Photo : The Express Tribune
NIAS Area Studies
PAKISTAN READER
Photo : The Express Tribune
In Focus
PM Sharif assures Pakistan’s continual backing for Iran after ceasefire announcement
On 24 June, following US President Donald Trump's announcement that a truce had been agreed between Iran and Israel, PM Sharif reaffirmed Pakistan’s backing for Iran at every multilateral platform. The Foreign Office also vowed to furnish all possible support to ensure regional stability. PM Sharif also held talks with the envoys and leaders of Iran, Saudi Arabia, China, and Qatar, during which he conveyed Pakistan’s support in de-escalating the situation in the Middle East. Further, PM Sharif held a telephonic conversation with the President of Iran, Masoud Pezeshkian, and reiterated Pakistan’s resolve to back Iran at multilateral forums such as the UN and the Organization of Islamic Cooperation (OIC). He particularly stressed on the need to not breach international law and principles in the UN Charter. In response, President Pezeshkian expressed gratitude to Islamabad for its continual backing and noted its efforts in bringing back peace in the region. Deputy PM and Foreign Minister Ishaq Dar also expressed contentment regarding the ceasefire between Israel and Iran. (Syed Irfan Raza, “Premier reaffirms Pakistan’s support for Iran,” Dawn, 25 June 2025; PM Shehbaz reaffirms support to Iran in call with President Pezeshkian,” The Express Tribune, 24 June 2025)
Balochistan Assembly approves PKR 81.5 billion supplementary budget
On 24 June, the Balochistan Assembly unanimously approved a supplementary budget of PKR 81.5 billion for FY 2024-25 in a session presided over by Speaker Abdul Khaliq Achakzai. Supplementary demand for grants was presented in the assembly because government departments exceeded the allocation granted in the budget and spent additional money in the outgoing fiscal year. Finance Minister, Mir Shoaib Nosherwani, presented 39 demands for grants, including 19 demands for grants for development expenditure amounting to PKR 40.67 billion and 19 demands for grants for non-development expenditure of PKR 40.85 billion. The demands put forth by the finance minister were issued to members of the assembly three days ago. However, no opposition member gave their name to the Speaker to speak on the discussion on the supplementary budget. (“Balochistan PA approves Rs81.5bn supplementary budget,” Dawn, 25 June 2025)
Hasty passing of KP budget at midnight receives criticism from PTI members
On 25 June, Dawn reported that the passing of the provincial budget in KP at midnight on 23 June has unmasked the differences between CM Ali Amin Gandapur and the rest of the PTI. CM Gandapur asserted that further delay could have led to “governor’s rule” in KP. On 24 June, PTI General Secretary Salman Akram Raja stated that he was “surprised” by the passing of the budget. Further, he informed that a “meeting” with PTI supremo Imran Khan was supposed to take place on 23 June. He stated that the KP government should have waited until 30 June for the passing of the budget. The erstwhile finance minister of the province highlighted how a meeting of the political committee was convened at the very last moment. He, along with several others, were unable to take part in the meeting. Further, he claimed that several others who were present in the meeting were “blindsided by the discussion.” He further highlighted how hastily the budget was passed, pointing out that it was put forward in the assembly on 18 June. CM Gandapur, however, claimed that Imran Khan did not object to the passing of the budget.
On 24 June, PTI supremo Imran Khan’s sister Aleema Khan alleged that “minus Imran formula” has come out into the open. Her remarks came after the KP government hastily passed the provincial budget at midnight on 23 June. She further stated that if CM Gandapur was unable to withstand pressure, he should have offered his resignation. Further, she highlighted how the concerned authorities have multiple times refused to allow her to meet with Imran Khan. She claimed that Imran Khan was looking to allot funds in the KP budget by himself, so that it could be used judiciously. As per Aleema Khan, the passing of the budget could have been done after 14 days, and she claimed that “KP government must be hiding something.”
On another note, PTI Punjab has conveyed its discontent regarding the Lahore High Court rejecting Imran Khan’s bail application in the 9 May 2023 cases. In an official statement, PTI highlighted how no substantial evidence has come up until now against Imran Khan. The statement termed the decision “blatant miscarriage of justice.” (Manzoor Ali, “‘Midnight passage’ of KP budget exposes rifts within PTI,” Dawn, 25 June 2025; Ikram Junaidi, “PTI taken aback by KP budget passage, Imran’s bail rejection,” Dawn, 25 June 2025)
In Brief
ECONOMY
Trade deficit increases with nine neighboring countries to USD 11.17 billion
On 25 June, Dawn reported that Pakistan’s trade deficit with nine neighboring countries has increased to USD 11.17 billion by 32.82 per cent during the first 11 months of FY25. In FY24, Pakistan’s trade deficit with these neighboring countries stood at USD 9.506 billion, indicating a 49 per cent increase from USD 6.382 billion in FY23. Pakistan’s exports to Afghanistan, Bangladesh, and Sri Lanka showcased significant growth. Exports to Afghanistan grew 41.39 per cent from last year, and imports from Afghanistan also increased substantially by 142 per cent. Exports to Bangladesh rose by 21.45 per cent, and imports from Bangladesh surged by 41.95 per cent. Exports to Sri Lanka declined by 3.02 per cent, and imports from Sri Lanka remained unchanged at USD 54 million. However, rising imports from China, India, and Bangladesh contributed to expanding the overall trade deficit. Exports to China decreased by 11.18 per cent, and imports from China increased by 22.59 per cent from last year. Exports to India remained minimal at USD 0.51 million, and imports from India increased by 11.82 per cent. (Mubarak Zeb Khan, “Trade gap with nine states widens to $11.17bn,” Dawn, 25 June 2025)
ENERGY
Power from Iran to Makran division restored
On 24 June, the Quetta Electric Supply Company (QESCO) announced that electricity supply from Iran to Pakistan’s Makran division, Balochistan, was restored after a two-day power outage. Electricity was suspended on 22 June at approximately 2:30 pm, cutting off electric power across Makran Division and the districts of Gwadar, Kech, and Panjgur. According to QESCO, at 1:00 am on 24 June, power was fully restored to all three districts through the 132-KV Pishin-Mand and Polan-Jiwani transmission lines. Regular supply was resumed to grid stations in Mand, Tump, Turbat, Hoshab, Panjgur, Jiwani, Gwadar Door, Gwadar Deep Sea Port, New Gwadar International Airport, Pasni, and Ormara. A spokesman for QESCO said that “power suspension caused difficulties for people in 50 °C temperature, which persisted throughout the last week.” The company also affirmed to maintain uninterrupted supply during outages, by connecting affected grid stations to the national grid. (“Power to Makran from Iran restored,” Dawn, 25 June 2025)
NEPRA reduces base power tariff by PKR 1.49 for FY26
On 25 June, The News International reported that the National Electric Power Regulatory Authority (NEPRA) has reduced the base power tariff by PKR 1.49 per unit to PKR 34.01 per unit for the fiscal year 2025-26. This price reduction marks a 4.2 per cent decrease from the current year’s tariff, which stands at PKR 35.50 per unit. Major reasons behind this tariff reduction include lower capacity payments resulting from the government’s negotiations with the Independent Power Producers (IPPs), decreased energy prices, and a potential 2.8 per cent increase in power demand. NEPRA attributes the reduction in prices to improved macroeconomic indicators and a notable shift of captive industrial users returning to the national grid. For final approval and uniform tariff determination, NEPRA has forwarded its rebasing decision to the federal government. (Israr Khan, “Nepra slashes base power tariff by Rs1.49 for FY26 after govt-IPP deal, rising demand,” The News International, 25 June 2025)
SECURITY
Security forces neutralize 11 TTP militants in South Waziristan
On 24 June, seven security personnel lost their lives in South Waziristan and Kurram. As per Inter-Services Public Relations (ISPR), security forces initiated an intelligence-based operation in South Waziristan after getting information regarding the presence of Tehreek-e-Taliban Pakistan militants. Security forces managed to neutralize 11 militants. However, during the gunfight with the militants, two security personnel also lost their lives. One of the security personnel was a serving Major in the Pakistani Army. ISPR alleged that the terrorists were backed by India. Further, it informed that search operations are being carried out to look for any remaining militants in the area. As per local officials, two women also lost their lives during the exchange of fire. PM Sharif and President Zardari paid their respects to the security personnel who lost their lives.
Separately, in Kurram, a terrorist attack resulted in the killing of five security personnel. Four others were wounded in the attack. ISPR has not come out with any official statement regarding the terrorist attack. (“Officer among two martyred in South Waziristan operation,” Dawn, 25 June 2025; “Major among 2 martyred, 11 Indian-sponsored terrorists killed in South Waziristan,” The News International, 25 June 2025)
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