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Public Sector Development program receives PKR one trillion from government

In Focus
Public Sector Development program receives PKR one trillion from government
On 2 June, the federal government approved a PKR one trillion development budget for the financial year 2025–26. The PKR 1 trillion fund for federal Public Sector Development Programme (PSDP) was finalised by a committee under PM Shehbaz Sharif. Economic growth and strategic projects could get affected by funding cuts, warned the Planning Minister Ahsan Iqbal.
 
Record PKR 4.1 trillion national development outlay was approved by the Annual Plan Coordination Committee, wherein the four provinces contributed PKR 2.8 trillion. While the resources remained limited, the Sindh government managed to secure PKR 86 billion from the federal Public Sector Development Programme (PSDP) given its alliance with the ruling coalition. Iqbal stated Diamer Basha Dam, the Karakoram Highway, the Hyderabad-Sukkur Motorway, N-25 Expressway from Karachi to Quetta as the top projects for the upcoming year, while also expressing the concern of inadequate funds for the same.


Around 40 per cent PSDP funds to be directed towards provincial projects
While funding for the National Highway Authority (NHA) rose, power, water, education, and HEC budgets were cut. This reflects the government’s intention of satisfying political priorities of coalition partners stated The Express Tribune. The PSDP is PKR 400 billion lower than the original current-year plan. The federal government plans to get PKR 270 billion from external funding for this. Despite this challenge, PSDP funds worth 30-40 per cent are directed towards provincial projects, raising concerns on hindering the growth of large-scale national projects.

The Express Tribune stated that the allocation for water is down by 45 per cent for the upcoming financial year despite alleged threats from India over water security. "The water sector is our priority, but due to limited resources and with the current allocation, it will take 20 years to complete the Diamer Basha dam project," stated Iqbal.
 
On the exports front, projections stood at USD 35 billion, and foreign remittances approximately around USD 39 billion. Out of 1,071 ongoing development projects, 183 are identified as slow moving and will be capped by June 2025, potentially saving PKR 1 trillion, which are said to be utilised immediately for fast moving projects.
 

Pakistan GDP growth projected at 4.2 per cent, warns of external sector pressures
The economy is projected to grow by 4.2 per cent in the upcoming financial year, as per the Ministry of Planning and Development’s Annual Plan for the year. However, it warned of easing import controls and debt repayments. It risks reintroducing external sector pressures and widening the current account deficit. The risks are expected to be cushioned by strong remittances and export recovery. A rebound is forecasted for agriculture by 4.5 per cent, while Large-Scale Manufacturing is expected to grow by 3.5 per cent, both following a wide margin in missing current year targets. The services sector, comprising the largest share of GDP, is projected to rise by 4 per cent. Inflation is forecast at 7.5 per cent, given the ongoing trade tensions and domestic tariff rationalisation measures.
(Shahbaz Rana, “
Govt approves Rs1tr uplift budget,” The Express Tribune, 3 June 2025, “Govt eyes 4.2pc GDP growth for FY26,” Dawn, 3 June 2025)

Attacks in Balochistan amidst DG ISPR asserting “Balochistan is part of Pakistan and will remain so”
On 2 June, in his speech at the “Hilal Talks 2025,” Director General of Inter-Services Public relations asserted that “Balochistan is part of Pakistan and will remain so, no one can separate it.” He rejected the notion of the province splitting apart from the country. He claimed that New Delhi and its alleged “proxies” continue to remain a “threat” to the security of the province. Further, he alleged that the proscribed Balochistan Liberation Army received “financial” assistance from India. He said “there is no ideology behind terrorism in Balochistan, it is entirely India-sponsored.”


Balochistan continues to witness attacks
On 2 June, Quetta, Balochistan, unknown militants attacked a “mobile patrol unit.” The militants detonated a grenade which resulted in wounding three people. The security forces have initiated a “search operation” to hunt down the culprits of the attack. Separately, a man was gunned down in Mastung that resulted in massive demonstrations. The protests saw the family of the deceased putting down the dead body on the Quetta-Karachi highway and called for “immediate arrest” of the culprits. In another incident in Quetta which took place on 1 June, a bomb blast resulted in one person losing his life and wounded another four people. As per the police, the bomb was placed in a car which was parked at a bus terminal. None of the militant groups have up until now “claimed responsibility” for the assault.

Response from Print Media 
On 3 June, an editorial in The Express Tribune titled “Balochistan front,” highlighted the urgency of a comprehensive “strategy” to bring back peace in Balochistan. The editorial alleges that India is attempting to engage Pakistan in a “two-front war.” The editorial demands that the government must come heavy on those who are allegedly sponsored by foreign powers and carry out attacks against their own people. In addition to that, the editorial urges the state to look into the “genuine” concerns of the people of Balochistan and segregate the demands of the common citizens from the propaganda spread by the militants.

Grenade attack targets police patrol in Quetta,” The Express Tribune, 3 June 2025
One killed, four injured in Quetta car blast,” Dawn, 2 June 2025
No power can detach Balochistan from Pakistan: DG ISPR,” The Express Tribune, 3 June 2025
Balochistan front,” The Express Tribune, 3 June 2025

In Brief

POLITICS & GOVERNANCE
Pakistan's high-level delegation thanks China for continual backing during Indo-Pak confrontation
On 3 June, The Express Tribune reported that Pakistan's Bilawal Bhutto-led high-level delegation met with ambassadors Fu Cong and Vassily Nebenzinaand, the permanent representatives of China and Russia, respectively, to the UN, to present Pakistan's perspective of the recent India-Pakistan tensions. The delegation thanked China's support for Pakistan and Bhutto alleged that India rejected an impartial investigation and reiterated that "the resolution of the Kashmir issue was indispensable for a lasting peace in South Asia." Both countries have unanimously opposed "unilateral actions and aggression," and highlighted the importance of adhering to the UN Charter and international law.
 
At the meeting with the Russian ambassador, the delegation rejected India's accusation of Pakistan's involvement in the Pahalgam attack and claimed that "Pakistan was the biggest victim of terrorism." The delegation contrasted India's abeyance of the Indus Water Treaty, as alleged by Bhutto to be the "weaponisation of water," against what Pakistan claimed was a "measured and proportionate response" on its part. Simultaneously, a second delegation led by Special Assistant to Prime Minister (SAPM) Tariq Fatemi, is visiting Moscow.
("
Pakistan launches diplomatic offensive against India," The Express Tribune, 3 June 2025; "Bilawal slams India's 'weaponisation of water' in UN talks," The Express Tribune, 3 June 2025)

SOCIETY
Female polio vaccination validation team members attacked for disturbing cultural environment
On 2 June, The Express Tribune reported on the attack on a polio vaccination validation team by armed attackers in Tangir, which is an additional district of Diamer, Gilgit-Baltistan. The attack took place while the team was coming back from their fieldwork after two days of verifying the vaccination coverage. The attackers targeted the team and accused them of disturbing the cultural environment of their region by bringing “unveiled women from Gilgit.” The spokesperson elaborated that the attack was not against the polio campaign but rather due to the presence of female team members. He also stated that the team entered the region without coordinating with the district administration and police. The attackers fled the scene after damaging the team’s vehicle by firing at a tyre. The report stated that no members were harmed and that they were moved to a safer place. The G-B Chief Minister has ordered the police to catch the unidentified attackers immediately and has increased security measures to protect the workers working in the sensitive area. It was also mentioned that the first case of wild poliovirus reported in Diamer was the 11th case in Pakistan in 2025. A similar attack on a polio team in Nushki, Balochistan resulted in a police constable being killed and another injured. (“Polio team attacked in G-B over female members' presence,” The Express Tribune, 02 June 2025)

On Polio Paradox
These groups claim that the vaccinations cause fatal medical problems and are a 'Western conspiracy'

On 3 June, in an editorial titled Polio Paradox in The Express Tribune stated that despite several efforts, the polio eradication campaign continues to face difficulties in 2025 with increasing polio cases and security threats. The first wild poliovirus case that was registered after 7 years in the Gilgit-Baltistan region was reported along with the attack on a polio team in Diamer by unknown attackers. The report stated that the proximity of both these reports gives a clear picture of the country’s fight against this virus for 30 years, which on one hand is the worsening public health crisis and on the other hand is the misinformation that has resulted in increasing regressive attitudes.There have also been widespread attacks against polio workers in Pakistan that were motivated by false claims that the vaccines would cause harm and that it is a Western conspiracy, which have been refuted by officials. The editorial suggested that the polio vaccination campaigns have been facing strong opposition and violent attacks from groups that spread disinformation regarding the vaccination and claimed it as a “western conspiracy” The recent case of wild polio was identified in a 23-month-old child whose medical record suggested of administered polio drops, but the reality is that the child has not been provided with any vaccines post-birth. The editorial highlights the need for a “deeply meticulous approach” which would not leave any gaps. It also suggested that Pakistan needs not only sustained vaccination efforts but also a strategic approach that can curb violent attacks and misinformation. Without this, the lives of children would be in danger. (“The polio paradox,” The Express Tribune, 3 June 2025)


EXTERNAL
On Pakistan-Afghanistan ties:
“Working under the trilateral format with China can better address Pakistan’s security concerns with Kabul,” stated an editorial in Dawn

On 3 June, an editorial in Dawn titled “Warming ties” stated that both Pakistan and Afghanistan have shown strong will to improve their diplomatic relationship by elevating envoys to the level of ambassadors which is regarded as evidence that countries are starting to acknowledge the Afghan Taliban regime, though not yet formally. The warming of relations, helped mainly by China, comes after a trilateral meeting in Beijing, where the three countries agreed to enhance their cooperation. China, which maintains relationships with the Taliban for economic and security matters, helps strengthen stability and investment in the region. Cooperation with Afghanistan brings new chances for Pakistan to team up on security and create new business ventures, given the challenges caused by cross-border violence. Afghanistan’s assurance that it will halt anti-Pakistan militant activities is necessary for the framework to help solve security issues and unify the region.( “Warming ties,” Dawn 3 June 2025)

Energy, Environment and Water
Sindh Environmental Protection Agency (SEPA) marks World Environment Day in Hyderabad
On 3 June The Nation reported that SEPA celebrated World Environment Day at its Hyderabad office using the theme “Ending Plastic Pollution.” Waqar Hussain Phulpoto, the Director General of SEPA, pointed out that everyone should help enforce the plastic bag ban, since caring for the environment is a common task for government, companies and citizens. Dr. Amanullah Mahar at the University of Sindh pointed out the issues plastic waste causes in the environment and encouraged using sustainable solutions. Saniya Irshad educates on the harm to nature, human health and the economy from plastic waste, asking for cooperative actions to protect the environment. A performance by Aga Khan Aminabad Guide School showed how youth can be involved in climate action. There were contributions from important individuals like leaders of SITE Associations and members of the Hyderabad Chamber of Commerce. While this was going on, the Pakistan Environmental Protection Agency (Pak-EPA) organized a clean-up event at Margalla Hills aimed at increasing environmental awareness.( “Environment day event of SEPA emphasises on ending plastic  pollution,”The Nation 3 June 2025)




"Mobilising private capital is essential to unlock Pakistan’s economic potential."

- An opinion in Dawn'Pakistan’s potential'

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