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In Brief
AF-PAK
Defence Minister Asif says Afghan Taliban support for TTP remains unchanged
On 03 June, The Express Tribune reported that Defence Minister Khawaja Asif said the Afghan Taliban’s support for the banned Tehreek-i-Taliban Pakistan (TTP) remains intact, dismissing reports that Taliban Supreme Leader Hibatullah Akhundzada had ordered the group to halt attacks inside Pakistan. Speaking to a private television channel, Asif cautioned against interpreting such reports as evidence of a policy shift, stating that while such messages may appear in the media, there has been “no change in the situation on the ground”. (“Asif takes Taliban's warning to TTP with pinch of salt,” The Express Tribune, 03 June 2026)
ECONOMY
Electricity prices to rise again by PKR 1.74 per unit
On 03 June, Dawn reported that the price of electricity is likely to be increased by PKR 1.74 per unit in next month’s bills. The hike is due to the higher fuel cost adjustment in light of an official demand for over PKR 16 billion in additional recoveries from power consumers. During a public hearing by the National Electric Power Regulatory Authority (Nepra), the Central Power Purchasing Agency (CPPA) stated that the reference fuel cost for April had been set at PKR 8.25 per unit. Still, the actual cost turned out to be PKR 9.975 per unit, mainly due to the US-Iran war and the resulting disruption in LNG supplies. Hence, CPPA requested an additional fuel cost recovery of PKR 1.73 per unit from consumers for the June billing month. The CPPA chairman also stressed that the lower availability of the Karachi Nuclear Power Plant Unit-2 (K-2) because of forced outages due to the problems in the nuclear reactor had also contributed to the higher FCA. (“Electricity prices likely to rise by Rs 174 per unit,” Dawn, 03 June 2026)
Current expenditure surges by 19 per cent despite austerity measures
On 03 June, Dawn reported that Pakistan’s current expenditure, excluding interest payments, surged by almost 19 per cent over nine months of the current fiscal year (CFY) despite austerity measures. The Planning Commission reported to the Annual Plan Coordination Committee (APCC) that non-interest current expenditures grew by 18.8 per cent, mainly due to higher spending on defence and grants, as well as higher provincial current expenditures. As per the planning commission data, total expenditure stood at PKR 15.656 trillion during July-March FY26, reflecting a decline of 4.2 per cent over the same period of last year. It said the overall current expenditures declined by 2.2 per cent, whereas development expenditures increased by 26.8 per cent. Of this, servicing of domestic debt reduced by 25.9 per cent, whereas servicing of foreign debt increased by 0.6 per cent. However, the national savings target of 14.3 per cent for the current fiscal year was missed, as national savings stood at 14.1 per cent of GDP, compared to 14.9 per cent in the previous year. (“Non-interest spending jumps 18.8pc,” Dawn, 3 June 2026)
Business Confidence Survey reveals market deterioration across sectors amid West Asia Crisis
On 03 June, Dawn reported that the Overseas Investors Chambers of Commerce and Industry (OICCI) conducted the Business Confidence Survey (BCI) Wave 29 across Pakistan in the second quarter of 2026. The survey revealed that around 70-80 per cent of businesses are delaying or revising investment decisions and diversifying their supply chains to reduce exposure to affected trade routes. The survey reveals a marked deterioration in business sentiment, with the overall BCI falling nine percentage points to a positive 13 per cent, down from 22 per cent in Wave 28. The services sector recorded the sharpest drop, falling 20 points to 14 per cent, while manufacturing declined by seven points. The retail sector was the only segment to show improvement, rising three points to a positive 20 per cent. The survey also revealed that investment intentions have weakened sharply, with the New Investment Index collapsing 10 points to just 2 per cent, reflecting a near-total freeze in near-term capital deployment. (“Business confidence plunges OICCI survey,” Dawn, 3 June 2026)
Inflation rises to 11.7 per cent in May
On 02 June, Dawn reported that monthly inflation, measured by the Consumer Price Index (CPI), continued to increase. Official data shows prices rose 11.7 per cent year-on-year in May, driven by sharp increases in energy and essential food prices. The increase in prices was largely driven by a steep rise in transport charges, which surged by 36.78 per cent year-on-year. Month-on-month, it increased by 5.13 per cent in May. The data showed that urban inflation was slightly higher at 11.8 per cent, compared with 11.5 per cent in rural areas, on an annual basis. Every month, urban prices increased by 0.7 per cent, while rural inflation rose by 0.3 per cent. In May, core inflation, excluding volatile food and energy components, stood at 9 per cent in urban areas and 8.4 per cent in rural areas. The government has projected an inflation target of 7 per cent for FY26. (“Consumer inflation hits 11.7pc in May,” Dawn, 02 June 2026)
Government decreases public sector allocations following IMF mandate
On 02 June, Dawn reported that the government has trimmed allocations for most sectors in the next federal development programme to create additional fiscal space for the PML-N’s trademark national highways, a new PKR 87 billion share for coalition partners, and a PKR 70 billion allocation for ruling party lawmakers’ schemes. The Planning and Development Minister criticised the federal Public Sector Development Programme (PSDP) allocation of PKR 1.126 trillion for next year, describing it as “a new circular debt crisis," with almost PKR 11 trillion in throw-forward liabilities from around 800 ongoing projects that would be impossible to complete over the next decade. The Planning and Development Minister requested a minimum allocation of PKR 2.9 trillion for development next year against actual requirements of PKR 4.1 trillion, but the Ministry of Finance could spare only PKR 1.126 trillion owing to IMF restrictions. Even within the constrained PSDP allocation of PKR 1.126 trillion, which includes PKR 267 billion in foreign assistance, about PKR 125 billion pertains to the N-25 highway in Balochistan, for which the prime minister had separately imposed an additional PKR 10 per litre levy on petroleum products. This effectively leaves the PSDP size at PKR 1.001 trillion. (“BUDGET 2026-27: IMF mandated curbs squeeze development spending,” Dawn, 2 June 2026)
EXTERNAL
CPEC 2.0 to focus on tech innovation and green growth
On 03 June, The Express Tribune reported that the Pakistan-China Joint Chamber of Commerce and Industry (PCJCCI) said the focus of Pakistan-China cooperation is transitioning from large-scale infrastructure projects to industrialisation, technological innovation, green energy and sustainable economic growth under CPEC 2.0. PCJCCI Commercial Ambassador Adeel Munawar said that while the first phase of the China-Pakistan Economic Corridor addressed key infrastructure and energy gaps, the next phase aims to unlock Pakistan’s economic potential through Special Economic Zones (SEZs), industry relocation, agricultural modernisation, information technology and business-to-business partnerships. He highlighted green development as a central pillar of CPEC 2.0, noting that Chinese expertise in renewable energy, electric mobility and green manufacturing could help Pakistan expand solar and wind power projects, particularly in Sindh and Balochistan, strengthen energy infrastructure and reduce reliance on imported fossil fuels. (“CPEC 2.0 targets green energy, industry,” The Express Tribune, 03 June 2026)
Kuwait praises Pakistan’s mediation efforts in US-Iran diplomacy
On 02 June, The Express Tribune reported that Kuwaiti Foreign Minister Sheikh Jarrah Jaber Al-Ahmad Al-Sabah praised Pakistan’s continued mediatory role and efforts to facilitate engagement between the United States and Iran during a telephone conversation with Deputy Prime Minister and Foreign Minister Ishaq Dar. According to Pakistan’s Foreign Office (FO), the two leaders discussed regional and international developments, with Dar reaffirming Islamabad’s commitment to diplomacy and dialogue as the preferred path to lasting peace and stability. Both sides expressed hope that ongoing diplomatic initiatives would produce a durable settlement and also reaffirmed the strong bilateral relationship between Pakistan and Kuwait. (“Kuwaiti FM appreciates Pakistan’s efforts to promote US-Iran dialogue in talks with Dar,” The Express Tribune, 02 June 2026)
Pakistan & Italy sign diplomatic passport visa waiver agreement
On 02 June, Dawn reported that Pakistan and Italy have signed an agreement abolishing visa requirements for holders of diplomatic passports, in a move aimed at facilitating official exchanges and strengthening bilateral engagement. The accord was signed in Rome by Pakistan’s Ambassador to Italy, Ali Javed, and Italy’s Foreign Affairs Secretary General, Riccardo Guariglia, following talks on bilateral relations and cooperation in multilateral forums. Both sides described the agreement as a reflection of mutual trust and highlighted the growing scope of Pakistan-Italy ties, which already include numerous agreements covering defence, investment, migration, education, culture and anti-narcotics cooperation. Pakistani officials also expressed readiness to hold the next round of bilateral political consultations later this year and highlighted the inauguration of Italy’s new embassy in Islamabad, described as the country’s largest diplomatic mission abroad. (“Pakistan, Italy sign accord to abolish visas for diplomatic passports,” Dawn, 02 June 2026)
Pakistan & seven other countries condemn Israeli actions at Al Aqsa Mosque
On 02 June, Dawn reported that Pakistan, along with Egypt, Türkiye, Indonesia, Jordan, Saudi Arabia, Qatar and the United Arab Emirates, strongly condemned continued incursions by Israeli settlers into the Al Aqsa Mosque compound and the raising of Israeli flags within its courtyards. In a joint statement, the eight countries said these actions violate international law, relevant UN resolutions and the historical and legal status quo governing holy sites in occupied East Jerusalem. They reaffirmed that the entire Al Aqsa compound is exclusively a Muslim place of worship and rejected any attempts to alter its status. The ministers held Israeli authorities responsible for preventing further violations, warning that such actions risk fuelling tensions and instability. They also reiterated support for Palestinian self-determination and a two-state solution based on the 1967 borders, with East Jerusalem as the capital of a future Palestinian state. (“Pakistan, 7 other Muslim countries condemn Israeli incursions into Al-Aqsa Mosque, call for an immediate halt,” Dawn, 02 June 2026)
POLITICS & GOVERNANCE
Just 20 per cent of MNAs attended all parliamentary sessions
On 02 June, Dawn reported that of the 333 members of Pakistan's National Assembly, only 66 members, or 20 per cent, attended all nine parliamentary sessions. According to a report by the Free and Fair Election Network (Fafen), attendance varied significantly across sittings, with the first session having the highest attendance rate at 75 per cent and the 5th session having the lowest Turnout at 49 per cent. Among major political parties, it was reported that the Pakistan Muslim League (PML-N) had the highest perfect attendance rate, with 29 of 132 (22 per cent) members attending all nine sittings. Independent lawmakers had the lowest perfect attendance rate with just 3 of 75 (4 per cent) members attending all sessions. (“Only 20pc of lawmakers attended all sittings of 27th national assembly session,” 02 June 2026)
SECURITY
Balochistan: 17 terrorists killed in intelligence-based operations
On 03 June, Dawn reported that security forces killed 17 terrorists during intelligence-based operations across four Balochistan districts following the 24 May suicide car bomb attack on a shuttle train in Quetta that killed 14 people and injured 20 others. The operations targeted multiple terrorist locations in Matsung, Nushki, Khuzdar and Kech. Inter-Services Public Relations (ISPR) stated that weapons, ammunition, explosives and IEDs were recovered from the terrorists. ISPR added that sanitisation operations would continue under the Azm-e-Ishtehkam counterterrorism campaign to eliminate what it termed "foreign-sponsored terrorism" from the country. ("Security forces kill 17 terrorists in various districts of Balochistan following Quetta train bombing: ISPR," Dawn, 03 June 2026)
North Waziristan: Security forces foil suicide attack on military post
On 03 June, Dawn reported that security forces foiled a suicide car bomb attack by the Tehreek-i-Taliban Pakistan (TTP) on a military post near Miranshah in North Waziristan, killing four terrorists before the explosive-laden vehicle could reach its target. Security sources attributed the attempt to militant fears over the success of recent operations around Miranshah, in which over 20 terrorists have been killed in recent days. The district administration subsequently imposed Section 144 indefinitely across Miranshah subdivision, banning all movement and traffic to facilitate ongoing intelligence-based operations and prevent retaliatory attacks. Mobile phone services in Miranshah and adjoining areas remained suspended for two days, hampering daily life, as authorities intensified counter-militancy operations across the subdivision. ("Security forces thwart attack on military post in North Waziristan: security sources," Dawn, 03 June 2026)
South Waziristan: Grenade thrown at police station in Wana
On 01 June, Dawn reported that unidentified attackers threw a grenade at a police station in Wana, South Waziristan. According to the police, the attackers arrived on a motorcycle, threw the grenade, and escaped from the area immediately after the attack. The grenade exploded outside the police station after hitting the boundary wall. No police personnel or civilians were injured, and no major damage was reported. Security officials later reached the site, collected evidence, and secured the area. Police have started an investigation to identify the attackers and find out the reason behind the incident. (“Grenade hurled at Wana police station,” Dawn, 1 June 2026)
KP: Two women wounded after mortar shell hits village in Salarzai tehsil
On 02 June, Dawn reported that two women were wounded after a mortar shell fired from an undisclosed location struck Kadook village in Bajaur’s Salarzai tehsil at dawn, with both victims shifted to the district headquarters hospital in Khar in a stable condition. In a separate incident the same day, unidentified gunmen shot dead 59-year old trader Niaz Muhhamad in Khar’s busy shingas market, prompting local shopkeepers and social activists to stage a protest and sit-in at the main chowk, condemning the killing as a failure of the authorities. Police have launched investigations into both incidents, with investigators collecting evidence to identify the perpetrators in each case. ("Two women injured as mortar shell hits village in KP's Salarzai," Dawn, 02 June 2026)
JUDICIARY
Federal Constitutional Court rules that lawyer strikes are illegal
On 03 June, The Express Tribune reported that Pakistan’s Federal Constitutional Court (FCC) ruled that strikes called by bar associations and bar councils are illegal and violate citizens’ constitutional right to access justice, holding that such actions deprive litigants of legal representation and delay court proceedings. In a 20-page judgment authored by Justice Aamer Farooq, the court upheld a Peshawar High Court decision restoring the licences of two lawyers who had faced disciplinary action for appearing in court during a strike. The ruling stated that lawyer-led boycotts worsen delays in an already overburdened judicial system and cannot be justified regardless of the cause being pursued. The case arose after the Khyber Pakhtunkhwa Bar Council barred lawyers from representing a police officer accused of the murder of a lawyer and suspended advocates who defied strike calls. (“FCC: lawyer strikes unconstitutional,” The Express Tribune, 03 June 2026)
Editorials/Opinions
On the Middle East
Mahir Ali, "Lebanon’s ordeal," Dawn, 03 June 2026
"Perhaps it’s not surprising that amid the latest eruption of conflict in West Asia, Israel’s aggression against Lebanon tends to be viewed as a sideshow. After all, whereas the abortive US-Israeli effort to effect regime change in Tehran, mainly via bombardment, was something of a novelty, Israel has routinely intervened in or invaded Lebanon over the past 50 years."
https://www.dawn.com/news/2004834/lebanons-ordeal
Women's sports
Zofeen T. Ebrahim, "Not a level playing field," Dawn, 03 June 2026
"‘Funding, funding and regular funding’ is what Pakistani women athletes say they need most to compete internationally. Talent alone, they point out, cannot take them to the world stage; it must be backed by quality equipment, top-notch coaching, proper training facilities, nutrition and the means to travel and compete."
https://www.dawn.com/news/2004836/not-a-level-playing-field
Economy
Editorial, "Missing confidence," Dawn, 03 June 2026
"As the government prepares the budget for FY27, Prime Minister Shehbaz Sharif’s meeting with the country’s leading businessmen on Monday offered a glimpse of the wide gap that exists between the two sides’ perception of Pakistan’s economic recovery. While the businessmen pressed their case for tax relief, faster refunds and deeper economic reforms, Mr Sharif boasted of the stability his government had pulled off and his intention of converting recovery into growth."
https://www.dawn.com/news/2004833/missing-confidence
Pakistan and the IMF
Haroon Rashid Siddiqi, "IMF - an instrument of dollar hegemony," The Express Tribune, 03 June 2026
"The financial architecture of the modern world was not built upon any inevitable economic truth, but upon an astute geopolitical calculation. As the world struggled to emerge from the twin devastations of the Great Depression and the Second World War, delegates from forty-four nations gathered at Bretton Woods in 1944 to devise a framework that would prevent the recurrence of global financial disorder. What emerged, however, was not an impartial system of economic cooperation, but a settlement shaped decisively by American power and designed to institutionalise the economic predominance of the United States. Yet the path not taken - the International Clearing Union proposed by the British economist John Maynard Keynes - remains perhaps the greatest "what if" in the history of modern macroeconomics."
https://tribune.com.pk/story/2611118/imf-an-instrument-of-dollar-hegemony
Pakistan-EU relations
Editorial, "EU pathway," The Express Tribune, 03 June 2026
"Top European Union diplomat Kaja Kallas' word of praise for Islamabad, especially over its role in mediating between the United States and Iran, has set the stage for many more leaps forward for Pakistan in the realms of foreign policy. The route now for Pakistan is to focus and divert its synergies in tapping the 27-member European bloc for buoying its economic potential, and striking a more favourable deal in trade and tariffs. Pakistani products have the vibrancy to penetrate even deeper into the European markets, and bring dividends for its struggling economy."
https://tribune.com.pk/story/2611113/eu-pathway
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