance of power in the Indo-Pacific and deter potential aggression. Hegseth warned that dominance by any single power would undermine regional stability and prosperity.

Echoing a longstanding position of the Trump administration, Hegseth said allies should assume greater responsibility for their own defense and reduce dependence on US military support.“The era of the United States subsidizing the defense of wealthy nations is over,” he said, adding that strong alliances require all partners to contribute meaningfully to collective security.

Hegseth cited defense contributions from countries including South Korea, Philippines, Australia, Singapore, Malaysia and Thailand, while highlighting efforts by Japan to strengthen its military capabilities and deepen cooperation with Washington.

The U.S. State Department said on Friday it was taking action to dismantle what it described as a sophisticated network that used deception and intermediary companies to obtain advanced equipment for Iran’s defense sector in violation of American sanctions.

According to State Department spokesperson Tommy Pigott, the network allegedly defrauded dozens of U.S. technology firms and secured millions of dollars’ worth of equipment, including spectrum analyzers and security detection devices with potential military applications.

U.S. officials said the operation relied on fraudulent websites designed to resemble legitimate American companies. The network allegedly used intermediaries in Dubai to receive shipments before transferring the equipment to Iran, circumventing existing sanctions restrictions.

The State Department identified Ali Majd Sepehr as the individual leading the network. Officials did not disclose the names of the affected American companies or provide details on the quantity of technology allegedly transferred.

The sanctions announcement comes as Washington increases efforts to disrupt financial and logistical channels linked to Iran’s military establishment. On Thursday, the State Department offered a reward of up to $15 million for information leading to the disruption of financial mechanisms associated with the Islamic Revolutionary Guard Corps and its affiliated branches.

The move also coincides with high-stakes diplomatic discussions between Washington and Tehran aimed at ending the conflict that began earlier this year. The White House said on Friday that President Donald Trump would approve an agreement only if it fully satisfies U.S. requirements, underscoring uncertainty surrounding the negotiations.

The latest sanctions signal that the United States intends to maintain economic and legal pressure on Iran’s defense procurement networks even as diplomatic efforts continue.

In its monthly economic review, the ministry said the disruption of shipping and energy flows through the Strait of Hormuz remains the most critical variable shaping India’s external sector and inflation outlook, as geopolitical tensions continue to affect global oil markets.

The report noted that recent increases in fuel prices, combined with rising upstream production costs, are likely to gradually feed into retail inflation through higher transportation, energy and food expenses.
Officials warned that a significant rainfall shortfall during the monsoon season could further intensify inflationary pressures by affecting agricultural output and food supplies. Such a scenario could also weaken rural consumption and weigh on broader economic growth.

“The near-term outlook for the Indian economy is one of cautious resilience,” the ministry said, while emphasizing the need for continued policy vigilance amid multiple external and domestic risks.
The report highlighted a combination of elevated global energy prices, depreciation of the Indian rupee, rising input costs and the possibility of below-normal rainfall as factors that could complicate inflation management in the months ahead.

India remains heavily dependent on imported crude oil, making it particularly vulnerable to supply disruptions and price volatility stemming from geopolitical developments in the Middle East. Any prolonged disruption to maritime traffic through the Strait of Hormuz could increase import costs and widen inflationary pressures across sectors.

Despite these concerns, inflation has remained relatively contained. India’s annual retail inflation rate rose marginally to 3.48% in April, remaining below the target level monitored by the Reserve Bank of India.
The assessment comes as policymakers seek to balance economic growth with price stability amid an uncertain global environment marked by geopolitical tensions, energy market volatility and weather-related risks to agricultural production.

The Finance Ministry publishes its economic review on a monthly basis to assess macroeconomic trends and emerging risks facing the Indian economy.

The annual summit, hosted in Singapore and attended by defense ministers, military leaders and security experts from across the Indo-Pacific and beyond, has traditionally provided a platform for senior Chinese officials to outline Beijing’s strategic priorities and engage directly with counterparts from major powers.

This year, however, China did not send Defense Minister Dong Jun. Instead, Beijing dispatched a delegation composed largely of military academics and researchers from the People’s Liberation Army, marking a noticeable departure from its customary high-profile representation.

The absence also meant Dong did not participate in face-to-face meetings with U.S. Defense Secretary Pete Hegseth or defense officials from countries including Australia, Britain, France and Japan.

A centerpiece of previous Shangri-La Dialogues had been a keynote address by China’s defense minister or another senior official outlining Beijing’s views on regional security, military modernization and international affairs. That session was absent from the conference agenda for the second consecutive year.

Speaking during his keynote address, Hegseth noted the absence of his Chinese counterpart and said he hoped future opportunities would arise for direct communication between the two sides on issues where military actions and intentions can be interpreted differently.

Australian Deputy Prime Minister and Defense Minister Richard Marles described China’s limited participation as a missed opportunity for candid dialogue on regional security concerns.

Despite the absence from Singapore, Dong met Hegseth earlier this month during President Donald Trump’s visit to China.

Members of the Chinese delegation downplayed the significance of the minister’s nonattendance. Retired PLA senior colonel Zhou Bo said academic delegations had participated in the forum before, though he acknowledged that this year’s representation was at a comparatively lower level.

Analysts attending the forum suggested Beijing may have sought to avoid difficult questions regarding cross-strait tensions involving Taiwan and the impact of recent military corruption investigations on China’s defense establishment.

Chong Ja Ian said the composition of the delegation raised questions about its authority to speak on behalf of the Chinese government and military leadership.

Some diplomats also suggested Beijing may have wished to avoid a repeat of previous confrontations at the forum. In 2025, Hegseth sharply criticized China’s actions in the Indo-Pacific and urged regional allies to strengthen defense spending, prompting a strong response from Beijing.

This year, Hegseth adopted a more measured tone while still warning against any attempt by a single power to dominate the region. He said no country should be able to impose hegemony over regional security and prosperity, while also noting that relations between Washington and Beijing had improved compared with previous years.

China began regularly sending senior delegations to the Shangri-La Dialogue in 2007 and elevated its participation by dispatching defense ministers on multiple occasions, including from 2022 through 2024. The conference was suspended in 2020 and 2021 because of the COVID-19 pandemic.

Veteran Singaporean diplomat Bilahari Kausikan said the primary purpose of the forum remains maintaining U.S. strategic engagement in Southeast Asia. While Chinese ministerial participation is welcome, he argued, it is not essential to the event’s broader objectives.

Chinese Foreign Minister Wang Yi told Cuban counterpart Bruno Rodriguez Parrilla during talks in New York that Beijing would support Cuba’s sovereignty and economic development, according to Chinese state media. Wang said China opposed “all forms of power politics and bullying,” in remarks widely seen as directed at Washington.

The comments come as the Trump administration intensifies pressure on Cuba through sanctions, legal action and restrictions on Venezuelan oil shipments to the island. Washington last week indicted former Cuban president Raul Castro over the 1996 downing of two civilian U.S. aircraft, a move condemned by Beijing.

China has expanded economic support for Cuba in recent months, including rice shipments and agricultural cooperation agreements, as Havana struggles with fuel shortages and economic strain linked to U.S. sanctions.

Pakistani officials said the attack occurred on Sunday when a bomber drove an explosives-laden vehicle into a shuttle train carrying security personnel and their families, derailing several coaches and triggering extensive destruction in nearby civilian areas.

The separatist Baloch Liberation Army claimed responsibility for the bombing, the latest in a string of militant attacks in Balochistan, a strategically significant province bordering Iran and Afghanistan that hosts key Chinese-backed infrastructure projects including Gwadar port.

As rescue teams and residents continued clearing debris ahead of the Eid holiday, many families said celebrations had given way to grief and financial hardship.

“I appeal to the government to help me. My entire house, from top to bottom, has been destroyed,” said Hishrat, a resident whose home was severely damaged in the blast. She said the family had spent years saving money to build the property.

The explosion damaged homes, overturned vehicles and shattered nearby buildings, according to local authorities and images broadcast from the site. Officials said the train’s engine and several coaches were derailed in the attack.

Markets in Quetta remained active with Eid shoppers and livestock traders, but residents in the affected neighborhoods said the destruction had made holiday preparations impossible.

“People are roaming in the markets for Eid shopping and for purchasing animals for sacrifice, but for us, you see our condition,” said Muhammad Haseeb, a private-sector employee whose house was damaged in the blast.

“We are busy cleaning up our destroyed house. The explosion destroyed our entire neighborhood including our house. There has been a great deal of financial and human loss,” he added.

Another resident, Farooq, said the attack had erased any sense of festivity for many affected families.
“Eid is for those whose houses are intact and who can go shopping,” he said. “We also had to do shopping for Eid, but now that is impossible, because our house is destroyed.”

Balochistan has witnessed a decades-long separatist insurgency led by militant groups accusing the federal government of exploiting the province’s natural resources without adequately sharing economic benefits with the local population. Pakistani authorities reject the allegations and say security operations are aimed at restoring stability and protecting development projects.

The Baloch Liberation Army has intensified attacks in recent years against security forces, rail infrastructure and Chinese-linked investments in the province. In March last year, militants hijacked the Jaffar Express passenger train and held hundreds of passengers hostage before security forces ended the siege.

The latest bombing underscores the persistent security challenges facing Pakistan as authorities attempt to contain militant violence while safeguarding major regional connectivity and energy projects tied to China’s Belt and Road Initiative.