|
In Focus
Pakistan and EU reaffirm commitment to deepening strategic ties
EU’s top diplomat Kaja Kallas meets PM Shehbaz and FM Dar; Islamabad’s Middle East mediation efforts garner high praise
On 01 June, Dawn and The Express Tribune reported that Pakistan and the European Union reaffirmed their commitment to expanding strategic cooperation during the 8th EU-Pakistan Strategic Dialogue in Islamabad, as Prime Minister Shehbaz Sharif met the EU’s High Representative for Foreign Affairs and Security Policy, Kaja Kallas. The two sides discussed strengthening engagement in trade, investment, climate resilience, migration, security, connectivity and sustainable development, while Islamabad highlighted the importance of the EU’s GSP+ trade framework for Pakistan’s exports. Kallas described Pakistan as a “major regional power” and reaffirmed the EU’s interest in building a more forward-looking and comprehensive partnership.
Regional diplomacy featured prominently in the talks, with Kallas praising Pakistan’s role in facilitating dialogue between the United States and Iran and stating that Islamabad’s efforts had helped prevent wider regional escalation. She stressed that maintaining peace and keeping the Strait of Hormuz open remained in the global interest due to implications for energy markets, trade and food security. Prime Minister Shehbaz thanked the EU for supporting Pakistan’s diplomatic efforts and emphasised that Deputy Prime Minister Ishaq Dar and CDF Asim Munir were playing important roles in regional engagement.
At the same time, the EU signalled that deeper economic integration would remain linked to governance standards. Kallas noted that Pakistan remains the world’s largest beneficiary of the EU’s GSP+ scheme but stressed that continued preferential market access depends on progress in implementing international commitments related to human rights, labour protections, environmental standards, and governance reforms. She also highlighted the expansion of cooperation in education, noting that Pakistan ranked first globally for Erasmus Mundus scholarships for the fifth consecutive year, while both sides expressed optimism about maintaining stronger political dialogue and more frequent high-level engagement. (“PM reaffirms EU ties, thanks Kallas for support for Gulf peace efforts,” Dawn, 01 June 2026; “'In everybody’s interest': EU's top diplomat says bloc seeks stability in region,” Dawn, 01 June 2026; “EU Foreign Policy chief Kaja Kallas arrives in Islamabad for high-level talks,” The Express Tribune, 01 June 2026)
Government sets GDP growth for FY26-27 at 4 per cent
Framework also includes a PKR 4.3 trillion national development programme; moderate expansion across sectors projected as structural constraints remain
On 02 June, Dawn and The Express Tribune reported that Pakistan approved its macroeconomic framework for FY2026-27, setting a GDP growth target of 4 per cent and an inflation target of 8.2 per cent after missing this year’s growth goal and recording estimated growth of 3.7 per cent against the targeted 4.2 per cent. The framework, cleared by the Annual Plan Coordination Committee (APCC) ahead of approval by the National Economic Council (NEC), projects moderate expansion across sectors: agriculture at 3.8 per cent, large-scale manufacturing (LSM) at 4.5 per cent, industry at 4 per cent, and services at 4.2 per cent. The government also expects investment to rise to 15 per cent of GDP (from 14.4 per cent) and private investment to increase to 10.3 per cent of GDP, while aiming to create two million jobs, largely in services. Officials argued that growth would remain cautious to avoid repeating past cycles of import-led expansion and debt dependence.
At the same time, policymakers acknowledged significant structural constraints and external vulnerabilities. The government projected that imports could exceed USD 70 billion, pushing the trade deficit to around USD 37 billion, while the current account deficit target was set at 0.7 per cent of GDP. Export growth remains relatively modest at USD 32.8 billion, with continued reliance on remittances projected at USD 42.3 billion to stabilise external accounts. Alongside the macro targets, the APCC recommended a PKR 4.26 trillion national development programme, including a PKR 1.126 trillion for the federal Public Sector Development Programme (PSDP), though Planning Minister Ahsan Iqbal warned that fiscal constraints, IMF commitments and limited development space continue to restrict infrastructure spending and delay completion of ongoing projects. (“4pc growth target set for FY2026–27 as macroeconomic framework sent to economic council for approval,” Dawn, 01 June 2026; “Govt approves 4% growth target,” The Express Tribune, 02 June 2026; “Govt okays Rs4.3tr development plan,” The Express Tribune, 02 June 2026)
In Brief
ECONOMY
PM Shehbaz assures industry leaders of measures to boost growth in upcoming budget
On 01 June, Dawn reported that during a meeting with presidents of chambers of commerce and industries, Prime Minister Shehbaz Sharif assured businessmen and industrialists that measures were being taken to make the forthcoming federal budget conducive to industrial growth and production. The government is expected to approve a consolidated national development programme of over PKR 3.5 trillion and a macroeconomic framework envisaging economic growth of 4.1per cent and inflation of 8.5 per cent for FY2026–27. He further ordered moving the headquarters of Pakistan Revenue Automation Limited (PRAL) to Karachi in order to enhance exports and facilitate the business community and exporters. The establishment of an office of the Immigration and Passport Department in Gujrat was also ordered. Moreover, the premier urged Pakistani investors to promote e-vehicle production in the country through joint ventures. (“PM Shehbaz assures businessmen industrialists of measures to boost industrial growth in upcoming budget,” Dawn, 01 June 2026)
South Air ready to start flight operations between certain cities and small towns
On 01 June, Dawn reported that private airline South Air aims to launch flights connecting Khyber Pakhtunkhwa’s Dera Ismail Khan and Chitral with the rest of the country. Airline Chairman Kanwar Muhammad Tariq stressed that the airline aimed to connect small and remote areas of the country with the air network. The airline has completed all operational, technical, and administrative preparations and will start flight operations across the country this month. South Air would also operate flights from Peshawar to Karachi and Quetta, as well as daily flights from Peshawar to Lahore. (“South Air plans flight operations in DI khan, Chitral,” Dawn, 1 June 2026)
EXTERNAL
Somali pirates directly contact families of Pakistani hostages
On 02 June, The Express Tribune reported that Somali pirates have begun directly contacting the families of the ten Pakistani crew members who were kidnapped. The oil tanker has now been hijacked for 42 days. In a video message, the hostage said that it was becoming increasingly difficult for the Pakistani crew to survive under the current conditions, as shortages of food and contaminated drinking water were causing illnesses to spread. Pakistani authorities claim that diplomatic efforts are ongoing to secure the release of the Pakistani crew members aboard the ship. However, both the hostages and the pirates have rejected these government claims in videos released previously. (“Somali pirates begin direct contact with families of abducted Pakistani crew members,” The Express Tribune, 02 June 2026)
Pakistan calls for stronger mediation and diplomacy at UN amid regional tensions
On 02 June, Dawn reported that Pakistan renewed its call for restraint, de-escalation and diplomacy at the United Nations, arguing that mediation should be central to preventing conflicts rather than managing them after violence breaks out. Addressing the UN General Assembly, Pakistan’s Permanent Representative Asim Iftikhar Ahmad said Islamabad had consistently advocated dialogue in the recent US-Iran tensions and continued efforts to support regional and global stability through engagement with all sides. Referring to UN Security Council Resolution 2788 adopted in July 2025 on Pakistan’s initiative, he stressed the importance of mediation, preventive diplomacy and the UN secretary-general’s good offices. Later, speaking at an emergency UN Security Council meeting on Ukraine, he warned that prolonged conflicts increase the risk of wider escalation and reiterated Pakistan’s position that sustainable peace can only be achieved through negotiations and adherence to international law. (“'The bridge between confrontation and peace': Pakistan calls for stronger mediation efforts to prevent conflicts,” Dawn, 02 June 2026)
SECURITY
Militant violence rises 27 per cent in May, PICSS data shows
On 02 June, Dawn reported that Pakistan’s security situation deteriorated sharply in May 2026 after two months of improvement, with militant violence intensifying particularly in Khyber Pakhtunkhwa and Balochistan, according to the Pakistan Institute for Conflict and Security Studies (PICSS). The country recorded 128 terrorist attacks in May, up from 101 in April, marking a 27 per cent increase, while casualties rose significantly: 71 civilians, 68 security personnel and six peace committee members were killed, alongside injuries to 147 civilians, 35 security personnel and three peace committee members. Civilian deaths increased by 92 per cent month-on-month and security personnel fatalities by 143 per cent. The report also highlighted a sharp resurgence in suicide attacks, with six suicide bombings - including four vehicle-borne attacks - recorded during May, compared to one each in March and April, resulting in the deaths of 34 security personnel and nine civilians. Balochistan emerged as the worst-affected province, recording 71 attacks compared with 34 in April and accounting for 52 of 54 kidnappings nationwide. Despite the escalation, security forces intensified counterterrorism operations, killing 270 militants and arresting 15 others across the country during the month. (“Militant violence surged 27pc in May: PICSS,” Dawn, 02 June 2026)
Dera Murad Jamali: Two brothers shot dead by unidentified gunmen
On 01 June, Dawn reported that two brothers were killed after unidentified gunmen opened fire on them in Dera Murad Jamali, Balochistan. According to the police, the attack took place near the Uch Power Plant area on the National Highway when armed men on motorcycles shot at the victims and then fled the scene. The victims were identified as Lutaf Ali Abro and Sadiq Ali Abro, who died on the spot due to multiple gunshot wounds. Police later arrived at the scene and moved the bodies to a hospital before handing them over to the family. Authorities have launched an investigation to identify the attackers and determine the reason behind the shooting. (“Two brothers shot dead in Dera Murad Jamali,” Dawn, 01 June 2026)
South Waziristan: Grenade thrown at police station in Wana
On 01 June, Dawn reported that unidentified attackers threw a grenade at a police station in Wana, South Waziristan. According to the police, the attackers arrived on a motorcycle, threw the grenade, and escaped from the area immediately after the attack. The grenade exploded outside the police station after hitting the boundary wall. No police personnel or civilians were injured, and no major damage was reported. Security officials later reached the site, collected evidence, and secured the area. Police have started an investigation to identify the attackers and find out the reason behind the incident. (“Grenade hurled at Wana police station,” Dawn, 1 June 2026)
Faisalabad: Two killed and six injured in police operations
On 01 June, Dawn reported that two people were killed and six others were injured during a series of police operations in Faisalabad over 24 hours. According to the police, the incidents involved suspects wanted in cases related to murder, robbery, and drug trafficking. Police said that the suspects were injured or killed during exchanges of fire, while some accomplices managed to escape from the scene. Among those killed was a man accused of murdering his brother and sister-in-law in a property dispute. The second deceased was a suspect wanted in robbery and drug-related cases. Meanwhile, six other suspects were arrested after being injured in separate operations carried out in different parts of the city. Police have launched investigations into the incidents and are continuing efforts to arrest the remaining suspects. (“Two killed, six injured as ‘encounters’ spree continues in Faisalabad,” Dawn, 1 June 2026)
Pakistan and the US-Iran war
Iran seeks Pakistan’s help to sustain Israel-Hezbollah ceasefire
Iraninan Foreign Minister Araghchi speaks to Ishaq Dar as state media reports Tehran suspends indirect talks with US over Lebanon issue
On 02 June, The Express Tribune reported that Iran requested Pakistan to continue using its diplomatic channels to help de-escalate regional tensions as concerns grew over ceasefire violations in Lebanon and renewed risks to the fragile US-Iran peace process. During a telephone call, Iranian Foreign Minister Abbas Araghchi expressed concern over Israeli military activity in Lebanon and thanked Pakistan for its role in regional diplomacy, urging Islamabad to support efforts to preserve the ceasefire. Deputy Prime Minister and Foreign Minister Ishaq Dar conveyed Pakistan’s concern over recent developments and stressed the importance of sustaining the ceasefire to prevent a collapse of existing understandings. Dar also held consultations with Egypt’s foreign minister, with both sides emphasising continued diplomatic engagement and agreeing to remain in close contact.
The diplomatic outreach came amid conflicting signals over the future of US-Iran negotiations. Iranian state media reported that Tehran had suspended exchanges through mediators in protest against Israel’s operations in Lebanon and warned that continued escalation could trigger broader regional responses, including pressure around key maritime routes. Meanwhile, US President Donald Trump insisted talks with Iran remained active and claimed to have helped broker a fresh ceasefire agreement between Israel and Hezbollah, which came into effect yesterday. Pakistan has emerged as a central intermediary in the crisis after brokering the April ceasefire and later hosting direct US-Iran talks, although key disagreements, particularly over the Strait of Hormuz and Iran’s nuclear programme, remain unresolved. (“FM Dar calls for sustained US-Iran ceasefire to prevent breakdown of understandings in call with Araghchi,” The Express Tribune, 01 June 2026; “Tehran turns to Islamabad to ease renewed tensions,” The Express Tribune, 02 June 2026)
Editorials/Opinions
On the Middle East
Naseem Akhtar Khan, "Beyond the noise: Iran, US and the politics of perceptions," The Express Tribune, 02 June 2026
"The public admission by the United States that its decision to attack Iran was a mistake was widely interpreted as a political signal. Yet, having observed intelligence processes since the late Cold War, such moments often reflect less a strategic shift than a familiar pattern. Such statements frequently emerge not from grounded reassessment, but from internal pressures generated by hurried decisions shaped by competing power centres. Most seasoned observers agree that this admission does not indicate any substantive change in Washington's strategic direction."
https://tribune.com.pk/story/2610937/beyond-the-noise-iran-us-and-the-politics-of-perceptions
Society
Arifa Noor, "Back to the people," Dawn, 02 June 2026
"Politics in Pakistan appears to be dead. However, this is only because of the beating it has taken. Like whack-a-mole, it pops up when least expected. The moment headlines about international events no longer take up all the oxygen in the room, the fractious world of Pakistani politics begins to draw attention to itself. It was no different this time around. Once the US-Iran saga settled into ‘deal is a-comin’’, commentary here focused on how the foreign policy successes had not translated into any relief for inflation-afflicted Pakistanis. By now, questions have multiplied about the mess that is the economy. These questions will simply grow as budget time draws closer and summer power bills multiply."
https://www.dawn.com/news/2004566/back-to-the-people
Lalarukh Ejaz, "Fear of a woman," Dawn, 02 June 2026
"The recent events surrounding the Aurat March had me wondering whether I am, in fact, a feminist. It is a question I may never have examined so deeply had ‘feminism’ itself not become such a loaded and weaponised word in our society. Feminism today is used almost as a curse word, not only among men but among many women too, who have internalised narrow ideas of what goodness and femininity should look like. Feminism is rarely treated as an ideology or political position; instead, it becomes shorthand for immorality, rebellion or a rejection of culture and faith."
https://www.dawn.com/news/2004563/fear-of-a-woman
Energy
Abis Husein, "Energy - from policy chaos to system reform," The Express Tribune, 02 June 2026
"The current situation in Pakistan's power sector appears volatile. The real challenge now is how to turn this transitions into a practical, well-structured plan. The question is no longer about whether individual policies are justified. In isolation, measures like tariff adjustments or regulatory changes may make sense. The real concern is whether they can be integrated into a system that functions effectively, predictably, and sustainably over time."
https://tribune.com.pk/story/2610938/energy-from-policy-chaos-to-system-reform
External
Editorial, "Reforming UNSC," The Express Tribune, 30 May 2026
"Reforming United Nations Security Council, the UNSC, has been an earnest desire of member states who believe in pluralism, equality of sovereign rights and a world free from aggression. That, nonetheless, could not be achieved owing to the power politics exhibited by the permanent members of the elite club, with the pinnacle of ego-centrism resting in the veto power. Thus, wars, poverty and climatic degradation that impact billions of people are mere footnote concerns, as smaller states remain subjugated in the echelons of the world body. This is where a change is desired, if the world body has to absolve itself of a fate meted out to League of Nations."
https://tribune.com.pk/story/2610429/reforming-unsc
|
