Eight terrorists killed in Khyber Pakhtunkhwa operations I 21 per cent water shortage, says IRSA
In Focus
Amid tensions with India, Islamabad continues to reach out to the international community
On 5 May, PM Sharif appealed to the world community for reducing ongoing “tensions” between India and Pakistan after the terrorist attack in Pahalgam. As per PM Sharif, the main cause of tension is the yet to be resolved dispute over Jammu and Kashmir. PM Sharif also vowed to protect Pakistan’s territorial integrity in case of any “misadventure” from India. The federal government is of the view that the continual blaming of Pakistan by India for the attack is a way to avert “attention” from the dispute over Jammu and Kashmir.
Islamabad’s international outreach
On the same day, PM Sharif and Deputy PM and Foreign Minister Ishaq Dar convened separate discussions with Foreign Minister of Iran Syed Abbas Araghchi. As per Dawn, Iran has proposed to “mediate” to diffuse tensions between New Delhi and Islamabad. After Pakistan, Araghchi is scheduled to visit India on 6 May. PM Sharif also held a discussion with UK High Commissioner in Pakistan, Jane Mariott. He assured the High Commissioner that the government would not indulge in any action that could be detrimental for the peace in the region. On 5 May, Moscow urged India and Pakistan to work towards diffusing tensions. Previously, Russia also had offered to “mediate” between the two countries to bring down tensions.
Impact on Pakistan
On 5 May, Moody’s corporation hinted that the surge in tensions with India might hit the “macroeconomic stability” of Pakistan. As per Moody’s, the escalation in “tensions” could impact the foreign investment into Pakistan. However, in the case of India, the tensions are not likely to impact its “macroeconomic stability.”On 6 May, Dawn reported that a few of the international airlines operators were trying to steer away from flying over Pakistan amid the rise in tensions. International airline operators like Lufthansa and Air France have confirmed the reports of not wanting to fly over Pakistan temporarily.
Responses by print media
On 6 May, an editorial in Dawn titled “United front,” discussed the importance of unity among the political parties of Pakistan in the wake of surge in tensions with India. The editorial pointed out how the PTI skipped the high-profile meeting in which Information minister Attaullah Tarar and head Director General of Inter Services Public Relations, Ahmed Sharif Chaudhry apprised the political stakeholders about the alleged threat posed by India. The editorial termed the PTI’s absence as “unfortunate” and urged the government to continue to engage with the party, so as to build a collective “national response.” As per the editorial, India has been unsuccessful in making the world believe that Pakistan was behind the terror attacks in Pahalgam. The editorial also urged the stakeholders in India to restrain from fabricating “inflammatory statements against Pakistan.”
On the same day, an editorial in The Express Tribune titled “Moody's warning,” alleged that New Delhi was attempting to harm Pakistan’s interest in order to dominate the region as a “hegemon.” The editorial alleged that India is attempting to disrupt the water flow that goes to Pakistan, which is crucial for sustenance of agriculture sector which is the country’s “life-line. “The editorial referenced the recent predictions by Moody’s corporation which has highlighted how an increase in the expenditure on defence could also adversely affect India’s “fiscal strength.” As per the editorial, if it comes to Pakistan’s existence, it would not hesitate in using the “nuclear option.” (“Pakistan calls on world to pave way for peace,” Dawn, 6 May 2025; “Foreign airlines avoiding Pakistan airspace,” Dawn, 6 May 2025; “Stand-off with India to hit Pakistan’s nascent economic stability, warns Moody’s,” Dawn, 6 May 2025; “United front,” Dawn, 6 May 2025; “Moody's warning,” The Express Tribune, 6 May 2025)
In Brief
ECONOMY
On rate cut:
“While there is much to be said about how the government’s monetary stance has eased inflation, the growth revival remains elusive,” says an editorial in The News International
On 6 May, an editorial in The News International titled “Measured cut” stated that the Monetary Policy Committee (MPC) has cut the policy rate by 100 basis points to 11.0 per cent on 5 May, despite expectations for a pause. This comes after a sharp decline in inflation, recorded at 0.28 per cent in April, marking the lowest reading in six decades. Lower electricity tariffs and easing food prices were key factors. A record surge in workers’ remittances also supported a USD 1.2 billion current account surplus in March, balancing debt repayments. However, the MPC warned of global risks, including Trump tariffs and the Pahalgam attack, which could challenge economic stability. Despite easing inflation, growth remains sluggish, with second-quarter FY25 GDP growth at 1.70 per cent and Q1 revised to 1.30 per cent. The IMF has also downgraded Pakistan’s growth forecast to 2.6 per cent. High prices still burden citizens, and structural reforms by the government are lagging. Tax collection remains weak, despite focusing on salaried classes. The MPC highlighted the need to tax previously exempt sectors, particularly agriculture. Some provinces have already passed agricultural tax bills. However, privatization of loss making state enterprises and attracting foreign investment is critical. Combating inflation has made progress, but without sustainable growth and the state's ability to pay back bills, economic stability will remain a challenge. (“Measured Cut,” The News International, 6 May 2025)
On economic and business disruptions:
“State failures resulting in business disruptions,” says Dawn
On 5 May, an editorial in Dawn titled “Doing business,” reviewed the state’s failure in securing businesses in Pakistan leading to disruptions. The editorial highlighted how recently the Interior Minister Mohsin Naqvi had reassured a delegation of foreign investors about the security of their investments after a series of attacks on fast-food outlets in April. The vandalization of nearly 10 fast-food chains and the subsequent death of a worker in April are alleged to have been instigated by a “religio-political party.” “Where was the state when the attacks kept occurring day after day?,” the editorial questioned. The editorial criticized the government’s ineffective assurances when the damage has already been done. The editorial also highlighted the state’s consistent failure to address the political disputes such as the canal project protests in Sindh, which resulted in severe economic disruptions. A 10-day logistics route blockade crippled the manufacturing, which led to fuel supply shortage, and left exports worth millions stranded, and domestic business halted. The editorial also highlighted instances of state interference in the IT sector through internet restrictions. The editorial stated that there are many more such “unforeseen yet not unexpected” events due to weak institutions, which have led to the existing ‘sociopolitical instability.” The editorial called out the state for allowing “normalized unpredictability,” which disrupts the continuity of businesses and makes the investors prone to the risks, who pay the price for the state’s failure. The editorial also questioned the effectiveness of governmental efforts in ensuring “rule of law,” considering the effort it takes to attract investors. Without addressing these problems, and implementing long-term solutions, the government’s efforts to attract investors are unlikely to succeed, the editorial observed.(“Doing business,” Dawn, 5 May 2025)
EEW
21 per cent water shortage, says IRSA
On 6 May, Dawn reported that the Indus River System Authority (IRSA) has revealed a 21 per cent water shortage in Pakistan during the early Kharif season. During an advisory committee meeting, the IRSA Chairman Sahibzada Muhammed Shabir approved the “water availability criteria” for the rest of the Kharif season. Concerns over the decrease in the water flow in River Chenab at Maral was the key monitoring point. Dawn alleged that the shortage is due to decreased supply by India which has led to the significant shortages in the water availability for farmers in a period crucial for sowing of the summer crops like cotton and rice. The agricultural sector makes up 20 per cent of the Pakistani economy and around 38 per cent of the population is dependent on it.
Further, shortage is expected to be around 7 per cent between June and September and IRSA stated that they would review the shortages in case the flow continues to decline. The IRSA committee, responding to the arising crisis, has decided to use the water from Tarbela and Mangla to ensure all provinces are given their fair share even during the decrease in the inflows. The federal government and provinces have also agreed to set aside their personal grievances on the matter. Experts warn that long term shortages would pose a serious chain of issues, such as lower harvests, rise in prices and reduced incomes, and exports would also be affected. It would also disrupt the textile industry as cotton growth is threatened. (Israr Khan, “Pakistan faces 21% water shortfall for early Kharif season: Irsa,” The News International, 6 May 2025)
SECURITY
Eight terrorists killed in Khyber Pakhtunkhwa (KP) operations
On 6 May, The News International reported that on the night between 4 May and 5 May, security forces conducted multiple intelligence-based operations (IBO) in Khyber Pakhtunkhwa, killing eight Khawarij terrorists. In general area Mir Ali, North Waziristan, three terrorists were killed. Two more were neutralised in South Waziristan, where Naik Mujahid Khan, 40, from Kohat district, was martyred. Three more terrorists were killed in Khyber and Bannu districts. Arms, ammunition, and explosives were recovered from the killed terrorists. Ongoing sanitisation operations aim to eliminate remaining Kharji found in the area, reaffirming Pakistan's commitment to ending terrorism, as per the Inter-Services Public Relations (ISPR) statement issued on 5 May. (“Eight terrorists killed, soldier martyred in KP operations,” The News International, 6 May 2025)
Pakistan tests Fatah series missile
On 6 May, Dawn reported Pakistan’s second missile test in three days as amid tensions with India. On 5 May, a Fatah series, surface-to-surface missile, speculated to be Fatah-I of 140 kilometers range, was successfully launched as a part of Exercise Indus. Fatah-I is an indigenously developed Guided Multiple Launch Rocket System (GMLRS), carrying a conventional warhead. The Fatah missile series, Pakistan’s first “homegrown” GMLRS was developed by Global Industrial & Defence Solutions (GIDS) in a modernisation program in 2021. The series reflects Pakistan’s leaps in defence capabilities, and the country’s shift towards “indigenous development and precision-guided weaponry,” states Dawn. The Fatah-I is more significantly more advanced than systems like the A100 MLRS, and “is designed to engage high-value targets inside enemy territory,” developed to “enhance long-range rocket artillery capabilities.”
The Fatah launch follows the “training launch” of the nuclear capable Abadali missile on 3 May. “The launch was aimed at ensuring the operational readiness of troops and validating key technical parameters, including the missile’s advanced navigation system and enhanced accuracy,” Dawn quotes the ISPR. The article reports the military learnerships “complete confidence in the operational preparedness and technical proficiency of the Pakistani Army”. (“Pakistan conducts second missile test in three days,” Dawn, 6 May 2025)
COAS General Asim Munir attends 15th National Workshop Balochistan; emphasizes regional peace
On 6 May, The News International reported that the Chief of Army Staff (COAS) General Asim Munir interacted with participants of the 15th National Workshop Balochistan at GHQ. Since 2016, the workshop has brought together parliamentarians, bureaucrats, civil society, youth, academia, and media, with strong representation from Balochistan. It includes seminars, discussions, and national visits aimed at helping Balochistan’s future leaders understand key issues. On 5 May, General Asim Munir reiterated Pakistan’s aim for regional peace but warned of a full-force response if sovereignty is threatened. He identified foreign sponsored terrorism as the biggest challenge to Balochistan’s development, condemning terrorist groups using Baloch identity for their agendas. He highlighted the government’s continued efforts to uplift the province socio-economically, stressing that such progress must debunk the disinformation. He noted many projects are already delivering results and praised civil society for spreading awareness, especially among youth, and highlighted their role in enabling progress in the region. (“Foreign-sponsored terror greatest threat to Balochistan: COAS,” The News International, 6 May 2025)
PAK-CHINA
China is Pakistan’s most “strategic” and “dependable” ally says The News
On 5 May, The News International outlined that China and Pakistan share a robust partnership, exemplified by Victor Gao’s statement affirming support for Pakistan’s sovereignty. Their collaboration, particularly in defense and economic spheres, has been steadfast. China has emphasized security cooperation, with the Communist Party of China (CPC) guiding the People’s Liberation Army (PLA) in strengthening ties with Pakistan’s military. Key initiatives, including the Heavy Mechanical Complex Taxila (HMCT), Al Khalid Tank, Pakistan Aeronautical Complex, Pakistan Ordnance Factories, and maritime projects, have helped Pakistan achieve arms production self-sufficiency. Through joint production of the JF-17 fighter jet, supply of J-10 aircraft, and cooperation on fifth generation stealth technology, defense ties have deepened—boosting Pakistan’s airpower and reducing Western dependency. By 2013, Pakistan had suffered over 60,000 casualties and economic losses exceeding USD 100 billion from the war on terror. Energy deficits caused USD 4–5 billion in annual losses, while NATO transport reliance strained infrastructure, necessitating USD 1.2 billion in repairs—positioning CPEC as an essential recovery path. Amid economic hardship—with 39 per cent of the population in poverty and 58.8 per cent facing food insecurity due to falling FDI, energy crises, and Western sanctions—Pakistan found a reliable partner in China. From steadfast military support during the 1965 and 1971 wars to landmark initiatives like CPEC and advanced defense collaboration, this partnership has consistently bolstered Pakistan’s stability and development. China’s enduring commitment continues to overshadow volatile global alliances, positioning the relationship as one of the region’s most strategic and dependable. (Shakeel Ahmad Ramay, “China-Pakistan ironclad brotherhood: a slogan or commitment”, The News International, 5 May 2025).
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We will not compromise on our honor.
- PMLN
Pakistanis, I have told you for many years that I have never bowed down to anyone except Allah and I will never let my people bow down.
Imran Khan
- PTI
Modi called his fiercest political opponent Rahul Gandhi for a one-on-one meeting and Rahul reached the Prime Minister's House, while in our country, the head of the country's largest political party, the most popular leader Imran, is put in Adiala Jail and given a 30-minute briefing in front of the defeated people. The seriousness of this briefing was evident in the fact that the ministers of defense, finance, home and foreign affairs were not included in it.
- Basharat Raja
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"The domestic fallout will prove important in the near future as the crisis plays out."
- An opinion in Dawn, 'After the stand-off.
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