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NIAS Area Studies
PAKISTAN READER
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In Focus
CM Gandapur approaches SC for access to Imran Khan amidst reports of intra-party rift
On 25 June, Chief Minister of Khyber Pakhtunkhwa (KP), Ali Amin Gandapur, approached the Supreme Court judge Justice Syed Mansoor Ali Shah. He informed Justice Shah about not being able to meet PTI supremo Imran Khan, who is currently housed at Adiala Jail, Rawalpindi. CM Gandapur stated that he wanted to meet Khan to make decisions regarding the provincial budget of KP. Nevertheless, Justice Shah informed CM Gandapur that he either has to go to the Supreme Court’s Registrar Office or appeal to the Chief Justice of Pakistan, Yahya Afridi, for intervention. Thereafter, CM Gandapur lodged a plea in the Supreme Court against the federal government, Chief Secretary of Punjab, and the Adiala Jail superintendent for repeatedly refusing him permission to meet Khan. The plea contends that such refusals are a breach of Article 9 and 10A that assure “right to life and fair trial.”
On the same day, Information Minister of Punjab Azma Bokhari asserted that Imran Khan has been “sidelined” by the PTI. She alleged that Imran Khan’s sister Aleema Khan has been attempting to sideline KP CM Gandapur. Defending her claims, she pointed out how CM Gandapur has himself admitted that there are individuals who are attempting to conspire against him. Further, she claimed that if CM Gandapur had not passed the budget at midnight, he would have been obligated by law to offer his resignation. Responding to Azma Bokhari’s claims, PTI spokesman Sheikh Waqas Akram blamed Bokhari for attempting to create rifts within the party. (Nasir Iqbal, “Gandapur seeks SC help to gain access to Imran,” Dawn, 26 June 2025; “Imran sidelined by his party and family, claims Azma,” Dawn, 26 June 2025; “'Minus-one formula' in the works again,” The Express Tribune, 26 June 2025)
Pakistan agrees to increase imports and expand “investment opportunities” for US companies
On 24 June, the Ministry of Finance informed that the trade negotiations with the US would be finalized in the coming week. The statements from the ministry came after Minister of Finance Muhammad Aurangzeb held talks with the US Commerce Secretary Howard Lutnick. The talks between Pakistan and the US particularly addressed the issue of the US’s reciprocal tariffs. The US had imposed 29 per cent tariff duties on imports from Pakistan as part of its reciprocal tariffs agenda. Reportedly, Pakistan has agreed to increase its imports from the US, which includes crude oil and to enhance “investment opportunities” by giving special privileges to US companies who are looking to invest in the mining sector of Pakistan. (“Pakistan, US to finalise trade deal next week,” The Express Tribune, 25 June 2025)
Punjab Assembly passes PKR 636.65 billion budget
On 26 June, Dawn reported that in a session presided over by Speaker Malik Muhammad Ahmed Khan, the Punjab Assembly passed the annual budget of PKR 636.65 billion for the fiscal year 2025-26. Finance Minister of Punjab, Mian Mujtaba Shuja, upheld the budget as “people-friendly,” stating that it was a “progressive and balanced budget” that aligned with public sentiment. The minister pointed out a significant increase in the development budget, from PKR 840 billion to PKR 1,240 billion for the current fiscal year. Further, he highlighted significant reductions in non-development expenditures and the circular debt. The finance minister assured of substantial allocations for the agricultural sector and reaffirmed the government’s commitment to implement farmer-friendly initiatives. Demands for grants to various departments, including police, health services, education, and Public Health Engineering, were passed by a majority vote, while the opposition’s cut motions were rejected. Opposition members led by Pakistan Tehreek-e-Insaf (PTI) leader, Malik Ahmed Bhachar, raised concerns about increasing crime rates and criticised the government’s agricultural policies.
On 26 June, an editorial in The Nation titled ‘Developing Right’ applauded the Punjab government’s budget allocation of PKR 250 billion over the next three years for the development of the Rawalpindi-Lahore fast train project, crediting it as “smart” and “strategic” usage of a “limited development budget.” The editorial argued that during times of economic downturn, development expenditure is minimized, however, the most effective way to escape such slowdown is through focused investments that shall revive economic activity, ensure jobs, and become the foundation for long-term economic growth. Further, the editorial asserted that a fast train project is the right step in that direction since it enhances personal mobility and freight movement between key industrial zones by connecting economic hubs in the northern region—consisting of Islamabad, Rawalpindi, and surrounding areas—with the central corridor of Lahore, Gujranwala, Sialkot, and Faisalabad, thereby aligning with PML-N’s longstanding vision of infrastructure-led economic development.
The editorial claimed that the leadership of Nawaz Sharif and Shehbaz Sharif has ensured a countrywide network of environmentally sustainable and economically resilient transport routes that have “significantly improved connectivity and enabled economic expansion.” The editorial also stated that to achieve organic and sustainable economic growth, the government should prioritize infrastructure investments, rather than short-term, subsidised relief. The editorial concluded by stating that the Rawalpindi-Lahore fast train has the potential to become a consequential project, strengthening regional integration and industrialisation.
References:
“Punjab Assembly approves Rs636.65bn in budget demands for grant,” Dawn, 26 June 2025
"Developing Right," The Nation, 26 June 2025
In Brief
ECONOMY
PM Sharif emphasizes agriculture and power sector reforms
On 25 June, Dawn reported that Prime Minister Shehbaz Sharif reiterated the government’s commitment to implementing agriculture and power sector reforms. PM Sharif highlighted that reforms in the agriculture sector will contribute to the country’s economic development and increase per-acre yield, along with reducing production costs. Further, he instructed authorities to incrementally reduce taxes on agricultural machinery and tools in order to ensure widespread mechanization in farming. PM Sharif commended provincial budget allocations for agriculture and stressed a rise in agricultural productivity, infrastructure modernization, and access to credit by farmers. The National Agriculture Innovation and Growth Action Plan and the development of 129 agri start-ups under the National Technology Fund’s project Ignite were also discussed. Additionally, PM Sharif also reviewed progress on power sector reforms, stating that public relief from inflation and uninterrupted electric supply remain a top priority. Issues like expedited privatization of loss-making GENCOs, completion of solarization of tube wells in Balochistan, installation of smart meters, and promotion of renewable energy and electric vehicles, along with countrywide establishment of electric vehicle charging stations, were undertaken. (Syed Irfan Raza, “PM reaffirms commitment to agriculture and power sector reforms,” Dawn, 26 June 2025)
Budget 2025-26: Last-minute amendments due to cracks within the ruling coalition
On 26 June, Dawn reported that coalition allies of the current government have strongly opposed politically controversial clauses of this year’s budget, namely the Pakistan Peoples Party (PPP). Former finance minister, PPP MNA, and Chairman of the National Assembly Standing Committee on Finance and Revenue, Naveed Qamar, met Finance Minister Muhammad Aurangzeb to finalise key provisions of the Finance Bill 2025. Prime Minister Shehbaz Sharif has conducted individual meetings with MNAs before voting takes place in the National Assembly on the Finance Bill. Contentious provisions of the bill include expanded powers for the Federal Board of Revenue (FBR), specifically the authority to arrest and prosecute citizens in sales tax fraud cases, linkage of the purchase of property and vehicles to a person’s declared income in their wealth statement, and business registration under the sales tax regime. Thereafter, the government has revised proposals on these issues, and the final draft of the Finance Bill reflects the recommendations put forth by the standing committee. Qamar stated that the Finance Committee shall first approve these amendments before they are presented for final voting. (Mubarak Zeb Khan, “Budget 2025-26: Friction within ruling partners necessitates last minute tweaks,”,” Dawn, 26 June 2025)
SECURITY
Punjab Counter Terrorism Department arrests six individuals allegedly backed by India’s RAW
On 26 June, Dawn reported that the Punjab Counter Terrorism Department(CTD) has unearthed a “highly sophisticated network” which was allegedly backed by the Research and Analysis Wing (RAW), India. The CTD launched “Operation Yalghar” which resulted in nabbing six individuals who were accused of being backed by RAW in Toba Tek Singh, Punjab. As per Dawn, the operation began after the law enforcement agencies intercepted phone calls from Major Rawindra Rathore and Inspector Singh. The law enforcement agencies claim that the two individuals are officers of RAW, and they were speaking to their local operatives. Further, as per Dawn, the two individuals were instructing the local operatives in Pakistan to orchestrate a bomb blast at a mosque. In addition to that, Punjab Additional Inspector General Shahzada Sultan informed that in Bahawalpur, Punjab, several other individuals who were allegedly backed by RAW were detained by Bahawalpur CTD. (Asif Chaudhry, “CTD busts ‘RAW-backed’ terror network; six operatives held,” Dawn, 26 June 2025)
On maintaining peace in Kurram:
“Deployment of 10,000 army personnel, police, and security agencies during Muharram in Kohat, particularly in Kurram, is a welcome and necessary move,” says an editorial in The Nation
On 26 June, an editorial in The Nation, titled “Protecting Kurram,” discussed the security arrangements in violence-prone Kurram during the festivities of Muharram. The editorial appreciated the federal government for stationing close to 10,000 security personnel in the Kohat division, especially in Kurram during the festivities of Muharram. As per the editorial, the move by the government demonstrates its seriousness in making sure that “peace and stability” prevail in Kurram. The editorial highlighted how Kurram has witnessed intense violence between rival sectarian groups who are allegedly backed by foreign actors. Further, the editorial highlighted the significance of the government's move to station more army personnel during Muharram, as during this time, there are high chances of witnessing violent attacks against the Shia population. In addition to that, the editorial calls for “sustained operations” to knock down the “networks of insurgent groups” which are based in and around Kurram for maintaining stability in the region. (“Protecting Kurram,” The Nation, 26 June 2025)
On TTP continuing to pose a threat to Pakistan:
“TTP has now struck a nexus with other non-state actors, including Al-Qaida and Baloch militant groups,” claims an editorial in The Express Tribune
On 26 June, an editorial in The Express Tribune titled “Terrorism nexus,” discussed the threat faced by Pakistan from Tehreek-e-Taliban Pakistan (TTP). The editorial mentioned how Pakistan at the UN Security Council has highlighted the threats posed by the TTP, which, as per Islamabad, is “freely operating” from Afghanistan. The editorial pointed out how there has been a surge in terror attacks across the country, which have been orchestrated by the TTP. Further, the editorial claims that TTP has forged alliances with other militant groups such as Al-Qaida and Baloch insurgent groups. As per the editorial, Pakistan faces the threat of terrorism emanating from its western and eastern borders. In addition to that, the situation in Iran has further complicated matters for Pakistan. The editorial urges “cooperation” from Afghanistan to dismantle the “terror nexus.” Further, the editorial also emphasizes the importance of the US and the UN Security Council in combating terrorism.
(“Terrorism nexus,” The Express Tribune, 26 June 2025)
EXTERNAL
US President boasts warding off “nuclear war” between Pakistan and India
On 25 June, US President Donald Trump boasted that he has a crucial role in resolving conflicts all around the world. He particularly mentioned the India-Pakistan conflict, in which he claimed that he was able to push both countries to cease hostilities. Trump’s remarks came at a news conference in Hague, where he attended the NATO summit. On the recent confrontation between India and Pakistan, Trump claimed, “I ended that with a series of phone calls on trade.” Appreciating the Chief of Army Staff, Trump asserted, “he was really impressive.” As per Dawn, Trump’s remarks underscored the efforts put in by the Chief of Army Staff, who allegedly played a significant role in de-escalating the situation with India. Nevertheless, Trump did not explicitly name the Chief of Army Staff in his statements. As per Dawn, Trump’s remarks are contrary to what India has been claiming about the US's role in achieving a ceasefire between Pakistan and India. (Anwar Iqbal, “Trump praises COAS again for averting nuclear war,” Dawn, 26 June 2025)
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