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In Focus
Government unveils new tax regime for small traders
Fixed Tax Scheme targets small businesses ahead of budget and is expected to cover nearly 80 per cent of country’s traders
On 06 June, Dawn reported that the federal government introduced the “Fixed Tax Asaan Scheme” for traders and shopkeepers with an annual turnover of up to PKR 200 million after the limited success of the Tajir Dost Scheme. Finance Minister Muhammad Aurangzeb said eligible businesses could opt to pay a simplified one per cent turnover tax through an easy filing system, with a minimum payment of PKR 25,000 for tax adjustments. Participants would receive QR-linked registration plaques and be exempt from audits and Point-of-Sale requirements.
Minister of State for Finance Bilal Azhar Kiani said the scheme could cover about 3.5 million of Pakistan’s 4.4 million traders and was designed using lessons from earlier failed initiatives. Businesses remaining outside both the fixed and normal tax regimes could face monthly penalties ranging from PKR 10,000 to PKR 51,000. Trader groups in Karachi welcomed the proposal, expressing hope it would simplify compliance and expand the tax net. (“Govt launches scheme to bring small shop owners into tax net,” Dawn, 06 June 2026; “Small traders welcome 1% turnover tax scheme,” The Express Tribune, 06 June 2026)
In Brief
ECONOMY
Economic Coordination Committee approves additional grants for oil and defence sectors ahead of budget
On 06 June, Dawn reported that the Economic Coordination Committee (ECC) of the cabinet approved more than PKR 40 billion in supplementary grants and a PKR 100 billion sovereign-guarantee-backed financing facility for the Pakistan State Oil (PSO). ECC also allowed PKR 10 billion additional funds for parliamentarians’ development schemes and expanded the scope of special honoraria running up to six-month additional salaries to more ministries and departments involved in federal budget preparations. The ECC also approved a summary of the Ministry of Defence for PKR 10.15 billion for the Hangor Project of the Pakistan Navy under the Rafale Aircraft and Force Development Package (RAFDP)-2030. The committee approved seven grants for the Ministry of Interior and Narcotics Control worth PKR 2.826 billion. These included PKR 693 million for security arrangements for the Islamabad peace talks, PKR 241 million as compensation for the suicide bombing at Imambargah Khadijah-tul-Kubra in Taralai, Islamabad, PKR 528 million for the Pakistan Land Ports Authority, PKR 800 million for the procurement of fast patrol boats for the Pakistan Coast Guards, PKR 1.884 billion for the expansion of the Safe City Islamabad project, PKR 150 million for the National Counter Terrorism Authority, and PKR 414 million for security charges relating to the Reko Diq project. (“BUDGET 2026-27: ECC expands bureaucrats' stipend, okays Rs 40 bn grants,” Dawn, 06 June 2026)
Short-term inflation surges 14.7 per cent year on year
On 06 June, The Express Tribune reported that Pakistan's short-term inflation surged 14.75 per cent year-on-year, measured by the Sensitive Price Indicator (SPI). Pakistan Bureau of Statistics data (PBS) showed that petroleum prices were among the biggest contributors to the annual inflation. Petrol prices were 50.6 per cent higher than a year ago, while high-speed diesel (HSD) prices increased 49.63 per cent. Liquefied petroleum gas (LPG) prices surged 57.09 per cent during the same period, adding pressure on transport, logistics, and household energy costs. Also, food inflation remained elevated. Onion prices more than doubled, rising 100.68 per cent year-on-year, while wheat flour prices climbed 59.88 per cent. The monthly Consumer Price Index (CPI) surged by 11.7 per cent on a YoY basis in May 2026, as compared to a rise of 10.9 per cent in the previous month and 3.5 per cent in May 2025. Urban inflation soared by 11.8 per cent year-on-year, and inflation in rural areas went up by 11.5 per cent year-on-year in May 2026. (“Fuel food push SPI higher by 14.75 % YoY,” The Express Tribune, 06 June 2026)
Pakistan Expo 2026 highlights chemical industry potential
On 06 June, The Express Tribune reported that the Pakistan Chemical Expo 2026 commenced with industry leaders highlighting the sector's potential to reduce import dependence and boost exports. The PCMA chairman said the domestic chemical and petrochemical market is estimated at over USD 14 billion annually, with a significant portion of demand met through imports. He highlighted that Pakistan can achieve approximately USD five billion in import substitution and generate more than USD two billion in additional exports within the next five years through targeted industrial policies, technology transfer, and a world-scale naphtha cracker and petrochemical complex. The development of an integrated petrochemical value chain could generate over 100,000 direct and indirect jobs and support downstream industrial output exceeding USD 50 billion. (“Petrochemical complex to save $5b in imports,” The Express Tribune, 06 June 2026)
EXTERNAL
Pakistan’s Middle East mediation efforts have elevated its global profile, writes the International Crisis Group
On 05 June, The News International reported that, in a commentary, the International Crisis Group (ICG) wrote that Pakistan is carefully managing its relations with both the United States and Iran as tensions in the Middle East continue. The commentary said that Pakistan’s role in helping communication between Washington and Tehran has become more important, but has also created diplomatic challenges. Pakistan has remained in contact with both countries and has supported efforts to reduce tensions through dialogue. Meanwhile, the government is trying to protect its economic and security interests while avoiding direct involvement in the conflict. Experts said that Pakistan’s position is sensitive because it shares a border with Iran and maintains close relations with Gulf countries. The report also noted that Pakistan is trying to remain neutral while continuing diplomatic efforts to promote regional stability and prevent the crisis from worsening. (“Pakistan walks a tightrope as US-Iran mediator, says International Crisis Group,” The News International, 05 June 2026; "Pakistan: A New Player in the Quest for a U.S.-Iran Breakthrough," International Crisis Group, 04 June 2026)
Pakistan invites Saudi investment in motorway projects
On 06 June, Dawn reported that Pakistan invited Saudi investors to invest in three major motorway projects. This invitation was made as a part of Pakistan’s efforts to attract more foreign investment in its transport infrastructure sector. During a meeting with Prince Mansour bin Muhammad Al Saud, Communications Minister Aleem Khan presented the investment opportunities in the M6 Sukkur-Hyderabad Motorway, the M10 Karachi Port Motorway, and the M13 Kharian-Rawalpindi Motorway. Aleem Khan said that these projects could provide good business opportunities and long-term returns for the investors. He also said that expanding the road network is important for improving trade, connectivity, and economic growth. At the same time, Prince Mansour expressed interest in exploring investment opportunities in Pakistan’s infrastructure sector. He said the Saudi business community is willing to increase cooperation in transport and communications projects. These discussions reflect the efforts of Pakistan and Saudi Arabia to strengthen economic ties and encourage greater Saudi investment in Pakistan. (“Pakistan pitches motorways to Saudi investors,” Dawn, 06 June 2026)
Pakistan calls for joint SCO security strategy
On 05 June, Dawn reported that Pakistan’s Interior Minister Mohsin Naqvi has confirmed Pakistan’s commitment to the principles of the Shanghai Cooperation Organisation (SCO) during a meeting of interior ministers in Bishkek, Kyrgyzstan. He called on SCO member countries to work together to tackle terrorism, organised crime, drug trafficking, cybercrime, and terror financing. Naqvi said the region is facing several security challenges. He warned that criminal and terrorist groups are increasingly using artificial intelligence, digital technologies, online platforms, and cryptocurrencies to carry out their activities. He highlighted the need for improved intelligence sharing and stronger coordination among SCO member states to address these threats. He also said that common security challenges require joint action and a collective regional response. Naqvi confirmed Pakistan’s support for the principles of the “Shanghai Spirit”, which promotes mutual trust, cooperation, equality, and respect for the sovereignty of all member countries. (“Pakistan remains committed to the ‘Shanghai spirit’, Naqvi tells SCO moot,” Dawn, 05 June 2026)
POLITICS & GOVERNANCE
Campaigning in “Gilgit-Baltistan” ends ahead of polls
On 05 June, Dawn reported that the “Gilgit-Baltistan” Election Commission ended election campaigning 48 hours before polling day and imposed a ban on all election-related activities ahead of the legislative assembly elections scheduled for 07 June. The commission said public meetings, rallies, processions, canvassing and the use of loudspeakers would be prohibited from midnight under the Elections Act 2017 and the election code of conduct. “Gilgit-Baltistan” Chief Election Commissioner Raja Shahbaz Khan said security arrangements had been finalised to ensure peaceful and transparent voting, warning of strict action against violations. The campaign period saw active participation by major parties, while the PTI raised concerns over an uneven electoral environment. (“Election campaigning ends in GB as 48-hour ban comes into force,” Dawn, 05 June 2026)
“AJK” polls scheduled for 27 July
On 06 June, The News International reported that the “Azad Jammu and Kashmir (AJK)” government declared the Jammu Kashmir Joint Awami Action Committee (JAAC) and affiliated organisations as proscribed under the “AJK” Anti-Terrorism Act, 2014, citing activities allegedly detrimental to peace, public order and security. The move came as authorities also announced elections for 45 directly elected seats of the “AJK” Legislative Assembly on 27 July, with enhanced security arrangements involving the Pakistan Army, Rangers, police and paramilitary forces. “AJK” Chief Election Commissioner Retd. Justice Ghulam Mustafa Mughal said measures were being taken to ensure transparent polls, while Defence Minister Khawaja Muhammad Asif criticised calls to abolish reserved assembly seats for Kashmiri migrants residing in Pakistan. (“State polls slated for July 27: AJK govt bans JAAC under anti-terror law,” The News International, 06 June 2026)
SECURITY
South Waziristan: Two sons of tribal elder killed by unidentified gunmen
On 05 June, Dawn reported that two sons of prominent tribal elder Malik Jamil Wazir were killed after unidentified gunmen opened fire near Kari Kot Bazaar in Wana tehsil, Lower South Waziristan District. Police identified the victims as Naveed Wazir and Moeenuddin Wazir, who were travelling by motorcycle when they were attacked; a passerby was also injured and taken to the hospital. Authorities said the attackers fled the scene, and an investigation was launched. The incident comes amid continuing security concerns in the region. It follows previous attacks on the family, including a 2024 bombing that injured Malik Jamil Wazir and killed another of his sons. MNA Zubair Wazir condemned the attack and urged stronger measures to restore law and order. ("2 sons of tribal elder killed as armed men open fire in KP's Wana," Dawn, 05 June 2026)
Panjgur: Six militants killed in intelligence-based operation
On 05 June, Dawn reported that Pakistan’s security forces killed six militants during an intelligence-based operation in Panjgur District. According to Inter-Services Public Relations (ISPR), the operation took place overnight on 3-4 June and involved engagements at multiple militant locations, resulting in the recovery of weapons, ammunition, improvised explosive devices and a vehicle. Authorities said sanitisation operations were continuing in the area. President Asif Ali Zardari and PM Shehbaz Sharif praised the operation and reiterated commitments to counterterrorism efforts, following earlier operations this week in other districts of Balochistan after the Quetta train suicide attack. ("6 terrorists killed in intelligence-based operation in Balochistan's Panjgur: ISPR," Dawn, 05 June 2026)
PROVINCES
Sindh: 16 people killed in storm; 96 others injured
On 06 June, The Express Tribune reported that, according to a PDMA report, severe weather conditions in Sindh province led to the loss of 16 lives and 96 injuries. The district of Shaheed Benazir Abad was the worst affected, where 10 individuals lost their lives. The DG PMA Sindh, Syed Salman Shah, stated that rescue and relief operations were underway and that local administrations had been mobilised to assess damage and provide assistance. All District Disaster Management Authorities were placed on high alert, while Shah urged citizens to avoid travel when possible and to follow safety instructions. (“Sindh storm death toll climbs to 16: PDMA”, The Express Tribune, 06 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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