• Rapid warming spikes sharply up north; AJK, GB, KP record highest annual temperatures in 65 years
• Extreme heat claims over 200,000 lives in Europe since 2022; El Nino threatens to compound weather extremes
• Monsoon delayed in India

ISLAMABAD: Pakistan recorded its second-warmest year in 65 years in 2025, intensifying extreme floods and creating a systemic risk to the nation’s economy, according to the Economic Survey 2025-26.

Pakistan’s hottest year was 2024, the survey reported 2025 as the second-warmest year in 65 years, marking consecutive years of record high temperatures.

The country experienced a national annual mean temperature of 23.9°C last year, 1.09°C warmer than the 22.8-degree average. Despite contributing less than 1pc to global emissions and 0.4 percent historically, Pakistan bears a disproportionately high burden of global climate change.

“Climate change is no longer a distant or abstract threat to the country but a present reality,” the survey stated, citing an escalating challenge to the economy and population.

Over the last 50 years, the annual mean temperature in Pakistan has increased by approximately 0.5°C, with projections indicating a further rise of 3 to 5 degrees by the end of this century. In 2025, northern regions warmed intensively.

Temperature anomalies reached 1.24°C in Gilgit-Baltistan, 1.29°C in Khyber Pakhtunkhwa, and 1.56°C in Azad Jammu and Kashmir recording their highest annual temperatures in 65 years.

Meanwhile, the country received 288.5 millimetres of rainfall in 2025, about 3pc below the long-term average of 297.6 millimetres.

Rainfall distribution remained uneven. Sindh, Punjab, and GB recorded above-average rainfall, while KP and Balochistan remained below average.

The monsoon season from July to September recorded rainfall 23pc above average, while the year started with significantly below-average rainfall during the January-March period.

These phenomena are accelerating glacial melt and altering monsoon dynamics, creating pronounced rainfall variability. Fewer rainy days with higher intensity have shifted monsoon patterns to the south, changing flood risks. This resulted in the 2025 floods affecting all provinces, mirroring the 2022 devastation.

However, the survey warned Pakistan may fail to fulfil its United Nations climate commitments due to constrained international financing.

The World Bank previously estimated baseline climate-resilient investment needs at $348 billion up to 2030, implying an additional requirement of approximately $217.7bn to meet the $565.7bn total investment needed.

‘Over 200,000 lives lost’

As Pakistan endures record temperatures, extreme heat is claiming lives globally. More than 200,000 lives have been lost to the “silent killer” of heat in Europe since 2022, the World Health Organisation said on Thursday, after a heat wave saw some countries record their highest-ever May temperatures.

“The impacts of climate change are a clear and present danger, and its most immediate and lethal manifestation is extreme heat,” said Hans Henri Kluge, the WHO’s Europe director.

Extreme heat severely impacts the elderly, young, and those with health issues, leading to dehydration and heatstroke. Most of the 200,000 deaths were preventable, according to Kluge, who noted this is just the beginning, as millions more suffer mentally and physically.

Kluge said Europe is “warming faster than any other continent”.

The WHO advises authorities to establish effective heat-warning systems. Kluge emphasised that individual efforts are insufficient against a systemic crisis, advocating for a coordinated, powerful institutional response.

El Nino arrives

Compounding these global weather extremes, the El Nino phenomenon has arrived, the US National Oceanic and Atmospheric Administration said Thursday. Scientists expect it to intensify into the end of the year, potentially reaching historic strength.

El Nino is a natural climate phenomenon that warms surface temperatures in the central and eastern equatorial Pacific Ocean, bringing worldwide changes in winds, rainfall, and erratic weather. Scientists fear it will exacerbate the heat of a planet already warming from burning fossil fuels.

“There is a 63pc chance of a very strong El Nino during November-January that would rank among the largest El Nino events in the historical record going back to 1950,” the NOAA advisory read.

Major events follow familiar patterns, including droughts across parts of the Amazon, Indonesia, and Australia, disrupted monsoons in India, and shifting rainfall.

UN Secretary-General Antonio Guterres urged the world to treat the weather as an urgent warning, stating, “El Nino conditions will pour fuel on the fire of a warming world”.

India monsoon slows

The anticipated disruptions are already manifesting regionally, as India is expected to receive below-average rainfall over the next two weeks. “Western disturbances” have slowed the progress of the annual monsoon, two senior weather bureau officials said on Thursday.

Nearly half of India’s farmland lacks irrigation, and about half the population earns its livelihood from agriculture. Lower rainfall could delay the planting of summer-sown crops.

The June-to-September monsoon typically begins lashing the southern state of Kerala around June 1 before covering the entire country by mid-July, but its onset was delayed by three days this year.

In June, India’s rainfall was 26.5pc below normal. The weather department predicts the monsoon season will bring 90pc of average rainfall, with June’s rainfall at 92pc due to El Nino.

With input from Agencies

Published in Dawn, June 12th, 2026

ISLAMABAD: The Foreign Office on Thursday insisted that violent protests in Azad Jammu and Kashmir (AJK) were being addressed through constitutional and democratic means, as it sharply rebuffed India’s criticism of the unrest as “devious”.

“We reject India’s remarks in their entirety,” Foreign Office spokesperson Tahir Andrabi said at a weekly media briefing, dismissing what he called New Delhi’s attempt to draw parallels between AJK and India-occupied Kashmir.

His comments came after India’s external affairs ministry condemned the crackdown on protesters in AJK, accusing Pakistan of suppressing dissent following reports of clashes in the region, and urged the international community to hold Islamabad accountable over alleged human rights violations.

Mr Andrabi said it was “untenable” for a country that had “consistently denied the people of Jammu and Kashmir their right to self-determination” to claim concern for the rights of Kashmiris.

AJK has witnessed fresh protests led by the Joint Awami Action Committee (JAAC), a coalition of traders, lawyers and civil society groups demanding the restoration of subsidies on wheat and electricity, governance reforms, an end to elite privileges and the abolition of 12 reserved legislative seats for Kashmiri refugees ahead of elections scheduled next month.

The protests turned violent in several areas, particularly in Rawalakot, where clashes between demonstrators and police resulted in casualties. Authorities subsequently banned JAAC under anti-terrorism laws, imposed internet restrictions, issued arrest warrants for some leaders and deployed additional security personnel, triggering a region-wide strike and shutdown.

Responding to India’s criticism, Mr Andrabi said New Delhi was attempting to shift attention away from the disputed status of Kashmir and its own conduct in the territory under its control.

He noted that India-occupied Kashmir remained “an illegally annexed, internationally recognised disputed territory” where people had been denied their rights, including the right to self-determination as recognised by UNSC resolutions.

“On the contrary, we are addressing issues arising [in AJK] within the democratic and constitutional framework,” he said. “Any attempt to conflate the two is misleading and does not withstand objective scrutiny.”

India’s nuclear buildup

The FO also expressed concern over India’s expanding nuclear capabilities following the release of the latest annual assessment by the Stockholm International Peace Research Institute (SIPRI).

Mr Andrabi said the findings broadly supported Pakistan’s longstanding concerns regarding India’s strategic buildup.

The SIPRI Yearbook 2026 estimated that India possessed around 190 nuclear warheads as of January this year, up from about 180 a year earlier. The report also noted the continuing modernisation of India’s nuclear delivery systems and suggested that some 12 warheads might now be deployed with operational forces during peacetime.

The spokesperson argued that publicly available estimates might understate the actual size of India’s arsenal.

“We also believe that open-source estimates, such as SIPRI, may not fully reflect the actual scale of India’s nuclear arsenal that may be higher than existing estimates,” he said.

He further pointed to developments including the canisterisation of missile systems, the expansion of sea-based nuclear capabilities and the pursuit of longer-range missile systems.

“These developments enhance operational readiness, complicate crisis stability, and carry implications that extend beyond South Asia with grave consequences for international peace and security,” he said.

Pakistan, he maintained, was not seeking a numerical arms race with India.

“However, we remain mindful of the evolving security environment.”

Calling for greater international scrutiny of India’s strategic programmes, he urged technology-supplying countries to carefully assess the implications of advanced systems being incorporated into India’s military posture.

‘Coercion tool’

Commenting on recent statements by Indian leaders regarding the Indus waters, the spokesperson reiterated Pakistan’s warning that any attempt to block or significantly reduce water flows would have serious consequences.

The remarks followed a statement by Indian Water Minister CR Patil that New Delhi was working to ensure that “not a single drop” of water from the Indus river system reached Pakistan in the future, after India unilaterally placed the Indus Waters Treaty into abeyance following the Pahalgam attack in April 2025.

Mr Andrabi said water could not be treated as a political weapon.

“Pakistan firmly rejects any notion that water can be treated as a political tool, instrument of coercion or weapon,” he said.

He warned that any effort to curtail water flows vital to Pakistan’s agriculture and economy would violate international obligations governing transboundary rivers as well as bilateral commitments.

“Pakistan’s rights and interests in respect of its water resources are non-negotiable,” he said, adding that Islamabad would defend those rights through “all available diplomatic, legal, political, economic and other measures consistent with international law and the UN Charter”.

“Any deliberate attempt to block water essential to Pakistan’s survival and development would constitute an extremely grave act with far-reaching consequences,” he said.

US-Iran talks

On efforts to sustain dialogue between the United States and Iran, the spokesperson acknowledged growing difficulties following recent military exchanges between the two sides but said Pakistan remained committed to its facilitation role.

“It’s very difficult to be optimistic in the given scenario, now that we have an open exchange of hostilities,” he said.

The ceasefire between Washington and Tehran, initially facilitated through Pakistani mediation, has come under renewed strain following recent US strikes on Iranian targets and Iranian retaliatory actions, even as negotiations continued over sanctions relief, maritime security in the Strait of Hormuz and Iran’s nuclear programme.

Mr Andrabi said periodic setbacks were not unusual in peace processes.

“We understand the challenges. We understand how the diplomatic space has shrunk because of these hostilities. But I will certainly say that we have not lost hope,” he added.

He described cycles of ceasefires and renewed hostilities as a recurring feature of many international conflicts.

“This is a natural progression in conflict situations,” he said.

“Pakistan remains engaged,” he added. “Such optimism is essential for a mediator or facilitator.”

While Pakistan remains the principal political facilitator between the US and Iran, diplomatic sources said Qatar had in recent weeks become increasingly active on parallel tracks involving confidence-building measures, frozen Iranian assets, and technical issues linked to sanctions and maritime access.

Published in Dawn, June 12th, 2026

PESHAWAR: The PTI’s Khyber Pakhtunkhwa chapter seemed to be at loggerheads after the party’s provincial leadership barred the members of its political coordination committee from contacting the members who had discussed party affairs in the media.

The directive from provincial general secretary Ali Asghar Khan drew criticism from senior leaders, including former chief minister Ali Amin Khan Gandapur and ex-speaker Mushtaq Ahmed Ghani, who criticised the party directives in audio clips circulated on social media.

“In the light of directions from President PTI Khyber Pakhtunkhwa, all the members of parliamentary and political coordination committee are directed to avoid direct and indirect contact with any member who has taken party internal affairs on media, tried to pressurise the party and weakened its discipline,” the advisory issued by the MNA Ali Asghar Khan stated. It also stopped the committee members from meeting any delegation which might include members who publicly criticised the party.

“Those who are trying to pressurise the [party] by making media statements and bringing party internal affairs in public should neither be encouraged nor discussed at any level,” it said. It said that the members of the parliamentary and political coordination committee were directed to strictly implement the directive.

Last week, a group of PTI lawmakers, in a letter addressed to the PTI interim chairman Barrister Gohar Ali Khan, expressed concerns over “lack of efforts” by the leadership for the release of the party’s incarcerated founder, governance issues in the province and demanded a comprehensive action plan for the purpose.

In response to the directive, multiple audio clips made rounds on social media. In a leaked audio message purportedly featuring Mr Gandapur, the ex-CM said the political parties did not operate in such fashion. He quipped that the provincial president had made statements against the party government in the past.

He recalled that the incumbent provincial ministers had made allegations against his cabinet members on the floor of the house. “Acting like dictators would not do any good to the party; rather, it would further aggravate the situation,” the former CM added.

Mushtaq Ahmed Ghani, former KP Assembly speaker, also criticised the party leadership’s directive in a leaked audio clip. Ghani, who is one of the senior leaders in the ranks of the ‘disgruntled group’, said that they neither violated the party discipline nor levelled allegations against anyone.

“Our only crime is to utter the name of Imran Khan, which the party leadership was not ready to take,” he claimed. He asked the party leadership if they had any workable plan to ensure the release of Imran Khan from prison or start a movement to press for his release.

He questioned whether appearances in front of the Adiala prison and before the high court could lead to Imran’s release, as he called them a waste of time. Ghani said that they had been advocating for medical facilities and visitation rights for Imran Khan and speedy trials in his cases. “If this is our crime, then we will continue to do the same,” Mr Ghani said.

Mr Ghani did not respond to texts and calls.

On the other hand, a party insider told Dawn that disgruntled members were unhappy for being left out of cabinet seats in the latest reshuffle and were now trying to link it with Imran Khan’s release.

Another reason, according to the insider, was the “envy” among the senior leaders over the elevation of Muhammad Sohail Afridi as chief minister. “Many were unhappy with the fact that Mr Afridi, who used to go about their offices some months ago, was now the chief minister; they were unable to digest it,” the insider said. PTI KP president MNA Junaid Akbar and general secretary Ali Asghar Khan were not available for comments, either.

Published in Dawn, June 12th, 2026

• Announcement comes after US calls off Iran attacks
• Oil drops after Washington backs down
• IRGC strikes Bahrain, Jordan, Kuwait after US bombs targets across Iran
• Tehran says American attacks have rendered ceasefire ‘practically’ meaningless
• Saudis call for Pakistan, Qatar-led efforts for renewed talks
• Iran ‘completely’ closes Hormuz

WASHINGTON / TEH­RAN: US President Donald Trump on Thursday said the United States and Iran could sign a peace deal as soon as this weekend that would reopen shipping traffic through the Strait of Hormuz.

The agreement, if finalised, would be the most significant diplomatic breakthrough yet to end the three-month-old war, which has killed thousands of people and sent global energy prices sharply higher.

Iran’s semi-official Fars news agency reported that Tehran is likely to approve the agreement, though it has yet to give a formal response.

However, Iran’s foreign ministry spokesperson said matters related to an agreement are speculation and nothing has been finalised, according to Iran’s state-run IRNA news agency.

“We just made a great settlement of the war with Iran,” Trump told reporters at the White House. “The strait will officially open as soon as we sign, which could be soon, very soon, maybe over the weekend in Europe,” he said. Vice President JD Vance could sign for the United States, Trump added.

When asked if Iran’s Supreme Leader Ayatollah Mojtaba Khamenei has approved the deal, Trump said: “I understand the answer is yes.”

Trump’s announcement came after he called off planned military strikes on Iran, citing progress in talks.

Since mid-March, Trump has repeatedly claimed that a deal with Iran to end the war is close. The two sides have traded strikes throughout the week, straining a ceasefire announced in April.

He called off planned strikes on Iran hours after threatening more bombings and a desire to “take” its oil export hub Kharg Island.

That statement came after both sides attacked each other in the early hours of Thursday, putting an already-fragile ceasefire to the test. After the US attacked targets across Iran, the Iranian army responded with strikes on US targets in Bahrain, Jordan, and Kuwait.

In a statement posted on Truth Social, President Trump said, “Based on the fact that discussions with the Islamic Republic of Iran have been brought to the highest level of Iranian leadership and approved, I have, as President of the United States of America, cancelled the scheduled strikes and bombings against Iran this evening.”

He said “discussions and final points” have been approved by the United States, Israel, Saudi Arabia, UAE, Qatar, Turkiye, Pakistan, Bahrain, Kuwait, Jordan, Egypt and others.

“The Naval Blockade will remain in full force and effect until this Transaction is finalised — Time and place of the signing to be announced shortly,” he added.

Oil prices fell after he cancelled plans to strike Iran within hours. Brent futures fell $2.50, or 2.7pc, to $90.60 a barrel by 1838 GMT. US West Texas Intermediate (WTI) crude futures fell $2.32, or 2.6pc, to settle at $87.71 a barrel.

Overnight strikes

In response to the US strikes, Iran’s Islamic Revolutionary Guard Corps (IRGC) said it fired ballistic missiles at a US command centre in Jordan and attacked the US Fifth Fleet in Bahrain.

“During two waves of operations, eighteen important targets belonging to the US Army in the bases of Ali and Ahmad Ahmad Air Force (were hit),” the Guards said in a statement quoted by state-run IRNA, adding that they also “hit and destroyed Sheikh Isa air bases”.

The US military, meanwhile, said that it targeted “Iranian military surveillance capabilities, communication systems, and air defence sites across Iran”.

“US Marine Corps, Air Force, and Navy assets fired precision munitions on Iranian targets that posed a threat to US forces and international commercial ships transiting regional waters,” Central Command posted on X.

The Fars news agency reported that explosions have been heard in the port city of Bandar Abbas, while citizens have reported hearing explosions in Kargan and Minab.

Following these strikes, the US president warned of more attacks. The US will “be hitting Iran … very hard tonight”, he said, reiterating his claim that Iran’s military and “all other forms of defence” had been rendered inoperable.

“At some point in the not-too-distant future, we will be taking Kharg Island, and other oil infrastructure points, and assume total control of their Oil and Gas Markets, much like we have with Venezuela,” he added in a post on Truth Social.

Iran’s parliament speaker Bagher Ghalibaf, in an apparent warning to President Trump, said, “Wrong strategies and impulsive decisions will reset the entire board for the worse, explode energy infrastructure and markets and create an endless quagmire that you will be stuck in for years.” “You will see a different Iran.”

Iran’s top joint military command, Khatam al-An­biya Central Headquar­ters, also warned the United States will receive a more severe response than before.

“Considering recent US threats against Iran’s oil infrastructure, either oil and gas exports are for everyone, or they will be available for no one,” the command said in a statement carried by state media, adding that the war will become more widespread and extensive, causing insecurity in the region.

Meanwhile, Iran’s foreign ministry condemned the latest US strikes on the country, saying the attacks rendered the nearly two-month ceasefire “practically meaningless”.

Calls for renewed talks

As the situation escalated between the two countries, Saudi Arabia called for renewed negotiations under Pakistani and Qatari mediation to end the Middle East war.

In a statement, the Saudi foreign ministry called for “de-escalation and restraint, urging all parties to prioritise wisdom by returning to diplomatic efforts and resuming the constructive negotiations sponsored by the Islamic Republic of Pakistan, along with the efforts of the State of Qatar”.

Pakistan also called for a “negotiated settlement”. Foreign Office spokesperson Tahir Andrabi said Pak­is­tan’s leadership would continue its mediation efforts to help end the war between the United States and Iran despite the recent escalation in the conflict.

“Pakistan remains deeply concerned about the situation in the region, which has been marked by recent escalation. We are of the view that diplomacy and dialogue should be the guiding principles for achieving a negotiated settlement of all contentious issues,” he said during his weekly press briefing.

The renewed strikes also prompted calls for de-escalation from the UN chief, China, Russia, Turkiye and the EU.

Closure of Hormuz

Earlier in the day, Iran’s new body overseeing the Strait of Hormuz confirmed a complete closure order for the strategic waterway until further notice, after the Revolutionary Guards announced the move overnight, AFP reported.

“Due to the tensions caused by the aggression of the American forces in the region and the announcement made last night by the Iranian armed forces, the Strait of Hormuz will be closed until further notice,” the Persian Gulf Strait Autho­rity said in a post on X.

Meanwhile, Indian foreign ministry spokesperson Randhir Jaiswal called for attacks on ships to cease, after three Indians were killed in a US attack on an oil tanker in the Gulf, Al Jazeera reports. Jaiswal told reporters that another ship, M/T Jalveer, was attacked by the US Navy.

Published in Dawn, June 12th, 2026

An official told Dawn that thousands of protesters from Mirpur, Bhimber and Kotli districts in Mirpur Division, as well as Sudhnoti and parts of Poonch districts in Poonch Division, had converged on Eidgah Ground on the eastern outskirts of Rawalakot since Wednesday evening.

Smaller groups of protesters had also gathered at two other locations on the southern and northern edges of the town.

According to witnesses, Umar Nazir Kashmiri, a core JAAC member facing sedition charges, delivered a “highly provocative” speech to the gathering at Eidgah Ground. The speech was streamed live on social media despite the suspension of internet services by all major providers across AJK since Friday last week.

Poonch Divisional Commissioner Sardar Waheed Khan said law enforcement personnel were dispatched in the early hours of Thursday after authorities learnt of Kashmiri’s presence at the gathering.

“However, when they were removing obstacles from the road, a group of protesters confronted them. In the ensuing exchange of fire, one protester was killed and four to five others were injured,” he said.

The deceased activist was identified by fellow protesters as 32-year-old Sohban Arif, a resident of Gorah village in Sudhnoti district.

Six-point petition

During his speech, Kashmiri reportedly stated that negotiations with the government were possible and claimed he had submitted a six-point petition to the authorities to facilitate talks.

A senior official, speaking on condition of anonymity, told Dawn that the demands included the withdrawal of the Home Department notification proscribing JAAC, the return of the bodies of all deceased activists and injured persons, and the registration of FIRs regarding the killing of civilians.

The petition also demanded the withdrawal of paramilitary troops from urban areas and the lifting of the curfew before negotiations could begin.

According to the official, Kashmiri also proposed that neither law enforcement personnel nor protesters should move beyond their current positions until these demands were addressed.

However, sources said the authorities were unwilling to make concessions similar to those granted on two previous occasions. Some claimed JAAC had been given a clear message that it must first surrender to the state before expecting any relief.

On Thursday, the AJK Law Department withdrew four notifications, one issued in December 2024 and three in December 2025, under which cases linked to protests and agitation by the now-proscribed JAAC had been recalled from various criminal courts across the region.

The notification stated that the decision had been taken during the 41st meeting of the AJK cabinet on June 5.

Sources said the state had made it clear that while relief measures granted to the general public would remain intact, concessions previously extended to what it termed “troublemakers” would be withdrawn.

Earlier reports from Rawalakot suggested that JAAC protesters might attempt to enter the town, raising fears of a violent confrontation. However, it later emerged that the organisation’s leadership had decided to continue sit-ins at their existing locations.

“These peaceful sit-ins will continue until our detained activists are released, the bodies of activists are returned, and the notifications proscribing the Action Committee and announcing rewards for information leading to the arrest of four core members are withdrawn,” Imtiaz Aslam, a JAAC core member from Kotli, told the gathering at Eidgah Ground.

JAAC alleges that the bodies of several activists killed by law enforcement agencies (LEAs) have not been handed over to their families.

As drones were seen flying over Rawalakot and LEAs conducted flag marches across the area, official sources did not rule out the possibility of decisive action against the protesters later in the night.

Published in Dawn, June 12th, 2026

“The burden of the petrol price hike falls on the consumer, and that’s why inflation has again started raging in Pakistan,” said economist, businessman and politician Miftah Ismail.

While the Pakistan Economic Survey states that “the government also delivered one of the strongest fiscal performances in recent years”, it does not fully capture the impact of the conflict, which triggered a global oil price shock whose effects have reverberated worldwide, including in Pakistan.

This is partly because the survey records actual data only from July to April, while figures for May and June are estimated, and partly because the consequences of the conflict are likely to continue to be felt in the months ahead.

Before the latest regional conflict, Brent crude averaged around $70 per barrel. During the crisis, prices briefly touched $120 before stabilising. The Pakistan Economic Survey, citing International Monetary Fund projections, expects oil prices to average about $82 per barrel this year, a rise of more than 21 per cent.

As oil prices remain elevated, the impact will be felt across sectors and borne by the common man.

Impact on agriculture

Farmers are among the first to feel the impact and ultimately pass it on to consumers through higher food prices, said farmer and development professional Khalid Wattoo.

Diesel accounts for roughly 20pc of production costs because land preparation, irrigation and harvesting have become increasingly mechanised.

Higher fuel prices also push up fertiliser costs because natural gas and oil markets are closely linked. At the same time, global supply disruptions following the closure of the Strait of Hormuz have added further pressure.

While Pakistan’s urea plants operate on domestic natural gas rather than imported LNG, the country remains heavily reliant on imported fertiliser, particularly DAP.

Urea and DAP together account for around 80pc of fertiliser use in Pakistan. DAP alone made up 96pc of total fertiliser import volumes, with almost half of domestic demand met through imports.

“When I heard that the war had broken out, I imported enough fertiliser to last till October,” said Mr Wattoo, explaining what may partly be behind the 17pc increase in fertiliser offtake recorded in the survey.

Those with the financial means, including large farmers and stockists, have been building inventories in anticipation of future shortages.

“If the war continues, prices will rise further, and like a mafia, people will start shorting supplies,” he said.

Impact on the retail sector

The pressure is not limited to agriculture.

Sales were already under strain, down 10-15pc, before the Middle East conflict triggered the latest oil price shock, said Pakistan Retail Business Council Chairman and Gul Ahmed director Ziad Bashir.

Over-taxation, “super” high compliance costs, smuggled goods and input costs that had already crept up by 8-10pc had squeezed retail margins from both ends.

“Early mall closures to conserve supplies don’t just cut our hours, they cut our best hours. Meanwhile, our input costs are up, our selling window is down and the undocumented sector flourishes and makes a windfall. We compete fully taxed, fully compliant and fully disadvantaged,” Mr Bashir said.

According to Mr Ismail, the increase in domestic fuel prices has been significantly larger than the rise in international oil prices and greater than what has been witnessed in many regional countries.

“The government has used this occasion to first give greater profits to oil marketing companies and then to refineries. It has also taken advantage of this crisis and jacked up the petroleum levy,” he said.

Estimates suggest that every $10 increase in oil prices adds roughly $1.8bn to $2bn to Pakistan’s annual import bill.

The resulting price shock is transmitted to consumers through higher petrol prices, a burden compounded by increases in the petroleum levy as the government seeks to meet its revenue targets.

Repeating cycles

Pakistan has been here before. The Economic Survey itself recounts episodes in FY08, FY11, FY18 and FY22 when external oil shocks placed severe pressure on the import bill and wider economy.

So far, however, the rise in international crude prices has not translated into import growth to the same extent as seen during previous episodes.

According to the survey, import growth in FY26 was driven more by non-petroleum items, reflecting a revival in economic activity and stronger demand for production-related inputs.

Yet some economists warn that a familiar cycle may already be taking shape.

A recent paper by the Policy Research and Advisory Council argues that the government is injecting cost-push inflation into the economy through increases in the petroleum levy. As inflation accelerates, the State Bank may be forced to respond with tighter monetary policy.

The result is a cycle Pakistan knows well: fiscal measures fuel inflation, monetary tightening suppresses demand, economic activity slows, tax collection weakens and the burden ultimately falls back on households and businesses.

Published in Dawn, June 12th, 2026

ISLAMABAD: The freeze on provincial development programmes, expected to generate more than Rs900 billion in additional resources for the Centre’s strategic needs, will continue for a specific period beyond one year, Finance Minister Muhammad Aurangzeb said on Wednesday as he unveiled the Pakistan Economic Survey 2025-26, which showed missed targets across major economic sectors in the outgoing fiscal year.

Reviewing the economic report card, the minister said the economy grew by 3.7 per cent this year — almost the same as the 3.6pc reported at this stage last year, later revised down to 3.2pc — reflecting resilience and economic stability in the face of three major exogenous shocks: global trade and tariff challenges at the beginning of the fiscal year, floods in Pakistan and, finally, regional war-related pressures.

Aurangzeb, who was flanked by the ministers for planning and information, the minister of state for finance and the railways minister, said he would explain in detail in his budget speech the mechanism for utilisation of additional resources secured from the provinces through the development freeze.

Asked whether the understanding outside the National Finance Commission, formalised at the National Economic Council meeting a day earlier, was permanent or limited to one year, he said the arrangement would be for a specific period beyond one year.

The finance minister appreciated the Khyber Pakhtunkhwa government and the “impressive engagement” with Chief Minister Sohail Afridi during the NEC meeting on Tuesday. He also valued the contribution of Muzzammil Aslam, saying the IMF programme was not only an agreement of the finance ministry or the Centre but of the entire country.

The minister said the government would offer special incentives for agricultural productivity and the housing sector in the budget on Friday (today) and provide end-user interest rates in single digits for 10 years.

He said the trade policy for the auto sector had already been announced for five years to provide a forward-looking vision because domestic investment had to pick up before foreign investment could follow.

The minister said discussions with the IMF were progressing positively. He declined to comment on relief for the salaried class, saying the prime minister had given clear instructions on the sectors that needed to be focused on, including salaried individuals and documented businesses.

He said a new taxation operating model for retailers and a “faceless” tax system — a digital and centralised system involving no contact between officials and taxpayers — would also be announced in the budget.

Responding to a question on the contingency plan in case the Iran crisis prolonged, the minister said the oil import bill had an impact on Pakistan’s external account. He said the oil bill had increased by about $1bn in April and later dropped to about $500 million in May as government policies with regard to taxation took shape.

He said the impact of oil prices on energy would continue over the next year and the government had a contingency plan in mind.

Missed targets

Aurangzeb said the economic recovery was broad-based this year, with 3.7pc growth — the highest in the last three years — supported by 2.89pc growth in agriculture, 3.5pc in industry and 4.09pc in services.

Except for services, all targets were missed. The targets had been set at 4.2pc for GDP growth, 4.5pc for agriculture, 4.3pc for industry and 4pc for services. Large-scale manufacturing, he said, increased the most in the last four years to 6.1pc, while 16 out of 22 sectors showed positive trends.

The investment-to-GDP ratio came in at 14.38pc against a target of 14.7pc, while the national savings-to-GDP ratio stood at 14.13pc against a target of 14.3pc. The minister said not only investment and savings ratios, but also the revenue-to-GDP ratio remained low and should be in the “high teens”.

The minister said growth was on its way to the target at the start of the year, when only trade uncertainty was in the field, but two subsequent floods in August-September and the regional war in March tested Pakistan’s resilience. Still, Pakistan kept its journey from stability to growth on track, he said.

However, he said the reality was that Pakistan still had a long way to go and must stay the course of reforms and fiscal discipline.

He said the size of the economy increased by 11pc to a record Rs126.87 trillion from Rs114.04tr last year, while per capita income improved to $1,901 in the outgoing fiscal year from $1,751 in FY25, reflecting improved economic activity and income growth.

The finance minister said the current account deficit dropped to just $252m in the first 10 months of the year, down from $17.4bn in FY22, as remittances reached $4.25bn a month in May — the highest in the country’s history — and were well on their way to reaching $41bn to $42bn by year-end against a target of $39bn.

Exports faced challenges and were down by 5pc, mainly because of a $1.5bn decline in rice and sugar exports. Foreign exchange reserves held by the State Bank had already crossed $17.1bn and would touch $18bn to provide three months of import cover, a respectable level recognised globally, he said.

He said the fiscal deficit at 0.7pc of GDP in the first nine months was the best performance in decades and had come down from a peak of 8.4pc in FY22. This helped the primary balance reach 3.2pc of GDP in nine months, down from a 3.1pc primary deficit in FY22.

The minister said the debt-to-GDP ratio had fallen to 68.5pc this year, down from 75.2pc in FY23 and 70.7pc in FY24, meaning that debt sustainability was also improving.

The minister said FBR revenue collection increased by more than 10pc this year, adding that the revenue agency recovered Rs60bn in additional revenue from the cement and sugar sectors through digitisation and another Rs34bn through artificial intelligence-based audits of 800 high-risk cases. This would be expanded to other sectors in the next budget.

He said he welcomed criticism over a new scheme for traders but noted that 3m to 4m small traders were outside the tax net and a start had to be made somewhere.

Responding to a question on why the success stories he cited had not benefited the common man or led to higher growth, the minister said growth could be achieved in three months by pumping liquidity into the system, but that would not be sustainable, as past experience had shown.

Published in Dawn, June 12th, 2026

Justice Arbab Muhammad Tahir heard the petition filed by Advocate Ghulam Murtaza on Thursday.

During the hearing, Justice Tahir inquired whether any representative had appeared from the jail in connection with the matter. Referring to a recent decision relating to Bushra Bibi, the judge directed counsel to study the ruling, observing that the court had already outlined the legal course of action in cases involving the alleged misuse of prison meetings.

The judge also instructed the law officer representing the Advocate General’s Office to ensure that the Advocate General reviewed the court’s earlier decision on the issue. Addressing a sub-inspector who appeared on behalf of the National Cyber Crime Investigation Agency (NCCIA), Justice Tahir directed that a proper law officer from the agency appear at the next hearing.

Scrutiny of challan completed in prohibited funding case

The court further told counsel for the Pakistan Telecommunication Authority (PTA) that specific questions would be framed for the next hearing regarding the regulator’s authority and responsibilities.

The PTA was directed to explain what action it could legally take as a regulatory body. The hearing was subsequently adjourned until Sept 10.

Prohibited funding case

Meanwhile, in a separate development, the scrutiny process of the challan in the prohibited funding case, formerly known as the foreign funding case, against Imran Khan and other accused has been completed by the court of Judge Abdul Ghafoor Kakar.

During the proceedings, Special Prosecutor Wasiq Malik informed the court that the Registrar’s Office had transmitted the challan for scrutiny.

After completing the review process, the banking court adjourned proceedings in the prohibited funding case until July 9. The case was registered by the FIA against the PTI founder and other accused persons.

Judicial Complex attack case

In another PTI-related case, Judge Tahir Abbas Sipra of the Anti-Terrorism Court expr­essed displeasure over the continued absence of Punjab’s ex-chief minister Pervaiz Elahi, a co-accused in the Judicial Complex attack case.

During the hearing, Elahi’s counsel submitted a request seeking exemption from personal appearance. However, Judge Sipra questioned why the former chief minister was appearing before other courts while repeatedly failing to attend proceedings in his court.

The judge warned that a medical board could be constituted to determine whether Elahi was genuinely unwell.

In response, Elahi’s counsel assured the court that his client would appear at the next hearing and requested one final opportunity. Accepting the assurance, the court adjourned the case until July 22.

The Judicial Complex attack case was registered at a CTD police station against PTI leaders and workers following violent incidents linked to court appearances by the party founder.

Published in Dawn, June 12th, 2026

The closure of several hospital departments caused serious difficulties for patients seeking medical treatment.

However, the Balochistan chief minister’s aide for media and political affairs, Shahid Rind, said the government could not allow any disruption in healthcare services. He said the administration had offered dialogue to doctors’ organisations but had also taken disciplinary action against those violating service rules. According to him, 23 doctors have been suspended, 25 officers have been served show-cause notices, and the postgraduate training registrations of five trainee doctors have been suspended pending inquiries.

Published in Dawn, June 12th, 2026

Hospital management, however, denied that any such development had occurred.

“Hospital shares official and authentic information and media should not spread rumours without confirmation,” Pims spokesperson Dr Aneeza Jalil said.

Despite the official denial, hospital sources stated that the abrupt spike in security led staff to believe PTI’s founder arrival was imminent.

The sources added that while a transfer may have been planned, it could have been postponed, rerouted to another location, or delayed to a later date.

Published in Dawn, June 12th, 2026

The survey figures show that poverty was 21.9pc in 2018-19 which increased to 28.9pc in 2024-25. Poverty remained significantly higher in rural areas. Rural poverty increased from 28.2pc to 36.2pc, while urban poverty increased from 11pc to 17.4pc over the same period.

At the provincial level, poverty increased across all major provinces. In 2024-25, poverty was estimated at 23.3pc in Punjab, 32.6pc in Sindh, 35.3pc in Khyber Pakhtunkhwa, and 47pc in Balochistan. In 2018-19, the corresponding rates were 16.5pc, 24.5pc, 28.7pc, and 41.8pc, respectively. Balochistan continued to record the highest poverty incidence, while Punjab remained the lowest among the four provinces, the survey says.

The surge in poverty is attributed to prolonged economic shocks, including record-high inflation, currency depreciation, IMF stabilisation measures, catastrophic climate events like floods and the Middle East conflict. The adverse situation has weakened people purchasing power, raised food insecurity and strained remittance-receiving families, the survey says.

The updated estimates also indicate a rise in inequality. The national Gini coefficient increased from 28.4 in 2018-19 to 32.7 in 2024-25. The increase was visible in both urban and rural areas. Urban inequality rose from 31.0 to 34.4, while rural inequality increased from 23.4 to 36.6 during 2018-19 and 2024-25.

This suggests that the recent rise in poverty was accompanied by wider disparities in income distribution. Provincial inequality also moved upward over the same period. In 2024-25, the Gini coefficient stood at 32.0 in Punjab, 35.9 in Sindh, 29.4 in KP, and 26.5 in Balochistan.

In 2018-19, the corresponding values were 28.4, 29.7, 24.8, and 21.0. The provincial pattern indicates that inequality increased across all provinces, with Sindh recording the highest level in 2024-25. These results suggest that the recent pressures on household welfare were accompanied by widening disparities in income distribution.

According to the survey, Pakistan’s national poverty estimates are based on the cost of basic needs (CBN) approach, which has remained the standard framework for estimating consumption-based poverty.

Under this approach, the poverty line represents the minimum expenditure required to meet essential food and non-food needs.

Published in Dawn, June 12th, 2026

• Home Minister Langove vows solution to traders’ security concerns
• Jaffar Express suspended for two days

QUETTA: A coalition of traders, transporters and mine owners in Balochistan postponed the second day of a province-wide strike late on Thursday after successful negotiations with government authorities, ending a massive shutdown over worsening security.

Haji Muhammad Ayub Mariani, president of the Quetta Chamber of Commerce and Industry, announced the postponement of Friday’s planned “wheel jam” and shutter-down strike.

The decision followed a late-night meeting with Additional Chief Secretary Home Hamza Shafqaat, Quetta Deputy Commissioner Mehrullah Badini and leaders of the Balochistan Business Alliance.

The breakthrough came hours after the strike completely cut off Balochistan from the rest of the country on Thursday.

All business activities and transport were suspended in Quetta and numerous other cities, including Gwadar, Chaman and Khuzdar.

Protesters had blocked all four national highways using heavy boulders, long-body trucks and oil tankers, halting all passenger and supply routes.

The business community launched the strike after attacks on vehicles carrying minerals intensified. Dozens of trucks have reportedly been set ablaze in several districts, causing millions of rupees in losses.

Provincial Home Minister Mir Ziaullah Langove, who attended the negotiations, thanked the alliance for calling off the strike. He directed that the business community’s issues be addressed immediately and promised to facilitate discussions with federal officials.

“Anti-state forces aim to achieve their malicious objectives by targeting installations, security forces, the business community and other sectors in Balochistan,” Langove said. “However, the state, the government, the business community and the public will collectively foil their plans.”

He acknowledged the government’s limitations but assured protesters of their commitment.

“The government does not possess a magic wand to solve every problem and difficulty instantly, but every possible effort is being made to resolve them,” Langove said.

Langove added that hostile countries are investing billions of dollars to undermine peace and order in the province, emphasising that everyone must unite to defeat terrorism.

Noting that protesting is a democratic right, Langove said he would ask the inspector general of police to meet with the business community soon.

Jaffar Express suspended

Meanwhile, Pakistan Railways suspended the Jaffar Express — the only train leaving Balochistan for Peshawar — for two days, citing “unavoidable reasons”.

Officials said the Quetta-bound service from Peshawar will now be restricted to Jacobabad and will not proceed into Balochistan. The Bolan Mail service from Quetta to Karachi and the Chaman Passenger Train had already been suspended.

Published in Dawn, June 12th, 2026

Presided over by CJP Yahya Afridi, who is also chairperson of the SJC, the meeting also considered 10 complaints in accordance with Article 209 of the Constitution against different judges of the superior judiciary and later disposed of the business at the agenda.

The meeting, held at the Conference Room of the SC, attended by FCC Chief Justice Aminuddin Khan, Supreme Court judges Justice Munib Akhtar and Justice Jamal Khan Mandokhail, FCC judge Justice Syed Hasan Azhar Rizvi, LHC Chief Justice Aalia Neelum, PHC Chief Justice S.M. Attique Shah.

The SJC decided to take up matters concerning some of its own members. Accordingly, meetings were held with varying compositions in accordance with the relevant constitutional provisions.

The meeting of the reconstituted council was attended by Justice Muhammad Ali Mazhar, Justice Ayesha A. Malik, FCC judges Justice Aamer Farooq and Justice Ali Baqar Najafi, as substituted members.

Published in Dawn, June 12th, 2026

ISLAMABAD: The Supreme Court, by a majority of two to one, on Thursday set aside its Dec 29, 2022 judgement endorsing the closure of PTI founder Imran Khan’s right to defend himself in the Rs10 billion defamation suit filed by Prime Minister Shehbaz Sharif.

Headed by Justice Ayesha A. Malik, a three-judge SC bench, also comprising Justice Muhammad Hashim Khan Kakar and Justice Ishtiaq Ibrahim, heard a set of review petitions filed by Mr Khan. Justice Kakar, however, dissented from the majority judgement.

While overturning the earlier decisions of the Lahore High Court (LHC) and the trial court, the SC remanded the matter to the trial court with directions to provide Mr Khan a reasonable opportunity to file replies to the interrogatories and proceed with the suit in accordance with the law.

The case reached the Supreme Court after the trial court closed Mr Khan’s right to defend himself, a decision that was upheld by the LHC and later endorsed by the SC.

The trial court, through its Oct 20, 2022 order, dismissed objections raised by Mr Khan seeking rejection of the interrogatories submitted by PM Shehbaz and directed him to answer them. Later, through an order dated Nov 24, 2022, the trial court struck out his right of defence for failing to submit answers to the interrogatories.

PM Shehbaz had instituted a damages suit against Mr Khan on July 7, 2017, alleging that the PTI founder had defamed him.

Two legal infirmities

Authored by Justice Ibrahim, the majority judgement on Thursday recalled that Mr Khan’s challenge to the earlier verdict was primarily anchored upon two legal infirmities: first, the illegitimacy of relying on past conduct as a retrospective basis for a penal sanction; and second, the absence of a formal application as a mandatory jurisdictional prerequisite for invoking Order XI, Rule 21 of the Civil Procedure Code (CPC).

Justice Ibrahim observed that Order XI, Rule 21 of the CPC was not a routine tool for case management, it was the “death knell” of a party’s defence as its nature was strictly penal.

The judge further observed that the trial court, in its orders of Nov 8 and 17, 2022, had explicitly acknowledged and accepted Mr Khan’s inability to respond to the interrogatories due to critical injuries sustained in the widely reported shooting that occurred on Nov 3, 2022.

Once the trial court accepted the factum of the shooting incident on Nov 8, 2022, the element of “wilfulness” was legally extinguished, the judgement said.

However, on Nov 24, 2022, the trial court abruptly changed its stance, striking out the petitioner’s defence despite the continued existence of the same medical incapacity, it added.

“Thus, the earlier majority judgement suffers from errors apparent on the face of the record, which have resulted in a manifest miscarriage of justice,” Justice Ibrahim observed.

He added that the earlier judgement fundamentally erred in validating the invocation of Order XI, Rule 21 of the CPC based upon a retrospective evaluation of the petitioner’s past conduct, while ignoring the immediate and compelling medical incapacity resulting from the assassination attempt.

In her additional note, Justice Malik observed that in a case plagued by adjournments since 2017, the trial court must strike a balance between ensuring a fair trial and considering the legitimacy of any request for adjournment.

Dissenting note

Justice Kakar, in his dissenting note, observed that the case was a classic example of delay on the part of the petitioner and the helplessness of the trial court in concluding the litigation within a reasonable period.

The record revealed that the suit had been instituted in 2017, while the written statement was filed after a delay of about four years, Justice Kakar noted.

As per the order sheet dated April 26, 2022, the answers to the interrogatories were ready, and only the senior counsel’s signature on the draft was pending, he noted.

He added that on the next date of hearing, instead of answering the interrogatories in compliance with the trial court’s directions and the previous undertaking, objections were once again filed only to delay the proceedings.

Published in Dawn, June 12th, 2026

GILGIT: Gilgit-Baltistan Chief Elec­tion Commissioner Raja Shahbaz Khan has said that the 2026 phase of the GB Assembly elections concluded peacefully, while work is underway to finalise the results through consolidation.

In a statement, he said Form 49 has been issued for five constituencies, while work is ongoing to finalise results in other constituencies.

He said re-polling has been ordered in five constituencies, while nine petitions related to the elections are being heard by the Election Commission of Gilgit-Baltistan. So far, three petitions have been heard, while the remaining will be taken up on Friday (today), after which this phase will be completed.

The chief election commissioner clarified that under Section 98 of the Elections Act, the final notification of results must be issued within 14 days of polling.

He said Form 49 for GBA-6 Hunza, GBA-11 Kharmang, GBA-23 Ghanche-II, and GBA-23 Ghanche-III has been completed. He added that it is taking time to collect and finalise results from remote areas; however, the final notification will be issued within the legal timeframe.

PPP, PML-N delegations meet

The PPP and the PML-N have yet to reach an agreement on forming the government in Gilgit-Baltistan.

Official sources said both parties are attempting to form a government in alliance with four independent candidates.

Meanwhile, delegations of the PPP and PML-N met in Gilgit-Baltistan to discuss proposals for forming a government in the region after the recent elections.

The PPP is set to form a government after securing 11 out of 24 seats in the Gilgit-Baltistan Legislative Assembly, according to unofficial results (Forms-47) of the June 7 elections.

Key leaders of both parties held detailed consultations on government formation proposals.

In its statement, the PPP described the talks as a “major breakthrough”, saying both parties agreed to present proposals to their respective central leaderships.

It said the discussions also covered political cooperation and various national and regional issues.

The PPP claimed the people of Gilgit-Baltistan had given it a mandate by “making it the largest party” in the assembly.

It further stated that all decisions reg­arding government formation would be taken in line with democratic principl­es, political consultation, and public interest.

On the other hand, the PML-N stated that several proposals were considered and it was agreed to continue the consultation process. It added that the future course of action would be determined after reviewing the proposals and consulting the central leadership of both parties.

Published in Dawn, June 12th, 2026

ISLAMABAD: The National Assem­b­­ly on Thursday suspended PTI lawmaker Muhammad Iqbal Khan Afridi for the entire budget session, with Speaker Sardar Ayaz Sadiq accusing him of repeatedly violating the sanctity of the House through “inappropriate and unparliamentary” conduct.

The speaker said multiple complaints had been received regarding the lawmaker’s “abuse” of NA employees.

He added that the MNA had also beh­a­­ved improperly towards the NA’s director general (media) and security officials.

“No leniency can be shown to such a member,” he remarked before directing the sergeant-at-arms to remove the lawmaker from the hall of the House.

The speaker further alleged that the PTI MNA had misbehaved with security personnel outside parliament and had been involved in a scuffle with police at a checkpoint near Serena Hotel.

“Through his threatening conduct, Mu­­hammad Iqbal Khan has undermined all parliamentary traditions,” he said, adding that the member had “misused his office”.

The suspension followed a motion moved by PML-N legislator Farah Naz Akbar that was approved by the House.

The motion accused the PTI MNA of repeatedly using abusive and threatening language towards NA Secretariat officials, security personnel, fellow lawmakers and the chair.

It also cited incidents on April 3 and May 13, 2026, during which he allegedly disrupted proceedings, challenged the authority of the chair and violated parliamentary decorum.

According to the motion, the MNA was formally named under Rule 21 of the National Assembly Rules of Procedure.

The speaker said the suspended MNA would not receive any allowances, including travelling and daily allowances, during the session.

Minister of State for Interior Tallal Chaudhry informed the House that Mr Afridi’s son had applied for political asylum in Italy using a blue passport. The speaker referred the matter to the Standing Committee on Interior.

The sitting began under the speaker’s chairmanship but was briefly adjourned after Mr Afridi pointed out a lack of quorum at the outset.

Meeting with Imran sought

Speaking in the House, PTI Chairman Barrister Gohar Ali Khan sought a ruling from the speaker on arranging a meeting with the party’s “founding chairman”, Imran Khan.

He said the party had earlier deman­ded the formation of a House committee under Syed Khursheed Shah.

“When the issues of members of parliament are not resolved, then who do we talk to?” he asked.

He said the committee had met twice and no meeting had been called since.

“For the past 34 weeks, we have not been allowed to meet the founder,” he said. “If our voice is not heard, we will call a joint parliamentary party meeting. Then we will decide the future.”

He asked the speaker to decide by the following day whether a meeting would be arranged.

Following his speech, opposition members walked out of the House in protest.

In response, the speaker said: “If they were members of the NA, I would have issued their production orders.”

Speaking in the NA, Defence Minister Khawaja Asif called on all political parties to respect the sanctity of parliament.

The PTI, after a meeting of its parliamentary party, has decided to attend the budget session.

However, it has also decided to record its protest during the session.

It is worth mentioning that there was a proposal to boycott the budget session.

With input from Ikram Junaidi

Published in Dawn, June 12th, 2026

ISLAMABAD: Pakistan’s information technology and telecommunication sector marked significant expansion during the fiscal year 2025-26, driven by a $509.6 million 5G spectrum auction and a surge in broadband penetration to 64.2pc.

According to the Economic Survey 2025-26, the outgoing fiscal year saw sweeping impro­vements in accessibility and connectivity.

Cellular mobile services now cover 92pc of the population, with 3G and 4G signals reaching over 81pc of the country’s area. Broadband penetration has nearly doubled from 32.6pc in 2019.

Telecom revenues reached Rs837bn in 9MFY26, bolstered by $567 million in sector investments. The industry contributed Rs285bn to the national exchequer through taxes and duties. Total telecom subscriptions, encompassing both mobile and fixed-line services, hit 207.22m in March.

To further expand internet access, the National Assembly on Thursday approved the Pakistan Telecommunication (Reorganisation) (Amendment) Act, 2026.

The legislation permits companies to lay optic fiber cables free of cost across any government-owned land and housing societies.

This aligns with the National Fiberisation Plan, advanced by the Pakistan Telecommunication Authority and the Ministry of IT and Telecommunication, to support 5G and emerging digital services.

During the fiscal year, the PTA also approved the adoption of Wi-Fi 7 in the 6 GHz band, positioning Pakistan among the leading Asia-Pacific nations to formally adopt the next-generation technology.

The upgrade promises higher throughput and ultra-low latency for advanced applications like 8K streaming and industrial automation.

Pakistan also bolstered its international connectivity. The country’s network currently relies on six submarine cable systems and one terrestrial cable, providing a total installed capacity of 17.7 terabits per second. Four high-capacity submarine cables — AFRICA-1, SMW-6, 2AFRICA and the Makran Gulf Gate­­way — are planned for future integration.

Domestically, local manufacturing thrived amid heavy duties on imported handsets. Pakistan produced 161.6 million mobile handsets up to March 2026. This included 67 million smartphones, accounting for 71.6pc of total production and reflecting a rapid decline in feature phone demand as 4G services expand.

Meanwhile, information and communication technology export remittances surged 19 pc, reaching $3.38bn between July and March. The Securities and Exchange Commission of Pakistan currently registers 34,420 IT and IT-enabled services companies.

Looking ahead, the Economic Survey highlighted a strong focus on human resource development. Initiatives like the National Semiconductor HR Development Programme and the Semiconductor Chip Design Upskilling pilot project aim to position Pakistan within the global semiconductor market, projected to exceed $1tr by 2030.

Approximately 70pc of this growth is driven by rapid advancements in computing and data storage, automotive electronics, wireless connectivity, power management etc.

“Rising ICT exports, a thriving freelance workforce, and continued expansion of digital infrastructure highlight Pakistan’s growing presence in the global technology landscape,” the survey concluded.

Published in Dawn, June 12th, 2026

LAHORE: Pakistan’s energy sector recorded steady improvement during the first nine months of the current fiscal year, with hydel, renewable and nuclear sources overtaking thermal power in installed generation capacity for the first time, says the Pakistan Economic Survey.

Citing relevant figures, it highlights a gradual shift toward cleaner, indigenous energy sources as the government pursued policies to improve energy security, affordability, and sustainability while reducing dependence on imported fuels.

Total installed electricity generation capacity increased to 49,651 megawatts (MW), up from 45,782MW a year earlier. Hydel, renewable and nuclear sources collectively accounted for 50.8 per cent of installed capacity, surpassing thermal power, whose share declined to 49.2pc from 56.7pc a year ago.

During July-March, Pakistan generated 92,835 gigawatt hours (GWh) of electricity, with hydel, nuclear and renewable sources contributing 53.1pc of total generation, underscoring continuing drift towards cleaner energy.

Electricity consumption rose by 3.8pc to 83,143GWh during the period under review. Households remained the largest consumers, accounting for 47.5pc of total power usage, while industrial demand strengthened, with its share rising to 31.5pc.

In contrast, electricity consumption in the agriculture sector fell sharply by 42.3pc, a decline the survey attributed to the growing adoption of solar-powered alternatives and changing irrigation practices.

The Private Power and Infrastructure Board (PPIB) continued to attract investment in the sector, facilitating the development of more than 102 independent power producers (IPPs) with a combined capacity exceeding 25,800MW. These projects have brought over $35 billion in foreign investment into the country.

Among the notable developments during the outgoing fiscal year was a 32MW bagasse-based power plant that commenced commercial operations in October 2025. Work also continued on a 100MW solar project in Gilgit-Baltistan, a 40MW power project in Gwadar, solarisation of water infrastructure in the port city and the installation of solar systems at 397 health facilities across the country.

The survey noted that Thar coal remained an important component of Pakistan’s energy security strategy. Five Thar coal-fired power projects with a combined capacity of 3,300MW are currently operational, while efforts are underway to replace imported coal with indigenous Thar coal at major power plants established under the China-Pakistan Economic Corridor (CPEC).

Nuclear power: Pakistan’s six operational nuclear power plants, with a combined capacity of 3,530MW, generated more than 17,133GWh of electricity during the first nine months of FY2026. According to the survey, nuclear power helps avoid an estimated 16-18 million tonnes of greenhouse gas emissions annually.

Construction of the 1,200MW Chashma-5 nuclear power plant is also progressing and is expected to be completed by 2030-31.

Gas sector: Indigenous natural gas continued to play a significant role in Pakistan’s energy basket during FY26, contributing 29.3pc to the country’s primary energy mix, though the nation remained heavily dependent on imported liquefied natural gas (LNG) amid declining domestic reserves.

Average gas consumption during July-March FY26 stood at 2,929 million cubic feet per day (mmcfd), including 613mmcfd of imported re-gasified liquefied natural gas (RLNG), according to the survey.

Despite dwindling indigenous supplies, gas utilities expanded their networks and provided more than 149,000 new connections during the first nine months of the fiscal year.

The survey noted that Pakistan’s reliance on imported LNG persisted, with domestic gas fields continuing to see declining production, adding to concerns over long-term energy security and import dependence.

LPG sector: The liquefied petroleum gas (LPG) sector also recorded growth, with total supplies re­­aching around 1.97 million tonnes during the period under review.

Pakistan currently has 11 LPG producers, 382 marketing companies and approximately 6,200 authorised distributors. Investment worth nearly Rs10.36bn was made in LPG infrastructure during the period, reflecting efforts to strengthen supply chains and improve access to cleaner fuels.

Coal consumption: Coal consumption increased to 21.4m tonnes, driven primarily by the power sector.

Power generation accounted for 59.6pc of total coal usage, underscoring the fuel’s continued importance in the country’s electricity mix. Brick kilns consumed 20.8pc of total coal supplies, while cement manufacturers and other industries accounted for the remaining 19.6pc.

Published in Dawn, June 12th, 2026

“The dedicated efforts at the provincial level for effective resource mobilisation and prudent expenditure management triggered higher growth in provincial revenues relative to expenditures,” the Economic Survey of Pakistan 2025-26 acknowledged.

All four provinces collectively achieved the highest-ever surplus of Rs1,636.1 billion in July-March, compared to Rs1 trillion last year. Provincial revenue incr­eased by 12.9pc during the same period.

Sajid Amin Javed, Deputy Executive Director at SDPI, said the Centre was “fair” to urge provinces to share fiscal responsibility, but should lead by example by broadening its own tax net. He noted that since the federal government cannot constitutionally compel provinces to relinquish their NFC share, it has resorted to a “moral language of shared responsibility.”

He stressed that the fiscal relationship between Centre and provinces must be reciprocal. Given that provincial tax collection remains well below par, he recommended revamping the NFC formula to incentivise revenue generation and reduce the weight of population as a distribution criterion. He further cautioned that the current freeze on NFC funds is a temporary measure, and that a lasting solution must be discussed at the 11th NFC meeting.

A former provincial finance minister said the development budgets and SOE expenses of both the Centre and provinces needed “serious review” to create fiscal space and provide the public relief from over-taxation. He pointed to government departments that had become redundant after the 18th Amendment, but continued to burden federal and provincial exchequers. “Just look at the state’s splurge in excess of 65 per cent over the last three years on salary increases and perks and privileges — well above inflation — and its ‘bloated size’ even after the 18th Amendment, while it was tightening the belt of the rest of the population,” he added. By not addressing the fundamental flaws in the economy, this model will remain unsustainable.

Provincial tax collection rises

The provinces own tax collection and development spending are expected to rise by nearly 26pc and 39.6pc respectively during the outgoing financial year, according to the survey.

The size of provincial budgets is estimated at Rs9,913.6 billion in FY2026, up from revised estimates of Rs8,159.9bn in FY2025 — a growth of 21.5pc. Current expenditures are projected to increase by 14.8pc while development spending is expected to rise sharply by 39.6pc. Total revenues were budgeted at Rs10,127.6 billion, showing growth of 17.9pc.

Under the NFC Award, federal transfers to provinces were budgeted at Rs8,206 billion in FY26. In the first three quarters, these rose 10.7pc to Rs5,630.8 billion. Province-wise shares were: Punjab Rs4,076bn, Sindh Rs2,043.8bn, KP Rs1,342.8bn (inclusive of 1pc for war on terror), and Balochistan Rs743.2bn.

Provincial own revenue receipts grew 28.3pc to Rs1,138.2 billion, with tax collection up 25.8pc to Rs860.7 billion and non-tax revenue up 36.7pc to Rs277.5 billion — supported by higher receipts from hydroelectricity profits, mark-up, and other sources. Federal transfers nonetheless remained the dominant source, contributing around 78pc of total provincial revenues.

Published in Dawn, June 12th, 2026

The Pakistan Economic Survey FY26 lists reforms ranging from digitalisation to enforcement that have yielded some gains; the larger question remains whether these measures can bridge the revenue gap without revisiting structural imbalances. Answering this question requires political will rather than wholly blaming the implementation organisation.

The retail sector, despite its 17.8 per cent share in GDP, remains largely outside the tax net due to political considerations. At the same time, the petroleum sector, valued at Rs6-7 trillion, also lies outside the tax ambit, even as the federal government aims to collect nearly Rs1.5tr through the petroleum development levy (PDL) in FY26. For FY27, the target for PDL is projected at Rs1.7tr, alongside expectations that provinces will give up between Rs1.3tr and Rs1.7tr to cover FBR shortfalls.

Without entering into technicalities, this effectively means that the federal government will withhold approximately Rs3tr from the provinces over and above the National Finance Commission award, without formally amending the accord.

Retail and petroleum sectors remain largely untaxed; fiscal targets are increasingly met through levies and provincial surpluses

This raises a fundamental question: is this a sustainable solution to the revenue collection problem, or merely a short-term measure to meet debt-servicing and defence spending requirements under the International Monetary Fund (IMF) programme?

Dr Ali Hasanain, associate professor of economics at Lums, said successive governments, this one included, have repeatedly announced retail registration schemes, and they keep collapsing at the same point. Traders are an organised, politically connected constituency that every ruling coalition needs, while the salaried class is not.

As a result, the path of least resistance is always to squeeze those already in the net, including salaried taxpayers, the corporate sector, and consumers, through indirect taxes, because withholding agents and employers do the collection for free.

“Calling it ‘inefficiency’ lets policymakers off too easily; the FBR’s capacity problems are real, but the binding constraint is that broadening the net imposes concentrated political costs while raising rates on existing payers imposes diffuse ones,” he said.

Development economist Dr Abid Qayum Suleri similarly argued that the FBR’s failure to bring sectors such as retail fully into the tax net is not simply an administrative problem. It reflects a combination of weak enforcement and lack of political will.

The same problem appears in federal and provincial finances. The survey shows that provinces generated a surplus of Rs1.64tr during July to March FY26, compared with Rs1.05tr last year, Dr Suleri said. Such surpluses help Islamabad meet consolidated fiscal targets, but repeated dependence on provincial savings can weaken the spirit of fiscal federalism if it squeezes provincial spending on health, education, water, climate resilience and local infrastructure.

For former FBR chairman Dr Irshad Ahmed, the current fiscal model is in a state of trap. “This time they begged provinces, but what will they do next time? How long will they survive on loan?” He also argued that the federal government is not willing to reduce its own protocols and expenditures.

On the ongoing reforms, he maintained that what is being done is “old wine in a new bottle,” which has already been tried and failed and will definitely fail again.

The survey does point to some tangible outcomes: tax returns filed rose 91.5pc to 7m, and net tax chargeable nearly doubled to Rs3.73tr. Production monitoring in the sugar sector generated Rs37bn in additional annual collection, while fake sales tax claims worth Rs9.8bn were blocked.

More than 25,000 taxpayers joined the digital invoicing system, covering a combined turnover of Rs39.3tr. Point-of-sales registered retailer turnover rose to Rs2.9tr, while AI-based audit selection identified over 200 cases involving Rs13.3bn. Customs enforcement against petroleum smuggling yielded an additional Rs284bn.

While the gains are real and meaningful, they are made within a deliberately constrained perimeter. Without addressing underlying incentives and structural imbalances, incremental reforms are unlikely to produce durable outcomes.

Published in Dawn, June 12th, 2026

MEXICO CITY: Co-hosts Mexico launched the 2026 FIFA World Cup in style, defeating South Africa 2-0 in the opening Group A match at the iconic Estadio Azteca on Thursday before a crowd of 80,000.

Julian Quinones set the tone for the tournament when he fired the home team ahead in the ninth minute after capitalising on a defensive error by South Africa’s Sphephelo Sithole.

The side dominated proceedings and tightened their grip on the contest after Sithole was sent off shortly after halftime.

Veteran striker Raul Jimenez then doubled Mexico’s advantage in the 67th minute with a well-placed header at the far post.

South Africa’s frustrations boiled over late on as Themba Zwane received a red card for violent conduct, leaving the visitors with nine men, while Mexico defender Cesar Montes was also dismissed in stoppage time.

Before the action began, the famous Azteca staged a vibrant opening ceremony celebrating Mexico’s rich pre-Hispanic heritage. Thousands of supporters dressed in mariachi outfits, waving sombreros and filling the stadium with dark green colours, created a festive atmosphere.

Published in Dawn, June 12th, 2026

Topline Securities Ltd said the benchmark KSE-100 index ended the session on a buoyant note, edging higher to close at 169,703 points, up 276 points or 0.16 per cent, a modest yet encouraging recovery amid an otherwise turbulent week dominated by geopolitical headwinds.

On the index contribution front, index heavyweights Meezan Bank, Mari Energies, Engro Holdings, United Bank, and Pakistan Oilfield were the primary drivers of upside momentum, collectively adding 315 points to the benchmark’s gain and underscoring sustained institutional interest in blue-chip names across the energy and banking sectors.

Ali Najib, Deputy Head of Trading at Arif Habib Ltd (AHL), said the PSX witnessed a consolidation session, with investor sentiment mixed amid persistent uncertainty over US-Iran tensions.

With no decisive developments on the geopolitical front, market momentum remained directionless as investors awaited greater clarity before taking fresh positions.

Pakistan’s GDP growth im­­proved to 3.7pc in FY­26, supported by stronger performances in the agriculture and services sectors. Meanwhile, per capita inco­me rose to $1,901, while investment and savings ratios remained bro­adly unch­anged.

Published in Dawn, June 12th, 2026

The YoY rise was driven by new market entrants, new product launches, relatively lower inflation in previous months, and a surge in auto financing, Myesha Sohail of Topline Securities said.

MoM decline was driven by fewer working days in May due to Eidul Azha holidays, leading to delayed deliveries. Some market speculation around a potential tax rate cut was also circulating, which may have further slowed sales, she said. The two/three-wheeler sales increased by 13pc YoY but down 10pc MoM to 172,433 units in May 2026, taking cumulative 11MFY26 sales to 1.8mn units, up 30pc YoY.

Published in Dawn, June 12th, 2026

The CDNS mobilises household savings and serves as the retail arm for government-backed savings products, including the National Savings Schemes (NSS), which are aimed at small savers, pensioners, widows and senior citizens.

As of March 31, the NSS portfolio stood at Rs3.6 trillion, equivalent to around 10 per cent of the country’s banking deposits and 6.5pc of Pakistan’s total domestic debt. The CDNS serves about two million households, many of whom have traditionally had to visit savings centres in person to collect profits. They can now receive payments through cheques, ATMs or direct transfers via Raast, eliminating the need for elderly customers to stand in long queues.

The organisation has also launched a mobile app. By March 31, around 350,000 debit cards had been issued, while active app users stood at about 90,000. A co-branded credit card, developed in collaboration with the Bank of Punjab, has also been soft-launched.

The move comes at a time when Pakistan is struggling to increase formal savings. National Savings Schemes remain one of the country’s few widely accessible formal savings instruments. Yet most Pakistanis continue to save through informal channels, such as real estate, gold or foreign currency.

According to Ammar Habib Khan, assistant professor of practice at IBA Karachi, savings held in these forms cannot easily be channelled into productive investments in the broader economy.

The problem has been compounded by falling real incomes over the past decade. At the same time, higher taxes have eroded whatever surplus households might otherwise have saved.

Published in Dawn, June 12th, 2026

The government sector borrowing for budgetary support increased by Rs850.6 billion as compared to Rs1,320.9bn during the same period last year.

The government has retired Rs1939.3bn to the State Bank, compared with the retirement of Rs287.4bn during the corresponding period last year.

At the same time, the government borrowed Rs2,789.9bn from scheduled banks, compared to Rs1,608.3bn during last year.

Wheat financing dips, rice surges to Rs29.5bn

“As a result, net government borrowing stood at Rs805.9bn during July-March FY26 as compared to Rs1,018.9bn during the same period last year,” said the survey.

With a view to promoting affordable housing finance, the government introduced a markup subsidy and risk sharing scheme — ‘Mera Ghar, Mera Ashiana’ — in 2025 to provide housing finance of up to Rs3.5 million.

The scope of the scheme was further expanded in April under the “Wazir-i-Azam Apna Ghar Programme-Ghar Ho Tu Apna” with an increase in the loan limit up to Rs10m.

“As a result, house building loans increased to Rs20.5bn during July-March FY26, compared to retiring of Rs4.1bn during the same period last year,” the survey added.

Similarly, auto loans rose by Rs68.7bn — up by 24.9pc from 11.7pc last year. Auto loans traditionally hold the largest share of consumer credit in Pakistan.

Credit cards also recorded a higher growth of 24.6pc to Rs38.9bn during the period under review, compared with 15pc last year.

Overall, the positive momentum in consumer lending indicates that lower interest rates and eased financing conditions have helped revive consumer demand and borrowing appetite, signalling a gradual improvement in household financial confidence and economic activity.

During July-March FY26, commodity financing recorded a net retirement of Rs43.2bn, compared with Rs303.4bn during the same period last year. Wheat financing recorded a net retirement of Rs45.4bn, compared with Rs326.9bn during the same period last year.

“The continued contraction in wheat financing over the last two years reflects a significant policy shift, as the federal government has stepped back from regulating wheat prices, and the Pakistan Agric­ultural Storage and Services Corporation did not participate in wheat procurement during this period,” according to the survey.

Similarly, fertiliser financing recorded a net retirement of Rs32.1bn.

In contrast, the sugar sector recorded net borrowing of Rs34.3bn, up from Rs23.2bn during the same period last year.

However, a big jump was noted in credit to the rice growing which increased to Rs29.5bn during 9mFY26 from Rs2bn. Cotton also received Rs18.3bn during the nine-month period, compared to just Rs1.5bn last year.

Published in Dawn, June 12th, 2026

The survey showed that agriculture, which contributes 23.4pc to the national GDP – slightly down from 23.62pc last year – employs over 33pc of workforce. The sector grew from 1.53pc in the previous year. The crop sector returned to positive territory with 1.44pc growth, while livestock, the largest component of agriculture, expanded by 3.75pc.

Among major crops, sugarcane registered the highest growth of 6.2pc, with production rising to 89.45 million tonnes. Wheat output increased by 4.3pc to 29.61mt, while rice production rose 2.8pc to nearly 10mt. However, maize and cotton production declined by 2.7pc and 0.5pc, respectively.

The survey highlighted a significant increase in the production of pulses, vegetables and fruits, which grew by31.4pc, 12.6pc and 2.8pc, respectively. Gram production surged by more than 50pc, while potato output increased by 27.6pc.

Livestock, key crops help sector recover from last year’s slowdown

Livestock continued to underpin agricultural growth, accounting for 62.4pc of agriculture’s value addition and 14.6pc of GDP. The sector’s gross value addition rose to Rs6.23 trillion, while milk production reached 74.7mt and meat production climbed to 6.31mt.

The government claims it has launched a major transformation plan for the meat sector, aiming to increase exports from around $500m to nearly $700m by 2028 through improved disease control, livestock genetics, processing facilities and export-oriented value chains.

Poultry industry also maintained strong growth, producing 2.83mt of meat and over 28 billion eggs during the year. The sector now contributes more than 43pc of the country’s total meat production and provides employment to over 1.5 million people.

The fisheries sector produced 642,180 tonnes of fish during the first nine months of FY2026 and earned $405 million through exports, while forestry recorded 2.02pc growth. Under the Green Pakistan Programme, nearly 2.26bn plants have been planted, regenerated or distributed across the country.

Published in Dawn, June 12th, 2026

The survey noted an unprecedented 3.37pc fall in tax exemptions, bringing the cost down to Rs2.353 trillion in FY26 from the downward-revised Rs2.434tr recorded in FY25.

In FY25, the government had initially reported exemptions at Rs5.84tr, a sharp 51pc rise from Rs3.879tr a year earlier. However, the figure was later revised to Rs2.434tr, with the survey offering no explanation beyond a reference to “errata”.

The decline in the cost of tax exemptions comes after seven consecutive years of increases, despite repeated government assurances that such concessions would be gradually curtailed under the International Monetary Fund programme.

Economic Survey reports a rare decline in concessions after seven years’ increases

Last year, the FBR had projected a sharp rise in the cost of tax exemptions, largely due to a Rs1.796tr waiver on domestically supplied and imported petroleum, oil and lubricants (POL) products.

In the latest survey, however, the government omitted this figure. However, the government had already planned to raise more than Rs1.4tr through the petroleum development levy (PDL).

The exemption is essentially fiscal in nature — provinces receive no share from this amount, while the federal government recovers the full proceeds through the PDL, which does not form part of the divisible pool.

As a result, the federal government bears minimal actual cost, but provinces are excluded from revenue sharing on PDL collections.

The value of tax exemptions has increased over the years. In FY18, it was Rs540.98 billion, rising to Rs972.4bn in FY19, Rs1.49tr in FY20 and then easing slightly to Rs1.314tr in FY21, before surging to Rs1.757tr in FY22. These tax concessions were extended to all sectors to promote industrialisation.

The Economic Survey 2025-26 showed a slight increase in income tax exemptions, a decline in customs exemptions, and a modest rise in sales tax concessions.

The fall in overall tax concessions comes at a time when the FBR is struggling with sizeable revenue shortfalls, marking the third consecutive year of missed collection targets.

Tax exemptions refer to revenue foregone by the state across various categories for different industries and other groups. This is mainly due to exemptions on raw materials and semi-finished products, as well as concessions for specific sectors aimed at reducing input costs for export-oriented industries.

Additionally, specific individuals are eligible for tax exemptions on certain perks and privileges.

The total sales tax exemptions increased by 2.91pc to Rs1.273tr from Rs1.237tr in FY25.

The cost of zero-rated exemptions under the Fifth Schedule fell to Rs8.774bn in FY26 from Rs81.108bn in FY25, a decline of 89.18pc. This is because the government reduced the zero-rated regimes for five export-oriented and some other sectors.

For local supplies, the cost of exemptions under the Sixth Schedule decreased to Rs305.628bn in FY26 from Rs330.545bn in the previous year, a decline of 7.54pc. This is due to a massive withdrawal of exemptions on items under that schedule.

Published in Dawn, June 12th, 2026

The index climbed from 125,627 points at the close of FY25 to 148,743 points by the end of March, having touched an all-time high of 189,167 points on Jan 23 — a level from which it shed more than 40,000 points over the following two months.

The survey, released by Finance Minister Aur­angzeb on the eve of the federal budget for 2026-27, attributed the robust PSX performance to improving macroeconomic fundamentals, easing inflation, declining interest rates, strong corporate earnings and the successful review of the International Monetary Fund’s Extended Fund Facility programme, along with subsequent tranche disbursements.

However, the momentum faded from early February as tensions with Afghanistan, the escalating conflict in the Middle East, higher global oil prices, foreign selling, domestic profit-taking and the seasonal slowdown during Ramazan dragged the index down from its January peak.

Market capitalisation rose to Rs16.53 trillion ($59.23 billion) by March 31, up 8.5pc — or Rs1.3tr — from Rs15.24tr at the end of June 2025. The market’s dollar value had peaked at $74.44bn in January before retreating alongside the index.

The PSX witnessed 11 news listings during the outgoing fiscal year, reflecting growing mom­entum in Pakistan’s capital market as both institutional and retail participation continue to stren­gthen despite global economic uncertainties.

In a regional comparison, the KSE-100’s 18.4pc return placed it among Asia’s better-performing markets, behind South Korea’s KOSPI, which surged 64.5pc, Thailand’s SET (32.9pc), Vietnam’s VN30 (23.8pc) and Singapore’s Straits Times (23.2pc), but well ahead of the MSCI Emerging Mar­ket Index (13.8pc). India’s Sensex declined 13.9pc over the same period.

The debt market also remained active. The government has raised Rs5.1tr through 32 auctions of debt securities conducted via capital market infrastructure since December 2023, while sovereign sukuk issuances worth Rs1.86tr were carried out during the period under review.

Published in Dawn, June 12th, 2026

ISLAMABAD: The man­u­facturing sector performed strongly, posting an expansion of 6.6 per cent in 2025-26 compared with 2pc in the preceding year.

This improvement was primarily driven by a 6.5pc rebound in Large-Scale Manufacturing (LSM), 8.5pc surge in Small-Scale Manu­facturing (SSM), and 6.2pc growth in slaughtering.

The manufacturing and mining sectors are critical to Pakistan’s industrial base and jointly contribute 13.5pc to GDP. Within manufacturing, LSM plays a dominant role, accounting for 67.4pc of the sector and 8.2pc of GDP, followed by SSM and slaughtering, which contribute 2.5pc and 1.4pc to GDP, respectively.

However, the mining and quarrying sector posted a modest growth of 0.4pc in FY26, indicating a gradual recovery in extraction activities.

The survey has highlighted that LSM grew by 6.5pc during July-March 2025-26, indicating a broad-based revival in industrial activity, compared to a 1.9pc contraction in the same period last year, which was primarily a continuation of the contraction that began in FY23 due to import restrictions.

In March alone, LSM expanded by 11.1pc, compared with a contraction of 2.4pc a year ago.

Automobile sector

The survey said that the auto industry showed growth across all sectors during July-March FY26, except for farm tractor sector, where production and sales were down by 8pc and 13pc, respectively. Additionally, wartime conditions have significantly increased costs for local tractor OEMs.

The survey highlighted that the auto sector had seen rising investment and was adopting new technologies, and that the industry was well-positioned to maintain its growth trajectory.

Passenger car production and sales increased by 51.3pc and 45.5pc, respectively, during July-March FY26.

The local production and sales of electric cars during the period were reported as 240 and 263 units, while 150 units and 132 were produced and sold during the corresponding period last year.

New technology cars are rapidly penetrating the market, driven by strong consumer demand due to rising fuel prices.

Whereas, the production of heavy commercial vehicles — trucks and buses — registered robust growth of 87.8pc and 28.9pc, respectively, during the outgoing fiscal year.

Truck production reached 5,301 units in July-March, up from 2,822 units in the same period last year.

Similarly, bus production rose to 704 units from 546 units over the corresponding period. The survey said that despite this growth, the overall volume of locally produced trucks and buses remained modest relative to the size of the domestic market.

Textile sector

The textile and apparel sector is the largest manufacturing and employment-generation industry, contributing 59.7pc to the country’s exports and 24.2pc to industrial value addition during July-March FY26.

The sector uniquely connects agriculture with industry and exports, creating strong backward and forward linkages across the economy.

Pakistan’s textile and apparel sector exports reflected a marginal overall decline of 0.5pc year-on-year to $13.58bn during July-March 2025-26.

While fertiliser is a critical input in crop production, it accounts for 10-15pc of the cost of major crops and contributes 30-50pc to crop yield enhancement.

Published in Dawn, June 12th, 2026

Canada’s quest for respectability on the global stage has been nothing short of painful, and six defeats from six matches across the 1986 and 2022 tournaments tell the story of a nation still searching for its World Cup identity.

But coach Jesse Marsch’s revolution has injected fresh belief into a program that, less than two months after he took over in May 2024, advanced to the semi-finals in their Copa America debut before being sent home by reigning World Cup champions Argentina.

Marsch’s blueprint for World Cup success has hit an early snag, however, with a mounting injury list threatening to derail Canada’s golden opportunity to thrust football further into the mainstream of the country’s sporting and cultural landscape.

Captain Alphonso Davies, who scored Canada’s first-ever goal at a World Cup, will watch the Group ‘B’ opener from the sidelines at Toronto Stadium with a hamstring injury last month.

The Davies blow is compounded by the loss of Marcelo Flores, who will miss the tournament entirely due to a knee injury he suffered in May, while defender Moise Bombito’s recovery from a broken leg appears to have stalled after lasting just 30 minutes in a warm-up against Uzbekistan.

With Davies expected back for group stage clashes against Qatar and Switzerland, the burden of carrying Canadian hopes falls largely on Jonathan David, the nation’s all-time leading scorer with 39 goals.

Maxime Crepeau, who last week was named Canada’s starting goalkeeper, will finally get his World Cup moment after missing the 2022 edition with a broken leg suffered during the MLS Cup Final 15 days before that year’s tournament kicked off in Qatar.

Standing in Canada’s way right out of the gate is a first-time meeting with Bosnia’s battle-hardened Dragons, who are back on the biggest stage after their penalty shootout heroics against four-time champions Italy secured a second World Cup appearance.

Veteran striker Edin Dzeko, one of only two remaining players from Bosnia’s debut World Cup appearance in 2014, will be captain and father figure to a youthful squad who are being tipped to make a big impression at the tournament.

The vast experience of Dzeko, Bosnia’s all-time leading goalscorer by a considerable margin and one of a World Cup-record eight players aged 40 or older selected to play at the tournament, will be crucial in the team’s bid to escape the group.

Defender Sead Kolasinac is the only other returning member from the country’s last World Cup appearance.

Bosnia will have support of their small Muslim community in Toronto who reside just 15 kilometers away from the venue.

The fans didn’t expected their team to be the part of this World Cup but when Bosnia beat Italy to seal their place in the extravaganza the emotions at a Toronto mosque turned from tense to euphoric, said Anes Dzumhur, program manager at the city’s Bosnian Islamic Association.

“It was unbelievable,” Dzumhur told AFP in a spacious room above the mosque’s prayer hall, decorated with books and Bosnian cultural items.

He joked that there are grievances within his community — men who pray together but do not get along — but when Bosnia’s victory was secured, those rivalries evaporated.

“That day everybody was hugging. I even showed some of them, I showed the picture, ‘Oh my God, look who you are hugging here.’”

Published in Dawn, June 12th, 2026