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NIAS Area Studies
PAKISTAN READER
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In Focus
PM approves proposals to cut duties on 7,066 tariff lines, duty slabs to be restructured
On 5 June, Dawn reported that PM Sharif had approved proposals cutting duties on 7,066 tariff lines including raw materials, intermediate and capital goods. The move aims to spur industrial growth and reduce input costs. Further, the government would be abolishing two per cent additional customs duty (ACD) on 4,294 tariff lines and lower ACD on others. Sectors like chemicals, IT, plastics, and steel will benefit.
The government is said to restructure the duty slabs by introducing a simplified duty structure with zero, five, 10, 15, and 20 per cent slabs that will replace existing complex rates. “PM Shehbaz Sharif has directed the steering committee to initiate formal engagement with leading sectors such as auto, iron and steel, textiles, chemicals and plastics”. This reflected the government’s priority to shift from import substitution to export-led growth. The average tariff is targeted to drop from 19 per cent to 9.5 per cent in five years as per the approved plan.(Khaqan Hassan Najeeb, “BUDGET FY26: A transformative path for FY26,” The News International, 6 June 2025, Mubarak Zeb Khan, “PM approves plan to cut import duties on raw materials,” Dawn, 5 June 2025)
PM Sharif lauds Pakistan's appointment to UN chairs as global validation to counterterrorism efforts
On 6 June, Dawn reported on PM Sharif's statement about Pakistan's appointment to the United Nations committees, claiming it was a matter of “great pride” and "an international recognition of Pakistan’s counter-terrorism efforts." On 5 June Pakistan was appointed as the Chair of the UNSC Sanctions Committee under Resolution 1988 (2011) to oversee sanctions on the Afghan Taliban; Vice Chair of the Counter-Terrorism Committee under Resolution 1373 (2001); and Co-Chair of the Informal Working Group (IWG) on Documentation and the newly formed Working Group on Sanctions. The Pakistan Mission to the UN reaffirmed the country's commitment to the UN and its member states and in "playing its part in the global fight against terrorism in collaboration with its international partners." ("Key UN appointments validate global trust in Pakistan’s counterterrorism credentials: PM Shehbaz," Dawn, 6 June 2025)
Bilawal Bhutto voices concerns on possibility of first nuclear warfare amidst abeyance of Indus Water Treaty
On 6 June The Express Tribune reported on PPP Chairman Bilawal Bhutto-Zardari’s statement regarding the alleged Indian threats to stop water supply which may lead to the world’s first nuclear water warfare. At the Middle East Institute, he claimed that India’s possible violations of the 1960 Indus Treaty pose a serious threat to the lives of about 240 million Pakistanis. Bilawal alleged that India has refused talk, joint investigations on terrorism and mediation, leading to tensions in the region. He claimed that Pakistan wants peace and collaboration but India’s unilateral actions on Jammu and Kashmir, terrorism and now water treaty prevents any advance.
He emphasized the need for the world to step in and stop the situation from getting worse. A flare-up of hostilities was caused by the terrorist attack in Pahalgam. Khawaja Asif, Pakistan’s Defence Minister, asserted that the Shimla Agreement is no longer relevant because of India’s actions. Bilawal reiterated the importance of keeping the treaty sacrosanct, which otherwise, he claims, would doom future generations from both countries to fight indefinitely.(“India laying ground for 'first nuclear water war',says Bilawal,”The Express Tribune, 6 June 2025, “Sumla agreement no longer holds significance owing to Indian actions: Asif,” The News international , 6 June 2025)
In Brief
POLITICS
PTI sends names for the parliamentary committee which will appoint the next Chief Election Commissioner
On 5 June, PTI submitted the names of national assembly and senate members who would be a part of the parliamentary committee which would be appointing the chief of Election Commission of Pakistan (ECP) and the other two members of ECP. PTI has urged the federal government to start the process of formulating the parliamentary committee for appointing the Chief Election Commissioner (CEC). PTI nominated Asad Qaiser, Sahibzada Hamid Raza, Sardar Latif Khosa and Barrister Gohar Ali Khan who are members of the national assembly. From the Senate, PTI nominated Shibli Faraz and Raja Nasir. The nomination of names by the PTI came after PM Sharif reached out to the opposition for convening a meeting on appointing the next CEC. The current CEC Sikandar Sultan Raja and the other two members of ECP completed his five-year tenure on 26 January 2025. For appointing the CEC, PM Sharif and PTI’s Omar Ayub would submit three names for the President to choose from. However, if the two are unable to reach consensus regarding the three names, they would have to send their preferred names to the parliamentary committee. The committee would then submit one name to the President for his assent.
On 6 June, an editorial in Dawn titled “ECP reshuffle,” discussed the need for PTI and the government to come to the table and develop a consensus on appointment of the next CEC. The editorial pointed out how the present CEC and the other two members of ECP have been allowed to continue to hold their offices despite their tenure ending in January. This became only possible after the passing of 26th constitutional amendment. The editorial urges the government to schedule the meeting with the opposition leader for appointment of the CEC at the earliest. The editorial highlights how it would also provide PTI a chance to have their say in appointment of the members of one of the most important constitutional bodies. As per the editorial, this would help in bringing back trust in the “democratic process.” The editorial urges that the appointment of CEC must not be seen as an opportunity to further political “interests,” instead the focus should be to preserve the “interests” of the population. (“CEC appointment: PTI nominates lawmakers for parliamentary committee,” The News International, 5 June 2025; “ECP reshuffle,” Dawn, 6 June 2025)
Khyber Pakhtunkhwa Chief Minister calls for tit-for-tat response against the system
On 6 June, The News International reported Khyber Pakhtunkhwa (KP) Chief Minister Ali Amin Gandapur's remark that he vows to "defeat the system with force, while we are waiting for the judiciary to become independent." He also stated that "there is nothing in the cases against Imran Khan and Bushra Bibi." The remarks were made on 5 June after he met with Pakistan Tehreek-e-Insaf's (PTI) founder Imran Khan at Adiala jail in Rawalpindi. The meeting was reportedly on KP's upcoming budget and the party's proposed protest movement. He highlighted that Imran Khan had decided to focus investments in human development and welfare in the budget. He stated that despite his faith in the Constitution and the judiciary, "we will fight stick for stick and bullet for bullet,” if the system attempts to enslave them "by force of stick." ("Stick for strick, bullet for bullet" Gandapur," The News International, 6 June 2025)
EXTERNAL
Direct flights between Tashkent and Islamabad to begin from 14 June
On 6 June Dawn reported that the Republic of Uzbekistan will launch direct flights between Tashkent and Islamabad. The project was first proposed by the President of Uzbekistan in 2021 as a key initiative under the Central and South Asia Connectivity Initiative. The Uzbek embassy in Islamabad stated that the flights will be operating every Saturday. Currently there are biweekly direct flights to Lahore on Wednesdays and Fridays. These connections are meant to expand the airline’s regional footprint, linking Pakistan’s major cities not only with Uzbekistan but also with the wider Central Asian region and beyond. The embassy has stated that “Together, these routes support cross-border mobility, business travel, educational exchange, and cultural cooperation.” The embassy highlighted that the new route will enhance people to people ties, and that “more than just a transport link, this route is a gateway to deeper economic integration, cultural exchange, and strategic partnership – a symbol of the growing synergy between Uzbekistan and Pakistan. (“Islamabad, Tashkent flights begin from 14th,” Dawn, 6 June 2025)
PM Sharif offers prayer at Mecca
On 6 June, PM Sharif visited Mecca, Saudi Arabia for offering prayers. PM Sharif prayed for the betterment and progress of Pakistan and the whole Muslim community. PM Sharif arrived in Saudi Arabia on 5 June for his “two-day official visit.”
(“PM in Saudi Arabia on two-day official visit,” Radio Pakistan, 6 June 2025)
ECONOMY
Government announces ambitious plans for 13th five-year plan
On 6 June, Dawn reported that the federal government approved the construction of a Danish University, funded using EUR 190 million received from the UK’s National Crime Agency (NCA) during Imran Khan’s tenure. A high-powered committee has been formed under Deputy Prime Minister Ishaq Dar, including DG ISI Lt-Gen Asim Malik. The purpose of this committee is to devise and implement a water storage/dam strategy within 72 hours in response to Indian “water aggression.” Planning Minister Ahsan Iqbal revealed this during the launch of the 13th Five-Year Plan on 5 May. This year’s Five-Year Plan focuses on economic and sectoral growth. GDP growth is targeted to rise from 2.69 per cent (2023–24) to 6 per cent by 2028–29. The agricultural sector is projected to grow to 5.1 per cent, the industrial sector to 6.9 per cent, and the services sector to 6 per cent. The government has also set aspirational targets for infrastructure and the environment, such as expanding the share of electric vehicles to 25 per cent, cutting greenhouse gas emissions by 50 per cent, doubling the water storage capacity, and increasing the capacity of renewable energy by 60 per cent. The social goals include halving poverty to 12 per cent, increasing literacy, and expanding healthcare. The minister stated that funding for the Sustainable Development Goals Achievement Programme has increased, while the HEC budget was reduced due to provincial surpluses. He also stated that Pakistan’s economy is projected to reach USD 600 billion by 2030 and USD 1 trillion by 2035. Remittances have played an important role in this growth, despite opposition from a political party that had urged overseas Pakistanis to stop sending money to the country.(Mehtab Haider, “Govt approves construction of Danish varsity with £190m received from UK,” Dawn,6 June 2025)
WORLD VIEW
Trump boasts his efforts to bring an end to India-Pakistan confrontation
On 6 June, The News international reported that the President of the United States reiterated his significant role in reducing the tension between India and Pakistan, both of which have nuclear weapons. While hosting a White House event with German Chancellor Friedrich Merz, Trump explained that he used trade as a negotiation tactic to apply pressure on both sides to settle the conflict. “If you don’t put that in the contract, we won’t be making trade agreements,” he said, claiming that his actions prevented a possible war. He expressed high regard for the leadership of India and Pakistan, adding that what he said might be seen as unpopular. He mentioned the circumstances then were precariously close to reaching the point of no return, but he used trade diplomacy to de-escalate the tension.(“Pakistan has very strong leadership: Trump” The News international , 6 June 2025)
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