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NIAS Area Studies
PAKISTAN READER
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In Focus
Provincial Budgets: Punjab government presents annual budget, opposition rejects KP budget; Sindh budget focuses on development
On 16 June, the Punjab government led by Pakistan Muslim League-N (PML-N) unveiled its second annual budget for the fiscal year 2025–26, with a focus on development, public welfare, and enhanced service delivery. The total estimated outlay of the proposed budget is approximately PKR 6,250 billion out of which approximately PKR 1,100 billion has been earmarked for development expenditure. The budget was presented in the Punjab Assembly by Finance Minister Mujtaba Shuja-ur-Rehman during the afternoon session.
Opposition parties in Khyber-Pakhtunkhwa reject annual provincial budget
On 16 June, opposition parties in the Khyber-Pakhtunkhwa Assembly vociferously opposed the provincial budget for the fiscal year 2025-26. In contrast, government members lauded the budget, hailing it as the “best in the province’s history.” Leader of the Opposition, Dr Ibadullah, criticized the budget by underscoring the province’s heavy reliance on external sources. He stated that “only seven per cent of the province’s revenue is internally generated, while 93 per cent depends on federal transfers and loans.”
Sindh allocates PKR 590 billion for development projects in FY 2025-26
On 14 June, Chief Minister of Sindh, Murad Ali Shah announced that despite being under an IMF programme that demands strict fiscal discipline, the Sindh government will allocate PKR 590 billion for development projects this year. The total budget is PKR 3.451 trillion out of which PKR 1 trillion is earmarked for development and PKR 2.15 trillion for current expenditures. PKR 1.1 trillion is earmarked for salaries and pensions, leading to salary increases of 12 per cent for lower-grade employees and 10 per cent for higher grades. CM Shah declared that no new taxes were introduced in the budget, with some taxes eliminated or reduced.
Doubts over public expenditure in Khyber-Pakhtunkhwa provincial budget
On 15 June, an editorial in The News International titled “Awaiting Delivery,” expressed skepticism over the implementation of the budget, citing lack of imposition of no new taxes and reducing old taxes which shall likely result in an increased fiscal deficit, failing to keep revenues below expenditures. The editorial highlighted that budget figures of receipts presented by the KP government appear to be exaggerated, revealing a consistent gap of over PKR 500 billion between projected and actual transfers from the federal government. Further, the editorial pointed out that while the province expects to collect PKR 129 billion, federal receipts are expected to constitute the majority of revenue generation. This heavy reliance on federal transfers to meet provincial expenditures may result in further shortfalls, resulting in some significant adjustments. The author states that overreliance on federal transfers, without ensuring actual disbursement, continues to hurt KP’s development agenda and delays in promised funds have already impacted key services and development schemes, especially in the merged tribal districts.
On 17 June, an editorial, in The News International titled “Awaiting delivery” editorial also highlighted that problems of this nature are not confined to Khyber-Pakhtunkhwa; unrealistic projections and targets and gaps between promises and capacity to deliver have been a major theme of this year’s budget at both the federal and provincial levels. Cautioning against having high expectations, the editorial raised the issue of provincial-centre relations, expressing frustration that the devolution of powers since the post-18th Amendment era has not been able to prevent provinces from being heavily dependent on the centre for revenues.
References:
“Punjab govt presents around Rs6.25tr annual budget today,” The Nation, 16 June 2025
“K-P Opposition rejects budget, cites failures,” The Express Tribune, 17 June 2025
“Sindh to spend Rs590b on development projects this year: CM Murad Ali Shah,” The Nation, 15 June 2025
“Awaiting delivery,” The News International, 17 June 2025
Pakistan’s “nuclear and missile programme” is for Pakistan’s security, asserts FM Dar on Iran-Israel conflict
On 16 June, Deputy PM and Foreign Minister Ishaq Dar asserted that the news of Pakistan planning a “nuclear strike” on Israel, in response to latter’s assaults on Iran, was false and “fabricated.” Dar claimed that the news was “falsely” accredited to a military general of Iran. He clarified that Pakistan has not issued any remarks like such. Further, he asserted that Pakistan’s “nuclear and missile programme” was solely for Pakistan’s security.
On the same day, PM Sharif held a meeting with Iran’s envoy to Pakistan Reza Amiri Moghadam in Islamabad. The meeting with the ambassador took place on the “sidelines” of the International Maritime Expo and Conference. PM Sharif, yet again, called out Israel for attacking Iran and assured Pakistan’s support to Iran and its leadership. Previously, PM Sharif spoke to the President of Iran Masoud Pezeshkian, assuring his country’s support to Tehran at the UN Security Council.
On the same day, the Ministry of Foreign Affairs informed about safely evacuating 268 Pakistani citizens from Iraq. As per The Express Tribune, the concerned authorities are in touch with the Iraqi Airways and the authorities in Iraq for evacuating Pakistani worshippers who are unable to come back due to the ongoing confrontation between Iran and Israel. For evacuating, the Iraqi Airways is using the “Basra-Dubai route.” Previously, the Deputy PM and Foreign Minister Ishaq Dar had informed about successfully evacuating 450 Pakistani worshippers from Iran.
On 15 June, The Express Tribune reported that a number of foreign air carriers are making use of Pakistani airspace owing to the confrontation between Israel and Iran. The confrontation has resulted in air carriers being unable to fly over Iran, Iraq, Syria, and Israel. Airlines such as Emirates are using airspace over north Pakistan for traveling to North America and Egypt.
On 16 June, an editorial in The Nation titled “Crude Provocations,” discussed how the ongoing confrontation between Iran and Israel threatens global energy supplies. The editorial mentioned the latest Israeli assaults on “oil and gas facilities” in Iran. The editorial highlighted how the recent conflict is impacting fuel prices, which it argues, must only depend upon “market forces.” In addition to that, the editorial pointed out how the confrontation has resulted in upsetting “shipping and logistics” and has also taken a hit on the “confidence” of buyers and producers around the world. The editorial also questioned whether the world should allow powerful countries to disturb the global fuel supplies in this manner.
References:
PM Shehbaz meets Iranian Ambassador, reaffirms support amid Israeli aggression, The Express Tribune, 16 June 2025
“DPM rebukes fake news claiming Pakistan plans nuclear strike on Israel,” The Express Tribune, 16 June 2025
“Pakistan airspace becomes key for airlines amid regional airspace bans,” The Express Tribune, 15 June 2025
“FO confirms safe return of 268 Pakistanis from Iraq,” The Express Tribune, 16 June 2025
“Crude Provocations,” The Nation, 16 June 2025
4,650 harassment complaints received in the last four years, says Punjab Ombudsperson for Women
On 17 June, The Express Tribune reported that the Punjab Ombudsperson for Women, Nabila Hakim Ali, revealed that during her four-year tenure, she has received 4,650 harassment complaints, all of which were solved. Only 50 cases are currently under investigation. She added that this has helped women recover inheritance property worth PKR 1,200 billion during her tenure. She conducted Awareness seminars, case hearings, and workshops while her major focus was on South Punjab. Dr Roma, Chairperson of the Harassment Committee at Bahauddin Zakariya University, called for collective efforts to restore women’s dignity and rightful place in society. (“ 4,650 harassment cases taken up in four years,” The Express Tribune, 17 June 2025)
In Brief
POLITICS
Nawaz Sharif supports Shehbaz Sharif’s leadership and the “hybrid System”
On 17 June, The News International reported that Former Pakistani Prime Minister and PML‑N leader Nawaz Sharif expressed his satisfaction with the political system and supported a “hybrid system,” without expressing any objection to the government’s policies in national affairs. He has been largely away from public politics and has strongly supported Prime Minister Shehbaz Sharif and Chief Minister Maryam Nawaz’s leadership in Punjab. He offers political guidance and sometimes hosts foreign dignitaries and diplomats at his residence. The News further revealed that Nawaz Sharif trusts PM Sharif’s governance and has no intention of contesting for the prime ministership. He also played a key role in the appointment of General Asim Munir and also supported his promotion to Field Marshal. Despite several rumors of discontent, the newspaper reported that he has faith in the hybrid system's current governance model. (“Low-profile Nawaz 'fully backs hybrid setup',” The News International,17 June 2025)
Punjab assembly takes historic steps and unanimously approves landmark legislation against extremism
On 17 June, The News International reported that the Punjab Assembly has unanimously passed the Punjab Centre of Excellence on Countering Violent Extremism Bill 2025, in a bid to counter the “spread of violent extremism and radical ideologies” in both online and offline spaces. The Bill seeks to establish the Punjab Centre for Excellence on Countering Violent Extremism which will act as a “research-driven think-tank” and will also play an advisory role. It will be akin to a multidisciplinary hub to work with academic institutions, civil society actors, and religious scholars in evidence-based policymaking. They would establish training centers, fellowships, and public outreach for vulnerable groups for a proactive and coordinated provincial strategy as per the Financial Action Task Force (FATF) guidelines. The operations would be overseen by a high‑level Board of Governors chaired by the Chief Minister, including police leadership, experts, and other ministries. The implementation strategies like the establishment of the Punjab CVE Fund for operations supported by provincial, donor, and private contributions, regular audits for transparency, it also integration with the existing security framework. It also highlights a proactive approach to address extremism, particularly focusing on digital platforms and youth engagement. (“Punjab Assembly passes bill to counter violent extremism,” The News International,17 June 2025)
ECONOMY
PM Sharif calls for inclusion of six conditions for arrests in tax fraud cases
On 17 June, The News International reported that Prime Minister Shehbaz Sharif, on 16 June instructed for certain relaxations and incorporation of six mandatory conditions in the Finance Act to avoid the misuse of power by the Federal Board of Revenue (FBR) officers. PM Sharif chaired a review meeting on matters concerning FBR and mandated the establishment of a special committee. He stated that “respect and dignity of the business community and investors is of utmost importance to us and any unjustified harassment is intolerable.” The six pre-requisite conditions for initiating arrests of CEOs, CFOs, and board of directors are: if a person involved in tax fraud tries to escape, tries tampering of evidence, fails to appear following three summoning notices, certain tax fraud limit, tax fraud of PKR 50 million for arrest of executives, and approved by the special board of the FBR along with representatives of private member (potentially from the chamber of commerce). (Mehtab Haider, “PM lays down six conditions for arrests in tax fraud cases” The News, 17 June 2025)
PIA employees and FFC submit proposal for acquisition amid airline’s privatization process
On 17 June, The News International reported that the Privatisation Commission confirmed on 16 June that employees of Pakistan International Airlines (PIA) have submitted a joint offer to acquire the national flag carrier. The offer was jointly filed by the President of the CBA-affiliated People’s Unity, Hidayatullah Khan, and Head of the PIA Senior Staff Association (SASA), Aqeel Siddiqui. The employees argued they should have the first right to purchase the airline. Additionally, Fauji Fertilizer Company Limited (FFC), one of Pakistan’s top fertilizer firms, has also submitted an Expression of Interest (EoI) and pre-qualification documents to the Privatisation Commission to obtain a stake in Pakistan International Airlines Corporation Limited (PIACL). Previously, renowned business groups including Mian Mansha Group, Arif Habib Group, and the Tabba Group had also expressed interest in acquiring the debt-ridden airline. The federal government’s privatization of PIA plan is part of a broader government strategy to disinvest and transfer ownership of loss-making state-owned enterprises to stabilize public finances amid deepening economic crises. (Israr Khan, “Airline’s privatization: PIA employees join bidding race as two more submit offers,” The News, 17 June 2025)
SOCIETY
Freedom to practice any religion remains protected in Pakistan, says Punjab Minister for Minorities Affairs
On 16 June, the Minister of Minorities Affairs of Punjab, Sardar Ramesh Singh Arora attended an event that was organized to observe the “martyrdom day” of the fifth guru of Sikh religion, Guru Arjan Dev. Addressing the attendees, he emphasized that “religious freedom and minority rights” are protected in the country. He informed that the provincial government has allotted finances for rebuilding of “15 gurudwaras” in Punjab. Further, he also stated that Pakistan has not put any curbs on issuing of visas for Sikh worshippers from India to visit the country. ( “Minorities, religious freedoms fully protected in Pakistan, says Ramesh Singh,” The Nation, 16 June 2025
On the problem of honor killings in Pakistan:
“Those who kill in the name of honour are not protectors of any value system,” argues an editorial in The Nation
On 16 June, an editorial in The Nation titled “Honour Crimes,” discussed the problem of honor killings that continue to take place in the country uninterruptedly. The editorial viewed the problem of honor killings as a failure of Pakistani society, the brunt of which is borne out bythe victims. The editorial highlighted how many of the cases related to honor killings remain unreported as people are afraid to come out in the open, fearing social shame and stigma. The editorial also viewed the killings as a tool for the continuation of “patriarchal” mindset. The editorial called out the government for not strengthening the laws which often result in culprits being acquitted. The editorial demanded that steps must be taken to ensure that justice is “swift, unyielding and non-negotiable.” (“Honour Crimes,” The Nation, 16 June 2025)
SECURITY
Five terrorists alleged to be members of an “Indian-proxy” group killed in KP
On 16 June, The Express Tribune reported that security forces have killed five terrorists belonging to an alleged “Indian proxy” reported as “Fitna al Khawaraij” in two separate intelligence-based operations in Khyber Pakhtunkhwa province on 15 and 16 June. Sanitization operations have been launched in North Waziristan and the Peshawar district to eliminate any remaining threats. President Zardari said operations against terrorism will continue till the complete elimination of terrorism from the country, and PM Sharif said, “Anti-human terrorists will have to pay a heavy price for endangering the lives and property of innocent people.” (“Five terrorists killed in K-P IBOs: ISPR.” The Express Tribune, 16 June 2025)
ON INDIA
Bilawal Bhutto highlights challenges posed by India’s suspension of the Indus Waters Treaty in Brussels visit
On 17 June, The Express Tribune reported that the Pakistani delegation, led by former foreign minister Bilawal Bhutto Zardari, concluded its Brussels tour. The tour was aimed at securing international support in preventing further escalation between India and Pakistan, the two nuclear-armed neighbours, particularly from the European Union. The delegation pushed for a dialogue and counter-terrorism cooperation with India, and it has emphasized the danger of a nuclear conflict. Bilawal highlighted the challenges posed due to the suspension of India’s Indus Waters Treaty, and he added that “Europe, as a champion of international law, must help us de-escalate this situation.”
On 17 June, the editorial in The News International titled “Lifeline under threat” stated that “the Indus Waters Treaty, brokered in 1960 with the help of the World Bank, survived wars, skirmishes, and political upheavals.” The editorial highlighted that due to the suspension of the Indus Waters Treaty, this decision has undermined thise vital framework, and this is affecting Pakistan's agriculture, economy, and national security. The editorial stated that no country can or should expect to stand idly by while its water supply is weaponized, and according to the editorial, this decision has violated international norms. The editorial emphasizsed that Pakistan doesn’t want war, and it mentioned that Bilawal Bhutto-Zardari went on a diplomatic mission to Brussels, Washington, New York, and London to draw attention to the IWT. The editorial stated that as Pakistan’s economy relies heavily on irrigation, and where water scarcity already looms as a long-term existential threat, India’s actions are viewed not as policy disagreements but as acts of War. (“Bilawal urges dialogue as delegation wraps up Brussels visit on Indian aggression,” The Express Tribune, 17 June 2025; “ Lifeline under threat,” The News International, 17 June 2025)
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