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NIAS Area Studies
PAKISTAN READER
Photo : AFP
In Focus
Pakistan Budget 2025: Investments in agricultural sector, Relief for Armed forces,
On 13 June, Dawn reported that the government is oriented towards self-reliant development with a focus on 4.5 percent growth in the agricultural sector. This will be sustained by an investment of PKR 4.2 billion in crop productivity, livestock development and agricultural modernisation and mechanisation. The major programs are the Punjab Kissan Card which will benefit the farmers by providing them with financial and technological help. Through provincial initiative, these measures are aimed at decreasing the dependence on external funding and encouraging sustainable development in agriculture. The wider ambition is to finance its development in the near future independently by boosting the agricultural sector as a pillar of the economy with specific and innovative interventions. Also, the federal government has endorsed special relief allowance to the armed forces which would be 50 per cent of the basic pay of the officers and 20 per cent to the junior ranks.
Response from the business community
On 13 June, Dawn reported that Business leaders in Pakistan have criticised the 2025–26 federal budget, calling it as anti-industry and lacking pro-investment measures. The Federation of Pakistan chambers of commerce and industry among others want the abolishment of punitive taxation and discretionary powers by the tax collectors. The industrialists caution that the budget does not focus on export-led growth, ease of doing business or digital reforms. The issues are raised over high energy charges, insufficient relief on the increasing cost of production, and 18 percent sales tax on solar imports. Leaders are insisting on urgent consultations and institutional changes to improve investor sentiments and deal with realities on the ground such as power cuts, high operating expenses and poor GDP growth estimates.
Response from the Print Media
On 13 June, an editorial in Dawn titled “Thrashing around” highlighted how the new budget indicates the further manifestation of the fiscal malfunctioning which is characterized by the lack of reforms. The editorial points out that instead of expanding the tax base or introducing some strategic shifts, the budget revives the old strategies, overburdening the law-abiding taxpayers and allowing the non-compliant to get away. Further, the editorial highlights how the major promises such as the improvement of exports and integration into the digital economy have no plausible follow-up. The editorial states that the taxation of teachers and school supplies is a regressive move that does not correlate with the public acclaim of the youth and freelancers.
References
“Centre proposes climate based criteria for next NFC award,” Dawn, 13 June 2025
“Armed forces to get special relief allowance,”Dawn, 13 June 2025
“Ginners in shock as 18 percent GST retained,”Dawn, 13 June 2025
“Taxation steps to stifle growth”, Dawn, 13 June 2025
“Thrashing around,”Dawn, 13 June 2025)
Pakistan ranks last in the World Economic Forum gender parity index
On 12 June, Dawn reported that Pakistan was placed at the last in a list of 148 countries in gender parity. The report was brought out by the World Economic Forum. The ranking is based on four factors- “economic participation and opportunity, educational attainment, health and survival and political environment.” As per the report, countries like Sudan, Chad, Iran, Democratic Republic of Congo have performed better than Pakistan. Pakistan’s parity score stood at 56.7 per cent marking a decrease of 0.3 percentage points from 2024 score. The report highlighted how there has been a decrease in women occupying “ministerial” posts. Pakistan, along with countries like Hungary, Saudi Arabia, Azerbaijan do not have a single woman who is in the “ministerial cabinet.” On the positive side, Pakistan made some improvement when it came to increasing parity in “educational attainment.” The literacy rate among women has gone up to 48.5 per cent from a precious 46.5 per cent. Nevertheless, the report pointed out that the surge in parity could also be attributed to decrease in number of “male enrolment.”
(“Pakistan hits rock bottom in WEF’s global gender gap report out of 148 countries,” Dawn, 12 June 2025)
PM Sharif praises UAE’s efforts in reducing India-Pakistan tensions
On 12 June, PM Sharif held a discussion with the President of the UAE Sheikh Mohammed bin Zayed Al Nahyan in Abu Dhabi. PM Sharif expressed gratitude towards UAE for playing a significant part in reducing tensions between India and Pakistan during the brief military confrontation. He also praised the leadership for facilitating “peace, dialogue and stability.” PM Sharif and President Al Nahyan delved into a number of issues and expressed resolve to increase bilateral cooperation. As per PM Sharif’s office, both UAE and Pakistan were content with how the bilateral relations are progressing between the to countries.
On the same day, PM Sharif gave a speech at London Tech Week 2025 hosted by Abu Dhabi. He expressed Pakistan’s resolve to transform the present economy into a “knowledge-based economy.” He also expressed his country’s commitment to embrace “digital transformation and technological innovation.”
(Syed Irfan Raza, “PM thanks UAE for role in defusing tensions with India,” Dawn, 13 June 2025)
In Brief
POLITICS
PTI mobilizes farmers: Calls for action to transform the agricultural landscape
On 13 June, Dawn reported that on 12 June, PTI urged farmers to mobilize for a significant protest against the government which it claims had “destroyed” the agriculture sector. PTI leaders termed the budgetary measures such as exempting fertilizers from GST, as insufficient given the sector's poor performance, with major crop output down by 13.5 per cent. PTI Chairman, Gohar Khan, highlighted the need for modernization in agriculture, which would ensure food security. He requested the farmers to prepare not only for the protests but also for Imran Khan's release. (“PTI rallies farmers for decisive protest to fix agri sector,” Dawn, 13 June 2025)
CM Nawaz launches first Virtual Centre for Child Safety (VCCS)
On 12 June, The News International reported that the first Virtual Center for Child Safety (VCCS) was launched by the Punjab Chief Minister, Maryam Nawaz. As per The News, VCCS is not only an effective way for finding missing children, but also for finding missing elderly people. The VCCS can be contacted either through the safety app or by the emergency helpline number .The service is also available to provinces other than Punjab. It is seen as a significant step in countering forced child labor through digital governance. (“Maryam launches Pakistan’s first virtual centre for child safety,” The News International,13 June 2025)
ECONOMY
International Finance Corporation and World Bank approve loan worth USD 700 million for Reko Diq project
On 13 June, The Express Tribune reported on the approval of a concessional loan of USD 700 million from the International Finance Corporation (IFC) and the World Bank for Pakistan’s Reko Diq, a major mining project. As per The Express Tribune, this marked a significant diplomatic win for Pakistan, alleging that India had lobbied against the funding. The approval is expected to attract USD 2.5 billion in investment from the private sector in the project.. Previously, IFC committed to providing USD 300 million in debt financing for the Reko Diq copper-gold project. The project is jointly owned by Barrick Gold and the federal and Balochistan governments. The project director of Barrick Gold stated that the term sheets for funding will be signed by late Q2 or Q3 of 2025. He also expects contributions of USD 650 million from IFC and the International Development Association, USD 500 million to USD 1 billion from the US Export-Import Bank, and USD 500 million from other development finance institutions such as the Asian Development Bank and the Japan Bank for International Cooperation. The project's first phase is expected to start production by 2028. Additionally, discussions on infrastructure financing, such as railway development, are also in progress. The cost is estimated at around USD 500–800 million. The World Bank also plans to invest USD two billion annually in Pakistan’s infrastructure over the next decade. The loan approval is expected to strengthen Pakistan’s economic position and emphasized the diplomatic efforts made to secure investments, despite the alleged involvement of India in actively attempting to block the project financing. The Reko Diq project is expected to play a vital role in resource development. (Aamir Ilyas Rana, “Pakistan secures $700m loan for Reko Diq project despite Indian opposition,” The Express Tribune, 13 June 2025)
Surge in solar panel prices ahead of government’s plan to impose 18 per cent sales tax
On 13 June, Dawn reported on the increase in prices of solar panels by shopkeepers in Karachi ahead of the government’s planned 18 per cent sales tax on solar panel imports, which would come into effect from 1 July, pending the budget approval. Importers are blamed for raising the prices. Consumers are shocked by the sudden hike in price. The current prices for solar systems have increased significantly – the 5kW set is around PKR 600,000 to 700,000, while lithium batteries have risen to PKR 800,000 from the previous price of PKR 700,000 to 750,000 that was set before the budget announcement. The market is dominated by Chinese products and brands, with no locally assembled panels available yet, which led to concerns that higher prices would reduce demand. Inverex solar CEO M Zakir Ali supported the 18 per cent tax and sees it as a positive step towards promoting local manufacturing but emphasized the need for broader reforms like tax-free raw materials and protective duties to avoid smuggling and stabilize the solar panel market. (Aamir Shafaat Khan, “Importers hastily raise prices of solar power systems,” Dawn, 13 June 2025)
ENVIRONMENT
On severe weather conditions:
“Soaring weather is more than merely uncomfortable; it is a threat to public health,” states an editorial in Dawn
On 13 June, an editorial in The Express Tribune titled “Sizzling Punjab” mentioned the forecast put forward by the Meteorological Department of Pakistan as per which severe heat waves with dry weather are expected following gusty winds and light rain. The editorial highlights how citizens are hoping that light rains will bring relief amidst the increasing temperatures. Citizens are advised to avoid outdoor activity and stay hydrated, while daily wage workers must work in the scorching sun to sustain. The editorial highlights how severe weather conditions put the labourers at risk of heat stroke and, in cases, even death. The editorial suggested that the government stop uniforms stitched from blended materials that are cheap but endanger employees' health. (“Sizzling Punjab”, The Express Tribune, 13 June 2025)
ON INDIA
US President Trump reiterates his interest to mediate in the dispute over Jammu and Kashmir.
On 13 June, The Express Tribune reported that US President Trump once again claimed credit for moderating and easing the tensions between India and Pakistan. Trump claimed that a possible nuclear war was averted through trade pressure and direct diplomacy. He informed that India was negotiating on the trade deal, and Pakistan’s Army chief was invited to attend the US Army’s 250th anniversary parade. He stated that efforts will be made to resolve the long-standing rivalry over Kashmir. (“Trump repeats offer of mediation on Kashmir”, The Express Tribune, 13 June 2025)
Pakistan offers sympathy to India over Air India plane crash in Ahmedabad
On 12 June, The Express Tribune reported that top Pakistani leaders sent condolences to India over the Ahmedabad plane crash. President Asif Ali Zardari and Prime Minister Shehbaz Sharif expressed their grief over the Indian flight crash near Ahmedabad that claimed more than 200 lives. The Defence Minister extended his sympathies through his social media platform. PML-N supremo Nawaz Sharif expressed condolences to the families of the victims and stated that the tragedy has struck beyond borders. PPP Chairman Bilawal Bhutto Zardari stated that he was saddened to hear about the tragedy in his post on ‘X’. (“Pakistan extends condolences to India”, The Express Tribune, 13 June 2025)
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