In Focus
Ahead of federal budget, Pakistan hails successful IMF talks, secures USD 800 from Asian Development Bank
On 3 June, Prime Minister Shehbaz Sharif stated that talks with the IMF regarding the upcoming budget were successful. He was optimistic about it calling this a move towards a new phase of economic growth for the country. The Prime Minister added, “We have achieved economic stability; now we must embark on the journey of economic development.” He also highlighted that under the present Pakistan Muslim League-Nawaz (PMLN) government, corruption has been kept in check, emphasising its promise to ensure reforms that will push Pakistan to become economically stable and competitive.
On 4 June, The News International reported on the USD 800 million package approved by the Asian Development Bank (ADB). Pakistan grapples with low tax revenue and high public debt nearing 75 per cent of GDP. The package has been approved to strengthen the country’s fiscal sustainability and public finance management. Of the USD 800 million package, USD 500 million comprises ADB’s first ever policy based guarantee, through which it aims to attract up to USD one billion from commercial lenders. The funding is part of its Improved Resource Mobilisation and Utilisation Reform Program, under which key reforms in public spending, tax policy and administration, and digital governance are supported. ADB Country Director Emma Fan noted that Pakistan has made notable macroeconomic improvements, and the initiative supports Pakistan’s commitments to institutional reforms for sustainable growth. The program also aims to improvise the investment climate in Pakistan, including modernising regulatory frameworks to attract private sector investment.
References:
“Budget 2025-26: NA, Senate sessions on 10th,” The News International, 4 June 2025, Ajaved Aziz Khan
“Budget talks with IMF successful: PM,” The News International, 4 June 2025, “ADB okays $800m package for Pak fiscal reforms,” The News International, 4 June 2025)
Bilawal Bhutto led delegation appeals to UN for reducing tensions with India
On 3 June, a team of parliamentary leaders headed by PPP Chairman Bilawal Bhutto met with UN’s Secretary General Antonio Guterres in New York. The discussion with the UN Secretary General is part of Islamabad's efforts to highlight India’s alleged role in initiating military confrontation, in front of the international community. Bilawal Bhutto informed the secretary general about Islamabad’s stance post the terrorist attack in Pahalgam. Bhutto dismissed India’s claims of Pakistan having a hand in the terror attack, calling it “baseless and premature allegations.” During the meeting, he highlighted how Pakistan, despite India’s alleged aggressive posture, responded in “mature and responsible” manner, in adherence to international law and the UN Charter. The PPP Chairman urged the UN Secretary General to aid in bringing down the tensions between the two countries. Further, he asked the Secretary General to foster a constructive “dialogue” between the two countries and help in ensuring that the Indus Water Treaty remains intact. The Secretary General in response reiterated the UN's resolve to ensure regional stability.
On the same day, speaking to the media at the headquarters of UN, Bilawal expressed Pakistan’s willingness to “cooperate with India” for thwarting the threat of terrorism. He claimed that if Pakistan’s intelligence agency ISI and India’s RAW collaborated, both the countries could see a massive drop in terror attacks. On the same day, Shashi Tharoor who is heading the Indian parliamentary team for highlighting Pakistan’s involvement in terrorism stated that India could consider having a discussion with Pakistan, if the latter initiates “significant action” against terror groups operating from its territory.
On 4 June, an editorial in The Nation titled “Narrative Push,” pointed out the significance of Pakistan's “diplomatic outreach” to highlight India’s alleged role in undermining regional peace. The editorial highlights how in the present times narrative building is crucial during conflicts. The editorial claims that since India is allegedly spreading propaganda against Pakistan, the latter cannot remain silent. The editorial asserts that abeyance of Indus Water Treaty is not a “minor issue” and how it could possibly lead to an all-out war between India and Pakistan.
References:
Asim Yasin and Muhammad Saleh Zaafir, “UN chief briefed on threat India poses to regional stability,” The News International, 4 June 2025
Usama Iftikhar, “If ISI and RAW sit together, there would be a significant decrease in terrorism: Bilawal,” The Express Tribune, 4 June 2025
“India can talk to Pakistan if it takes significant action against terrorism: Tharoor,” The News International, 4 June 2025
“Narrative Push,” The Nation, 4 June 2025
In Brief
Energy, Environment and Water
Prime Minister calls for completion of Diamer-Bhasha Dam for water security and self-reliance
On 4 June, Dawn and The Nation reported Prime Minister Shehbaz Sherif's call to speed up the construction of the Diamer-Bhasha Dam to increase Pakistan's water storing capacity, alleging that India's abeyance of the Indus Water Treaty has put "Pakistan’s water security in peril." The remark was made on 3 June while addressing a jirga at the Corps Headquarters at Peshawar. In a different meeting, the PM highlighted that "the country’s self-dependence is linked with affordable electricity and agriculture, which requires increased water storage and efficient water usage,” and urged authorities to accelerate the completion of the Bhasha dam which is estimated to store 6.4 million acre-feet of water. The development budget for the year has slashed the allocation of funds to the energy sector from PKR 169 billion to PKR 144 billion, and PKR 135 billion to PKR 109 billion in the water sector.
Additionally, Planning Minister Ashan Iqbal stated that the cost of construction has "increased significantly due to delays and unnecessary postponements during the previous government." He added that upcoming projects would be carried out through public-private partnerships to avoid delays. ("Centre, provinces to draw up water storage plans," Dawn, 4 May 2025; "PM Shehbaz calls for accelerating work on major dam projects," The Nation, 4 May 2025)
On lack of disaster preparedness
“The building code, which is supposed to ensure safety, is not being followed,”
On 4 June, an editorial in Dawn titled “Unprepared Karachi” highlighted the growing public distress over a series of low-intensity earthquakes felt in parts of Karachi. While no substantial damage has been reported, there have been questions raised on the lack of preparedness in the face of disastrous situations. An expert from the development building code stated that chances for a major earthquake are low and warned that considering the vast population, and poorly constructed buildings would be vulnerable to large -scale devastations if it is hit by a stronger quake measuring 5 or 6 on the scale. The editorial stated that the rescue operations could face delays because of the narrow streets and limitations in the emergency resources. Any shock to the critical infrastructure including hospitals, roads and utilities can leave the area in a dire situation for weeks. The experts claimed that there is “a lot of corruption in the construction industry,” and that it shows that the regulatory enforcement is weak and can put millions of lives at risk. The editorial urged the authorities conduct risk assessments regularly, enforce building codes, retrofit the unsafe structures and also added that public awareness campaigns and emergency drills are essential steps towards safeguarding the city during disaster. ( “Unprepared Karachi,” Dawn, 4 June 2025)
SECURITY
Pakistan alleges Indian connection to seven Baloch terrorists killed
On June 4, The Nation reported that seven terrorists allegedly belonging to an Indian proxy were killed by security forces in two separate operations in Balochistan. On 3 June, a press release issued by the Inter-Services Public Relations (ISPR) stated that an intelligence-based operation (IBO) was conducted in the Mach, Kachhi District, Balochistan as there was a report on the presence of alleged “Fitna al Hindustan” terrorists. During the operation, the troops engaged in finding the location of alleged “al Hindustan terrorists,” and after the intense exchange of fire, five terrorists were killed by the troops. In another operation at Margand, Kalat District, Balochistan two more terrorist hideouts were neutralized. All the weapons were recovered from the killed terrorists. It has also been reported that the security forces of Pakistan are determined to eliminate the menace of alleged Indian sponsored terrorism from the country. (“Seven terrorists belonging to an Indian proxy killed in Balochistan operations,” The Nation, 4 June 2025)
On India
Chairman Joint Chiefs of Staff Committee rejects speculations of Pakistan receiving foreign assistance in military confrontation against India
On 3 June, the Chairman Joint Chiefs of Staff Committee (CJCSC) General Sahir Shamshad Mirza claimed that Pakistan did not receive help from any third country in the military confrontation against India. He also pointed out how the two countries lack an “organized mechanism” for resolution of conflicts. He acknowledged the US's role in mediating between the two countries, however, he mentioned the role of the third countries for diffusing tensions between India and Pakistan is now “increasingly limited.”
Muhammad Anis, “Country’s own, not foreign, capabilities used against India: CJCSC,” The News International, 4 June 2025
SOCIETY
Major bust of international child exploitation ring
On 4 June, The Nation reported that an international child exploitation gang using a “gaming club” in Muzaffarabad was recently dismantled by Pakistan’s National Cybercrime Investigation Agency (NCCIA). The club brought in poor children aged 6–10 by offering money and then forced them to take part in sexually explicit acts that were shared on the dark web. The rescue of 10 children and the arrest of two suspects was made possible by an operation that lasted 5 hours, after a tip from the US. At least 50 children were exploited and a few families were reportedly involved. Since the start, 178 crimes have been registered, 197 individuals have been arrested and 14 have been convicted. NCCIA looks to expand its presence at the district level and also keeps working with Interpol and German law enforcement agencies.(Imran Mukhtar, “NCCIA busts international racket involved in child sexual exploitation,” The Nation, 4 June 2025)
On gender-base violence in Pakistan:
The killing of Sana Yousaf "highlights the dangers women continue to face in Pakistan, where they remain vulnerable to a spectrum of violence, including honour killings, harassment, and murder” stated an editorial in The Nation
On 4 June, an editorial in The Nation titled “Another Girl Murdered,” stated that the brutal killing of 17-year-old Sana Yousaf which occurred after she neglected unwanted advances from an older man, highlights that gender-based violence continues to affect Pakistan. After the Zahir Jaffer trial ended, her death sadly shows that misogyny continues to exist. Pakistani women may encounter violence for the mere reasons of deciding who to marry, declining unwanted attention or being in public. Shockingly, a portion of the internet blamed her and defended her murderer, saying she brought it on herself for going against conservative beliefs. While justice must be guaranteed, the government should particularly focus on challenging and dismantling unhealthy cultural attitudes supporting such crimes. We must strengthen laws and alter society to make sure dehumanisation of women is eliminated from society. (“Another Girl Murdered,” The Nation, 4 June 2025)
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"Pakistan needs to move more cautiously, would be perilous to expect investment from the Trump family holdings."
- An opinion in Dawn, 'Crypto politics'
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