ISLAMABAD: Pakistan Prime Minister Shehbaz Sharif said on Sunday peaceful protests were a democratic right, but there should be “no tolerance” for violence, amid protests in Azad Kashmir for subsidized wheat flour and cheaper electricity.
The statement came a day after clashes erupted between police and supporters of the Jammu Kashmir Joint Awami Action Committee (JAAC) in various parts of the territory, resulting in the killing of a police officer and injuries to 90 others on both sides, according to officials.
The protests turned violent when police attempted to stop a rally headed for the Azad Kashmir capital of Muzaffarabad from Kotli and Poonch districts. The protesters are demanding electricity as per hydropower generation cost in Azad Kashmir, subsidized wheat flour, and an end to privileges enjoyed by the elite.
In his message on X, PM Sharif said he was “deeply concerned” over the situation in Azad Jammu and Kashmir (AJK) and had asked AJK PM Anwar-ul-Haq to hold talks with the protesters.
“Unfortunately, in situations of chaos and dissent there are always some who rush in to score political points,” he said. “While debate, discussion and peaceful protests are the beauties of democracy, there should be absolutely no tolerance for taking the law in one’s own hands and damaging government properties.”
Sharif urged all parties to resort to peaceful course of action for the resolution of their demands. “Despite best efforts of detractors, the matter will hopefully be settled soon,” he said.
Separately, the Azad Kashmir government on Sunday invited protesters for talks.
“The situation is currently peaceful and under control, and we are trying to settle issues through talks,” Abdul Majid Khan, a spokesperson of the Azad Kashmir government who is also its finance minister, told Arab News.
“We have invited the action committee to come and sit with us for dialogue on all their demands.”
Khan warned that no one would be allowed to take the law into their hands, emphasizing the government had exercised “significant restraint.”
He noted the government was providing wheat in Azad Kashmir at Rs3,100 [$11.16] per 40kg, which was already heavily subsidized and cheaper than in Pakistan’s most populous Punjab province, the main producer of the crop in the South Asian country.
The Himalayan territory of Kashmir has been divided between India and Pakistan since their independence from Britain in 1947. Both countries rule part of the territory, but claim it in full and have fought three wars over the disputed region.
The western portion of the larger Kashmir region is administered by Pakistan as a nominally self-governing entity.
Pakistan last year narrowly avoided a default on the payment of foreign debts when the International Monetary Fund and several friendly nations came to its rescue by giving it loans.
Pakistan’s monthly inflation rate at one point reached over 40 percent, but authorities say it had come down to 17 percent ahead of talks with the IMF for a new bailout. Islamabad plans to get at least $6 billion from the lender when it reaches a deal expected in the coming months.
Pakistan PM says ‘no tolerance’ for violence amid Azad Kashmir protests over price hikes
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Pakistan PM says ‘no tolerance’ for violence amid Azad Kashmir protests over price hikes
- Clashes erupted in parts of Azad Kashmir Saturday as protesters demanded cheaper wheat flour, electricity
- The violence resulted in the killing of a police officer and injuries to 90 others on both sides, officials say
Pakistan seeks World Bank’s technical help to fast track $20 billion development framework
- The Country Partnership Framework was approved by the World Bank’s executive directors in January
- It aims to support Pakistan’s development by promoting private sector-led growth, climate resilience
KARACHI: Pakistan on Thursday sought the World Bank’s technical assistance to fast track the implementation of the Country Partnership Framework (CPF) discussed between the two sides earlier this year, according to an official statement circulated by the finance ministry.
The World Bank’s Board of Executive Directors endorsed the framework in January, aiming to support Pakistan’s long-term development by building human capital, promoting private sector-led growth and enhancing climate resilience through up to $20 billion in pledged lending over the next decade.
A World Bank delegation led by Managing Director for Operations Anna Bjerde met with Finance Minister Muhammad Aurangzeb in Islamabad during the day to review the Bank’s financing portfolio and strengthen bilateral cooperation.
“We are focused on ensuring that climate resilience and sustainable development remain at the heart of our economic planning,” Aurangzeb said, according to the statement. “The CPF represents an important opportunity, and we aim to implement it with full coordination across key ministries and stakeholders.”
The finance ministry said Aurangzeb requested the visiting delegation “to provide technical leadership and assistance to streamline processes and ensure a prioritized and focused rollout of the CPF.”
Bjerde praised Pakistan for continuing with difficult economic reforms under challenging circumstances and for aligning its growth with environmental sustainability.
She also reiterated the Bank’s support for initiatives in areas such as taxation, energy and social protection, while emphasizing girls’ education and women’s empowerment as critical to human capital and economic resilience.
Later in the day, the delegation also met Prime Minister Shehbaz Sharif.
According to a separate statement circulated by Sharif’s office, the prime minister welcomed the delegation and thanked the World Bank for playing a key role in the country’s development.
“We are grateful to the World Bank for the Country Partnership Framework, under which development investments exceeding $20 billion will be made in Pakistan,” he said.
Bjerde, in turn, commended Pakistan’s macroeconomic performance and recent stabilization efforts, describing the CPF as a “model” for other countries.
The meeting was also attended by federal ministers, advisers, parliamentarians and senior government officials along with World Bank Country Director Najy Benhassine.
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.
