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In Focus
PM Shehbaz hails “special” Pakistan-US relations
He was speaking at an event in Islamabad marking America’s 250th anniversary; US Chargé d’Affaires praises Pakistan’s Middle East mediation role
On 04 June, Dawn and The Express Tribune reported that Prime Minister Shehbaz Sharif described Pakistan’s relationship with the United States as a “true and special relationship” spanning nearly eight decades during an event marking America’s 250th anniversary. He highlighted cooperation across security, counterterrorism, trade, investment, energy, education and science. He thanked US President Donald Trump for his role in securing the May 2025 Pakistan-India ceasefire, calling him a “man of peace”. He also said Pakistan continued to play a mediatory role between the US and Iran.
US Chargé d’Affaires Natalie Baker said Islamabad and Washington had evolved into “true strategic partners” under the leadership of Prime Minister Shehbaz and President Trump. She praised Pakistan’s diplomatic role in regional crises, including facilitating US-Iran engagement, and said Washington viewed a strong Pakistan as beneficial to American interests. Baker also highlighted expanding cooperation in diplomacy, trade, visas and investment, describing recent engagement as opening a new chapter in bilateral relations. (“PM Shehbaz hails Islamabad’s ‘true and special relationship’ with Washington at event marking US 250th anniversary,” Dawn, 04 June 2026; “'True and special relationship': PM Shehbaz lauds 8 decades of Pak-US ties on America's 250th anniversary,” The Express Tribune, 04 June 2026)
In Brief
ECONOMY
Government ready to roll out centralised digital tax operating system
On 05 June, Dawn reported that the government has approved in principle a plan to introduce a centralised digital tax operating model. Under this, audits and assessments would be handled by “faceless” wings in Islamabad to reduce official discretion and direct contact between tax officials and taxpayers. Prime Minister Shehbaz Sharif approved Pakistan’s New Tax Operating Model. It is scheduled for a three-phase rollout beginning in October this year. The centralised and faceless tax model is similar to systems used in the UK, Australia, the Netherlands, Singapore, and India. The National Faceless Audit Wing (NFAW) will be established in Islamabad and operate from an undisclosed location. This centralised, fully digital, and anonymous wing will conduct risk-based audits and continuous monitoring of withholding and advance taxes through a Central Data Hub. (“Govt eyes centralised tax model to curb official taxpayer contact,” Dawn, 5 June 2026)
Forex reserves soar in May amid debt repayment pressures
On 05 June, Dawn reported that forex reserves increased by USD 43 million to USD 17.2 billion during the week ending on 29 May. However, substantial payments to foreign creditors are due this month. The State Bank has been purchasing dollars from the inter-bank market to improve reserves and make external payments, while the exchange rate is being managed through a steady uptick in the rupee’s value against the dollar. The country’s total foreign exchange reserves at the end of last month were USD 22.63 billion, including USD 5.44 billion held by commercial banks. The widening trade imbalance would lead to a large current account deficit this fiscal year. The import bill went up to USD 62.66 billion, mainly due to an increase in imports of luxury items and food grains. (“Soaring trade gap emerges as black hole for dollars,” Dawn, 5 June 2026)
NA Secretariat saved PKR 4.5 billion following austerity measures
On 05 June, Dawn reported that the National Assembly Secretariat has saved PKR 4.5 billion, 27.3 per cent of its budget for the current financial year, through austerity measures. The total projected expenditure for FY 2025-26 was PKR 16.3 billion. Of this, PKR 9.4 billion was employee-related, including salaries and allowances of MNAs and officials, while PKR 6.9 billion covered operational costs, utilities, maintenance, procurement, and transport. The secretariat has generated estimated savings of PKR two billion in employee-related expenditure and PKR 2.5 billion in non-employee expenditure through targeted measures. (“NA Secretariat saves Rs45bn through austerity cuts 301 posts,” Dawn, 5 June 2026)
PM Shehbaz reviews National Tariff Policy implementation plan
On 04 June, Dawn reported that Prime Minister Shehbaz chaired a review meeting on overall economic growth and the implementation of the National Tariff Policy 2025-30. Prime Minister Shehbaz Sharif affirmed that achieving export-led growth targets was the government’s top priority, directing the National Tariff Commission (NTC) to play an active role in facilitating investors. Under the policy, tariffs for various sectors would be reduced gradually with the objective of achieving export-oriented economic growth targets. The customs duties on specialised vehicles and machinery were being reduced to support the construction sector, and customs duties on raw materials, particularly those used in cancer medicines, would also be abolished to facilitate the pharmaceutical sector. (“PM Shehbaz calls export-led growth top priority, urges NTC to facilitate investors,” Dawn, 04 June 2026)
EXTERNAL
Pakistan & Tajikistan agree to advance regional electricity project
On 05 June, Dawn reported that Pakistan and Tajikistan agreed to convene a Joint Working Group meeting in Istanbul later this month to finalise outstanding commercial and operational issues for the CASA-1000 power project. The decision was taken during the 8th Joint Commission session in Dushanbe, co-chaired by Power Minister Sardar Awais Ahmad Khan Leghari and Energy Minister Jum’a Daler Shofaqir. Both sides also agreed to deepen cooperation in trade, energy, agriculture and connectivity, pursue a Preferential Trade Agreement, target bilateral trade of USD 200 million over three years, and support direct flights and easier visa access. (“Pakistan, Tajikistan agree to finalise CASA-1000 terms,” Dawn, 05 June 2026)
Pakistan congratulates new UNSC members
On 04 June, Dawn reported that Deputy Prime Minister and Foreign Minister Ishaq Dar congratulated Austria, Kyrgyzstan, Portugal, Trinidad and Tobago and Zimbabwe on their election as non-permanent members of the United Nations Security Council for the 2027-2028 term. Dar said Pakistan looked forward to working with the incoming members to advance peace, security, dialogue and multilateral cooperation. The elections were held by the United Nations General Assembly, with Kyrgyzstan securing its first-ever UNSC seat after four rounds of voting. Pakistan will continue serving on the council through the end of 2026. (“Dar congratulates countries elected as non-permanent UNSC members,” Dawn, 04 June 2026)
POLITICS & GOVERNANCE
PTI leaders again denied meeting with Imran Khan at Adiala Jail
On 04 June, Dawn reported that the leaders of the Pakistan Tehreek-e-Insaf (PTI) were once again denied a meeting with the former prime minister Imran Khan at Adiala Jail. This situation has occurred despite the previous directions from the Islamabad High Court granting permission for meetings twice a week between the party leader and its representatives. PTI said that it had submitted a list of six leaders to jail authorities a day before the meeting. The leaders arrived at the jail before the scheduled time and informed officials about their visit. Jail authorities asked them to wait while permission was being processed, but ultimately, the meeting was not allowed. PTI leaders said that similar incidents have occurred several times in recent months despite the court orders. They argued that this repeated denial of meetings goes against the court’s directions and that they may seek legal remedies. PTI leaders and family members have repeatedly raised concerns about these restrictions as well as his health and prison conditions. Pakistani authorities have stated that the decisions regarding prison visits are made based on administrative and security considerations. (“PTI leaders once again barred from meeting Imran Khan at Adiala jail," Dawn, 04 June 2026)
JUDICIARY
FCC says directions on pending cases should be given only when necessary
On 04 June, Dawn reported that Pakistan’s Federal Constitutional Court (FCC) ruled that superior courts should be careful when directing high courts to quickly decide pending cases. The court said that such directions should only be given in exceptional situations. It insisted that the independence of the judiciary must be respected and that courts should generally be allowed to decide cases without outside pressure. This ruling came during a hearing related to delays in a pending case. The FCC said that while timely justice is important, frequent instructions from higher courts could affect the independence and normal working of high courts. The court added that such interventions should be limited and used only when there are strong and valid reasons. (“Superior courts should issue directions to high courts for swiftly deciding pending cases sparingly: FCC rules,” Dawn, 4 June 2026)
SECURITY
KP: Four militants killed in separate operations
On 04 June, Dawn reported that security forces killed four militants belonging to the Tehreek-i-Taliban Pakistan (TTP) during two intelligence-based operations in Dera Ismail Khan and Mohmand District. According to the military’s media wing, ISPR, two militants were killed in each operation after exchanges of fire, and weapons and ammunition were recovered. The military said sanitisation efforts were ongoing and reaffirmed that counterterrorism operations under the Azm-e-Istehkam framework would continue. The operations come amid a broader resurgence of militancy in Pakistan since the Afghan Taliban returned to power in 2021. (“Security forces kill 4 terrorists in separate KP operations: ISPR,” Dawn, 04 June 2026)
Gwadar: Four Police officers abducted by armed assailants
On 05 June, Dawn reported that four police officers were abducted by armed assailants in Gwadar near the Pakistan-Iran border after intercepting a vehicle carrying Afghan nationals allegedly attempting to enter Pakistan illegally. The kidnapped personnel were identified as Niaz Ahmed, Shoaib, Ehsan and Sajid Ali. According to initial reports, the officers informed Assistant Sub-Inspector Musaddaq Ali and were instructed to transport the detainees to a police station, but contact with them was subsequently lost. Authorities believe the officers were taken hostage, and security forces launched a search operation after cordoning off the area. No group has claimed responsibility. (“Four policemen abducted in Gwadar near Pak-Iran border,” The Express Tribune, 04 June 2026)
CLIMATE CHANGE
Rapid urban growth contributing to rising temperatures, finds report
On 05 June, The Express Tribune reported that rapid urban growth is one of the main reasons for rising temperatures in Pakistan’s major cities. According to a report by WWF-Pakistan, increasing construction, shrinking green spaces, and higher energy use are making cities hotter than the nearby rural areas. The analysis said that as cities continue to expand, this effect is becoming more noticeable. It also noted that temperatures in several cities have risen above normal levels, especially during June. Meanwhile, several experts warned that the higher temperatures could create challenges for public health, water supplies, and energy demand. They also stressed the need for better city planning, more green spaces, and measures to help cities adapt to climate change. This highlights the growing concerns about the combined impact of climate change and rapid urbanisation on Pakistan’s cities. (“Urbanisation driving rising temperatures,” The Express Tribune, 05 June 2026)
SOCIETY
Polio vaccination drive reaches nearly 19 million children
On 05 June, Dawn reported that according to Pakistani health authorities, around 18.6 million children in the provinces of Sindh, Punjab, Khyber Pakhtunkhwa, Balochistan, and the Islamabad Capital Territory had been vaccinated for polio as part of a national health initiative. Upon reviewing the drive, the Pakistan Polio Eradication Initiative recorded that only 22,320 parents had refused to have their children vaccinated. Though 404,317 children initially missed their vaccination, it was reported that 88 per cent of those children were vaccinated in follow-up initiatives. Due to Pakistan and Afghanistan being the only two states in the world with endemic wild poliovirus, Pakistani authorities recently joined Afghanistan's polio programme at a Technical Advisory Group meeting. At the time of writing, Pakistani authorities were in the process of finalising the 2026 National Emergency plan, a framework to aid in the eradication of poliovirus, and in managing outbreak responses. (“Despite holdouts, polio drive still reaches millions,” Dawn, 05 June 2026)
PROVINCES
Sindh: Rape conviction rate in province rises to 22 per cent
On 04 June, Dawn reported that the conviction rate of rape cases in Sindh rose from 5 per cent in 2020 to 22 per cent in 2025, in part due to legal reforms, special investigation units and the establishment of gender-based violence courts. Official data logged that 178 rape cases were registered in Sindh, 135 of which resulted in acquittals and 28 of which resulted in convictions. An official report stated that 327 rape cases at the beginning of 2025 were pending from the previous year. The total caseload of the year was 555 cases, including this figure, and only 198 cases were resolved. (“Conviction rate in rape cases in Sindh climbs to 22pc in five years,” Dawn, 04 June 2026)
In Focus
Pakistan denies sharing intelligence on Iran with US
Reports of Pakistan sharing intelligence on Iran’s nuclear programme with Marco Rubio “baseless”, says Foreign Office
On 05 June, Dawn and The Express Tribune reported that Pakistan’s Foreign Office (FO) rejected claims that Deputy Prime Minister and Foreign Minister Ishaq Dar shared intelligence about Iran’s nuclear programme during his 29 May meeting with US Secretary of State Marco Rubio in Washington. FO spokesperson Tahir Andrabi described reports alleging discussions on Iran potentially leaving the Nuclear Proliferation Treaty (NPT) or developing nuclear weapons as “baseless” and aimed at undermining diplomatic engagement, stressing that the talks focused only on regional peace, stability and diplomacy.
Separately, Senator Faisal Vawda claimed that Chief of Defence Forces and Chief of Army Staff Asim Munir was personally facilitating negotiations between the United States and Iran and contributing to drafting a possible peace agreement. Vawda suggested Pakistan could host major diplomatic developments in the coming weeks, although no official confirmation of such involvement was provided. (“FO rejects reports of Dar sharing intelligence on Iran's nuclear programme during meeting with Rubio,” Dawn, 04 June 2026; “CDF Munir drafting peace deal: Vawda,” The Express Tribune, 04 June 2026)
Editorials/Opinions
US-Iran war
Shahzad Chaudhry, "Iran's moment," The Express Tribune, 05 June 2026
"From a pariah to an equal partner in a dialogue for peace is a huge transformation for a nation that had once been termed part of the Axis of Evil. This axis included Syria, Iran, Iraq and North Korea; clubbed by George Bush in 2002. That he went ahead and invented reasons to sanitise, nay occupy and reengineer Iraq in 2003 has stood out as a major gaff in American foreign policy. The neo-conservatives of then were as hardheaded as the ultra-Right that leads the US and its policy today. Iraq was neutralised, sort of, and Syria reengineered over time. But Iran stood the test of such impunity and has only gained renewed respect and a certain reverence from its peer nations. Standing up to external coercion has Iran exemplifying the resident capacity of middle-power countries to stand up to global or regional hegemons. The balance of power in the world is shaping anew."
https://tribune.com.pk/story/2611483/prioritising-climate
Climate change
Editorial, "Environment deficit," Dawn, 05 June 2026
"World Environment Day arrives as the planet edges deeper into climatic uncertainty. New global temperature records are being set with unsettling frequency, and the World Meteorological Organisation has warned that the years from 2026 to 2030 are likely to rank among the hottest ever observed. There is a strong possibility that another record-breaking year will emerge before the decade is out, while average global temperatures are expected to remain close to or above the 1.5°C threshold that governments once hoped would help avert the worst impacts of climate change."
https://www.dawn.com/news/2005297/environment-deficit
Editorial, "Prioritising climate," The Express Tribune, 04 June 2026
"World Environment Day, observed annually on June 5, arrives this year with a message that is both timely and urgent. Under the theme, "Inspired by Nature. For Climate. For Our Future" and the global campaign slogan #NowForClimate, the international community is being reminded that the window for meaningful climate action is narrowing rapidly. Hosted in Baku, Azerbaijan, in partnership with the UN Environment Programme, the World Environment Day 2026 is a call to action at a moment when the consequences of climate inaction are becoming impossible to ignore."
https://tribune.com.pk/story/2611483/prioritising-climate
Budget 2025-26
Ehsan Malik, "Beyond budget arithmetic," Dawn, 05 June 2026
"Every June, Pakistan’s budget season follows a familiar pattern: business groups repeat their proposals for relief, the government defends its targets, and taxpayers prepare for additional burdens. Yet a more fundamental question is rarely asked — what is the budget ultimately meant to achieve, and does it reflect a clear long-term national purpose?"
https://www.dawn.com/news/2005328/beyond-budget-arithmetic
Health
Editorial, "Is the world ready for another pandemic?" The Express Tribune, 04 June 2026
"While much of the world has moved on from Covid-19, a new Ebola outbreak in Central Africa is exposing just how little has changed in the global approach to pandemic preparedness. This emergent crisis proves that the threat of another major infectious disease outbreak is neither distant nor hypothetical. It is already unfolding."
https://tribune.com.pk/story/2611481/is-the-world-ready-for-another-pandemic
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