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In Focus
Pakistan to host US-Iran deal signing ceremony in Geneva, says PM Shehbaz
World leaders welcome peace agreement and lauds Islamabad’s mediation role; Pakistani politicians hope diplomacy resolves more regional conflicts
On 15 June, Dawn reported that Prime Minister Shehbaz Sharif told the National Assembly that Pakistan would host the official signing ceremony of the US-Iran agreement in Geneva on 19 June, describing the accord as a historic diplomatic achievement and a victory for peace and dialogue rather than between two states alone. The agreement, announced after months of conflict and negotiations, includes an immediate halt to military operations, reopening of the Strait of Hormuz and a framework for further talks. PM Shehbaz credited Pakistan’s mediation efforts, thanked domestic political and military leadership, and acknowledged support from regional actors including Qatar, Saudi Arabia, Türkiye and China. He said Pakistan’s role had elevated its international standing and would be remembered as a milestone in the country’s diplomatic history.
International reaction focused heavily on mediation efforts and hopes for regional stabilisation. Leaders and officials from the United Nations, Europe, Asia and the Middle East welcomed the framework as a major step toward ending the conflict and restoring economic stability. Several governments, including the UK, France, Germany, Canada, China, Saudi Arabia, Qatar and Türkiye, publicly recognised Pakistan’s contribution alongside other mediators. Pakistani political leaders across parties also welcomed the development, presenting it as evidence that diplomacy and regional engagement can reduce tensions and create momentum for broader negotiations on unresolved issues, including security and navigation in the Gulf. (“PM Shehbaz says Pakistan to host signing ceremony of US-Iran agreement in Geneva,” Dawn, 15 June 2026; “'Shukriya Pakistan': Islamabad's mediatory role acclaimed as world welcomes US-Iran agreement,” Dawn, 15 June 2026; “'Torch bearer of peace': Politicians hail Pakistan's role as mediator in US-Iran agreement,” Dawn, 15 June 2026)
In Brief
ECONOMY
Parliament proposes five per cent tax on social media earnings
On 16 June, Dawn reported that a parliamentary committee endorsed a five per cent tax on earnings generated through social media platforms by both local and foreign digital content creators. The move reflects the growing significance of social media as a source of income, with digital platforms increasingly serving as lucrative business avenues. The FBR chairman said social media earnings should be treated like any other taxable income. FBR officials informed the Senate Standing Committee on Finance that annual social media income of up to PKR 600,000 would remain exempt. Earnings between PKR 600,000 and PKR 1.2 million would be subject to a five per cent tax under the proposed framework. During the proceedings, the Finance Minister reiterated the government’s intention to gradually phase out the super tax. He also informed the NA committee that the first six slabs of the super tax had already been eliminated. He added that fertiliser, banking and petroleum companies with incomes exceeding PKR 500 million would continue to face a 10 per cent super tax, while other sectors above the same threshold would remain subject to an 8 per cent levy. ("Budget 2026-27: Senate panel backs 5 pc tax on earnings from social media,” Dawn, 16 June 2026)
Supplementary grants surge despite austerity measures
On 16 June, Dawn reported that the Finance Minister had actually asked the parliament to give post-facto approval for a record PKR 3.684 trillion supplementary grants for expenditure overruns and re-appropriation, despite the government’s claims of austerity and tight fiscal discipline. Documents placed before parliament by the finance ministry indicate that debt servicing, subsidies, power sector, water division, defence services, health-related expenditures, civil armed forces and related agencies stand out in exceeding budgetary allocations. The major supplementary grants for FY26, worth PKR 485 billion, are led by PKR 127.5 billion for grants and subsidies, PKR 112 billion for the power sector, PKR 57 billion in federal education and professional training, PKR 34 billion for the Defence Division, PKR 30 billion for national health services and regulations, PKR 20 billion for the interior ministry and PKR 22.4 billion for poverty alleviation and social safety. A major additional grant of PKR 14 billion was given to the information ministry, PKR 10 billion allocated for the FBR, PKR 7.9 billion for capital outlay on civil works and PKR 6.6 billion for railways’ capital expenditure. (“Budget 2026-27 record Rs36tr overspending belies govts austerity claims,” Dawn, 16 June 2026)
Policy Research and Advisory Council raises concerns over budget failure to address fiscal challenges
On 16 June, Dawn reported that the Policy Research and Advisory Council (PRAC) had expressed serious concern about the budget’s failure to address core fiscal vulnerabilities. Fixed obligations, such as debt servicing obligations, budgeted at PKR 8,054 billion, constitute 68.5 per cent of net federal revenues, while unfunded pension liabilities have reached PKR 1,169 billion, critically constraining fiscal space for development and social spending. PRAC Chairman also cautioned against the sharp reduction in withholding tax on international card transactions from 5 per cent to 0.5 per cent, warning it could pressure foreign exchange reserves by encouraging non-essential dollar outflows. (“Budget 'fails to address fiscal vulnerabilities',” Dawn, 16 June 2026)
SBP keep policy rate unchanged at 11.5 per cent
On 15 June, Dawn reported that the State Bank of Pakistan decided to keep the policy rate unchanged at 11.5 per cent. The MPC said that global oil prices had eased in light of recent geopolitical developments. The MPC assessed that the current monetary policy stance remains appropriate to guide inflation towards the target range of 5-7 per cent over the medium term. MPC observed that proactive macroeconomic management, such as a forward-looking monetary policy and consistent fiscal consolidation, had helped sustain macroeconomic stability amid the Middle East conflict. (“Central bank keeps policy rate unchanged at 11.5pc,” Dawn, 15 June 2026)
POLITICS & GOVERNANCE
PTI rejects Charter of Economy offer, citing broken CoD precedent and failed economic targets
On 15 June, Dawn reported that the PTI categorically rejected PM Shehbaz Sharif's proposal for a Charter of Economy, with party leaders arguing the government should not expect a PPP-PML-N-style accord from them. Sardar Latif Khosa questioned the value of such charters by pointing to the 2006 Charter of Democracy, saying not a single commitment under it had been honoured, with subsequent governments undermining judicial independence, democratic norms, and constitutional supremacy. He also alleged that the PML-N formed the government despite winning only 17 seats, while PTI was denied power after winning over 180 seats. Taimur Khan Jhagra criticised the petroleum levy increase to PKR 100 per litre and called on the government to cut state expenditure rather than tax existing taxpayers further, pointing to a six per cent decline in exports and a 26.5 per cent fall in investment. Mobeen Arif Jutt said the government had presented five budgets without meaningfully broadening the tax base or delivering public relief, while former NA Speaker Asad Qaiser accused the government of having "handed over the economy to the IMF." ("PTI rules out CoD-style Charter of Economy," Dawn, 15 June 2026)
PPP calls for "AJK" election schedule withdrawal as Rawalakot clashes kill two amid JAAC protests
On 15 June, Dawn reported that PPP swung into action over the AJK election question, with Chairman Bilawal Bhutto-Zardari urging JAAC protesters to end demonstrations, warning the unrest was damaging both the Kashmir cause and Pakistan's international reputation at a moment when the imminent signing of the Pakistan-mediated US-Iran peace agreement had placed the international spotlight on the country. PPP AJK President Chaudhry Muhammad Yasin separately called on the Election Commission to withdraw the 27 July election schedule, noting that 37 of JAAC's 38 demands had been implemented and that holding elections under current conditions was "difficult." He added that the refugee seats question, the sole outstanding demand, had alternative constitutional avenues. Two people were killed, and eight were injured in an early morning clash between protesters and law enforcement near Eidgah Ground in Rawalakot, with JAAC's shutter-down strike entering its sixth consecutive day across AJK, including Muzaffarabad. Mobile services were suspended in Rawalakot, and internet restrictions were extended until 20 June. PML-N insisted polls proceed on schedule, with Parliamentary Affairs Minister Tariq Fazal Chaudhry noting the assembly's oath was taken on 03 August, and elections must be held before 4 August, while PPP's Nayyar Hussain Bukhari also cited the onset of Muharram as grounds for postponement. ("PPP links AJK election to peace in region," Dawn, 15 June 2026)
Imran Khan undergoes fifth anti-VEGF eye injection at PIMS as PTI demands transparency
On 15 June, Dawn reported that Imran Khan was taken from Adiala Jail to the Pakistan Institute of Medical Sciences for a fifth anti-VEGF intravitreal injection to treat right central retinal vein occlusion, a condition first diagnosed in late January 2026. Pims said he was found clinically stable on examination, with optical coherence tomography showing improvement, and was discharged with follow-up instructions after remaining vitally stable throughout the procedure. PTI expressed concern over his multiple hospital visits, calling for complete transparency, his transfer to Shifa International Hospital, access for personal physicians, and family meetings, demands the party has consistently raised over recent months amid an ongoing blame game with the government over the adequacy and transparency of his medical care. ("Imran taken to Pims for follow-up treatment, undergoes fifth eye procedure," Dawn, 15 June 2026)
EXTERNAL
Australian PM seeks transparent probe into Chakwal shooting of a nine-year-old girl
On 15 June, The Express Tribune reported that Australian Prime Minister Anthony Albanese called for a transparent investigation into the killing of a nine-year-old Pakistani-Australian girl, Hania Ahmed, who was shot dead by the Punjab Crime Control Department (CCD) in Chakwal on 10 June. The child’s father, Adeel Ahmed and her brother also sustained gunshot wounds in the incident. CCD officials acknowledged that personnel had mistakenly opened fire on the family’s vehicle, believing the fleeing car belonged to robbery suspects. Arrested CCD personnel face charges upgraded to premeditated murder under Section 302 of the Pakistan Penal Code. The Australian High Commission said it was providing consular assistance to the family. (“Australian PM demands 'transparent' inquiry into nine-year-old girl's killing by Punjab CCD,” The Express Tribune, 15 June 2026)
Pakistan to chair the SCO Council of Heads of State in September
On 15 June, Dawn reported that Pakistan assumed the chairmanship of the Shanghai Cooperation Organisation’s (SCO) Council of Heads of State (CHS) in September, with next year’s CHS summit also to be hosted by Pakistan. Speaking on the occasion of the SCO’s 25th anniversary, Deputy Prime Minister and Foreign Minister Ishaq Dar said Pakistan had evolved from an observer to a proactive full member of the bloc since 2017. He highlighted Pakistan’s ongoing chairmanship of the SCO Regional Anti-Terrorist Structure for 2025-26 and its permanent chairmanship of an SCO working group on poverty alleviation. Dar also cited the China-Pakistan Economic Corridor (CPEC) as a model for regional economic integration among SCO member states. (“Pakistan to assume chairmanship of SCO Council of Heads of States in September,” Dawn, 15 June 2026)
SECURITY
Kurram: Armed assailants kill three policemen, one passerby
On 15 June, Dawn reported that unidentified individuals armed with both heavy and automatic weapons launched an attack on a Mirbagh police checkpost. According to police sources, the assailants killed three police officials and one passerby. Soon after, authorities used artillery strikes to attack suspected militant hideouts. Citizens attempted to negotiate a ceasefire following remarks from local mosques, carrying white flags. (“Passerby killed, three cops hurt in Kurram checkpost attack,” Dawn, 15 June 2026)
Section 144 takes effect in multiple areas of South Waziristan
On 15 June, Dawn reported that the districts of Upper South Waziristan and Lower South Waziristan had restrictions on public movement put in place, following several road closures. Lower South Waziristan Deputy Commissioner Musarrat Zaman stated that the restriction, Section 144, would be enforced during the time durations of 6 am to 6 pm on Monday. Zaman requested that citizens avoid non-compulsory travel. Upper South Waziristan’s DC Irfan Ali imposed similar restrictions. The commissioners of both districts issued public advisories, requesting citizens minimise obstruction of official movement. This situation comes after Pakistan’s security situation took a sharp dive in May due to escalating terrorist conflicts in Khyber Pakhtunkhwa and Balochistan, according to the Pakistan Institute for Conflict and Security Studies. (“Section 144 imposed in several areas of Upper, Lower South Waziristan amid security concerns,” Dawn, 15 June, 2026)
AF-PAK
UK MP says Pakistan has right to self-defence against attacks from Afghanistan
On 16 June, Dawn reported that British Parliamentary Under-Secretary for the Middle East, Afghanistan and Pakistan, Hamish Falconer, said during a visit to Islamabad that Pakistan has the right under international law to defend itself against attacks originating from Afghanistan, while emphasising that long-term stability depends on dialogue and regional cooperation. Speaking after meetings with Pakistani officials, including Foreign Minister Ishaq Dar, Falconer acknowledged Pakistan’s concerns about cross-border threats but stressed the importance of diplomatic engagement between Islamabad and Kabul to prevent escalation. Discussions also covered regional developments involving Iran, the Strait of Hormuz and broader security challenges. (“UK MP backs Pakistan’s response to attacks from Afghanistan,” Dawn, 16 June 2026)
Editorials/Opinions
US-Iran war
Editorial, “Brief Opening,” Dawn, 15 June 2026
“Throughout the weekend, there was great anticipation that a tentative framework for peace between the US and Iran was close. Prime Minister Shehbaz Sharif had tweeted on Saturday that a deal could be inked within “24 hours”, while US President Donald Trump had made similar comments. But as was witnessed yesterday, Israel played its traditional role as a spoiler by bombing the Beirut suburb of Dahiyeh — a Hezbollah stronghold. This has caused some consternation in the Iranian camp, as contrary to what some commentators were saying, Tehran was not ready to throw its Lebanese ally under the bus. The Iranians have for long been saying that Lebanon must be included in any peace deal with the US. Iran’s top negotiator Bagher Ghalibaf went as far as to claim that the US had greenlit the Beirut attack. In the meantime, efforts have been intensified by regional states, including Pakistan and Qatar, to save the deal, and prevent the negotiations from collapsing.”
https://www.dawn.com/news/2007954/brief-opening
Climate change
Editorial, “Climate choices,” Dawn, 15 June 2026
“Pakistan is out of reasons to treat climate change as tomorrow’s problem. The Economic Survey 2025-26 reports that the country recorded its second-warmest year in 65 years in 2025, immediately after experiencing its warmest year on record in 2024. Temperatures in Azad Kashmir, Gilgit-Baltistan and KP reached their highest annual levels in decades.”
https://www.dawn.com/news/2007955/climate-choices
Editorial, “Environmental disaster,” Dawn, 15 June 2026
“A recent news report in these pages carried a picture of a sea turtle lying half buried in oil-contaminated sand somewhere along Gwadar’s coastline. A stretch of about 20 km on Gwadar’s west coast is now covered by a thick layer of toxic residue from an ocean oil spill, with officials warning that it poses a severe threat to the marine environment. Efforts are underway to clean the beach, but the dead sea turtle is evidence of the harrowing damage likely being caused by the disaster under the water. The local fishing industry will suffer, experts warn, as the slick suffocates marine life and contaminates their catch. It is unclear what caused the spill, but local officials believe it could be tied to the conflict in the Gulf, where rival powers have targeted ships as they attempt to wrest control over the Strait of Hormuz.”
https://www.dawn.com/news/2007953/environmental-disaster
Economy
Saeed Ahmed, “The crisis of leadership,” Dawn, 15 June 2026
“The current IMF programme is scheduled to conclude in the latter half of 2027, yet, the debate about how effective it is has already begun. Many ask whether the IMF’s policy framework is responsible for sluggish growth, unemployment, poverty and inequality. But framing the issue in purely economic terms risks missing the deeper problem. Pakistan’s recurring economic crises are not simply the outcome of flawed technical policies or IMF conditionalities. They are symptoms of a far more fundamental challenge: a crisis of leadership that permeates the political and institutional landscape. It is institutional rot that runs deep. Unless addressed, Pakistan will continue to oscillate between temporary stabilisation and renewed economic distress.”
https://www.dawn.com/news/2007951/the-crisis-of-leadership
On India
Maleeha Lodhi, “A year on, stalemate persists,” Dawn, 15 June 2026
“A year after the May 2025 conflict, the India-Pakistan relationship remains volatile. Diplomacy is frozen. Neither side has sought to break the deadlock. A war of words erupts every so often. Last week, it was over the water dispute. Then it was on the Kashmir dispute at the UN. Bilateral relations are at one of the lowest points in their tortured history.”
https://www.dawn.com/news/2007952/a-year-on-stalemate-persists
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