Photo : The Express Tribune
NIAS Area Studies
PAKISTAN READER
Photo : The Express Tribune
In Focus
Pakistan and China mull new regional bloc to replace "now-defunct" SAARC
On 30 June, The Express Tribune reported that Pakistan and China are looking towards formulating a “new regional organization” which could substitute the currently inactive South Asia Association for Regional Cooperation (SAARC). As per The Express Tribune, deliberations on the formulation of the bloc between the two countries are at an “advanced stage.” Reportedly, the same was also deliberated on in the recently concluded meeting between Pakistan, China, and Bangladesh, which took place in Kunming, China. The purpose of the trilateral meeting in China was to urge other countries in South Asia to become a part of the new bloc. As per The Express Tribune, India would also be approached to join the new bloc. The objective of the new block would be to reinforce “regional engagement” via increased “trade and connectivity.” (Kamran Yousaf, “Pak, China eye new bloc replacing SAARC,” The Express Tribune, 30 June 2025)
Death toll due to intense rain and floods climbs to 45
On 29 June, The Express Tribune reported that the death toll due to intense rains and floods across the country has risen to 45. Among the provinces, KP witnessed the highest number of deaths-21. Out of the 21 people who lost their lives in KP, 10 were children. 14 of the reported deaths in KP were from the Swat valley. Punjab has so far reported 13 deaths, out of which eight were children. 11 deaths were reported from Sindh and Balochistan. In May, 32 people had lost their lives in storms across Pakistan. The National Emergencies Operation Centre has predicted heavy “rains, windstorms, and thunderstorms” across Pakistan till 5 July. Further, it has issued warnings regarding “flash floods and landslides” in several areas such as Islamabad, Pakistan Occupied Kashmir, northeastern Punjab, and the central region of KP. In the south of Sindh, heavy downpour is predicted, which could lead to “urban flooding.” The concerned authorities are being directed to maintain a state of “high alert” and make sure that “precautionary” steps are adequately being taken. Pakistan continues to be one of the most susceptible countries to climate change.
On 30 June, an editorial in The Nation titled “Deadly Monsoon,” discussed the unfortunate deaths across the country due to heavy rains. The editorial highlighted how climate change has become a “reality” and claimed that the intensity of the climate calamities would further surge in the coming times. The editorial called for a comprehensive country-wide plan which integrates “climate resilience” with efficient “disaster management.” The editorial demanded the prioritization of enhancing “early warning systems,” infusion of funds in climate-resistant infrastructure, and improvement in the state of “rescue operations”. The editorial argued in favor of introducing productive “changes,” before the coming of another climate calamity instead of making empty promises at international climate meetings. ( “Monsoon rains, flash floods claim 45 lives across Pakistan,” The Express Tribune, 29 June 2025; “Deadly Monsoon,” The Nation, 30 June 2025)
Federal government urges NEPRA for PKR 1.15 per unit cut in electricity rate
On 30 June, Dawn reported that the federal government has filed a petition with the National Electric Power Regulatory Authority (NEPRA), requesting a PKR 1.15 per unit reduction in the electricity tariff for all except lifeline domestic consumers. For all other consumers and categories, the government has sought a PKR 1.15 per unit reduction for FY 2025-26, but the relief ranges between 3-10 per cent, depending on their respective rates at present. The average rate would be approximately PKR 31.60 per unit, reduced from PKR 32.75 per unit at present. These rates have been finalised based on NEPRA’s tariff determinations for all distribution companies to “meet their revenue requirements, aggregate power purchase prices and reduced subsidy allocations” in FY2025-26 within the federal budget under an agreement with the International Monetary Fund (IMF). The power division assured in its petition that the proposed tariffs “are in line with the NEPRA-determined rates for all DISCOs, the socio-economic objectives and budgetary targets.” NEPRA will hold a public hearing on 1 July to complete the formality before notification and application of the revised tariff. (Khaleeq Kiani, “Govt asks for Rs1.15/unit cut in electricity rate,” Dawn, 30 June 2025)
In Brief
POLITICS
JUI-F being sidelined by the federal government, claims Fazlur Rehman
On 29 June, JUI-F head Maulana Fazlur Rehman warned the federal government that the JUI-F could “take over Islamabad within a week’s notice,” if the government continues to sideline his party. He claimed that the JUI-F is deliberately being drawn into a “confrontation.” In his speech at the Shaair-e-Islam conference in Battagram, KP, he alleged that the general elections concluded in 2018 and 2024 were not free and fair. Further, he asserted that JUI-F backs “supremacy” of the constitution and pledged that he would spearhead a “movement” that will bring a “revolution” across Pakistan. He questioned the government's move of recommending US President Donald Trump for the Nobel Peace Prize, by saying, “if Trump exists, peace does not- and if peace exists, Trump does not.” Further, in his speech, he conveyed his support for Iran against Israel. (“JUI-F chief warns govt of Islamabad takeover on week's notice,” The Express Tribune, 29 June 2025)
ECONOMY
50 per cent increase in fixed gas charges notified by OGRA for domestic consumers
On 29 June, Dawn reported that according to the notification released by the Oil and Gas Regulatory Authority (OGRA), the government has formally notified a 50 per cent increase in fixed gas charges for domestic consumers. On 27 June, the federal cabinet’s Economic Coordination Committee (ECC) approved the increase in fixed gas charges for all consumers from 1 July onwards. As per the notification, fixed charges for domestic consumers in the protected category have increased to PKR 600 from PKR 400, and in the non-protected category, it has increased from PKR 1,000 to PKR 1,500. Price has risen to PKR 3,000 from PKR 2,000 for non-protected consumers who consume more than 1.5 cubic hectometres (hm³). Fixed charges have been increased, but the price of gas itself has not risen since the sale prices for both protected and non-protected consumers remain the same. For general industries, power stations, and independent power producers, gas prices have increased. (Tahir Sherani, “50pc increase in fixed gas charges notified for domestic consumers,” Dawn, 29 June 2025)
USF approves PKR 7.49 billion for high-speed internet, 4G expansion projects
On 29 June, The Express Tribune reported that the Universal Service Fund (USF) Board of Directors has sanctioned seven telecommunications projects worth PKR 7.49 billion to enhance “high-speed internet and mobile connectivity” for nearly 960,000 people across 347 locations in 10 districts of Pakistan. The Board awarded all seven contracts to the lowest bidders, in adherence to a “completed procurement process.” Two of the initiatives are large-scale Optical Fibre Cable (OFC) projects in order to provide “high-speed fixed broadband” to approximately 2.8 million people residing in the Sanghar and Jhang districts, valued at approximately PKR 5.65 billion. The Jhang and Sanghar segment, totaling a deployment of 940 kilometres of fibre optic infrastructure, will link 113 towns and union councils. Additionally, five of the remaining projects, whose collective value exceeds PKR 1.83 billion, aim to establish 4G mobile broadband services in nearly 1,000 villages and settlements across Attock, Khushab, Sargodha, Bahawalpur, Faisalabad, Hafizabad, Sheikhupura, Chiniot, Badin, and Abbottabad. These projects are part of a wider strategy to “stimulate economic activity” through accelerated digital inclusion by expanding internet connectivity throughout under-served areas of Pakistan. (“USF approves Rs7.49b for high-speed internet, 4G expansion,” The Express Tribune, 29 June 2025)
Cement exports increase by 21.60 per cent in 11 months during FY 2024-25
On 30 June, The Nation reported that cement exports saw an increase of 21.60 per cent during the 11 months of FY 2024-25, compared to exports of the corresponding period of the previous year. According to the Pakistan Bureau of Statistics (PBS), the cement exports from the country amounted to USD 287.946 million during July-May 2024-25 as compared to exports of USD 236.797 million during July-May 2023-24. Quantitatively, cement exports increased by 29.67 per cent from 6,183,181 metric tons to 8,017,978 metric tons. The exports of cement from the country during May 2025 were recorded at USD 34.236 million against the exports of USD 32.251 million in May 2024, indicating an increase of 6.15 percent. Additionally, overall exports also surged by 5.15 per cent during the first 11 months of the current fiscal year as compared to the outgoing fiscal year. (“Cement exports up by 21.60 percent in 11 months,” The Nation, 30 June 2025)
Pakistan Business Forum expresses support for GST imposition on imported cotton and yarn
On 30 June, The Nation reported that the Pakistan Business Forum (PBF) has supported the government’s decision to impose an 18 per cent sales tax on imported cotton and cotton yarn as provisioned in the amended Finance Bill 2025. PBF South Punjab Chairman, Malik Talat Suhail, said the step addresses a critical distortion within the Export Facilitation Scheme (EFS). However, the Forum called for further action to provide relief to local cotton producers and spinners, highlighting that while imported cotton is now taxed, the burden of sales tax is indirectly passed on to domestic cotton and yarn farmers, “treating them as withholding agents.” PBF reiterated the removal of sales tax on cottonseed and cottonseed cake, arguing that these products are granted tax exemption in major cotton-growing economies. Suhail cautioned that “the imposition of 18 percent GST on these items drives farmers below profitability thresholds and encourages a shift toward high water-consuming crops. This poses a dual risk—undermining water security and contributing to underreporting of cotton yields, which in turn impacts national revenue.” Further, PBF emphasized the need for a holistic approach that strengthens the textile sector, advocated that global trade integration should not come at the cost of local industry, jobs, or investment, and lauded recent economic reforms for stabilizing inflation and restoring business confidence. (“PBF welcomes GST on imported cotton, yarn,” The Nation, 30 June 2025)
ENERGY, ENVIRONMENT & WATER
PM Sharif affirms to continue solarization drive
On 30 June, Dawn reported that Prime Minister Shehbaz Sharif has affirmed that his government would “never discourage the country’s solarisation boom”, as he launched the ‘Power Smart’ mobile app under the ‘Apna Meter, Apni Reading’ initiative. The ‘Power Smart’ mobile app is created to promote transparency in electricity billing, enabling consumers to record their meter readings and submit them directly to their power distribution companies. PM Sharif underscored the government’s support for renewable energy, stating that “the government would not discourage the solarisation boom in the country, rather we welcomed the ongoing process, which is regarded as the most inexpensive way of producing electricity in the world.” Noting the rapid adoption of solar energy in the country, PM Sharif identified the increasing gap between high electricity production capacity and lower grid consumption due to solar adoption. He assured that the government is actively working to address this issue. (Syed Irfan Raza, “Premier vows to continue championing solar power,” Dawn, 30 June 2025)
SECURITY
Security forces neutralize two militants in Duki, Balochistan
On 29 June, security forces conducted an intelligence-based operation in Duki, Balochistan, where they managed to neutralize two militants and detain another two. As per the Inter-Services Public Relations (ISPR), the militants were supported by India. It was also reported that the security forces retrieved “weapons, ammunition, and explosives” from the militants. Search operations are being carried out to eliminate any other hiding militants in the region. President Zardari appreciated the efforts put in by the security forces and said, “the entire nation is proud of the professional competence, bravery, and sacrifices of our security forces.” He reiterated Pakistan’s commitment to eliminate the remaining militants who are allegedly backed by India. (“At least two terrorists killed in Balochistan's Duki district: ISPR,” The Express Tribune, 29 June 2025)
EXTERNAL
Chief of Iranian Armed Forces expresses gratitude for continued backing against Israel
On 29 June, Chief of the Iranian Armed Forces Abdolrahim Mousavi spoke to the Chief of Army Staff Asim Munir. He expressed gratitude towards Pakistan for continually backing Iran in the conflict with Israel. Chief of Army Staff Asim Munir informed Major General Mousavi that Pakistan would continue to cherish its ties with Iran and emphasized the significance of maintaining stability in the region. Both the military leaders have agreed upon sustaining the “communication channels” for fostering stability and combatting “external threats.” The Iranian military commander asserted that the US had provided all the possible support to Israel against Iran. He also claimed that many other countries in the West gave “verbal and practical” assistance to Israel. (“Iran's military chief thanks Pakistan for support during war with Israel,” The Express Tribune, 30 June 2025)
Pakistan and UAE agree to waive off visa requirements for “diplomatic and official passport” holders
On 30 June, The News International reported that the citizens of Pakistan who possess “diplomatic and official passports” can travel to the UAE without a visa from 01 August 2025. The same applies to citizens of the UAE who possess “diplomatic and official passports” and wish to travel to Pakistan. It is anticipated that the two countries will deliberate on simplifying visa rules for people working in the media and various other sectors. Pakistan’s envoy to the UAE informed that during Foreign Minister Ishaq Dar’s visit, three key MoUs were signed relating to “Artificial Intelligence and Digital Economy, “mutual exemption of entry visa requirements for diplomatic and official passport holders,” and formulation of “Joint Task Force” to enhance investments. Further, he informed that the Joint Ministerial Commission furnished a comprehensive plan for “future cooperation and sectoral coordination.” Both UAE and Pakistan have decided to strengthen “inter-ministerial coordination.” The two countries have also reiterated their mutual resolve towards ensuring “peace and stability” in the Middle East. (Muhammad Saleh Zaafir, “Pakistan, UAE to begin visa-free travel for officials, diplomats from August 1: Tirmizi,” The News International, 30 June 2025)
Spanish authorities detain two most-wanted Pakistani criminals
On 29 June, The Express Tribune reported that two Pakistani citizens who were allegedly involved in “terrorism, murder and kidnapping” and had escaped the country, have been detained in Spain. As per the Ministry of Interior, their detention in Spain marks enhanced cooperation between Pakistan and Spain, which began after Minister of State for Interior Talal Chaudhry’s official visit to Madrid. The two individuals who are on the “most wanted” list of Pakistan would be extradited to the country after the conclusion of required “legal” obligations. Reportedly, Pakistan is looking to extradite 38 more criminals who currently reside in Spain. Talal Chaudhry thanked Spain for cooperating with Pakistani authorities and is hopeful that the rest of the criminals will also be brought back to the country to face the law. (“Two Pakistani fugitives accused of terrorism, murder detained in Spain,” The Express Tribune, 29 June 2025)
PAK-CHINA
Relief for Pakistan as China rolls over loans worth USD 3.4 billion
On 30 June, Dawn reported that China has rolled over USD 3.4 billion in loans to Pakistan, helping Pakistan boost its low foreign reserves, which the International Monetary Fund (IMF) requires to be over USD 14 billion at the end of the current fiscal year on June 30. Instead of liquidating the loan on maturity, China has renewed the loan by rolling over USD 2.1 billion, which has been in Pakistan’s central bank’s reserves for the last three years, and has refinanced an additional USD 1.3 billion commercial loan, which Islamabad had paid back two months ago. Additionally, Pakistan has secured USD 1 billion from Middle Eastern commercial banks and USD 500 million from multilateral financing. (“China rolls over $3.4 billion loans to Pakistan,” Dawn, 30 June 2025)
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