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In Brief
AF-PAK
Pakistan rejects Afghan claims of cross-border strikes
On 19 June, Dawn reported that Pakistan’s Information Ministry rejected claims by the Afghan Taliban that they had carried out air strikes on alleged militant camps in border areas of Khyber Pakhtunkhwa and Balochistan, calling the allegations false. In an official statement, Islamabad said a rudimentary drone allegedly launched from Afghanistan had entered Pakistani airspace near Shinko in Khyber district and was intercepted by the Pakistan Air Force. Pakistan also reiterated accusations that militant groups, including Islamic State Khorasan Province (ISKP) and Tehreek-i-Taliban Pakistan (TTP), operate from Afghan territory, while the Afghan authorities continue to deny those claims and maintain that Pakistan’s militancy challenges are domestic in nature. (“Info ministry refutes Afghan Taliban's claim of strikes in border areas,” Dawn, 19 June 2026)
“Peaceful, stable” Afghanistan essential for refugee resettlement, says PM Shehbaz
On 20 June, Dawn reported that Prime Minister Shehbaz Sharif said that a peaceful, stable and economically resilient Afghanistan was essential for the dignified return and long-term reintegration of Afghan refugees. Marking World Refugee Day, he said Pakistan’s support for refugees went beyond symbolic observance and reflected a humanitarian commitment sustained for nearly five decades. Referring to the refugee influx that followed the 1979 conflict in Afghanistan, he noted that Pakistan hosted millions of Afghans despite limited resources, establishing settlements and camps and remaining one of the world’s largest refugee-hosting countries for decades. The remarks framed refugee return as dependent not only on repatriation policies but also on economic and security conditions inside Afghanistan. (“PM calls for economically stable Afghanistan for refugees’ resettlement,” Dawn, 20 June 2026)
ECONOMY
Standing committee rejects govt proposals to access bank account data
On 20 June, Dawn reported that the National Assembly Standing Committee on Finance and Revenue approved higher surcharges for late filing of tax returns as well as the imposition of a special excise duty on imported luxury vehicles. The committee questioned the government’s claim of providing relief to the middle-income salaried class, while rejecting a proposal to grant tax authorities access to taxpayers’ bank account data and opposing stricter penalties for taxpayers in certain cases. The committee also approved proposals to increase fines for taxpayers failing to comply with audit requirements or concealing taxable assets. It agreed to raise the penalty for not undergoing an audit from PKR 25,000 to PKR 100,000, and for providing false information from PKR 25,000 to PKR 100,000. The fine for hiding taxable assets was increased from PKR 100,000 to PKR 500,000. The committee approved FBR proposals to revise and unify tax rates on goods and services, raising the levy on most sectors to seven per cent. (“BUDGET 2026-27: NA Panel rejects FBR bid to access. bank account data,” Dawn, 20 June 2026)
KP presents PKR 2.17 trillion budget; links providing funds to the Centre to meeting with Imran
On 20 June, Dawn reported that the Khyber Pakhtunkhwa Chief Minister Sohail Afridi presented a PKR 2.17 trillion budget for the fiscal year 2026-27, carrying a projected deficit of PKR 48 billion. During his address to the assembly session, he said that the provincial government will not give any grant to the federal government. He also highlighted that PTI founder Imran Khan would make any decision on providing additional funds to the federal government. He said that during the National Economic Council meeting, he had pointed out that while all other political parties had been allowed to meet with their party heads, the KP government continued to be denied meetings with its leader. He added that no progress had been made so far on the 11th NFC, which was aggravating the grievances of the merged areas. The budget projects the province’s total revenues at PKR 2.12 trillion, against a total expenditure of PKR 2.17 trillion for the next fiscal year. The province would also bridge the PKR 48 billion shortfall through its own savings and would not resort to borrowing for the purpose. (“KP BUDGET 2026-27: No funds for Centre sans Imran meeting, says Afridi,” Dawn, 20 June 2026)
Pakistan finalises privatisation plans for FESCO, CESCO and IESCO
On 20 June, Dawn reported that Pakistan will offer a lucrative 18-20 per cent return, along with complete freedom for investors to buy and sell electricity in a competitive market. The Privatisation Commission had completed domestic soft marketing of three Discos of Faisalabad, Gujranwala, and Islamabad in seven major cities. Chambers of commerce and industry and business houses would be expanding abroad mainly to Saudi Arabia, China, and Türkiye and approaching other West Asian countries virtually and through transaction advisers to tap into investors and technical operators. The commission has set 7 July for submission of expressions of interest for Faisalabad (FESCO), 24 August for Gujranwala (GESCO), and 7 September for Islamabad Electric Supply Company (IESCO). The government has also clarified that it will not allow dollar-based returns at all. Government will provide rupee-based returns of 14-15 per cent plus key performance indicators (KPIs) that allow profitability of up to 18-20 per cent while sharing efficiency gains. (“Govt offers 20pc returns to woo buyers,” Dawn, 20 June 2026)
Weekly short-term inflation rises by 15.28 per cent
On 20 June, Dawn reported that short-term inflation increased by 15.28 per cent year-on-year for the week ending 20 June. The Sensitive Price Index (SPI) showed a broad-based rise, indicating continued pressure on the cost of living. According to the Pakistan Bureau of Statistics, the index increased by 0.46 per cent compared to the previous week; the SPI has now recorded an increase for the 44th consecutive week. The year-on-year increase was largely driven by sharp gains in key items, including petrol by 44.73 per cent, diesel by 44.39 per cent, electricity charges by 59.40 per cent, wheat flour by 58.72 per cent, and liquefied petroleum gas by 52.66 per cent. The government has announced a steep cut in petrol and diesel rates effective 20 June. The impact of this decline will be visible in next week’s SPI data. (“Weekly inflation jumps 15.28pc,” Dawn, 20 June 2026)
Karachi Port Trust handled record 2.65 million units in 2025-26
On 20 June, Dawn reported that the Karachi Port Trust (KPT) had handled a record volume of containerised cargo of over 2.65 million twenty-foot equivalent units (TEUs) in 2025-26. KPT Chairman said the ongoing reforms, infrastructure upgrades and measures aimed at improving port services have contributed to the rise in cargo and container traffic, and the performance demonstrated the port’s ability to accommodate rising trade volumes and support national economic objectives. Maritime Affairs said the milestone was achieved weeks before the close of the outgoing fiscal year, underscoring growing confidence in Pakistan’s maritime sector and improved port performance. (“Karachi port handles record containers,” Dawn, 20 June 2026)
Petrol prices cut by PKR 74 per litre; diesel cut by PKR 67 per litre
On 19 June, Dawn reported that Prime Minister Shehbaz Sharif announced a PKR 74 per litre reduction in petrol prices and a PKR 67 per litre cut in high-speed diesel (HSD) prices as the government seeks to pass on the benefit of declining international oil prices. The PM also extended his sincere appreciation to the public for standing by the government during these challenging times. Once the official notification is issued, the price of petrol will stand at PKR 299.78 and high-speed diesel (HSD) at PKR 311.78, down from PKR 373.78 and PKR 378.78 per litre, respectively. (“PM Shehbaz announces reduction in prices of petrol by Rs74, diesel by Rs67,” Dawn, 19 June 2026)
Government assures PTI of discussing tax exemptions with IMF
On 19 June, Dawn reported that the federal government assured the PTI that it would discuss the extension of tax exemptions for the merged districts of the erstwhile Fata and Pata regions with the International Monetary Fund (IMF). The opposition had raised concerns with Prime Minister Shehbaz Sharif in the National Assembly over the expiry of tax exemptions for the erstwhile Fata and Pata regions on 30 June. The erstwhile Fata and Pata, which were merged with Khyber Pakhtunkhwa in 2018, are exempt from income tax on profits and gains from existing businesses operated by individuals. There are also other tax exemptions, such as sales tax exemptions for retailers. Earlier this month, the Fata Loya Jirga (FLJ) opposed the imposition of any taxes in the merged tribal districts, saying such a move would be unconstitutional and illegal as long as a case against the Fata-KP merger is pending with the Supreme Court. (“Finmin to discuss extension of Fata tax exemptions with IMF, says Sanaullah after PTI govt meeting,” Dawn, 19 June 2026)
EXTERNAL
FM Dar and Iranian FM Araghchi voice concern over Israeli ceasefire violations in Lebanon
On 19 June, The Express Tribune reported that FM Ishaq Dar and Iranian FM Abbas Araghchi held a phone call expressing serious concern over ceasefire violations by Israel in Lebanon despite the newly signed US-Iran peace agreement. Dar congratulated Iran on the signing of the Islamabad Memorandum of Understanding with the US and conveyed hope for smooth progress in the next phase of negotiations. Araghchi thanked Pakistan for its sustained mediation efforts and for facilitating the repatriation of 30 Iranians, including eight fishermen rescued by the UK and 22 crew members recently interdicted by the US, with transit arrangements still being coordinated by Islamabad. The call follows PM Shehbaz Sharif's signing of the Islamabad MoU on 18 June as mediator, formalising the end of the 108-day war between the US and Iran. The 14-point agreement, also signed by President Trump and Iranian President Masoud Pezeshkian, extends the April ceasefire, including in Lebanon, by 60 days to allow negotiation of a final truce. ("FM Dar, Iran's Araghchi express 'serious concerns' over ceasefire violations by Israel in Lebanon," The Express Tribune, 19 June 2026)
Pakistan and seven Muslim-majority nations blame Israel for arson attacks on West Bank mosques
On 19 June, Dawn reported that the foreign ministers of Saudi Arabia, Jordan, the UAE, Qatar, Indonesia, Pakistan, Egypt, and Türkiye issued a joint statement holding Israel responsible, as the occupying power, for arson attacks on two mosques in the West Bank villages of Jiljiliya and Mazari an-Nubani, condemning escalating settler violence against Palestinians. The mosques were set on fire by Israeli settlers, according to local mayors, with graffiti reading "vengeance" and "Hi, from the Hilltop Youth" found scrawled in Hebrew at one site. Israel's military confirmed the arson and graffiti but did not identify the perpetrators. The incidents form part of a broader pattern of escalating settler attacks on Palestinian communities in the occupied West Bank since the start of the Gaza conflict in 2023. ("Pakistan, 7 others blame Israel for attacks on West Bank mosques," Dawn, 19 June 2026)
FM Dar to attend fourth R-4 Foreign Ministers' meeting in Cairo on 21 June
On 19 June, Dawn reported that FM Ishaq Dar will attend the fourth meeting of the R-4 group of foreign ministers in Cairo on 21 June at the invitation of Egyptian FM Dr Badr Abdelatty, bringing together Pakistan, Egypt, Saudi Arabia, and Türkiye to discuss regional developments and ways to strengthen cooperation on peace, security, and stability. During the visit, Dar will hold bilateral consultations with his Egyptian counterpart and call on President Abdel Fattah El-Sisi to discuss deepening Pakistan-Egypt cooperation. The R-4 framework follows Dar's hosting of a similar quadrilateral meeting on the Middle East crisis in Islamabad in March. ("FM Dar to attend R-4 foreign ministers' meeting in Cairo on June 21: FO," Dawn, 19 June 2026)
PM Shehbaz and Saudi Crown Prince agree peace process "must not be undermined"
On 19 June, Dawn reported that Prime Minister Shehbaz Sharif spoke with Saudi Crown Prince Mohammed bin Salman following the signing of the Islamabad Memorandum of Understanding between the US and Iran, with both leaders agreeing that the next phase of negotiations must be guided by a firm commitment to dialogue and vigilance against any attempt to undermine the peace process. Shehbaz thanked the crown prince for Saudi Arabia's steadfast support of Pakistan's mediation efforts and expressed satisfaction with bilateral relations, looking forward to strengthening economic ties with Riyadh. The MoU was electronically signed two days ahead of schedule by Shehbaz as mediator, along with President Trump and Iranian President Masoud Pezeshkian, under which Washington and Tehran agreed to a framework to end the war, reopen the Strait of Hormuz, and negotiate remaining issues within 60 days. However, planned follow-up talks involving the US, Iran, Qatar, and Pakistan in Geneva were postponed after US Vice President JD Vance dropped plans to travel, with the Swiss foreign ministry saying preparatory work was continuing without a new date set. The conflict, which began on 28 February with US and Israeli strikes on Iran, has killed at least 7,000 people and roiled global energy markets, with Pakistan having brokered the original April ceasefire and hosted the first round of direct US-Iran talks in Islamabad. ("PM Shehbaz, Saudi crown prince discuss Iran-US talks, stress peace process must not be undermined," Dawn, 19 June 2026)
ON INDIA
Pakistan raises Indus Waters Treaty concerns at UNSC
On 19 June, Dawn reported that Deputy Prime Minister and Foreign Minister Ishaq Dar urged the United Nations Security Council (UNSC) to examine what Pakistan described as India’s violations of the Indus Waters Treaty, warning of consequences for water security, regional stability and international peace. Pakistan’s UN envoy Asim Iftikhar Ahmad delivered a letter to UNSC President Leonor Zalabata Torres alleging that Indian infrastructure projects connected to the Chenab system could alter treaty-governed flows and amount to the “weaponisation” of water resources. The dispute comes amid broader tensions since India placed the treaty in abeyance in 2025 following the Pahalgam attack, while Pakistan rejects allegations of cross-border involvement. It also points to rulings by the Permanent Court of Arbitration that, according to Islamabad, limit unilateral treaty suspension and constrain water-control measures on the western rivers. India maintains that treaty implementation remains tied to its security concerns and allegations of cross-border terrorism, which Pakistan denies. (“Dar writes to UNSC president, highlights India's 'brazen violations' of Indus Waters Treaty,” Dawn, 19 June 2026)
PoK
“AJK” crackdown deepens amid prolonged JAAC protest
On 20 June, Dawn reported that authorities in “Azad Jammu and Kashmir” placed 147 activists and supporters linked to the banned Joint Awami Action Committee (JAAC) on the Fourth Schedule under the Anti-Terrorism Act as a standoff in Rawalakot, and a region-wide strike entered its 11th day. Those listed were spread across multiple districts, with officials indicating more names could be added based on intelligence inputs and ongoing investigations, while some also suggested property attachment could follow. Protesters continued gathering at Rawalakot’s Eidgah Ground as authorities reportedly sought to end the sit-in without force. Across large parts of Poonch and Muzaffarabad divisions, businesses, fuel stations and transport remained heavily disrupted, internet outages affected banking and money transfers, and residents increasingly travelled into Khyber Pakhtunkhwa for essentials. Local traders and residents expressed growing economic strain and called for dialogue to restore normal life. (“AJK puts 147 JAAC activists, supporters on Fourth Schedule,” Dawn, 20 June 2026)
Editorials/Opinions
US-Iran war
Editorial, “Pakistan’s moment,” Dawn, 20 June 2026
“Though uncertainty may surround the fate of the US-Iran MoU, throughout this episode — from the start of the war on Feb 28 to the electronic signing of the document this week — Pakistan has played a crucial role in securing a diplomatic off-ramp. Other states, such as Qatar, Egypt, Turkiye etc. have also played a significant part, but it is Pakistan that has secured top billing in this geopolitical drama."
https://www.dawn.com/news/2009413/pakistans-moment
Khurram Husain, “After the war,” Dawn, 18 June 2026
“Now that the war is winding down, an important question needs to be asked. Will the rulers of Iran remember with gratitude the role Pakistan played in helping secure a dignified ending for them?"
https://www.dawn.com/news/2008723/after-the-war
Health
Syed Mohammad Ali, “Pakistan needs to rethink healthcare,” The Express Tribune, 19 June 2026
“Despite a modest increase, the health sector's share in the overall social sector development budget stands at 2.2% of the total social sector allocation for the current fiscal year. Yet, Pakistan's health outcomes continue to underperform against regional benchmarks."
https://tribune.com.pk/story/2613923/pakistan-needs-to-rethink-healthcare
Climate change
Ali Tauqeer Sheikh, “Policies without budget,” Dawn, 18 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://www.dawn.com/news/2008724/policies-without-budget
Terrorism
Syed Akhtar Ali Shah, “Pakistan's terrorism landscape: challenges and remedies,” The Express Tribune, 19 June 2026
“The year 2026 did not bode well for Pakistan in terms of internal security. There appears to be no let-up in the incidents of terrorism. The Global Terrorism Index and other conflict monitors also indicate an alarming rise in fatalities, attacks and militant capacity. Pakistan's earlier gains against terrorism appear to be reversing."
https://tribune.com.pk/story/2613929/pakistans-terrorism-landscape-challenges-and-remedies
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