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In Focus
79 per cent of 2025 flood survivors poorer than before the disaster, finds survey
Report highlights widespread dissatisfaction with compensation, slow housing reconstruction and inadequate preparedness for future floods
On 29 June, Dawn and The Express Tribune reported that a survey by Pattan-Coalition38 found most households affected by Pakistan’s 2025 floods remain more vulnerable than before the disaster, with limited government support and slow recovery. Based on interviews with 140 households across Punjab and Khyber Pakhtunkhwa, the report found that 79 per cent of respondents were poorer than before the floods, while fewer than 7 per cent reported fully recovering their homes, livelihoods or assets. More than 90 per cent identified climate change as a major driver of worsening floods but expressed dissatisfaction with government efforts to improve resilience.
The report further found that over 70 per cent of respondents were dissatisfied with compensation and recovery efforts, while only 20 of the 140 surveyed households said they had received government compensation. It reported widespread shortcomings in disaster preparedness, housing reconstruction and livelihood recovery, with many families still living in fragile homes and lacking access to basic services. It recommended strengthening community-level disaster preparedness, improving transparency in relief distribution, empowering local governments and investing in long-term climate resilience to reduce future vulnerability. ("Majority of flood victims still struggling with lost livelihoods: report," Dawn, 29 June 2026; "Climate vulnerability deepens as flood survivors rebuild lives," The Express Tribune, 29 June 2026)
In Brief
EXTERNAL
UNSC urged to halt Israeli settlement expansion in occupied Palestinian territories
On 30 June, Dawn reported that the United Nations Security Council heard renewed calls to halt Israeli settlement expansion in the occupied Palestinian territories, amid warnings that continued land seizures and violence are undermining the viability of a two-state solution. Briefing the council, Deputy UN Special Coordinator Ramiz Alakbarov highlighted worsening humanitarian conditions in Gaza and rising tensions in the West Bank, while Pakistan’s UN Ambassador Asim Iftikhar Ahmad described recent developments as part of a “systemic pattern” of settlement expansion and dispossession. UN Secretary-General António Guterres also warned that expanding settlements, particularly the proposed E-1 project, posed an “existential threat” to the two-state solution, while five European Security Council members called on Israel to end settlement expansion. ("UNSC warned of threat to two-state solution," Dawn, 30 June 2026)
PM Shehbaz to visit Iran and Türkiye amid Middle East peace efforts
On 29 June, Dawn reported that Prime Minister Shehbaz Sharif will visit Iran and Türkiye from 03 to 06 July as part of Pakistan’s diplomatic efforts to support the Middle East peace process following the Islamabad Memorandum of Understanding (MoU). According to Dawn, the prime minister will meet the leadership of both countries and urge Tehran and Washington to exercise restraint after renewed US-Iran hostilities threatened the fragile ceasefire. The report also noted that Iranian officials have called for a new regional security framework led by regional countries, echoing proposals made during President Masoud Pezeshkian’s recent visit to Pakistan. ("PM Shehbaz to visit Iran, Turkiye as part of mediation efforts to end Middle East war: sources," Dawn, 29 June 2026)
Pakistan & Italy sign PKR 6.3 billion loan agreement for agricultural skills programme
On 30 June, Dawn reported that Pakistan and Italy signed a concessional loan agreement worth approximately PKR 6.3 billion to support a project aimed at strengthening agricultural skills development and vocational education. The agreement, signed by Economic Affairs Secretary Muhammad Humair Karim and Italian Ambassador Marilina Armellin, will fund the Professional Capacity Building and Extension in Agriculture project under Pakistan’s Technical and Vocational Education and Training (TVET) National Reform Programme. Senior officials from the Italian Agency for Development Cooperation, the Ministry of National Food Security and Research, and provincial agriculture departments attended the signing ceremony. ("Pakistan, Italy ink Rs6.3b agriculture loan pact," The Express Tribune, 30 June 2026)
ECONOMY
Gulf instability drags down Pakistan's bond, equity markets and foreign investment in FY26
On 30 June, Dawn reported that regional instability tied to the Gulf turmoil weighed on Pakistan's domestic bond and equity markets and foreign direct investment through the end of FY26, with analysts warning that even a paused conflict was keeping foreign investors away given Pakistan's vulnerable external account. FDI declined 28 per cent over the first 11 months of FY26, domestic bonds saw a net outflow of USD 550 million against total outflows exceeding USD 2 billion, and the Pakistan Stock Exchange recorded equity outflows of over USD 1 billion against inflows of just USD 308 million between 01 July 2025 and 19 June 2026. Analysts noted that despite strong remittance growth, with Pakistan hoping to receive USD 41 billion in FY26, the country faces over USD 26 billion in external payments in FY27 against an 11-month trade deficit of USD 35 billion, leaving the external account fragile. While Pakistan is not a party to the Gulf conflict itself, its role as a peace deal mediator carries high stakes, with some analysts suggesting deepening ties with Iran, Saudi Arabia, Oman, and Qatar could eventually benefit the economy, particularly following the Iranian president's recent visit with a 70-member delegation, though no details of business agreements signed during that visit have been disclosed. ("Gulf turmoil hurting Pakistan's economic outlook," Dawn, 30 June 2026)
PM Shehbaz orders National Agriculture Policy and restructuring of food security ministry
On 30 June, Dawn reported that Prime Minister Shehbaz Sharif directed the immediate formulation of a comprehensive National Agriculture Policy in consultation with provinces and ordered the restructuring of the Ministry of National Food Security, Research and Agricultural Reforms along modern lines. He instructed the establishment of a monthly agriculture apex forum to implement the Agriculture Innovation and Growth Plan, a nationwide awareness campaign for the Zarkhez Agricultural Loan Programme, and the transformation of the Pakistan Agricultural Research Council into a genuine centre of excellence. Officials briefed the meeting on a pilot multi-grain flour production project, an AI-based mobile application to help farmers identify crop diseases, and financial support from the National Credit Guarantee Company Limited. The National Seed Policy and National Agriculture Biotechnology Policy have recently been approved, while the Pakistan National Olive Value Chain Policy is set for cabinet submission and consultations are underway on a National Wheat Policy and livestock sector policies. The meeting was attended by ministers Ahsan Iqbal, Muhammad Aurangzeb, Attaullah Tarar, and Shaza Fatima Khawaja, among other officials. ("PM Shehbaz directs major overhaul of agriculture sector," Dawn, 30 June 2026)
Government formally transfers PIA management control to Arif Habib-led consortium
On 29 June, Dawn reported that the Privatisation Commission announced the formal transfer of management control of Pakistan International Airlines Corporation Limited to the Arif Habib Corporation-led consortium, achieving first financial closing after satisfaction of all 40 Conditions Precedent under the Share Purchase and Subscription Agreement signed on 29 January 2026. The new restructured board appointed Lt Gen (retd) Anwar Ali Haider, managing director of Fauji Foundation, as the first chairman of the privatised entity. The conditions included regulatory approvals from the Civil Aviation Authority, Competition Commission, and foreign aviation authorities in Saudi Arabia and Kuwait, 22 contractual consents from lessors and service providers, taxation protections, and amendments to the National Aviation Policy. Following the 23 December 2025 bidding process, the consortium committed total investments of PKR 180 billion, with PKR 55 billion payable to the government and PKR 125 billion to be injected into PIACL. On Monday, the consortium paid PKR 10 billion to the government and injected PKR 80 billion in fresh equity, with a second financial closing of a further PKR 45 billion investment scheduled within twelve months, alongside an option to purchase the remaining 25 per cent of shares for an additional PKR 45 billion. The shareholding is led by Fatima Fertiliser at 34.1 per cent, Fauji Fertiliser at 33.9 per cent, and Lake City, City Schools, and AKD Group each holding 16 per cent. ("Govt formally transfers management control of PIA to Arif Habib-led consortium," Dawn, 29 June 2026)
Pakistan launches urgent LNG tender as Hormuz tensions disrupt Qatari supplies
On 29 June, The Express Tribune reported that state-owned Pakistan LNG Limited launched an urgent tender for one spot LNG cargo of 140,000 cubic metres for delivery at Port Qasim between 30 June and 04 July, as renewed tensions in the Strait of Hormuz disrupted energy flows from Qatar, one of Pakistan's main suppliers. The move follows recent attacks on commercial vessels transiting the strait and comes after Pakistan's long-term Qatari LNG contract deliveries were suspended due to the US-Iran conflict, forcing the country toward the costlier spot market to meet power sector demand. ("Pakistan seeks urgent LNG cargo as Hormuz tensions disrupt supplies," The Express Tribune, 29 June 2026)
SBP reserves drop to USD 15.9 billion after USD 1.3 billion debt repayment, fresh inflows expected
On 30 June, The Express Tribune reported that the State Bank of Pakistan's foreign exchange reserves fell by USD 1.305 billion to USD 15.916 billion during the week ended 19 June 2026, primarily due to external debt repayments. The central bank said it had since received USD 0.7 billion from a multilateral institution and around USD 1.7 billion as refinancing of a government commercial loan, which would be reflected in reserves as of 30 June. Total liquid foreign reserves stood at USD 21.485 billion, with commercial banks holding USD 5.568 billion. The rupee appreciated marginally to close at 278.17 against the dollar. Gold prices in Pakistan fell in line with international markets, with per-tola rates dropping to PKR 428,936, as fresh US-Iran tensions, including Iranian strikes on US military sites in Bahrain and Kuwait, pushed oil prices higher and fuelled inflation expectations. Analysts said gold could remain under pressure for one to two months, with potential downside toward USD 3,600 to USD 3,900 per ounce if oil prices continue rising. ("SBP repays $1.3b in external debt," The Express Tribune, 30 June 2026)
Inflation eases to 11.5 per cent in June as core inflation remains firm at 8.9 per cent
On 30 June, The Express Tribune reported that Pakistan's headline inflation is expected to ease to 11.5 per cent year-on-year in June 2026 from 11.7 per cent in May, with month-on-month CPI projected to rise just 0.1 per cent, according to Ismail Iqbal Securities (IIS). The moderation was driven by a 9.2 per cent fall in the motor fuel index following declining global crude prices after Middle East de-escalation, contributing a 0.3 percentage point drag on headline inflation through a projected 4.9 per cent month-on-month decline in the transport index. Food inflation remained firm, with the food index expected to rise 1.0 per cent on higher wheat, potato, and onion prices alongside a 61.1 per cent seasonal surge in tomato prices, partially offset by a 17.7 per cent decline in chicken prices. Core non-food non-energy inflation is projected to edge up to 8.9 per cent from 8.8 per cent in May, reflecting persistent second-round effects from earlier energy price shocks. IIS said the SBP's decision to hold the policy rate at 11.5 per cent appeared appropriate given this backdrop, with secondary market yields having already declined across tenors as geopolitical risks eased. The brokerage warned that renewed Middle East escalation remains the biggest risk to the inflation and interest rate outlook. ("Inflation eases to 11.5% in June," The Express Tribune, 30 June 2026)
POLITICS & GOVERNANCE
IT ministry unveils draft Data Governance Policy 2026
On 30 June, Dawn reported that the Ministry of Information Technology and Telecommunication was releasing its draft Data Governance Policy 2026 for public consultation, declaring government data a strategic national asset to be held in trust for citizens. The draft, open for feedback until 10 July, defines public bodies as custodians rather than owners of government data and grants citizens the right to know who accessed their personal data, when and why. The Pakistan Digital Authority (PDA) will oversee implementation under the Digital Nation Pakistan Act 2025, with cross-border data transfers permitted only through approved, safeguarded mechanisms. ("IT ministry unveils draft data governance policy," Dawn, 30 June 2026)
SECURITY
Bannu: Police Constable killed after unidentified assailants open fire near Lora Bridge
On 29 June, Dawn reported that Constable Umar Niaz Khan was killed on his way to report for duty in Bannu. Local sources stated that assailants forced him out of a rickshaw and subsequently shot and killed him. Bannu has seen numerous incidents in recent months which have put both civilians and security at risk, prompting intervention by police and security forces to disrupt terrorist networks. The Pakistan Institute for Conflict and Security Studies (PICSS) found that, after two months of improvement, Pakistan's security situation had drastically deteriorated in May, driven by escalating terrorism. In a 09 May suicide bombing incident, Pakistan issued a “strong demarche” towards Afghanistan. (“Cop martyred after unidentified assailants open fire in KP's Bannu,” Dawn, 29 June 2026)
Rawalpindi: Security at sensitive police picket points further strengthened
On 29 June, Dawn reported that police have created a plan to strengthen security at four special pickets connecting Rawalpindi with “Azad Kashmir.” The police deployed at these posts will be on duty around the clock, taking shifts of 12 hours each under an inspector and sub-inspector. Supervision of personnel will be a responsibility given to SSP Operations Malik Tariq Mehboob, under command and control of City Police Officer Rawalpindi Khalid Hamdani. Appropriate gear such as Helmets, bulletproof jackets and wireless sets have been given to deployed personnel. (“Security tightened at four entry points between Pindi district, Azad Kashmir,” Dawn, 29 June 2026)
Lakki Marwat: Numerous suspects arrested during search and strike operations
On 29 June, Dawn reported that police conducted an operation in the rural areas following credible information regarding terrorists in the area. DPO Nazir Khan remarked that the operation aimed to “cleanse the region of anti-state elements” in rural localities. The enforcers, backed by armored personal carriers, raided several areas and arrested suspects. It was claimed that the police seized arms from arrested individuals. Khan remarked that operations would continue until “the elimination of the last terrorist”. In Karak, Officer Imran Khan conducted the operation in mountainous border regions. (“Scores held in search, strike operations in Lakki, Karak,” Dawn, 29 June 2026)
PoK
"Azad Jammu and Kashmir" Assembly passes PKR 286 billion budget for FY26-27
On 30 June, Dawn reported that the "Azad Jammu and Kashmir" Legislative Assembly passed a PKR 286 billion budget for FY2026-27, hours after it was presented by Finance Minister Chaudhry Qasim Majeed. The budget includes PKR 250 billion for recurring expenditure and PKR 36 billion for development, with education receiving the largest recurring allocation at PKR 57.25 billion, followed by PKR 53.5 billion for pensions. Majeed acknowledged that overall revenue targets had again gone unmet, attributing the shortfall to reduced bank profit margins and lower electricity tariffs. The federal pay and pension increases were also extended to "AJK" government employees. (“BUDGET 2026-27: AJK Assembly passes Rs286bn budget for FY27," Dawn, 30 June 2026)
Jamaat-i-Islami chief urges dialogue to resolve "AJK" crisis
On 29 June, Dawn reported that Jamaat-i-Islami (JI) Emir Hafiz Naeemur Rehman urged the government to avoid the use of force and immediately engage in dialogue with the proscribed Joint Awami Action Committee (JAAC) to resolve the ongoing crisis in "Azad Jammu and Kashmir". Rehman said JI had taken on a mediation role and that the JAAC had postponed its long march in response, calling on the federal government to match this seriousness with genuine negotiations. He warned that the situation should not be allowed to reach a point where India could exploit it for propaganda against Pakistan, while also cautioning "AJK" youth against falling into the hands of "anti-Pakistan" elements. ("Dialogue only solution to AJK crisis, govt should avoid use of force: JI chief," Dawn, 29 June 2026)
AF-PAK
Foreign Office summons Afghan envoy over Rangers camp attack in Karachi
On 29 June, Dawn reported that the Foreign Office (FO) summoned the Afghan chargé d'affaires and issued a strong démarche over a terrorist attack on a Pakistan Rangers facility in Karachi's Gulistan-i-Jauhar area that killed three security personnel. The Inter-Services Public Relations (ISPR) said the attack was carried out by terrorists belonging to Jamaatul Ahrar (JuA), an Indian proxy, with one Afghan national among those arrested. The FO said the involvement of Afghan nationals once again proved that Afghan soil continues to be used to orchestrate attacks inside Pakistan. Pakistan separately carried out ground operations and air strikes along the border, killing 29 terrorists. ("FO summons Afghan envoy, issues 'strong' démarche over terrorist attack on Karachi Rangers camp," Dawn, 29 June 2026)
PROVINCES
Sindh Assembly passes PKR 3.562 trillion deficit budget for FY26-27
On 29 June, Dawn reported that the Sindh Assembly passed a PKR 3.562 trillion provincial budget for FY2026-27 by a majority vote, rejecting all cut motions moved by opposition parties. Chief Minister Syed Murad Ali Shah called the budget a document of prudent financial discipline, announcing an Annual Development Programme of PKR 720 billion, including PKR 206 billion earmarked for Karachi. He said the province had maintained fiscal discipline despite a PKR 344 billion deficit, citing achievements including wheat self-sufficiency and the completion of nearly 100 major projects over the past year. The opposition criticised the budget as a collection of government claims that ignored ordinary citizens. ("SINDH BUDGET 2026-27: Sindh Assembly passes Rs3.562tr deficit budget for financial year 2026-27," Dawn, 29 June 2026)
ON INDIA
Info Minister Tarar says Indus Water Treaty cannot be unilaterally revoked
On 29 June, Dawn reported that Information Minister Attaullah Tarar asserted that the Indus Waters Treaty (IWT) cannot be unilaterally revoked or amended and remains legally in force, despite India's continued abeyance of the agreement since 2025. Speaking alongside Climate Change Minister Musadik Malik, Tarar said Pakistan's position had been internationally endorsed, including by the Permanent Court of Arbitration (PCA). Malik warned that 40 to 50 per cent of Pakistan's population depends on agriculture, which accounts for 20 to 25 per cent of the economy, and said a seminar would be held to highlight Pakistan's treaty rights to international water and legal experts. ("'Water is our red line': Info minister says IWT cannot be unilaterally revoked or amended, remains in force," Dawn, 29 June 2026)
Editorials/Opinions
Geopolitics
Maleeha Lodhi, “The world adrift,” Dawn, 29 June 2026
“The world is at an inflection point, in the middle of geopolitical upheaval and turmoil. It is more unstable today than at any time since the end of the Cold War. Rising geopolitical tensions and fierce geoeconomic competition are contributing to instability. The old order with its rules has gone. The international system is fragmenting. Multilateralism remains under unprecedented stress. Power shifts continue to reshape the international landscape, marking the advent of a multipolar era. The disregard for international law and norms by big and regional powers has left countries having to navigate a rule-less terrain at a time of uncertainty and volatility."
https://www.dawn.com/news/2011523/the-world-adrift
Asghar Soomro, “Pakistan's diplomatic ascendance,” The Express Tribune, 28 June 2026
“A few years ago, Pakistan was more likely to appear in international headlines for FATF scrutiny, IMF negotiations, political instability and security challenges. Today, the 'Islamabad MoU' between the US and Iran stands as a symbol of the country's unexpected return to diplomatic relevance. While the deal remains fragile and its future uncertain, bringing the process this far required sustained diplomatic effort. Pakistan's contribution deserves recognition – it changed the course of history, saved the region or emerged as a superpower."
https://tribune.com.pk/story/2615307/pakistans-diplomatic-ascendance
Politics & governance
Ali Hassan Bangwar, “Moving the goalposts,” The Express Tribune, 28 June 2026
“Pakistan has perfected an art the civilised world hasn't yet mastered: resolving crises without confronting them. While it admirably plays mediator to global conflicts, it reserves a different strategy for domestic ones - not resolution, but redefinition. Problems are not solved; they are reframed until they cease to appear as problems on paper. Success metrics are not achieved; they are revised until achievement becomes inevitable. The goalpost, in short, is never fixed - and a moving goalpost, by design, is never missed."
https://tribune.com.pk/story/2615303/moving-the-goalposts
Provinces
Raza Rashid, “Governing Islamabad,” Dawn, 29 June 2026
“Islamabad exists in something of a legal vacuum. Authority over the capital is split among several bodies, none answerable to its residents. First, there is an appointed chief commissioner with provincial-style powers under a presidential order from 1980. Second, there is a dormant metropolitan corporation. Third, and most visible in the life of the city, there is the Capital Development Authority, which plans, develops, zones, acquires and often demolishes, at will. Functions that elsewhere sit with several bodies gather here, answering upward to the federation and sideways to no one. This is the backdrop in which the new ICT Governance Model has been put forward for consultation."
https://www.dawn.com/news/2011520/governing-islamabad
Society
Marvi Mazhar, “The ecology of civic spaces,” Dawn, 29 June 2026
“In Karachi, development is often imagined as an upgrade in scale — a quiet residential zone becomes commercial chaos, and an informal, difficult-to-maintain civic place is replaced by a larger, safer, more manageable and programmable space. On paper, this looks like progress. In urban life, the equation is complicated. Cities, particularly in South Asia, have a habit of mistaking expansion for continuity. The expansion of a building means that public mission has grown. When a facility offers more amenities, such as rooms, equipment, parking and programming, it is seen as advancement. But civic spaces do not live by square footage alone. They live through democratic access, repetition, informality, memory and the possibility of arrival."
https://www.dawn.com/news/2011521/the-ecology-of-civic-spaces
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