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NIAS Area Studies
PAKISTAN READER
Photo : X/NAofPakistan
In Focus
Budget debate reveals fault lines in ruling coalition, draws focus on welfare of common man
On 18 June, Dawn reported that lawmakers from the Pakistan People’s Party (PPP), a major partner in the ruling coalition government, continued to criticize the federal budget for the next fiscal year, accusing the federal government of adopting discriminatory policies towards the party-ruled Sindh province by denying the province its due share in the development plans. Members of Muttahida Qaumi Movement (MQM) – Pakistan, another important member of the ruling coalition, expressed their doubts on minimal allocation for various projects in Sindh while also targeting the PPP-led Sindh government and lending support to the federal government’s decision of not handing over Public Works Department (PWD) projects to the Sindh government, asserting that it might not be able to complete them. The house witnessed verbal clashes between the PPP and the MQM-P lawmakers. Amidst this, Rai Hassan Nawaz of the Pakistan Tehreek-E-Insaf (PTI) termed the PPP-MQM rift a drama, stating that the two parties were criticizing the federal budget, but at the end of the day, both of them would vote in favour of it.
On 18 June, Dawn reported that President Asif Ali Zardari met Prime Minister Shehbaz Sharif and emphasized that the federal budget must prioritize the welfare and upliftment of the common man, particularly workers and low-income groups. Both discussed the country’s prevailing political and economic situation. This development comes after President Zardari’s party, the Pakistan People’s Party (PPP), voiced strong reservations over the budget in the National Assembly during budget discussions. During the meeting, PM Sharif briefed the president on his recent official visit to the United Arab Emirates and shared key provisions of the federal budget. President Zardari stressed that the salaried class, pensioners, labourers, and underprivileged groups were facing acute challenges and that effective measures need to be implemented to reduce their burden. He also highlighted the need for creating employment and ensuring social protection to support economically vulnerable communities.
On 17 June, various political parties jointly resolved in the Senate to disapprove what they called a “budget for the elite.” A Pakistan Muslim League-N (PML-N) senator sought review of proposed measures and a Pakistan People’s Party (PPP) lawmaker warned it would be difficult to get the budget passed if promises made to the party were not fulfilled. Saadia Abbasi of the PML-N noted that steps like giving powers of arrest to the Federal Board of Revenue (FBR) will lead to greater corruption. She said the budget was meant to fulfil IMF conditionalities and give the global lender full control of Pakistan’s economy and sovereignty, stating that “this budget is framed on taxing the people already paying taxes, granting exemptions to some and coercing the business community through punitive measures.” Senator Mohsin Aziz of the PTI called for a massive cut in administrative costs. He also noted the rise in foreign remittances was a result of brain drain and is not a development that is meant to be celebrated. Awami National Party Chief, Aimal Wali Khan questioned why Balochistan and Khyber Pakhtunkhwa were not being paid gas and net hydropower royalty, observing that federating units must get their rights if Pakistan is to be strengthened.
References
“National Assembly budget debate exposes cracks in ruling coalition,” Dawn, 18 June 2025
“President Zardari wants govt to look out for common man,” Dawn, 18 June 2025
“Budget 2025-26: Friends, foes join hands to disapprove ‘budget for elite,’” Dawn, 18 June 2025
IMF accepted government’s demand not to enforce tax on agriculture, says PM Sharif
On 18 June, PM Sharif appreciated the International Monetary Fund (IMF) for accepting Pakistan’s request of not imposing tax on the agriculture sector, including the levy of taxes on fertilizer and pesticides. PM Sharif stated that “we had made it clear that we will not impose agriculture tax, particularly on fertilizers and pesticides, as this sector is already under pressure,”. Further, to address Pakistan’s ballooning power sector circular debt, the cabinet approved a plan to secure PKR 1.275 trillion in loans from commercial banks at a record low interest rate which is 0.9 percentage points below the three-month Kibor, with the objective of permanently retiring legacy debts without adding additional pressure on the exchequer. For the first time, instead of maintaining the stock of circular debt at a fixed level through temporary measures, the government plans to gradually eliminate it by using this financing facility. (Israr Khan & Muhammad Anis, “IMF agreed to drop agriculture tax: PM,” The News, 19 June 2025)
Asim Munir becomes Pakistan’s first Chief of Army Staff to hold a direct meet with a serving US President
On 18 June, Chief of Army Staff Asim Munir met US President Donald Trump at the White house. President Trump stated that “he was honored” to meet the Chief of Army Staff (COAS). Asim Munir became Pakistan’s first COAS to hold a direct meeting with a serving US President. Earlier heads of Army such as Ayub Khan, Ziaul Haq and Pervez Musharraf were only able to meet the then US Presidents when they became the official state head. Trump claimed that Pakistan was also unhappy about the evolving situation in the Middle East. Further, he claimed that Munir was on the same page as of him. Trump stated that the real objective of the meeting was to thank the Chief of Army Staff for not engaging in war against India. As per one of the analysts in the region, the meeting of Chief of Army Staff with the US President could possibly to discuss “critical minerals and crypto” and not just Israel-Iran conflict. PPP Chairman Bilawal Bhutto termed the meeting as “positive development” for bilateral ties. (Anwar Iqbal, “Army chief joins Trump for ‘historic’ White House lunch,” Dawn, 19 June 2025)
In Brief
POLITICS
PM Sharif reaffirms backing for Iran against Israel in cabinet meeting
On 18 June, PM Sharif in a cabinet meeting highlighted the perils of Iran-Israel conflict for regional and world peace. He, yet again, expressed support to Iran and urged the world community to take steps for ceasing hostilities between Israel and Iran. In the cabinet, he also discussed about his conversation with President of Iran Masoud Pezeshkian and denounced the Israeli assaults. Further, PM Sharif informed that he spoke to Turkish President Recep Tayyip Erdogan over the emerging circumstances in the region. Further, he informed that Deputy PM and Foreign Minister Ishaq Dar would be travelling to Turkiye for the Organization of Islamic Cooperation meeting of foreign ministers. In addition to that, PM Sharif questioned the silence of the world community over Israeli assaults on Gaza. (“Regional situation very alarming, PM tells cabinet,” The Nation, 19 June 2025)
Government looks to transform Islamabad governance similar to Delhi model
On 18 June, Dawn reported that the government would be looking to integrate the health and education departments of Islamabad. As per the sources of Dawn, the federal government is looking to transform Islamabad into a Delhi type of governance model. On 17 June, a committee formulated by PM Sharif held a meeting which was presided by Planning Minister Ahsan Iqbal. The meeting saw the presence of Parliamentary Affairs Minister Dr. Tariq Fazal Chaudhry, Rana Sanaullah who is advisor to PM Sharif on Inter Provincial Coordination, Talal Chaudhry who is the state minister for Interior, Raja Khurram Nawaz and Anjum Aqeel Khan who are Members of National Assembly from Islamabad. As per Dawn, the committee has come up with a proposition in which chief commissioner would hold the same responsibilities as held by chief secretaries of other provinces. The attendees of the meeting also delved into the formulation of an elected council where people from the federal government would be nominated. As per one of the propositions, with the exception of “home, police and master planning,” the federal government would be responsible for other “functions” of the Capital Development Authority. (Kashif Abbasi, “‘Delhi-style’ governance system for Islamabad on the cards,” Dawn, 18 June 2025)
Benazir Hunarmand Programme to target poverty alleviation through skill development
On 18 June, Dawn reported that President Zardari would inaugurate Hunarmand webpage of Benazir Income Support Programme (BISP) on 21 June. The objective of the Benazir Hunarmand Programme is to alleviate poverty and enhance “economic inclusion” through development of skills. As per Dawn, in the programme, 50 per cent of the learners will be women. On 17 June, the Chairperson of BISP Rubina Khalid organized a “high-level consultative workshop” in Islamabad. The workshop saw the presence of people from WHO, WFP and a number of major NGOs. The Chairperson informed that artisans will also be participating in the programme. Further, BISP would be assisting the artisans to establish contacts with “markets and buyers” so that they can increase their sale of goods.
(Syed Irfan Raza, “President to launch Benazir Hunarmand programme on 21st,” Dawn, 18 June 2025)
CM Maryam Nawaz urges world community to curb the spread of hate speech
On 19 June, The Nation reported that Punjab CM Maryam Nawaz has urged the world community to hold those who are involved in promulgation of hate speech liable. Her statements came on the International Day for Countering Hate Speech. She advocated for measures which would hold people liable for spreading hate under the disguise of free speech. She pointed out how hate speeches result in “division, chaos and violence” among communities. Further, she asserted how there has been a surge in Islamophobia that often leads to tormenting of “Muslim identities and mosques.” (“CM Maryam calls for global accountability for hate speech,” The Nation, 19 June 2025)
ECONOMY
Punjab budget: 27 per cent of the budget funds to be allocated to education, health, agriculture, solid waste management, road infrastructure and clean drinking water
On 17 June, Punjab Senior Minister Marriyum Aurangzeb had termed the provincial budget 2025-26 ‘historic’ in terms of highest-ever Annual Development Programme (ADP) worth PKR 1.24 trillion with 27 per cent allocated to education and health, followed by sectors such as agriculture, solid waste management, road infrastructure and clean drinking water. The total budget is earmarked at PKR 5.33 trillion. The minister stated that this is not a budget but a ‘mission’ of Chief Minister Maryam Nawaz wherein the CM informed the people of Punjab about the expenditures. She also asserted that the budget “clearly reflects a human-centric development approach.” Earlier, Finance Minister Mian Mujtaba Shujaur Rehman upheld the budget as “tax-free and people-centric,” adding that the scope of Punjab Revenue Authority would be expanded to other districts in a bid to increase tax collection. (Khalid Hasnain, “Marriyum terms Punjab budget ‘CM’s mission’,” Dawn, 18 June 2025)
Pakistan resumes commercial financing from international banks, secures USD one billion loan facility
On 19 June, The News International reported that in the aftermath of the country’s International Monetary Fund (IMF) program, Pakistan has resumed commercial financing from international banks and signed a syndicated loan of $1 billion for five years. The federal government is pursuing measures to secure refinancing of a USD 1.3 billion loan from Chinese banks. It is expected that USD 2.3 billion will be obtained by 30 June 2025. These two separate commercial loan facilities will facilitate borrowed dollar inflows and support Pakistan to increase its foreign exchange reserves. Additionally, the Ministry of Finance has signed a syndicated term finance facility of USD one billion, partially guaranteed by a Policy Based Guarantee of the Asian Development Bank (ADB) Program “Improved Resource Mobilization & Utilization Reform”. ADB has provided a guarantee of USD 500 million, helping Islamabad to negotiate a reasonable deal since the margin added over SOFR (Secured Overnight Financing Rate) may have been lower, making borrowing cheaper for Pakistan. (Pakistan returns to commercial debt market, clinches $1bn loan facility,” The News International, 19 June 2025)
EXTERNAL
On the Iran-Israel conflict:
“The rules of international law are flexible, especially when the US and Israel are involved” asserts an editorial in The News International
On 19 June, an editorial in The News International titled “Zionism’s dance of destruction,” discussed American involvement in the Israel-Iran conflict. The editorial mentions US President Trump’s remarks against the Supreme leader of Iran where he claimed to know about the latter’s location. As per the editorial, Trump’s remarks symbolize more of a “threat” than “diplomacy.” The editorial reminds how the US subtly backed Israel during the Biden administration. The editorial asserts that Iran is the “victim” in the ongoing conflict and it deserves the right to respond against Israeli assaults. The editorial also calls out the alleged silence of the world community over Israel’s actions. The editorial points out how the world community allegedly sees Iran as a “rogue state” whereas Israel is viewed as a “victim,” despite the latter possessing nuclear weapons and allegedly being involved in breaching human rights. The editorial alleges that the attacks orchestrated by Israel against Iran and Gaza are guarded by American “diplomatic and military” backing.
(“Zionism’s dance of destruction,” The News International, 19 June 2025)
ON INDIA
Pakistan Maritime Security Agency evacuated injured Indian seafarer, reports The Nation
On 19 June, The Nation reported that the Pakistan Maritime Security Agency had evacuated an injured seafarer from the MT HIGH LEADER. In the press release, they stated that the Joint Maritime Information Coordination Center (JIMCC) of the Pakistan Navy received an emergency call from a vessel manned entirely by an Indian crew. According to the press note, they received a request for an urgent medical evacuation for the injured seafarer. The JIMCC immediately responded, and the Pakistan Maritime Security Agency evacuated the injured Indian seafarer and transferred him to a local hospital in Karachi for emergency medical care. (“ Pak Navy undertakes medical evacuation of Indian seafarer,” The Nation, 19 June 2025)
“India should engage with Pakistan as a civilised nation,” says Chief of Army Staff
On 18 June, Dawn reported that Army Chief Asim Munir said “India should engage with Pakistan as a civilized nation rather than trying to impose its hegemony on the nation.” During an interaction with the Pakistani American community during his visit to the US, he highlighted Pakistan’s support for Iran in its war with Israel while backing US efforts to end the conflict. Further, he alleged that India’s recent cross-border strikes were a dangerous attempt to set a “new normal” and firmly denied Pakistan’s involvement in the Pahalgam attack. Asim Munir allegedly accused India of sponsoring terrorism within Pakistan and benefiting from regional instability. During his interaction, he praised Pakistan’s civilians for their unity with the military during the recent clashes.
Separately, on 18 June, Dawn reported that the US State Department has clarified that President Donald Trump’s offer to mediate the Kashmir issue between India and Pakistan is entirely voluntary, and he cannot pressurize either side. Spokesperson Tammy Bruce emphasized that while Trump is willing to help in resolving the long-standing dispute, the decision to accept his help lies only with the two nations. (“Army chief asks India to engage with Pakistan like a ‘civilised nation,’ ”Dawn, 18 June 2025;“ Trump can’t force either side to accept Kashmir mediation,” Dawn, 18 June 2025)
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- An opinion in Dawn, 'Climate economy survey' |