Photo : Radio Pakistan
NIAS Area Studies
PAKISTAN READER
Photo : Radio Pakistan
In Focus
POK budget: PKR 148.63 billion budget for GB; opposition skips discussion on passed budget in “AJK”
On 24 June, The Express Tribune reported that the government in “Gilgit Baltistan” has presented a budget of PKR 148.63 billion for the incoming financial year 2025-2026. The government has also approved a 10 percent increase in the salaries of government employees. PKR 8.82 billion has been allocated towards development projects. PKR 1.1 billion is allocated towards Public Sector Development Programme projects. Further, the budget has allocated PKR 35 million for agriculture, livestock, and fisheries.
On 23 June, the legislative assembly of “Azad Jammu and Kashmir” deliberated on the earlier finalized budget for the financial year 2025-26. The assembly witnessed intense arguments on whether the assembly members can hold meetings to discuss a budget that has already been passed. PM of “Azad Jammu and Kashmir,” Anwarul Haq, argued that because the finance bill is yet to pass, discussions can take place over the budget. Opposition leaders did not attend the session, which led to the cancellation of question hour. (“G-B presents Rs148.63b budget for FY2025-26,” The Express Tribune, 24 June 2025; “Controversy in AJK over post-approval budget debate,” Dawn, 24 June 2025)
Pakistan to obtain USD 3.3 billion as loan from banks in China
On 24 June, The News International reported that Pakistan is looking to obtain USD 3.3 billion as “foreign loans” from China. One of the loans would be secured as a “syndicated loan.” The second loan would be secured to recapitalize “commercial loans.” If the loans are approved, State Bank of Pakistan’s foreign reserves would exceed USD 14 billion for the financial year 2024-25. As of 13 June, SBP has USD 11.7 billion worth of foreign reserves. As per a senior officer, an association of China’s banks could provide USD two billion loans for three years. The other USD 1.3 billion would aid in recapitalizing a loan Pakistan had earlier secured from the Industrial and Commercial Bank of China. (Mehtab Haider, “Pakistan seeking to get two loans of $3.3bn from Chinese banks,” The News International, 24 June 2025)
Federal government attempting to depose KP government, alleges CM Gandapur
On 23 June, Khyber Pakhtunkhwa CM Ali Amin Gandapur alleged that the federal government is attempting to depose the provincial government in KP. Further, Gandapur asserted that the federal government is intentionally attempting to hinder the KP budget so that it turns into a “financial crisis.” Gandapur also expressed his frustration over not being able to meet PTI supremo Imran Khan for discussing the provincial budget. Gandapur highlighted two scenarios in which the provincial government could fall – financial chaos and worsening of law and order in the province. Nevertheless, he claimed that the KP government had managed to deal with the financial chaos despite the federal government causing hindrance.
On the same day, the government employees of KP came out in protest against the provincial government. The protesters are demanding a hike in salary, 30 per cent “disparity allowance,” and enforcement of PKR 50,000 minimum monthly salary. The demonstrators choked the Khyber Road due to which Peshawar traffic came to a standstill. The protesters expressed their unhappiness with the hike proposed by the government. The provincial government has proposed to increase salary by 10 per cent and pension by seven per cent. (Umer Farooq, “Gandapur accuses Centre of ‘conspiring against KP,’” Dawn, 24 June 2025; “K-P govt employees protest for pay, perks,” The Express Tribune, 24 June 2025)
In Brief
ECONOMY
Government announces surge in taxes to offset relief given to lower income class
On 23 June, Finance Minister Muhammad Aurangzeb announced a surge in taxes for compensating the reduction in taxes it has introduced for people with low incomes. The government has announced to increase the tax rate from earnings obtained from “debt portion of dividends” furnished by mutual funds to the firms. The tax rate has been increased by four per cent. In addition to that, government would enforce 20 per cent tax on the profits obtained by “corporations and companies” via investment in government securities. Further, PKR 10 has been enforced on “one-day old” chickens as a Federal Excise Duty(FED). Finance Minister informed that the federal government at first had decided to bring down the tax to 2.5 per cent which earlier was five per cent for people earning between PKR 600,000 to PKR 1.2 million. Nevertheless, after PM’s intervention, the tax rate was further reduced to one per cent. (Mubarak Zeb Khan, “Finance Minister Aurangzeb unveils measures to offset impact of relief to salaried class,” Dawn, 24 June 2025)
NEPRA reduces country-wide average Power Purchase Price by PKR 1.02 per unit
On 24 June, The News International reported that the National Electric Power Regulatory Authority (NEPRA) has reduced the countrywide average Power Purchase Price (PPP) by 3.77 per cent. The reduction in PPP stands at PKR 1.02 per unit. Earlier, the PPP stood at PKR 27 per unit and after reduction it comes down to PKR 25.98 per unit. For the incoming financial year, Pakistan’s total national PPP is expected to amount PKR 3.342 billion. For the erstwhile Water and Power Development Authority (WADPA) Distribution Companies (XWDISCOS), the PPP would amount to PKR3.066 trillion. Of the PKR 3.066 trillion, PKR 1.125 trillion would go towards “fuel and variable operation and management” expenditures. Another, PKR 1.941 trillion would go towards “capacity charges.”(“Power purchase price set at Rs25.98 per unit for next fiscal, down 3.77%,” The News International, 24 June 2025)
Role of the agriculture sector in driving economic growth:
“With industry declining in Pakistan due to several factors, including tight fiscal conditions, the push for moderately higher GDP growth next year hinges on a rebound in agriculture, especially the crop sector,” argues an editorial in Dawn
On 24 June, an editorial in Dawn titled ‘Agriculture concerns’ highlighted that growth in the agricultural sector is critical to ensuring “moderately higher GDP growth” in the coming year and emphasised that the pressure on farmers through high input prices must be offset by broadening the tax base to meet the core funding programme goal of debt sustainability. The editorial asserted that agriculture plays a pivotal role in Pakistan’s “economic resilience and rural livelihood,” arguing that it important to push the agricultural sector by “reducing input costs, encouraging mechanisation and modern irrigation methods, providing cheap credit, and increasing investments in the development of new seed varieties to boost yields.” The editorial stated that the IMF’s decision to approve Pakistan’s request to exempt fertilisers and pesticides from new taxes in the recent budget underscores the fact that the Fund is not averse to foregoing its harsher revenue conditions provided the government can formulate a credible tax structure by effectively taxing the untaxed and under-taxed areas of the economy. In conclusion, the editorial expressed regret over the resistance within the ruling Pakistan Muslim League-N (PML-N) government to make high-net-worth individuals and conglomerates share the tax burden, warning that delaying action on the issue could prove to be detrimental. (“Agriculture concerns,” Dawn, 24 June 2025)
EXTERNAL
National Security Committee: Pakistan denounces US's strikes without explicitly mentioning the US
On 24 June, The News International reported that on 23 June the National Security Committee (NSC) chaired by Prime Minister Shehbaz Sharif, expressed concern over attacks on Iranian nuclear facilities in Fordow, Natanz, and Isfahan, stating that these actions violated the resolutions of the International Atomic Energy Agency (IAEA), relevant international law, and the UN Charter. However, in doing so, the committee did not explicitly name the United States. Further, the NSC reaffirmed Iran’s right to self-defence as enshrined in the UN Charter. The committee also conveyed condolences to the government and people of Iran on the loss of lives and prayed for the recovery of the injured. The NSC also reaffirmed Pakistan’s close engagement with relevant parties and endorsed its readiness to continue efforts aimed at promoting regional peace and stability. The NSC called on all relevant parties to resolve the conflict through dialogue and diplomacy and stressed the need for adhering to international humanitarian laws. Previously, Pakistan’s Ministry of Foreign Affairs observed that “the unprecedented escalation of tension and violence, owing to ongoing aggression against Iran is deeply disturbing. Any further escalation of tensions will have severely damaging implications for the region and beyond.”
On 24 June, an editorial in The News International titled ‘NSC huddle’ appluaded the decision of the National Security Committee (NSC) to condemn attacks on Iranian nuclear facilities. The editorial characterized Israeli military strikes and the intervention of the United States as “reckless” and “brazen,” cautioning that the conflict could spiral into a global crisis. The editorial pointed out that Pakistan has clearly shown that it stands with Iran at this critical moment. The editorial argued that Pakistan has rightly aligned itself with Russia and China in pursuing an unconditional ceasefire and supporting efforts at the United Nations Security Council. The editorial also referred to former foreign minister Bilawal Bhutto-Zardari’s statement, where he said that “if we don’t speak out for Iranians, there will be no one left when they come for us,” implying that Pakistan could be the next victim of Israel’s unchecked militarism.
Additionally, the editorial raised the issue of regime change in Iran being discussed by the United States, insisting that the potential installation of a pro-Israel regime shall serve the interests of Tel Aviv’s allies, including India. The editorial accused Israel and India of conspiring to fund separatist groups in Balochistan in an attempt to carve out ‘Greater Balochistan.’ Further, the editorial speculated that greater escalation will result in instability in Iran, which will spill over into Pakistan. In conclusion, the editorial stated that the success of a potential regime change project will lead to Pakistan being surrounded by hostile governments from all directions.Asim Yasin & Muhammad Anis, “Without naming US, NSC expresses concern over attacks on Iran’s nuclear sites,” The News International, 24 June 2025; “NSC huddle,” The News International, 24 June 2025
OIC reaction over attacks on Iranian nuclear facilities:
“THE OIC has, over the decades, been known to issue strong statements and not do much else when it comes to critical issues affecting the Muslim world,” points out an editorial in Dawn
On 24 June, an editorial in Dawn titled ‘OIC reaction’ expressed disappointment over the indifference showcased by the Organisation for Islamic Cooperation (OIC) towards critical issues affecting the Muslim world, claiming that the organisation only issues strong statements and does not take strong steps to address important issues affecting the Muslim world. The editorial accused the OIC of following a similar pattern during the recent US-Israeli aggression against Iran. The editorial highlighted that the Istanbul Declaration issued by the Foreign Ministers of the OIC is futile; it does little to stop the war on Iran, just as the OIC’s past pronouncements have done nothing to halt Israel’s slaughter in Gaza.
The editorial asserted that OIC brings together Muslim-majority states allied to various geopolitical camps and that it is unfortunate that the members of the ‘ummah’ cannot formulate a substantive response when it comes to matters of grave importance, such as the ongoing Gaza conflict or aggression against a Muslim state. The editorial alleged that any OIC member state can be targeted by Israel and the United States in the future, citing examples of Iran, Afghanistan, Iraq, Lebanon, Syria, Libya, and Yemen. Further, the editorial advocated for a collective response marked by economic boycott and suspension of diplomatic relations with states that target Muslim populations. In conclusion, the editorial stated that mere criticism only emboldens the aggressor, and substantial steps should be taken instead. (“OIC reaction,” Dawn, 24 June 2025)
ENERGY, ENVIRONMENT & WATER
Forecasts indicate countrywide monsoon rains from 25 June
On 23 June, Dawn reported that the Pakistan Meteorological Department (PMD) has forecast monsoon rain across the country from 25 June onwards. According to the Meteorological Office, “moist currents are penetrating upper and central parts of the country and likely to become intensified in next couple of days.” The Meteorological Office stated that “a westerly wave is expected to approach the upper parts on June 25 and is likely to become significant on 26 June.”
PMD also warned that heavy rainfall may trigger flash floods in local streams of Murree, Galliyat, Mansehra, Kohistan, Dir, Swat, Shangla, Nowshera, Swabi, Islamabad, Rawalpindi, DG Khan, and northeast Punjab from 26 June to 1 July.The Met Office also warned that landslides may cause road closures in various areas, including Khyber Pakhtunkhwa, Murree, Galliyat, Kashmir, and Gilgit-Baltistan. Additionally, PMD also advised farmers to manage their activities keeping in view the weather forecast.
On 23 June, an editorial in The Express Tribune titled ‘Monsoon preparedness’ raised the issue of monsoon preparedness in Karachi, stating that there is a likelihood of heavy rain resulting in flooded streets, power outages, and loss of life and property, considering precedent and lack of safety measures being undertaken by the government due to fractured governance. The editorial highlighted that many parts of northern Karachi have been dug up for various utility projects, with no indication of local administration restoring them before rains arrive. Further, the editorial stated that the city’s streets are broken and drainage lines are exposed, claiming that a patchwork approach to disaster prevention is being adopted. The editorial also emphasised that Karachi needs climate-resilient infrastructure and foresighted planning. The editorial concluded by stating that currently, Karachi stands underprepared for tackling the monsoon season.
On 24 June, an editorial in The Nation titled ‘Monsoon Arrives’ raised the issue of countrywide monsoon preparedness, cautioning citizens to be vigilant in cases of extreme weather conditions. The editorial pointed out that climate change has resulted in alterations of traditional monsoon patterns. The editorial highlights potentially devastating consequences of such monsoons, stressing that Pakistan cannot be underprepared in case of a disaster. The editorial listed precautionary measures that can be taken by citizens. The editorial concluded by advocating for immediate disaster response efforts along with investment in long-term climate resilience strategies. (Nadir Guramani, “Met Office forecasts nationwide monsoon rains from June 25,” Dawn, 23 June 2025; “Monsoon preparedness,” The Express Tribune, 23 June 2025; “Monsoon Arrives,” The Nation, 24 June 2025)
ON INDIA
PM Sharif thanks Bilawal Bhutto for putting forward Pakistan’s stance against India
On 23 June, PM Sharif thanked PPP Chairman Bilawal Bhutto and the other people in the diplomatic outreach team, asserting that they have successfully “exposed” New Delhi in front of the world community. Pakistan has continually blamed India for engaging in “unprovoked military and water aggression” against it. The diplomatic outreach team of Pakistan led by Bilawal Bhutto had appealed to the world community to facilitate talks between India and Pakistan. The team asserted how only terrorist organizations benefit when India and Pakistan do not dialogue. The diplomatic outreach team during its discussions in the US, UK and the EU blamed India for “politicizing terrorism.” It also blamed PM Modi for the measures taken after the Pahalgam terrorist attack, terming it as a “threat” to regional stability. The delegation has also continually highlighted how Pakistan has been a far bigger victim of terrorism than India. (Syed Irfan Raza, ““PM Shehbaz lauds delegation for exposing Indian aggression abroad.” Dawn, 24 June 2025)
Pakistan rice exports not affected after India’s re-entry in the market, says Dawn
On 24 June, Dawn reported that Pakistan’s rice export numbers were not affected after India resumed its own rice exports. For two years, India had enforced bans on exporting of rice to ensure “domestic food security.” As per Dawn, Indian media was hoping this would seriously affect Pakistan’s rice export numbers. Prior to India’s re-entry in the rice export market, Pakistan on an average exported 550,000 tonnes of rice per month for the period from July to September 2024. As per Dawn, Pakistan maintained its stronghold in markets of UK and the EU. Also, it remained a key player in the African market. As per Pakistan Bureau of Statistics, Pakistan exported 5.544 million tonnes of rice from July 2024 to May 2025. This number came down by a mere 0.87 per cent in comparison to the previous financial year.
(Amjad Mahmood, “India’s subsidised rice fails to dent Pakistan’s exports,” Dawn, 24 June 2025)
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