India and Pakistan trade accusations of breaking ceasefire


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India and Pakistan traded accusations of ceasefire breaches early on Sunday, hours after US President Donald Trump announced the nuclear-armed neighbours had stepped back from the brink of war.

India's Foreign Secretary Vikram Misri said his country retaliated after Pakistan's “repeated violations” of the truce, while Pakistan said it “remains committed” to the ceasefire and that its forces were handling violations by India with “responsibility and restraint”.

On Saturday, the two countries had agreed to a full and immediate ceasefire after days of deadly jet fighter, missile, drone and artillery attacks that have killed at least 60 people and forced thousands from their homes along the border, including in divided Kashmir.

“After a long night of talks mediated by the United States, I am pleased to announce that India and Pakistan have agreed to a full and immediate ceasefire. Congratulations to both countries on using common sense and great intelligence,” Mr Trump wrote on Truth Social.

His announcement followed intensive talks between the US and the two countries, as well as diplomacy from dozens of other nations.

Mr Misri said both sides would “stop all firing and military action on land, air and sea”. He later accused Pakistan of “repeated violations” and said the Indian armed forces “are giving an adequate and appropriate response”.

A spokesman for Pakistan's Ministry of Foreign Affairs said his country “remains committed to faithful implementation” of the truce.

We commend Prime Ministers Modi and Sharif on their wisdom, prudence, and statesmanship in choosing the path of peace
US Secretary of State Marco Rubio

“Notwithstanding the violations being committed by India in some areas, our forces are handling the situation with responsibility and restraint,” he said.

Military clashes during the past week have pushed India-Pakistan relations to the most dangerous levels in years.

The countries, which govern a divided Kashmir, fired missiles at each other on Saturday before the truce announcement, escalating the violence for a fourth day.

US Secretary of State Marco Rubio said he had been engaged along with Vice President JD Vance with senior Indian and Pakistani officials to put an end to the conflict.

“I am pleased to announce the governments of India and Pakistan have agreed to an immediate ceasefire and to start talks on a broad set of issues at a neutral site,” said Mr Rubio. “We commend Prime Ministers Modi and Sharif on their wisdom, prudence, and statesmanship in choosing the path of peace.”

The US announcement of the truce follows diplomatic efforts by several nations including Gulf states to encourage India and Pakistan to pull back from a wider conflict.

Saudi Foreign Minister Prince Faisal bin Farhan had spoken to his Indian and Pakistani counterparts on efforts to de-escalate tensions and end military confrontations. Sheikh Abdullah bin Zayed, UAE Deputy Prime Minister and Minister of Foreign Affairs, also stressed the need for diplomacy and dialogue in talks with senior ministers from the two countries.

  • A child looks on after taking refuge at a school in Jammu, Indian-administered Kashmir, following an exchange of shelling and small arms fire across the border. Getty Images
    A child looks on after taking refuge at a school in Jammu, Indian-administered Kashmir, following an exchange of shelling and small arms fire across the border. Getty Images
  • Streaks of light in the skies over the city of Jammu in Indian-administered Kashmir, during a suspected drone attack from the Pakistan side. Getty Images
    Streaks of light in the skies over the city of Jammu in Indian-administered Kashmir, during a suspected drone attack from the Pakistan side. Getty Images
  • A Pakistani paramilitary trooper keeps guard at Karachi Port. Reuters
    A Pakistani paramilitary trooper keeps guard at Karachi Port. Reuters
  • A candlelight vigil for victims of a Indian missile strike on Bilal Mosque in Muzaffarabad, Pakistani-administered Kashmir. EPA
    A candlelight vigil for victims of a Indian missile strike on Bilal Mosque in Muzaffarabad, Pakistani-administered Kashmir. EPA
  • Security personnel at Karachi Port, southern Pakistan. EPA
    Security personnel at Karachi Port, southern Pakistan. EPA
  • Lorries gridlocked near Pakistan's Karachi Port following the military escalation between New Delhi and Islamabad. EPA
    Lorries gridlocked near Pakistan's Karachi Port following the military escalation between New Delhi and Islamabad. EPA
  • India's air defence system intercepts objects during a blackout following blasts in the city of Jammu, in Indian-administered Kashmir. Reuters
    India's air defence system intercepts objects during a blackout following blasts in the city of Jammu, in Indian-administered Kashmir. Reuters
  • The damaged Jamia Masjid Subhan Allah compound after an Indian strike on the outskirts of Bahawalpur in Pakistan's Punjab province. AFP
    The damaged Jamia Masjid Subhan Allah compound after an Indian strike on the outskirts of Bahawalpur in Pakistan's Punjab province. AFP
  • Prime Minister Shehbaz Sharif addressing the special session at the National Assembly in Islamabad. AFP
    Prime Minister Shehbaz Sharif addressing the special session at the National Assembly in Islamabad. AFP
  • Villagers carry their belongings as they move to safer areas after authorities evacuated residents living near the border at Jeora Farm on the outskirts of Jammu. AFP
    Villagers carry their belongings as they move to safer areas after authorities evacuated residents living near the border at Jeora Farm on the outskirts of Jammu. AFP
  • National Cadet Corps cadets shout slogans after conducting an emergency simulation drill as part of the nationwide civil defence mock drills in Amritsar. AFP
    National Cadet Corps cadets shout slogans after conducting an emergency simulation drill as part of the nationwide civil defence mock drills in Amritsar. AFP
  • National Disaster Response Force, civil defence and fire personnel conduct an air raid drill at Khan market in New Delhi. EPA
    National Disaster Response Force, civil defence and fire personnel conduct an air raid drill at Khan market in New Delhi. EPA
  • An artillery shell lands in the main town of Poonch district in India's Jammu region on Wednesday as Pakistani troops launch shells from across the Line of Control in retaliation for Indian missile strikes. AFP
    An artillery shell lands in the main town of Poonch district in India's Jammu region on Wednesday as Pakistani troops launch shells from across the Line of Control in retaliation for Indian missile strikes. AFP
  • Poonch locals load their belongings on a bus as they flee the shelling. AFP
    Poonch locals load their belongings on a bus as they flee the shelling. AFP
  • Workers paint a red cross symbol on the roof of a hospital to deter a potential attack in Srinagar, in Indian-administered Jammu and Kashmir. AFP
    Workers paint a red cross symbol on the roof of a hospital to deter a potential attack in Srinagar, in Indian-administered Jammu and Kashmir. AFP
  • Indian school pupils take part in a drill at Rajkiya Sarvodaya Vidyalaya in New Delhi. EPA
    Indian school pupils take part in a drill at Rajkiya Sarvodaya Vidyalaya in New Delhi. EPA
  • Another Pakistani shell hits Poonch. AFP
    Another Pakistani shell hits Poonch. AFP
  • Rescuers search for survivors after India struck a building in a government-run complex in Muridke, Pakistan, about 30km from Lahore. AFP
    Rescuers search for survivors after India struck a building in a government-run complex in Muridke, Pakistan, about 30km from Lahore. AFP
  • The mosque of an Islamic seminary partially damaged by an Indian missile attack, on the outskirts of Bahawalpur, Pakistan. AP
    The mosque of an Islamic seminary partially damaged by an Indian missile attack, on the outskirts of Bahawalpur, Pakistan. AP
  • Residents are evacuated from an area close to the site of an Indian missile attack, near Muzaffarabad. AP
    Residents are evacuated from an area close to the site of an Indian missile attack, near Muzaffarabad. AP
  • Bilal mosque lies in ruins after being struck by Indian missiles in Muzaffarabad, capital of Pakistan-administered Kashmir. AP
    Bilal mosque lies in ruins after being struck by Indian missiles in Muzaffarabad, capital of Pakistan-administered Kashmir. AP
  • Volunteers load a body into an ambulance after recovering it from the rubble of a mosque building damaged by a suspected Indian missile attack near Muzaffarabad. AP
    Volunteers load a body into an ambulance after recovering it from the rubble of a mosque building damaged by a suspected Indian missile attack near Muzaffarabad. AP
  • A lorry transports an army tank on a road in Muridke, about 30km from Lahore. AFP
    A lorry transports an army tank on a road in Muridke, about 30km from Lahore. AFP
  • Indian Air Force personnel patrol on the outskirts of Srinagar. EPA
    Indian Air Force personnel patrol on the outskirts of Srinagar. EPA
  • Indian troops patrol a security checkpoint on the outskirts of Srinagar. EPA
    Indian troops patrol a security checkpoint on the outskirts of Srinagar. EPA
  • Passengers stranded at Jinnah International airport after all domestic and international flights were cancelled in Karachi. AFP
    Passengers stranded at Jinnah International airport after all domestic and international flights were cancelled in Karachi. AFP
  • Protesters burn an Indian flag during a demonstration condemning Indian missile strikes in Hyderabad, Pakistan. AP
    Protesters burn an Indian flag during a demonstration condemning Indian missile strikes in Hyderabad, Pakistan. AP

On Saturday Sheikh Abdullah welcomed the ceasefire and commended the efforts of the US. He also held phone conversations with the Indian and Pakistani foreign ministers.

UN Secretary General Antonio Guterres said the UN “stands ready to support efforts aimed at promoting peace and stability in the region”.

David Lammy, the UK Foreign Secretary, said: “Today's ceasefire between India and Pakistan is hugely welcome. I urge both parties to sustain this. De-escalation is in everybody's interest.”

Pakistan Foreign Minister Ishaq Dar had earlier told broadcaster Geo news that three dozen countries were involved in diplomacy to secure the ceasefire. Prime Minister Shehbaz Sharif said on X that his country – which has long sought international mediation in Kashmir – “appreciates” the intervention by the US.

Pakistan has reopened its airspace following a halt in hostilities with India, but scheduled flights from the Gulf have been cancelled. Photo via Flightradar24.com
Pakistan has reopened its airspace following a halt in hostilities with India, but scheduled flights from the Gulf have been cancelled. Photo via Flightradar24.com

On Saturday Pakistan reopened its airspace, cancelling a pause planned until at least Sunday. Passengers were also awaiting updates on the status of dozens of Indian airports which had been due to remain closed into next week.

The latest outbreak of cross-border violence comes after armed gunmen killed 26 people in the Himalayan tourist spot of Pahalgam in the Kashmir valley last month. India accused Pakistan of backing the attack, which Islamabad has denied.

Travellers whose plans had been disrupted by the escalating dispute were given hope that airlines will restart operations soon. The violence had forced the cancellation of many international flights, including to and from the UAE's hubs in Abu Dhabi and Dubai.

Mohammad Ali, a resident of Jhelum, in Pakistan's Punjab, was on his way to Islamabad when the news of the truce broke.

He was heading there with his family, who live in Abu Dhabi, to get closer to the airport once flights resume and to escape shelling nearby.

“Thousands want to leave the country. Finding tickets would be impossible,” he told The National.

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Day 5, Abu Dhabi Test: At a glance

Moment of the day When Dilruwan Perera dismissed Yasir Shah to end Pakistan’s limp resistance, the Sri Lankans charged around the field with the fevered delirium of a side not used to winning. Trouble was, they had not. The delivery was deemed a no ball. Sri Lanka had a nervy wait, but it was merely a stay of execution for the beleaguered hosts.

Stat of the day – 5 Pakistan have lost all 10 wickets on the fifth day of a Test five times since the start of 2016. It is an alarming departure for a side who had apparently erased regular collapses from their resume. “The only thing I can say, it’s not a mitigating excuse at all, but that’s a young batting line up, obviously trying to find their way,” said Mickey Arthur, Pakistan’s coach.

The verdict Test matches in the UAE are known for speeding up on the last two days, but this was extreme. The first two innings of this Test took 11 sessions to complete. The remaining two were done in less than four. The nature of Pakistan’s capitulation at the end showed just how difficult the transition is going to be in the post Misbah-ul-Haq era.

UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
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If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

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Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Born: Mukalla, Yemen, 1979

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Updated: May 11, 2025, 4:36 AM