KARACHI: Pakistan has started reimbursing to 117,000 pilgrims approximately $31.8 million in Hajj funds saved by the government on account of transportation and accommodation facilities in Makkah and Madinah, the Ministry of Religious Affairs said on Saturday.
“For the first time the government has started reimbursing money to Hajj pilgrims to the tune of Rs5 billion,” Imran Siddique, a spokesman for the Ministry of Religious Affairs, told Arab News. “The pilgrims will be returned a minimum of Rs26,000 and a maximum Rs67,000 back this year.”
Around 200,000 Pakistanis will perform Hajj this year, of which 120,000 are utiizing a government scheme and 80,000 are using private travel operators.
Under the government scheme the pilgrims are provided accommodation and transportation facilities in Makkah and Madinah.
Explaining how the government had saved on Hajj accommodations and transportation, Siddique said: “50,000 Pakistanis would travel through train service while the rest (67,000) of the pilgrims would not be able to avail this services due to the ticket quota allocation to the country, as only 300,000 people can travel via train.”
“The train fare is 500 Saudi riyal. Those who could not avail the train services will get the money back, which is approximately PKR 22,000,” Siddique added. “This is how the money on account of transportation is saved and would be refunded.”
Similarly, he continued, 96,000 Hajj pilgrims would be provided with accommodation in Markazia, a central area very close to Masjid-e-Nabawi, in Madinah while 21,000 would be provided accommodation away from the central area.
Around 500 Saudi riyal per night would be saved by those who stayed away from the center and this money would be reimbursed, Siddique said.
He said the process of reimbursing pilgrims had already started on Thursday.
“Last year we had deposited Rs283,000 with our application” housewife Naziran Bibi, who will go for Hajj next week with her mother and brother, told Arab News. “This year we have submitted Rs427,900 but we have not yet been refunded.”
Siddique said all banks had been directed to set up booths in Hajji Camps to refund the money to pilgrims: “Those who have not received it yet will get their money back before their scheduled flights,” he said.
$31.8mln saved in Hajj arrangements being reimbursed to pilgrims: Religion Ministry
$31.8mln saved in Hajj arrangements being reimbursed to pilgrims: Religion Ministry

- Savings are the result of the government arranging ‘smart’ accommodation and transport facilities in Makkah and Madinah
- Around 200,000 Pakistanis will perform Hajj this year, of which 120,000 are utilizing a government scheme
Pakistan says open to dialogue with India, with Saudi Arabia, UAE among neutral venue options

- Pakistan’s deputy prime minister says dialogue with India has to take place and will cover all outstanding issues
- Ishaq Dar says ceasefire is holding between the two states, with troops moving back to pre-standoff positions
ISLAMABAD: Pakistan’s Deputy Prime Minister Ishaq Dar said on Thursday composite talks with India would be held at a neutral venue, such as Saudi Arabia, the United Arab Emirates (UAE) or any other mutually acceptable country, once New Delhi was ready for dialogue.
His statement followed a US-brokered ceasefire announced by President Donald Trump on May 10 to halt missile, drone and artillery exchanges between the two nuclear-armed neighbors in the wake of a deadly gun attack in Indian-administered Kashmir last month that killed 26 tourists. New Delhi blamed Pakistan for the assault, though Islamabad denied involvement.
US Secretary of State Marco Rubio subsequently mentioned after the ceasefire the two South Asian rivals had agreed to address a broad range of issues in a meeting at a neutral venue. However, the Indian authorities maintained any dialogue with Pakistan would be limited to the issue of “terrorism” and have not shown any interest so far in the said diplomatic engagement.
“The venue of the talks will be the place acceptable to both,” Dar said during a media briefing in Islamabad. “There are many candidates for it. It can be Saudi Arabia, the United Arab Emirates or any other country.”
Dar maintained talks had to be held between the two countries, adding Pakistan was ready to engage whenever India was prepared.
“We are not in a hurry and will initiate dialogue when India will be ready,” he continued. “The venue will also be decided at that time.”
The deputy prime minister said the dialogue would cover all issues between the two countries.
“It will be a composite dialogue including everything,” he informed. “Terrorism will be part of it as we are ready to talk on this with all countries because we also want to eliminate the menace of terrorism as we are the biggest victim of it.”
Dar said the ceasefire was holding, though he expressed concern over “irresponsible statements” from Indian officials.
“I think the political compulsion is coming in front of them [the Indian leaders],” he said, adding the ceasefire was maintained by the armed forces of the two countries, with the director generals of military operations on both sides in regular communication with each other.
He also informed both countries were gradually restoring their forces to the pre-standoff positions.
“It won’t take months, it will be completed within the next few days,” he added.
Dar also spoke about his recent visit to China, where he attended a trilateral dialogue with China and Afghanistan, saying both countries had agreed to strengthen their diplomatic relations.
Since the Taliban takeover of Kabul, Pakistan-Afghanistan relations have remained strained, marked by border tensions, security concerns and a lack of trust.
Diplomatic engagement between Kabul and Islamabad have also remained limited, with both countries maintaining ties at the chargé d’affaires level rather than through full ambassadors.
“On the request of China, both countries agreed to enhance our diplomatic relations, though it will take time to complete procedures,” he added.
The deputy prime minister reiterated Pakistan and China had agreed to extend their joint multibillion-dollar corridor project to Afghanistan, including the construction of a road from Peshawar to Kabul to improve connectivity.
Pakistan FY26 budget to continue fiscal consolidation, focus on IMF guidelines — analysis

- Islamabad is currently holding budget talks with the IMF, likely to conclude this week
- Government has committed to fiscal consolidation in FY26 budget to ensure debt sustainability
KARACHI: Pakistan will continue fiscal consolidation, focus on IMF guidelines and bring untaxed and low tax areas into the tax net as it announces its federal budget for fiscal year 2025-26 next month, a top Pakistani brokerage house said in a budget review
Islamabad is currently holding budget talks with the IMF, which earlier this month approved a loan program review for Pakistan, unlocking a $1 billion payment which the State Bank of Pakistan said had been received. A fresh $1.4 billion loan was also approved under the IMF’s climate resilience fund.
“We expect this budget to continue fiscal consolidation, focus on IMF guidelines and bring untaxed/low tax areas in tax net,” Topline Securities said in a budget review.
The brokerage house said the government had committed with the IMF to continue with fiscal consolidation in the FY26 budget to ensure debt sustainability.
“The government targets primary surplus of 1.6% of GDP (vs. 2.0-2.1% of GDP in FY25), a surplus for the third consecutive year after two decades. The government has also committed to use any windfall dividend expected from the central bank over and above 1% of GDP to retire debt,” the review said.
The analysis predicted the Federal Board of Revenue’s FY26 tax revenue growth target could be the lowest in six years.
“FBR revenue target is expected at Rs14.1-14.3 trillion, up 16-18% YoY, which will be the lowest percent growth in the last 6 years,” it said.
The FBR has achieved a five-year revenue Compound Annual Growth Rate of 25% from FY21-25.
“We believe, out of this required 16-18% growth, approximately 12% would be achieved through autonomous growth driven by real GDP growth of 3.6% and inflation of 7.7%. The remaining 4-5% growth translates into additional tax measures of Rs500-600 billion,” the analysis estimated.
Revenue measures expected include a change in the GST calculation price of sugar, the likely introduction of taxes on pension, retailers and wholesalers and a likely increase in federal excise duty on cigarettes, fertilizer products and pesticides by 500bps. A tax on the income of freelancers, vloggers and YouTubers is also expected.
“Government is expected to announce some relief measures namely (1) extension in exemption limit on salary or reduction of tax rate by 2.5% for all salary brackets, (2) rationalization of duties on trade, (3) likely housing finance subsidy, (4) inflation adjustment in minimum salary and unconditional cash transfer, and (5) some rationalization in super tax,” the analysis said.
It said the government would reportedly set a GDP growth target of 3.5-4.5% “while we expect GDP growth target for FY26 at 3.5-4.0% led by services.”
The analysis predicted the budget was likely to be neutral for the stock market in the short-term, neutral to positive for cement, steel, oil and gas, consumers, and independent power producers, and neutral for oil marketing firms, IT, banks, pharma, autos and textile.
Pakistan’s 37-month $7 billion IMF loan program, approved on Sept. 25, 2024, aims to build resilience and enable sustainable growth. Key priorities include entrenching macroeconomic sustainability through implementation of sound macro policies, including rebuilding international reserve buffers and broadening of the tax base; advancing reforms to strengthen competition and raise productivity and competitiveness; reforming state-owned enterprises and improving public service provision and energy sector viability; and building climate resilience.
Highlighting progress in Pakistani policies to stabilize the economy, the IMF said earlier this month when it approved the latest tranche that Pakistan’s fiscal performance had been strong, with a primary surplus of 2.0% of GDP achieved in the first half of FY25, keeping Pakistan on track to meet the end-FY25 target of 2.1% of GDP.
“Inflation fell to a historic low of 0.3% in April, and progress on disinflation and steadier domestic and external conditions, have allowed the State Bank of Pakistan to cut the policy rate by a total of 1100 bps since June 2025,” the IMF added.
“Gross reserves stood at $10.3 billion at end-April, up from $9.4 billion in August 2024, and are projected to reach $13.9 billion by end-June 2025 and continue to be rebuilt over the medium term.”
Pakistan’s second biggest city Lahore sizzles amid scorching heatwave

- Met Office warns of heatwave from May 20-24, temperatures to be 4-6 degrees above average in three main provinces
- In June 2024, almost 700 people died in heatwave in less than a week, 2015 heatwave claimed over 2,000 lives in Karachi alone
LAHORE: Pakistan’s second biggest city, Lahore, sizzled under scorching heat this week as residents tried to stay hydrated in temperatures of 43 degrees Celsius (109 Fahrenheit).
The Pakistani Meteorological Office on Monday issued a heatwave alert saying temperatures would be four to six degrees above average in the Sindh, Punjab and Balochistan provinces from May 20-24.
The Met Office also advised people to avoid prolonged exposure to direct sunlight and stay hydrated.
“The heat is so intense in Lahore at the moment that it is difficult to go out. People should take caution, wear caps soaked in water, and they should drink plenty of water,” resident Wasif Khan said.
“They should use sunglasses. There are juice stalls at different places, they can consume that. Anyway, they should protect themselves from heat.”
Pakistan experiences a long and hot summer season.
“The work cannot stop. We have to carry out our work in any circumstances,” resident Mohammad Shehzad said as he poured a bottle of cold water on his head.
“I am drinking juices and trying to remain under shade to protect myself from the heat. You know, the work goes on whether it is intense heat or it is very cold.”
The current heatwave comes amid increasingly erratic climate patterns across South Asia, with cities in Pakistan experiencing more frequent and intense heat waves in recent years, a trend climate experts link to global warming and climate change.
A 2015 heatwave claimed over 2,000 lives in Karachi alone while floods in 2022 left more than 1,700 dead and over 33 million displaced nationwide.
In June 2024, almost 700 people died in a heat wave in less than a week, with most deaths recorded in the port city of Karachi and other cities of the southern province of Sindh, according to the Edhi Foundation charity.
PIA announces direct flights from Lahore to Paris from June 18

- PIA is already operating two weekly flights from Islamabad to Paris
- PIA resumed flights to Europe in January after 4.5-year-long ban
KARACHI: Pakistan International Airlines is launching direct flights from Lahore to Paris, with the first flight taking off on June 18, the national carrier said in a statement on Thursday.
PIA resumed flights to Europe in January after a four-and-a-half-year ban was lifted by EU regulators. A flight of the state-owned airline, plagued by a history of deadly crashes and a pilot license scandal, took off from Islamabad for Paris on Jan. 10, becoming the only carrier to offer a direct route to and from the European Union.
“PIA’s first flight from Lahore to Paris will take off on June 18,” the airline said. “A weekly flight from Lahore to Paris will take off directly on Wednesday.”
PIA is already operating two weekly flights from Islamabad to Paris and would “soon” launch flights to other cities in Europe, the airline said.
Debt-ridden PIA was banned in June 2020 from flying to the EU, United Kingdom and the United States, a month after one of its Airbus A-320s plunged into a neighborhood of Karachi, killing nearly 100 people.
The disaster was attributed to human error by the pilots and air traffic control, and was followed by allegations that nearly a third of the licenses for PIA pilots were fake or dubious.
On November 29, the European Union Aviation Safety Agency announced it had lifted the ban on EU flights.
PIA still remains barred from flying in the UK and the United States.
Sifting through the rubble of latest Pakistan-India conflict

- Clearance teams are combing through fields for unexploded shells so residents can safely build back from rubble of their homes
- Unexploded ordnance dating from conflicts past killed several children in 2021 and 2022 in Azad Kashmir
NEELUM VALLEY, Pakistan: Two weeks after Pakistan and India’s most intense military clashes in decades, clearance teams along the border comb through fields for unexploded shells so residents can safely build back from the rubble of their homes.
Around 70 people, mostly Pakistanis, were killed in the four-day conflict that spread beyond divided Kashmir, over which the neighbors have fought three major wars.
The military confrontation — involving intense tit-for-tat drone, missile, aerial combat and artillery exchanges — came to an abrupt end after US President Donald Trump announced a surprise ceasefire, which is still holding.
On the Pakistan side of Kashmir, called Azad Kashmir, 500 buildings were damaged or destroyed, including nearly 50 in the picturesque Neelum Valley, where two people were killed.
“There is a possibility that there are unexploded shells still embedded in the ground,” said local official Muhammad Kamran, who has been helping clear educational institutions near the border.
Unexploded ordnance dating from conflicts past killed several children in 2021 and 2022 in Azad Kashmir.
Headmaster Muhammad Zubair follows a mine detector into a classroom of his high school in the valley where a writing on a whiteboard standing in the debris reads “we are brave” in English.
“Although the fighting has stopped, people still hold so much fear and anxiety,” he told AFP.
“Despite calling them back to school, children are not showing up.”
Abdul Rasheed, a power department official, said he worked “day and night” to repair power lines damaged by Indian firing.
Over the years, investment in roads has helped to create a modest tourism sector in the Neelum Valley, attracting Pakistanis who come to marvel at the Himalayan mountains.
Hotels reopened on Monday, but they remain deserted in the middle of peak season.
Alif Jan, 76, who has lived through multiple clashes between the two sides, is yet to call her grandchildren back to her border village after sending them away during the latest hostilities.
“It was a very difficult time. It was like doomsday had arrived,” she said.
The children were sent to Azad Kashmir’s main city of Muzaffarabad, usually safe but this time targeted with an Indian air strike.
Jan wants to be certain the fighting doesn’t resume and that she has enough to feed them before they eventually return.
In a schoolyard, she collects a 20-kilogram (45-pound) bag of flour, a can of oil, and some medicine from a local NGO.
Thousands of other families are still waiting to be relocated or compensated for damage.
“We have identified 5,000 families,” said Fawad Aslam, the program manager of local aid group.
“Our first priority is families who suffered direct damage, while the second priority is those who were forced to migrate — people who had to leave their homes and are now living in camps or temporary shelters.”
For 25-year-old Numan Butt whose brother was killed by shrapnel, the aid is little consolation.
“This conflict keeps coming upon us; this oppression is ongoing,” he told AFP.
“It is a good thing that they have agreed to peace, but the brother I have lost will never come back.”