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In Focus
Pakistan’s mediation prevented wider regional war, media reports say
China welcomes US-Iran peace deal and commends Islamabad’s diplomatic engagements and mediation efforts
On 16 June, The Express Tribune reported that Pakistani officials and security sources said Islamabad’s diplomacy between the United States and Iran was intended to promote regional stability rather than pursue narrow national interests. According to the statements, Pakistan’s political and military leadership engaged with all key stakeholders to help prevent a wider regional conflict that could have had severe security and economic consequences. The Express Tribune reported that officials credited Chief of Defence Forces Field Marshal Asim Munir for playing an important role in the process while stressing that sensitive diplomatic engagement required confidentiality and caution. They also praised Saudi Arabia and other regional actors for their restraint during the crisis. They reiterated that Pakistan’s foreign policy remains independent while maintaining strong ties with partners, including China, the US, Saudi Arabia, Iran, and Russia.
Separately, Pakistan and China welcomed the US-Iran memorandum of understanding during a phone call between Deputy Prime Minister Ishaq Dar and Chinese Foreign Minister Wang Yi. According to the Foreign Office (FO), both sides described the agreement as an important step toward sustainable peace and regional stability. China commended Pakistan’s diplomatic outreach and mediation efforts, while Pakistan acknowledged China’s support and referenced broader initiatives, including President Xi Jinping’s proposals and continued cooperation under the second phase of CPEC. Both sides stressed implementation of the agreement, continued dialogue, and the importance of keeping the Strait of Hormuz open for global trade and energy security. (“Pakistan helped avert wider conflict through US-Iran mediation, security sources say,” The Express Tribune, 16 June 2026; “Pakistan and China welcome Iran-US understanding, call for continued engagement,” The Express Tribune, 16 June 2026)
In Brief
ECONOMY
Govt utilised only half of PSDP budget in first 11 months of FY26
On 17 June, Dawn reported that the government and its agencies struggled to implement the Public Sector Development Programme (PSDP), utilising only about half of the budget earmarked for public welfare projects during the first eleven months of FY26. As per the Ministry of Planning and Development, total PSDP utilisation amounted to PKR 529.8 billion during the first eleven months of the year, accounting for 52.4 per cent of the original allocation of PKR 1.01 trillion. During the Strait of Hormuz crisis, the government slashed PSDP allocations by PKR 173 billion to provide fuel subsidies as petroleum prices surged. As a result, the actual utilisation improved to 63 per cent of the reduced envelope of PKR 837 billion. Under the mechanism announced by the Ministry of Finance for the current fiscal year, the government was required to release 15 per cent of the budgeted allocation in the first quarter, followed by 20 per cent in the second quarter, 25 per cent in the third quarter and the remaining 40 per cent in the last quarter of the fiscal year. (“Budget 2026-27: Only half of FY26 uplift budget spent in 11 months,” Dawn, 17 June 2026)
Finance Minister Aurangzeb lauds Tax Asaan Scheme as "paradigm shift"
On 16 June, Dawn reported that Finance Minister Muhammad Aurangzeb termed the launch of the Tax Asaan Scheme for traders a "paradigm shift". The government kept the tax rate at 1 per cent for traders in its efforts to broaden the tax base. The government is also working on a “new operating model” for tax collection with no human intervention. Under the new scheme for traders, the discretionary powers of income tax officers would be limited. Finance Minister also stressed that the government has not introduced any new taxes this year; instead, the government has been focusing on enforcement and compliance. (“Aurangzeb terms tax asaan scheme for traders a 'paradigm-shift',” Dawn, 16 June 2026)
POLITICS & GOVERNANCE
Bilawal warns of NA boycott over budget discrepancies; demands PPP reservations be addressed
On 17 June, Dawn reported that Pakistan Peoples' Party (PPP) Chairman Bilawal Bhutto-Zardari met Deputy Prime Minister Ishaq Dar at Parliament House and indicated he would not deliver his budget speech unless all promises made by the government to the PPP were fulfilled, with sources saying Bilawal appeared upset that the budget presented in the National Assembly differed from the document shared with the party during pre-budget consultations. The PPP team, which included Sherry Rehman, Naveed Qamar, and Raja Pervez Ashraf, raised concerns over expenditure priorities, development spending, and taxation, stressing that the government should broaden the tax base rather than burden existing taxpayers further. The PPP also questioned how provinces could meet IMF-linked additional revenue targets of around PKR 430 billion and opposed the introduction of new taxes. Another round of talks between Bilawal and Dar was expected soon, with sources noting key PPP concerns remained unresolved despite several previous rounds of consultations. ("Bilawal warns of NA boycott if PPP's demands not met," Dawn, 17 June 2026)
Budget debate gets heated after Khawaja Asif’s controversial remarks
On 17 June, The Express Tribune reported that Pakistan’s National Assembly budget debate turned contentious after Defence Minister Khawaja Asif said past legislative discussions had taken place in meetings attended by intelligence officials, including gatherings at the residence of former speaker Asad Qaiser. Asif claimed that intelligence representatives had contributed to deliberations on legislation, including anti-money laundering measures. The remarks triggered criticism from opposition lawmakers, with PTI’s Junaid Akbar Khan accusing the government of undermining institutional and constitutional norms. PPP lawmaker Abdul Qadir Patel defended cooperation between political and state institutions and praised recent diplomatic and security-related achievements. ("NA budget debate roiled by Asif claim," The Express Tribune, 17 June 2026)
EXTERNAL
Pakistan pursues diplomatic efforts to free hostages in Somalia
On 17 June, The Express Tribune reported that Pakistan’s government told the National Assembly it was actively pursuing diplomatic efforts to secure the release of 10 Pakistani nationals held hostage aboard the hijacked oil tanker Honour 25 in Somalia. Law Minister Azam Nazeer Tarar said authorities moved quickly after the issue was raised in Parliament, with Deputy Prime Minister Ishaq Dar engaging Somali officials and Pakistan’s diplomatic mission in Djibouti monitoring developments. Hostages have reportedly warned of severe shortages of food, medicine and clean water onboard. The government said the captors are not linked to Somalia’s government, complicating rescue efforts, but pledged continued engagement and updates on progress. (“Govt 'pursues' Somalia hostages release,” The Express Tribune, 17 June 2026)
Budget planning accounted for geopolitical risks, Finance Minister Aurangzeb tells UK MP
On 16 June, Dawn reported that Pakistan’s Finance Minister Muhammad Aurangzeb told British Parliamentary Under-Secretary for the Middle East, Afghanistan and Pakistan, Hamish Falconer, that the government’s fiscal planning and Budget 2026-27 had factored in external and geopolitical risks, including possible economic spillover effects from prolonged regional instability. During talks in Islamabad attended by UK High Commissioner Jane Marriott, Aurangzeb outlined Pakistan’s reform agenda focused on macroeconomic stability, tax modernisation, revenue mobilisation, privatisation, digital governance and institutional efficiency. He also said improved regional stability following recent US-Iran de-escalation could support investment, trade and economic growth, while the UK side welcomed Pakistan’s continued reform efforts and pledged ongoing economic cooperation. (“Govt's economic planning mindful of possible external and geopolitical risks, finmin tells UK MP,” Dawn, 16 June 2026)
SECURITY
Attock: CTD kills five militants in intelligence-based operation in Jand tehsil
On 16 June, Dawn reported that the Counter Terrorism Department killed five suspected militants during an intelligence-based operation in the Mankor area of Attock district's Jand tehsil, after receiving credible intelligence about terrorists planning attacks in Punjab. The suspects opened fire on the CTD team, prompting an exchange that resulted in all five being killed. Weapons, explosive material, and hand grenades were recovered from the site. A search operation was launched in the surrounding border areas to locate any remaining accomplices. PM Shehbaz Sharif praised the CTD for the operation, expressing resolve to eliminate terrorism in all its forms. ("5 suspected terrorists killed during intelligence-based operation in Attock: CTD," Dawn, 16 June 2026)
Lakki Marwat: Four villagers killed by militants; ten suspects arrested in Karak operation
On 16 June, Dawn reported that militants killed four villagers, Jumma Khan, his son Adnan, Waseem, and Naimat in the Jabbarkhel area of Lakki Marwat district, with assailants also taking away the deceased's weapons before fleeing. Police launched an investigation into the incident. Separately, police arrested ten suspects, including a proclaimed offender wanted for murder, attempted murder, and kidnapping, during a search-and-strike operation in Karak district's Sabirabad area, with arms and ammunition recovered from those detained. ("Terrorists kill 4 villagers in KP's Lakki Marwat," Dawn, 16 June 2026)
JUDICIARY
Supreme Court rules all executive and judicial authorities bound to act at its direction
On 16 June, The Express Tribune reported that the Supreme Court ruled that all executive and judicial authorities throughout Pakistan were to act upon its directions under Article 187 of the Constitution, according to a five-page judgment by Justice Jamal Khan Mandokhail. The remarks came during the hearing of a matter in which guidance was needed for a complaint filed under the Illegal Dispossession Act of 2005. The order stated that it was the responsibility of the Supreme Court to issue directions and to ensure adherence to the Act. It said that the complaint must be resolved within 60 days, and also emphasised the invalidity of justifications such as non-availability of witnesses. It also said that the presence of parties and the valid justification for adjournment were also to be adhered to. (“SC rules all executive, judicial authorities bound to act upon its directions,” The Express Tribune, 16 June 2026)
Editorials/Opinions
US-Iran war
Zahid Hussain, “A tentative peace,” Dawn, 17 June 2026
“In a dramatic turn of events, the US and Iran have agreed on a framework for peace talks. While the details of the deal, reached after months of intense backchannel negotiations mediated by Pakistan and supported by other regional countries, have yet to be made public, this development has raised hopes of ending an irrational war that the US has lost. The tentative pact provides a space of 60 days to conclude a comprehensive peace agreement that remains a significant challenge. There’s still a long way to go before such an agreement is reached."
https://www.dawn.com/news/2008488/a-tentative-peace
Security
Mohammad Ali Babakhel, “Countering drones,” Dawn, 17 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
Society
Editorial, “Chakwal tragedy,” Dawn, 17 June 2026
“A nine-year-old girl is dead because a Punjab Crime Control Department gunman mistook her family’s car for a getaway vehicle. The robbers who triggered the chase got away that night on a motorcycle; the family, which was visiting from Australia, lost a daughter as they tried to drive home, away from the gunfire. The suspects were never arrested; they were shot dead in an ‘encounter’ a few days later, the same outcome the province has watched play out over and over for the better part of the year. This department has been accused of killing at scale since the day it was formed; names on the list that arrive in the media are already labelled hardened criminals — as if that label were a substitute for a proper trial. When the same script is repeated on an almost daily basis, the pattern turns into what HRCP calls institutionalised practice, though Punjab’s political leadership prefers to laud the ‘performance’ of a department whose main output is dead bodies."
https://www.dawn.com/news/2008476/chakwal-tragedy
Rakhshinda Perveen, “Three crises, one silence,” The Express Tribune, 17 June 2026
“All three crises (suicide, femicide and filicide) share the same mechanism of neglect. Attention arrives when there is a project behind it. The project has a three-to-five year life. When it ends, data collection stops, coalitions disperse, recommendations sit in reports no ministry requested. The problem continues on its own schedule."
https://tribune.com.pk/story/2613338/three-crises-one-silence
On Afghanistan
Sadia Sulaiman, “Taliban's foreign policy,” The Express Tribune, 17 June 2026
“In August 2026, the Afghan Taliban will complete five years in rule. Within these five years, they have failed to establish a political and economic governance framework for Afghanistan. Instead of consolidating the gains of the past 20 years in various fields of life, many of the achievements have been reversed. The country's economy remains fragile, political inclusivity is absent and social freedoms have been significantly curtailed."
https://tribune.com.pk/story/2613514/talibans-foreign-policy
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