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In Focus
National Commission for Human Rights estimates 8.6 million child labourers in Pakistan
The NHCR-UNICEF report shows Punjab leading with six million child labourers, followed by Sindh, KP and Balochistan
On 19 June, The Express Tribune and Pakistan Today reported that Pakistan’s National Commission for Human Rights (NHCR) and UNICEF launched a national report estimating that 8.6 million children are engaged in child labour, including more than 6.6 million in hazardous work that threatens their health, safety and development. Titled “Pakistan: Child Labour Surveys, Evidence for Action”, the study is the country’s first nationally representative child labour dataset in nearly three decades. According to NCHR Chairperson Rabiya Javeri Agha, Pakistan had relied on outdated data since its last comprehensive survey in 1996. Punjab recorded the highest number of child labourers at around 6 million, followed by Sindh, Khyber Pakhtunkhwa, Balochistan and Islamabad Capital Territory.
The report identifies poverty and low parental education as the strongest drivers, with much of the labour occurring on family farms, in workshops, and in homes, making it difficult to detect through standard inspections. It found that working children are more likely to be out of school, suffer injuries, illness and poor mental health, with up to one-third of older child labourers reporting symptoms of depression. Federal Human Rights Minister Azam Nazeer Tarar said the findings showed child labour was more widespread than previously assumed and called for broader national action, while Supreme Court Judge Ayesha Malik stressed that addressing child labour requires linking education, health, family conditions and children’s own voices in policymaking. ("8.6 million children trapped in labour, The Express Tribune, 19 June 2026; "Pakistan has 8.6 million child labourers, with 6.6 million in hazardous work: report," Pakistan Today, 19 June 2026)
Read the report:
"Pakistan: Child Labour Surveys," National Commission for Human Rights, 19 June 2026
US-Iran MoU to end war has been signed electronically, says PM Shehbaz
He added that Iran would reopen Strait of Hormuz and US would lift blockade; Türkiye, Canada and Bahrain appreciate Pakistan’s mediation
On 18 June, Dawn and The Express Tribune reported that Prime Minister Shehbaz Sharif announced that the “Islamabad Memorandum of Understanding” between the United States and Iran had been electronically signed and had entered into immediate effect. According to Pakistani officials, the agreement was signed by US President Donald Trump and Iranian President Masoud Pezeshkian, with Pakistan acting as mediator. Islamabad said the first measures under the framework included reopening the Strait of Hormuz and ending the US naval blockade, while broader negotiations would continue on unresolved issues, including Iran’s nuclear programme. Pakistan also acknowledged mediation support from regional actors, including Qatar, Saudi Arabia, Türkiye and Egypt.
The formal signing of the MoU and initiation of further talks were scheduled for today in Geneva, but Switzerland said the talks had been called off, without giving a reason. Dawn later confirmed that PM Shehbaz’s trip to Geneva had been cancelled. Separately, in a phone call, PM Shehbaz told President Pezeshkian the agreement could support regional peace and contribute to Iran’s reconstruction and stronger bilateral ties. The Prime Minister’s Office (PMO) said Tehran appreciated Pakistan’s diplomatic engagement, including the role of Deputy Prime Minister and Foreign Minister Ishaq Dar and Chief of Defence Forces Field Marshal Asim Munir. Separate calls with officials from Türkiye, Bahrain and Canada highlighted support for continued dialogue, with hopes that the agreement would create conditions for longer-term regional stability and economic recovery. (“PM says US, Iran have signed deal electronically; Iran to 'instantly' reopen Hormuz, US to 'immediately' lift blockade,” Dawn, 18 June 2026; “'Landmark' Islamabad MoU to 'go a long way' in rebuilding Iran, PM Shehbaz tells Pezeshkian,” Dawn, 18 June 2026; “Turkish, Bahrain, Canadian FMs praise Pakistan’s role in US-Iran peace deal,” The Express Tribune, 19 June 2026; “Dar confirms to Dawn that PM Shehbaz's trip to Switzerland cancelled,” Dawn, 19 June 2026)
In Brief
ECONOMY
Surge in total profit and dividend repatriation benefits foreign investors
On 19 June, The Express Tribune reported that foreign investors repatriated more than USD 2 billion in profits and dividends from Pakistan during July-April FY26. Foreign exchange availability and stronger corporate earnings enabled multinational companies to transfer higher returns of 8.66 per cent over the same period last year to their parent firms abroad. As per State Bank of Pakistan (SBP) data, total profit and dividend repatriation reached USD 2.0007 billion during the first 10 months of FY26, compared with USD 1.8413 billion in the corresponding period of FY25. Of the total, USD 1.92 billion was repatriated under foreign direct investment (FDI), while USD 80.7 million was transferred under foreign portfolio investment (FPI). Investors from the United Kingdom remained the largest recipients of profit and dividend payments from Pakistan, receiving USD 556.4 million, more than a quarter of total repatriations. A significant jump was recorded in payments to Chinese investors, which surged to USD 439.5 million from USD 222.8 million a year earlier. (“Foreign firms take home $2bn in profits,” The Express Tribune, 19 June 2026)
Spending cuts in budget could limit medium-term growth, finds Fitch Ratings
On 17 June, Dawn reported that spending cuts stronger than anticipated, particularly the continued compression in capital expenditure, could weigh on medium-term growth prospects, as per Fitch Ratings. Fitch reviewed the federal budget 2026-27 and observed that Pakistan was maintaining a clear commitment to fiscal discipline under the International Monetary Fund programme by targeting a primary surplus of 2 per cent of GDP and an overall deficit of 3.6 per cent of GDP. This follows a strong FY26 performance, with a projected primary surplus of 2.5 per cent of GDP, driven by aggressive spending cuts and a provincial surplus of 1.1 per cent of GDP, exceeding its expectations. Fitch also noted that fiscal consolidation has relied heavily on expenditure compression, particularly cuts to capital spending. Fitch highlighted that persistently low capex may weigh on medium-term economic growth and limit future revenue mobilisation. It noted that achieving the FY27 primary surplus will depend on sustained revenue over-performance relative to historical trends, which are challenging given structural weaknesses in tax administration and a limited pipeline of new tax measures. (“Spending cuts to hit growth, warns Fitch,” Dawn, 17 June 2026)
PM directs authorities to pass on benefit of declining international oil prices
On 18 June, Dawn reported that Prime Minister Shehbaz Sharif had directed authorities to immediately pass on the benefit of declining international oil prices to consumers amid easing tensions in West Asia. The petroleum minister announced that a high-level committee had been constituted to devise a transparent weekly fuel pricing mechanism. The minister also thanked industry partners and the public for helping the government maintain the country’s oil supply chain without major disruptions during the recent period of uncertainty. Oil prices fell more than USD 1 per barrel after the US and Iran signed an interim agreement that would end the Iran war, reopen the Strait of Hormuz, and waive US sanctions on Tehran’s oil, boosting the oil supply outlook. (“PM Shehbaz directs immediate fuel price relief as global oil prices fall: Petroleum minister,” Dawn, 18 June 2026)
Senate adopts 123 recommendations; seeks relief for low-income groups
On 18 June, Dawn reported that the Senate adopted 123 recommendations regarding the federal budget for FY2026-27, seeking an increase in the income tax exemption threshold for low-income earners, a reduction in electricity bills, and increased taxes on luxury assets. The National Assembly will take up the recommendations before the final vote on the budget. However, these recommendations are non-binding. Senate’s recommendations include, rationalisation of 7.5 per cent to 8 per cent income tax deducted at source to function as simplified final tax regime, Increase in federal allocations for public hospitals and primary healthcare; and climate support levy shall be kept separate from the petroleum levy and shall be utilised exclusively for decarbonisation efforts, combatting climate change impacts, environmental protection, etc. ("FY2026-27-budget: Senate seeks increase of income tax exemption threshold reduction in electricity tariffs,” Dawn, 18 June 2026)
ADB supports reforms in Pakistan’s insurance sector, allocates USD 700 million
On 18 June, Dawn reported that the Asian Development Bank (ADB) had approved a USD 700 million policy-based loan to support reforms aimed at strengthening insurance in Pakistan. The programme seeks to expand insurance coverage and reduce protection gaps. It will also help stimulate private sector participation and support sustainable economic growth. ADB observed that said the Insurance Transformation Programme will strengthen Pakistan’s financial resilience by deepening insurance markets and expanding financial protection for households, businesses, farmers, and public finances against extreme weather events, disasters, and life-cycle risks. According to the ADB, Pakistan’s financial system remains heavily bank-dominated, while insurance penetration stands at only 0.7 per cent of the gross domestic product (GDP). As a result, many households, businesses, and farmers remain financially exposed to environmental, health, and economic shocks. (“ADB approves $700m loan for Pakistan's insurance sector,” Dawn, 18 June 2026)
Pakistan records current account surplus in May
On 18 June, Dawn reported that the current account posted a surplus of USD 459 million in May. It pushed the cumulative balance for the first eleven months of the current fiscal year back into surplus. The data showed that the current account recorded a surplus of USD 255 million during July-May FY26, compared with a surplus of USD 1.618 billion in the corresponding period of FY25. The government has set a current account deficit target of USD 3.6 billion (around 0.7 per cent of GDP) for FY27, compared with a revised deficit target of about USD 1.1 billion for FY26. A possible surplus in FY26 would be encouraging for economic stability and would help support exchange rate strength. The government is targeting remittance inflows of USD 42.4 billion in FY27 to help offset the widening trade deficit and bolster foreign exchange reserves. The trade gap reached USD 35 billion during July-May FY26, absorbing a significant portion of remittances sent by overseas Pakistanis. (“Current account posts $459m surplus in May,” Dawn, 18 June 2026)
POLITICS & GOVERNANCE
Sherry Rehman slams "shocking" climate budget cut as PSDP allocation falls to PKR 2.48 billion
On 19 June, Dawn reported that Senate Standing Committee on Climate Change chairperson Sherry Rehman called recent reductions in climate-related budget allocations "shocking," warning that Pakistan faces a worsening "climate polycrisis" marked by intensifying heatwaves, glacier melt, erratic rainfall, and water scarcity. She noted that the Climate Ministry's PSDP allocation had dropped to PKR 2.478 billion from PKR 3.5 billion the previous fiscal year, calling monsoon preparedness an immediate national priority. Rehman questioned the rationale for the proposed Climate Authority, asking what role it would serve beyond the existing ministry and warning against bureaucratic overlap, while citing state-owned enterprise losses of PKR 832.848 billion in FY25 against cumulative losses exceeding PKR 6.5 trillion. NDMA Chairman Inam Haider Malik briefed the committee that El Niño conditions are expected to intensify extreme weather in 2026-27, with global temperatures in June 2026 around 1.47 degrees Celsius above historical averages and Pakistan's temperatures roughly 1.56 degrees Celsius above baseline, with climate thresholds being reached earlier than projected. ("Budget 2026-27: 'Shocking' climate budget cut draws warning from Sherry Rehman," Dawn, 19 June 2026)
EXTERNAL
Pakistan and UK to strengthen cooperation in counter-terrorism, illegal migration
On June 17, Dawn reported that Interior Minister Mohsin Naqvi and British Minister of State for the Middle East, South Asia and the UN, Hamish Falconer, met on Wednesday. Falconer remarked that Pakistan played a large role in the US-Iran peace deal, citing the role of the PM and Field Marshal. They talked on “counterterrorism, combating illegal migration, institutional collaboration, and police training,” and Naqvi commented that “Positive results are emerging from the UPSCALE Project.” UPSCALE stands for UK-Pakistan Serious Crime and Law Enforcement. A statement from the interior ministry noted that Naqvi wanted to further strengthen relations with the UK, and that both leaders had shared concern and cooperation over fake student visas. Naqvi emphasised that Afghanistan must prevent its territory from being used “against Pakistan” due to the number of terrorist organisations operating from Pakistan. Earlier this week, Falconer acknowledged Pakistan’s right under international law to defend itself from Afghan-origin conflict. Prior, he had announced an additional GBP 8 million to support UK-Pakistan crime and migration cooperation. (“Pakistan, UK agree to expand cooperation on counterterrorism, illegal migration,” Dawn, 17 June 2026)
Pakistan repatriates 30 Iranian fishermen and sailors, says Foreign Minister Dar
On 17 June, Dawn reported that Deputy Prime Minister and Foreign Minister Ishaq Dar made a post on X, remarking that Pakistan was “pleased to facilitate the repatriation of 30 Iranian Nationals”, among those being eight fishermen rescued by the British MMA Valour, and twenty-two being crew members of the Lenore/Davina ship intercepted by the US. He noted that Pakistan was in “close coordination” with Iran, the US, and the UK to ensure the safe return of the Iranian nationals to Iran. This comes after, in May, Pakistan ensured the return of crew members from a US-seized Iranian ship. (“DPM Dar says Pakistan facilitating repatriation of 30 Iranian fishermen, sailors,” Dawn, 17 June 2026)
Ghana and Pakistan to expand defence ties
On 19 June, The Express Tribune reported that Ghana's Armed Forces Chief of Defence Staff Lt Gen William Agyapong visited Rawalpindi to meet with CDF Asim Munir. They discussed regional security and bilateral defence cooperation, focusing on counter terrorism, defence production and joint training. Later, Agyapong commended the Pakistan Armed Forces before attending a meeting with other Pakistani defence officials at Air Headquarters in Islamabad. (“Pakistan, Ghana to enhance military ties,” The Express Tribune, 19 June 2026)
SECURITY
KP: Police to raise 400-strong Special Combat Unit for targeted counter-terrorism operations
On 18 June, Dawn reported that the Khyber Pakhtunkhwa Police Policy Board approved rules to raise a Special Combat Unit, a 400-personnel strike force drawn from the police's elite force and selected through rigorous medical, psychological, and physical tests, to be deployed on intelligence-based targeted operations against militants. According to IGP Zulfiqar Hameed's office, the unit will be organised into companies of 45 personnel, deployed for 90-day frontline rotations in sensitive regions under the command of district police officers or CTD commanders, followed by a mandatory 30-day training period at the Elite Police Training Centre in Nowshera. Hameed said the force would be equipped with modern capabilities, including drone technology, sniper skills, and hand-to-hand combat expertise, describing the move as a milestone aimed at eradicating militancy and protecting public life and property in the province. ("KP police to raise Special Combat Unit against terrorists," Dawn, 18 June 2026)
KP: CTD kills six militants in Kohat and Charsadda operations
On 17 June, Dawn reported that the KP Counter Terrorism Department killed six suspected TTP militants in two separate intelligence-based operations. In Kohat, three militants were killed when a SWAT team responded to reports that terrorists had set up a checkpoint on Shakardara Road to obstruct law enforcement movement, with three Kalashnikovs and ammunition recovered after the militants opened fire and an exchange ensued. In Charsadda, CTD personnel ambushed a group of militants moving from Mohmand district at Shabqadar after an exchange of fire, killing three identified as Hayat Khan alias Hayatullah, Asim, and Aminullah alias Muawiya alias Qari. Preliminary investigations indicated Hayatullah was a proclaimed offender wanted in the targeted killing of religious scholar Maulana Izzatullah. At the same time, Asim was allegedly involved in attacks on police and religious leaders in Khyber district. Weapons and hand grenades were recovered, and search operations were ongoing to apprehend those who had fled. ("6 suspected terrorists killed by KP CTD in 2 separate operations," Dawn, 17 June 2026)
ON INDIA
Pakistan extends airspace ban on Indian aircraft until 24 July
On 17 June, Dawn reported on Pakistan extending its airspace ban on Indian civilian and military aircraft for another month, until 24 July, through a Notice to Airmen (Notam) issued by the Pakistan Airports Authority (PAA). The ban, which covers both the Karachi and Lahore Flight Information Regions (FIRs), was previously set to expire on 24 June. Pakistan and India closed their airspaces to each other's airlines in late April 2025 following a deadly attack in Pahalgam in Indian-occupied Kashmir. Since then, Pakistan has extended the ban several times. ("PAA extends airspace ban on Indian aircraft until July 24," Dawn, 17 June 2026)
Pakistan calls India's water projects tools for "hydro-hegemony"
On 18 June, Dawn reported on Deputy Prime Minister and Foreign Minister Ishaq Dar warning that at least 17 projects on the Indus River System would give India the tools for "hydro-hegemony" over Pakistan. Speaking at a seminar in Brussels titled "Transboundary Water Resources: A Weaponised Global Common", Dar said the projects, including hydroelectric schemes on the Chenab River and diversion works on the Indus, Chenab and Ravi rivers, posed a serious threat to 240 million people who depend on the river system. He said water must never be used as a tool of coercion and called for adherence to international treaty obligations. ("Pakistan assails 17 Indian projects on Indus waterways, calls them ‘tools for hydro-hegemony'," Dawn, 18 June 2026)
PoK
PPP secures 11 seats as "Gilgit-Baltistan" election chief resolves final petitions
On 17 June, Dawn reported that "GB" Chief Election Commissioner Raja Shahbaz Khan decided three pending election petitions, declaring PPP's Attaullah Khan winner from GBA-16 Diamer-II and PML-N candidates winners from GBA-17 and GBA-13 Astore-I, bringing PPP's total to 11 seats against PML-N's six, independents (who joined Aleem Khan's IPP) four, PTI-backed candidates two, and Majlis Wahdat-i-Muslimeen one. Six reserved women's seats and three technocrat seats will be distributed proportionally once official notifications are issued. The 7 June elections recorded a 70 per cent voter turnout, but the Human Rights Commission of Pakistan (HRCP) expressed concern over the Election Commission's decision to first order then rescind re-polling at five constituencies before proceeding with final results, warning that such abrupt reversals risked reinforcing perceptions of political interference and undermining public confidence in the process. ("PPP secures 11 seats as GB election chief decides remaining election petitions," Dawn, 17 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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