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NIAS Area Studies
PAKISTAN READER
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In Focus
PM Sharif in Azerbaijan:
Expresses gratitude to Baku for backing Pakistan against India
On 27 May, PM Sharif embarked on his visit to Azerbaijan. This is his third visit to a friendly country after a brief confrontation with India. PM Sharif held a discussion with the President of Azerbaijan Ilham Aliyev in Lachin. He was accompanied by Deputy PM and Foreign Minister Ishaq Dar, Information Minister Atta Tarrar and his special assistant Tariq Fatemi. He stressed on the significance bilateral cooperation in order to enhance “regional stability and mutual prosperity.” On 28 May, Turkiye, Pakistan and Azerbaijan would be participating in a “trilateral meeting” in Lachin, Azerbaijan which would see the presence of President Erdogan along with PM Sharif and President Aliyev.
PM Sharif expressed his gratitude to Azerbaijan for backing Pakistan in the brief confrontation against India. He also noted how the public in Azerbaijan hailed the alleged victory of Pakistan against India. President Aliyev commended PM Sharif on “Pakistan’s remarkable success.” He noted Pakistan’s attempts in ensuring peace in the region. Both President Aliyev and PM Sharif reiterated their resolve to enhance bilateral “strategic partnership” by increasing investments. Baku has also decided to send a team to Pakistan for deliberating over investments. PM Sharif pointed out how Azerbaijan and Pakistan have backed each other at every juncture and in future they “would continue to do so.”
Separately, on 27 May, Chief of Army Staff Asim Munir met Iran’s chief of general staff Mohammad Bagheri in Tehran. The two deliberated upon ways to enhance defence relations. The two leaders also decided to increase “military-to-military cooperation,” and enhance security on the borders. Previously, Field Marshal Munir also held a meeting with supreme leader of Iran, Ayatollah Khamenei and Iranian President Masoud Pezeshkian. (Syed Irfan Raza, “PM thanks Baku for firm support amid tensions with India,” Dawn, 28 May 2025; “Pakistan, Azerbaijan to diversify partnership through investment,” The News International, 28 May 2025)
PM’s Visit to Iran on Turkey
On 26 May, PM Sharif embarked on a “two-day visit” to Iran. He held a meeting with President of Iran Masoud Pezeshkian. Islamabad and Tehran have reiterated their resolve to establish “permanent peace” in the region. Both Iran and Pakistan highlighted how establishing cordial ties among bordering countries is a crucial part in the “foreign policy” of both the countries. President Pezeshkian and PM Sharif have also expressed their commitment to enhance “bilateral trade and investment.” PM Sharif in Tehran claimed that Pakistan achieved victory in its brief confrontation with India. Further, he claimed that Pakistan remains committed towards solving the dispute over Jammu and Kashmir as per the “UN Security Council resolutions.” He also expressed willingness to have discussions with India over other contentious issues such as “water, trade and counter-terrorism.” (This note was earlier published: Pakistan’s “PM in Iran: Meets PM and Ayatollah,” Global Politics, 27 May 2025, Vol 5, No. 140)
On 25 May, Prime Minister Shehbaz Sharif arrived in Turkiye as part of a four-nation tour to strengthen strategic partnerships. During the meeting, he thanked President Erdogan for Ankara’s constant support during Pakistan’s recent tensions with India. Both leaders reaffirmed support for ‘core concerns’, including the Kashmir issue, and called for an immediate ceasefire in Gaza along with unhindered humanitarian aid. They conducted a comprehensive review of their bilateral ties and also discussed the implementation of decisions from the 7th High-Level Strategic Cooperation Council held in February. Both sides reiterated their goal of achieving USD 5 billion in annual bilateral trade. Shehbaz advocated increased collaboration in renewable energy, IT, defence production, agriculture, and infrastructure. (This note was earlier published: PM Sharif's visit to Turkiye, Global Politics, 25 & 26 May 2025, Vol 5, No. 138 & 139)
Anti Polio Vaccination Drive Attacks Continues
On 28 May, Dawn reported that a policeman guarding a polio vaccination team was shot dead by unidentified assailants on 27 May on the outskirts of Noshki. The attack occurred on the second day of the anti-polio campaign while vaccination teams were administering drops to children under the age of five. The perpetrators suddenly opened fire on the security personnel; the officer sustained multiple bullet wounds and died on the spot.The attackers fled the scene, and there are reports that they took the officer's official weapon and motorcycle. A search operation has been launched to trace the culprits, and additional personnel have been deployed across the district to enhance security for vaccination teams. No group has claimed responsibility for the attack. Officials strongly condemned the incident.
Balochistan government spokesperson stated that the polio campaign is a national duty and any attack on it is intolerable. President Asif Ali Zardari praised the dedication of polio workers who have sacrificed their lives to protect children from the crippling disease. He reaffirmed Pakistan’s commitment to eradicating polio, saying, “We have the tools, the will, and the support of our global partners to make this vision a reality." He also urged parents, teachers, religious leaders, and the media to support the campaign and help dispel myths surrounding the vaccine. Prime Minister Shehbaz Sharif also condemned the attack and expressed sorrow over the officer's death. He called any assault on vaccination teams unacceptable and vowed to take strong action against those attempting to sabotage the anti-polio drive. Balochistan Health Minister Bakht Muhammad Kakar described the attack as a “cowardly and inhumane act.” He stated that targeting the polio campaign is equivalent to attacking the future of the next generation and warned that anyone obstructing the campaign would be treated as a challenge to state authority and dealt with an “iron hand.” This follows the incident on 27 May wherein two polio workers were reported to have been kidnapped by armed men during a polio vaccination drive in the Khyber Pakhtunkhwa region. (Saleem Shaid“Cop guarding polio team martyred in Noshki gun attack,” Dawn,28 May, Irfan Mughal,”two polio workers abducted in Tank as nationwide polio drive begins,” Dawn, 27 May.)
(Also Read: Abhiruchi Chowdhury, "Polio: Why is Pakistan vaccine hesitant?," Global Politics, 21 November 2024; Shamini Velayutham, "Pakistan: Recent spike in Polio cases," Global Politics, 11 September 2023)
In Brief
POLITICS & GOVERNANCE
New special aide to PM on crypto and blockchain
On 28 May, Dawn reported that Bilal bin Saqib has been appointed as the Prime Minister's special assistant on blockchain and cryptocurrency, as the 61st member of the federal cabinet. On 25 February, the finance ministry announced the possibility of “establishing a National Crypto Council,” later appointing Saqib as the chief executive officer of the Pakistan Crypto Council (PCC). He is tasked with developing regulatory frameworks compliant with the Financial Action Task Force (FATF) for "digital assets, launching Bitcoin mining initiatives, and overseeing blockchain integration in governance, finance, and land records." ("Bilal made PM’s aide on crypto, blockchain," Dawn, 27 May 2025)
Meanwhile, an editorial on the subject says, "It is good that the country is moving towards regulating digital assets and cryptocurrencies instead of imposing a blanket ban. " On 28 May, an editorial in The News International titled "The crypto race" traced Pakistan's positive approach towards digital assets over the years. The editorial noted that despite the State Bank of Pakistan's initial prohibition of cryptocurrencies in 2018, digital assets were recognized through an amendment in 2024. The Pakistan Crypto Council was also established in 2024, as an advisory body that "regulate and integrate blockchain and digital assets into the nation’s financial system." The Securities and Exchange Commission of Pakistan (SECP) is also expected to expand the registration of businesses with crypto and digital-asset based models, leading to the licensed crypto exchanges likely to be taxed, the editorial noted. The editorial observed that "Pakistan has recently allocated at least 20,000MW of power to support Bitcoin mining and data centres." The editorial further highlighted the need for infrastructure for smooth transmission and cautioned against the "extremist elements regarding fund transfer." ("The crypto race," The News International, 28 May 2025)
JUDICIARY
The supreme court questions independent candidacy of SIC chairman
On 28 May, Dawn reported that the court pointed out to the Sunni Ittehad Council (SIC) that their place in the reserved seats was not part of the original decision which had assigned the seats to the Pakistan Tehreek-e-Insaf party (PTI). Hamid Raza was asked by Justice Hilali why he ran in the 2024 polls as an independent, not on the SIC ticket. During the hearing, the candidates SIC counsel said they had no party ties initially, only joining the PTI later, but the ECP would not accept these statements. The chief justice noted that the majority report used papers that were neither clear nor included in the official register of nomination forms. He and Justice Afghan, authors of the minority opinion, did not take that evidence into account. The court talked about possible relief steps, one of which was bringing back the Peshawar High Court judgment into force. It is for the court to decide if there has been a breach of someone’s rights, Justice Mandokhail added. The case has been put off until Thursday.(“Judges in a fix over SIC role in reserved seats case,”Dawn,28 May, 2025)
SECURITY
In North Waziristan, protestors against the drone attacks, call off their strike
On 28 May, Dawn reported that the Routes in the North Waziristan district of Khyber Pakhtunkhwa reopened after a weeklong sit-down protest against the drone strike in the region. The protesters and the government agreed on common grounds such as setting up of neutral committee for investigation, Security forces agreed to refrain from the use of drones and surveillance cameras on the local population, financial aid for the families hit by the conflict, resumption of internet access in the region and withdrawal of military force from Mir Ali hospital. If this agreement is violated, the protesters threaten to shut down all companies active in North Waziristan that were involved in extracting natural resources.(“N.Waziristan protesters call off sit-in; roads reopen,”Dawn,28 May, 2025)
ECONOMY
Pakistan International Airlines: Privatisation deadline extended due to lack of investor interest
On 28 May, Dawn reported that the Privatisation Commission (PC) has not received any expressions of interest (EoIs) for the sale of Pakistan International Airlines Corporation Ltd (PIACL). This prompted the government to extend the deadline from 3 June to 19 June. The government aims to complete the privatisation by the end of 2025. Two roadshows were conducted in Karachi and Lahore to attract buyers for a 51 per cent to 100 per cent share capital. It also offered incentives including exemption from general sales tax on aircraft induction, protection from certain tax and legal claims, and support to improve PIA’s net equity, possibly through indemnification or liability transfer. The PC projects a 6.2 per cent compound annual growth from FY25 to FY29 in Pakistan’s underserved aviation market. (“No EoIs received for PIA,” Dawn, 28 May 2025)
Steel Industry warns tariff rationalization plan could devastate the domestic industry
On May 28, The News International reported that the Pakistan Association of Large Steel Producers (PALSP) warned the government that any tariff cuts on finished or semi-finished steel products could deeply affect the domestic industry. In a pre-budget meeting with Finance Minister Muhammad Aurangzeb, PALSP said what we call “tariff rationalization” could increase imports, cost loss of jobs, and government revenue. With over 60 per cent of steel units already shut and the rest operating below capacity, PALSP argued to defer the tariff rationalization plan by at least a year and to maintain the current sales regime to prevent tax fraud. They called for a minimum 50 per cent total protection on steel bar imports including 35 per cent to offset cost disparities and an additional 15 per cent due to low capacity utilization and high production costs. The sector consumes 4 billion kWh of electricity annually and contributes over PKR 200 billion in taxes, which could sharply decline if the sector contracts. (Mehtab Haider, “Steel industry warns tariff cut could trigger shutdown, job losses,” The News International, 28 May 2025)
On Budget 2025
“Finance Minister Muhammad Aurangzeb has promised to introduce “bold measures” in the upcoming budget to steer the economy in a “strategic direction”. What he means by bold measures or strategic direction remains unclear,” states an editorial in Dawn.
On 28 May, an editorial in Dawn titled “Budget strategy,” questioned whether Pakistan’s budget would finally offer a genuine strategic shift or remain a mere balancing act. Finance Minister Muhammad Aurangzeb has promised “bold measures” to steer the economy in a new “strategic direction,” though details remain vague. The only hint he has given so far involves restructuring the debt management office to ensure the economy is on a sustainable growth path. He also pledged tax return simplification for salaried individuals and substantial increase in defence spending given the recent tensions with India. However, with IMF talks being ‘inconclusive’, concerns are growing over fiscal gaps created by increased defence spending, tax reliefs, and spending cuts. The IMF is pressing Pakistan to identify alternative revenue sources to close the gap. The editorial argued that the most apt step would be increasing the tax base by raising the tax-to-GDP ratio to 18–20 per cent. Expanding the tax net to undertaxed sectors like retail, agriculture, and real estate could ease the burden. It stated that however it depends on what authorities define as strategic and whether such true tax reforms would fall within their definition. .(“Budget strategy,” Dawn, 28 May 2025)
MEDIA
On the state of journalism in Pakistan:
"Successive governments and the legal framework have proved ineffective in ensuring action against murderers of journalists," an editorial in Dawn bemoans.
On 28 May, an editorial in Dawn titled "Killing journalists" highlighted the perilous state of journalism in the country. The editorial underscored the Committee to Protect Journalists’ statistics that placed Pakistan second, with Sudan for the highest journalist fatalities, marking 2024 "as the deadliest for media persons in 30 years." The editorial further highlighted the recent killing of Abdul Wahid Raisani, a journalist at Daily Azadi at Quetta, noting that the inefficiency of legal frameworks and governments "have shaped a culture of impunity whereby journalists are hounded by incessant threats and attacks."
("Killing journalists," Dawn, 28 May 2025)
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