Photo : Dawn
Photo : Dawn
In Focus
ECONOMY
IMF raises objection over tax reduction
On 17 May, The News International reported on the ongoing talks between Pakistan and the International Monetary Fund (IMF) on reduction of tax rates and availing an additional PKR 700 billion in the 2025-26 budget announcement on 2 June. The tax reduction is requested for the salaried class, on tobacco and on beverages. The IMF has objected to Pakistan’s request for reduced taxes for the salaried class, and in the beverage sector has raised objections on how the Federal Board of Revenue (FBR) will handle potential refunds. The tobacco sector faces a challenge of Minimum Legal Price violations, although there is scope to “to increase the MLP without changing the existing two tiers and Federal Excise Duty (FED) rates.” Additionally, the two sides have failed to reconcile the revenue collection target figure due to a PRK 300 billion difference in nominal growth projections. (“Pakistan, IMF mull Rs700bn tax measures in budget talks,” The News International, 17 May 2025)
On tariff reforms:
“The planned economic policy reforms … major positive shift in the government’s economic and growth strategy,” says an editorial in Dawn
On 17 May, an editorial in Dawn titled “Tariff reform” highlighted Pakistan’s newly approved roadmap for policy reforms and reduced tariff which is expected to help “Pakistan integrate into the global economy with considerable ease” and “boost [Pakistan’s] industrial competitiveness.” The new roadmap proposes a drastic reduction of average customs tariffs within the next five years, alongside eliminating several regulatory and additional tariffs on imported goods. The move is aimed to “bring transparency and uniformity to cascading margins.” The editorial identified high tariffs as the key reason as to why “Pakistan has failed to move to manufacturing high-quality, value-added goods,” and expressed hope that export rise, reduced trade deficits and job creation would follow the new policy. (“Tariff reform,” Dawn, 17 May 2025)
INDIA-PAKISTAN TENSIONS
Pakistan celebrates its alleged victory over India and dismisses India’s assertion of a new normal
Across Pakistan, there were multiple ceremonies in the public and statements in the provincial legislatures supporting Pakistan’s narrative that its military has won the clashes against India
Pakistan dismisses India’s assertion of establishing a new normal in Pak-India ties
On 16 May, Islamabad dismissed India’s narrative of a new normal being established in Pakistan-India ties. Pakistan demanded that regard for “sovereignty and territorial integrity” must remain unchanged in relations between two countries. The assertions came from the Foreign Office after both India and Pakistan concurred to a ceasefire on 10 May to halt the military confrontation. Foreign Office spokesperson Shafqat Ali Khan appealed to Pakistan’s partners for making sure that India does not resort to any form of “aggression” against Pakistan. On another note, Defence Minister of India Rajnath Singh demanded that the International Monetary Fund must rethink disbursing USD one billion to Pakistan as financial assistance. As per the Defence Minister, Islamabad could possibly use the aid to spread terrorism. On the same, Shafqat Ali Khan alleged that New Delhi was attempting to “politicize” the IMF. (“Pakistan rejects India’s ‘new normal’ claim,” Dawn, 17 May 2025)
In Sindh and Punjab, provincial assemblies celebrate the alleged victory over India
On 16 May, celebrations all over Sindh began to mark the alleged victory of Pakistan against India in the brief military confrontation. The Hyderabad Municipal Corporation and the district administration in Sindh organized an event at the Circuit House in which many dignitaries paid their respects to the Pakistani military and the people who lost their lives in the confrontation. Member of National Assembly Tariq Ali Shah denounced the terrorist attack in Pahalgam and claimed that Pakistan has continually demanded for a neutral and fair enquiry into the incident. As per Deputy Inspector General of Hyderabad Tariq Razaq, Pakistan got the better of India in the confrontation.
In Sindh and Punjab, provincial assemblies celebrate the alleged victory over India
In Punjab, Member of National Assembly, PMLN’s Hina Parvez Butt put forward a resolution in the provincial assembly, for congratulating the military of Pakistan for their alleged “success of Operation Bunyan-um-Marsoos.” The resolution emphasized upon the “military strategy and bravery” showcased by the Pakistan Army during the confrontation. It also expressedthankfulness to the soldiers who would be seen as “symbol of national pride.” The Punjab provincial assembly dismissed the claims made by the government of India and reaffirmed Pakistan’s commitment to not conceding its “sovereignty and defence.”
In Balochistan, ceremonies took place in the provincial capital of Quetta and in a number of other places such as Khuzdar, Hub and Zhob. The attendees of the ceremony expressed gratitude for the military of Pakistan. They also stressed on the armed forces’ “bravery and sacrifices.”
In Gilgit-Baltistan which is in Pakistan-Occupied Kashmir, ceremonies took place in Gilgit, Skardu, Shigar and other cities and towns. One of the key events took place in Gilgit’s Force Command Northern Areas headquarters. The Chief Minister of Gilgit-Baltistan Haji Gulbar Khan commended the military of Pakistan and claimed that it “taught enemy a historical lesson.” (“'Youm-e-Tashakur' marked across Sindh,” The Express Tribune, 17 May 2025; “Resolution in PA on operation ‘Bunyan-um-Marsoos’ success,” The News International, 17 May 2025; Jamil Nagri and Saleem Shahid, “Balochistan, GB celebrate military victory over India,” Dawn, 17 May 2025)
On adherence to Indus Water Treaty:
“Violation of a state’s treaty obligations constitute an internationally wrongful act,” argues an opinion in Dawn.
On 17 May, an opinion in Dawn titled “International law & Indus wars” discussed how India’s actions in relation to the Indus Water Treaty are legally wrong. The author, Sikander Ahmed Shah highlighted how the Vienna Convention on the Law of Treaties (VCLT) clearly stipulates that treaties cannot be unilaterally terminated with the consensus of all the signing parties. The only exception is in which one of the parties can walk out from the treaty unilaterally is when the other party engages in “material breach.” Shah contended that the terrorist attack in Pahalgam even if one hypothetically considers it was backed by Pakistan does not equate to a “material breach.” Shah emphasized on how the unilateral suspension of a treaty is worldwide seen as a “wrongful act.” Shah claimed that New Delhi has realized that it does not have the legal backing to suspend the treaty unilaterally which is why it did not approach the Permanent Court of Arbitration.
On the same day, another opinion in Dawn titled “Let rivers flow,” discussedhow the Indus Water Treaty did not account for what could be future environmental consequences through the water sharing agreement. The author, Masood Lohar pointed out the Indus Basin Development Fund which had accumulated USD 900 million that was used by Pakistan for a number of “replacement works.” It had received funds from India, World Bank and various other countries. Lohar highlighted the environmental changes in Pakistan after the signing of the treaty. As per Lohar, there was a strong flow of Ravi and Sutlej in land which today is Pakistan, prior to the signing of treaty. The signing of the treaty turned Ravi in Lahore a “seasonal drain.” Lohar highlighted how “mechanical redistribution” of Indus, Jhelum and Chenab resulted in adversely affecting the “natural food cycles.” As per Lohar, with the threat of climate change looming over, the Indus Water Treaty does not account for various factors.(Sikander Ahmed Shah, “International law & Indus wars,” Dawn, 17 May 2025; Masood Lohar, “Let rivers flow,” Dawn, 17 May 2025)
In Brief
POLITICS & GOVERNANCE
Citizenship amendment bill adjourned in NA,
On 17 May, Dawn reported on nine bills passed by the National Assembly on 16 May, which included a money bill that was blocked by the opposition midway due to a walkout and lack of quorum. One bill to amend the Pakistan Citizenship Act (Section 4) was deferred. Along with these, two new bills were introduced and passed, addressing child marriage and trade organizations. Other bills that were passed included an amendment to laws on education, moved by the education minister; an extradition, naturalization, and citizenship amendment bill, moved by Interior Minister Syed Mohsin Naqvi; and a civil servants amendment bill, moved by the Law Minister. Member of the National Assembly Amjad Ali Khan highlighted the “non-construction of 12 bridges on Kalam Road,” which is funded by an Asian Development Bank initiative from 2013, and the six-kilometre stretch of road that has still not been rehabilitated after being washed away in a flood. He stated that there has been no progress, even after PM Shehbaz Sharif’s promise. The proceedings have been adjourned until 19 May. (Syed Irfan Raza,“NA passes money bill along with eight others,”Dawn, 17 May 2025)
JUDICIARY
IHC Judge challenges bench over contempt case stay, cites judicial overreach and misconduct
On 17 May, Dawn reported a tense Islamabad High Court session, wherein Justice Sardar Ejaz Ishaq Khan strongly objected to a stay order issued by a two-judge bench pausing a contempt proceeding he initiated. The case involves a petition moved from his court without his consent, leading him to accuse court officials of misconduct. Senior advocate Faisal Siddiqui argued that judges are not above accountability and cited precedents from both India and Pakistan where judges issued contempt notices to other benches. Justice Khan criticised the division bench’s involvement as overreach, stating that appeals against interim orders are not admissible. He challenged the deputy registrar’s actions and pledged to continue with the case. The court criticised its previous dependence on Indian contempt law, highlighting that Pakistan’s statute is broader, allowing for appeals against all contempt-related orders, not just those that are final or punitive. The hearing was adjourned to June 12. (Malik Asad, “Another IHC judge defies two-judge order,” Dawn, 17 May 2025)
CJP pushes judicial reforms and institutional strengthening
On 17 May, Dawn reported that Chief Justice of Pakistan Yahya Afridi visited the Bannu branch of the Peshawar High Court on 16 May to support judges working in tough conditions. He stressed that judges, especially at the district level, must be safe and independent to ensure fair justice. During his visit, he met with the Chief Justice of the Peshawar High Court and discussed ways to strengthen the judiciary and the legal fraternity. Key discussion points included institutional synergy, improving judicial capacity building, and legal education reforms. They also discussed creating a special commercial litigation system for business-related cases, improving mediation services, reviving model criminal courts to speed up delayed cases, among others. (Nasir Iqbal, “CJP Afridi visits PHC Bannu bench to show solidarity with judges,” Dawn, 17 May 2025)
SECURITY
Four levies killed in armed attack on CPEC route in Khuzdar
On 17 May, Dawn reported on an armed attack that killed four levy personnel near the Sanand levies check post in the Khuzdar district along the CPEC road. The bodies of the personnel were shifted to the district hospital, and officials stated that no group has claimed responsibility for the attack. (Abdul Wahid Shahwani,“Four Levies men martyred in Khuzdar attack,” Dawn ,17 May 2025)
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