ISLAMABAD: A Pakistani high court on Saturday directed the Prime Minister’s Office to instruct all military and civil intelligence agencies against “contacting or approaching” any judges or members of their staff, amid accusations of interference and intimidation by spies in judicial decisions.
The interim order by the Lahore High Court in the central Pakistani province of Punjab comes in the background of several senior judges accusing the military’s premier spy agency, the Inter-Services Intelligence (ISI), of meddling in judicial proceedings to influence verdicts. The army denies it interferes in political matters. It has so far refrained from commenting on any accusations regarding the ISI’s alleged interference and intimidation.
In the most high-profile accusations, six Islamabad High Court judges earlier this year wrote a letter to the Supreme Judicial Council watchdog and accused the ISI of intimidating and coercing them over legal cases, particularly “politically consequential” ones. The judges provided various examples of alleged interference, including a case concerning Pakistan’s imprisoned former prime minister Imran Khan. The letter also mentioned incidents where the judges said their relatives were abducted and tortured and their homes were secretly surveilled, aiming to coerce them into delivering favorable judgments in specific cases.
In the case in which the LHC issued the latest interim order, an Anti-Terrorism Court (ATC) judge in the city of Sargodha had filed a complaint alleging harassment by ISI personnel after he refused a meeting in his chambers.
“Instructions shall go out by the Prime Minister’s Office to all civil or military agencies including the Intelligence Bureau as well as ISI regarding strict instructions not to approach or contact any judge whether of the superior judiciary or sub-ordinate judiciary or any member of their staff in future,” a four-page order by the court, seen by Arab News on Saturday, read.
“Such instruction in clear words and writing shall be placed before this court on the next date of hearing.”
The court also directed all ATC judges across the Punjab province to download call recording applications on their mobile phones.
“They shall be bound to record all such calls which they receive and about which the learned judges have apprehensions that they have been made to influence any judicial proceedings before them,” the interim order said.
In February 2019, the Supreme Court delivered a scathing verdict on the military and intelligence agencies exceeding their mandate and meddling in politics over their handling of protests in 2017 by a religious-political party.
The Supreme Court had been investigating the “Faizabad protest,” which saw a hard-line group paralyze the capital Islamabad over accusations of blasphemy against a sitting minister. The inquiry also looked at the role of security agencies, including in ending the standoff through mediation.
Seven people were killed and nearly 200 wounded when police initially tried but failed to remove protesters.
The military is widely seen to have disagreed with civilian authorities at the time over how to handle the protests. The army’s role particularly came under criticism after video footage shared on social media showed a senior officer from the ISI giving cash to protesters after a deal was struck to end the blockade.
“The involvement of ISI and of the members of the Armed Forces in politics, media and other ‘unlawful activities’ should have stopped,” Supreme Court Justices Mushir Alam and Qazi Faez Isa, now the chief justice of Pakistan, said in their verdict.
“Instead when (protest) participants received cash handouts from men in uniform, the perception of their involvement gained traction.”
In the past, Prime Minister Shehbaz Sharif’s Pakistan Muslim League-Nawaz (PML-N) has also accused the ISI of intimidating court decisions, including those that led to convictions of his elder brother Nawaz Sharif after his ouster from the prime minister’s office in 2017. Ex-PM Imran Khan and his party have also alleged harassment by intelligence agencies.
The powerful army plays an oversized role in Pakistani politics. The country has been ruled by military regimes for almost half its history since independence from Britain in 1947. Khan and the elder Sharif both have alleged that they were ousted by the military after they fell out with the generals. The army denies this.
‘Spies vs jurists’ row: Lahore court directs PM to bar intel agencies from contacting judges
https://arab.news/m8j37
‘Spies vs jurists’ row: Lahore court directs PM to bar intel agencies from contacting judges

- In recent months many judges have accused ISI officials of harassing them and trying to meddle in judicial matters
- Army has so far refrained from commenting on any accusations regarding ISI’s alleged interference and intimidation
Pakistan warns of ‘first water war’ under nuclear shadow if India cuts off river flows

- Bilawal Bhutto-Zardari calls Indus Waters Treaty ‘gold standard in diplomacy’ at a think tank in Brussels
- He condemns Israel’s military strike on Iran, says the region cannot afford the war to continue for long
KARACHI: The head of Pakistan’s diplomatic mission touring world capitals to explain Islamabad’s position on a recent military standoff with New Delhi warned Friday India’s threat to cut off his country’s water supply could lead to the “first water war” between two nuclear-armed states at a think tank in Brussels.
The warning came after New Delhi announced in April it was suspending the 1960 Indus Waters Treaty, a World Bank-brokered agreement seen as a cornerstone of India-Pakistan water cooperation, following a deadly gun attack in Kashmir, which it blamed on Pakistan.
Islamabad denied any involvement and called for an impartial international probe. However, tensions quickly escalated, with both sides deploying fighter jets, missiles, drones and artillery fire before a US-brokered ceasefire was announced by President Donald Trump on May 10.
Bilawal Bhutto-Zardari, Pakistan’s former foreign minister and the current head of the country’s diplomatic outreach, told the European think tank India’s threat to disrupt river flows affecting 240 million people amounted to a “war crime.”
“It would turn this into an existential crisis, and we would be left with no choice but to embark on the first water war… between two nuclear-armed states,” he said.
Bhutto-Zardari described the Indus Waters Treaty as “the gold standard in diplomacy,” noting it had survived multiple wars and had been replicated in over 40 other international water-sharing agreements.
He said recent Indian actions, such as the delayed or excessive release of water, had already damaged Pakistan’s crops and posed a humanitarian risk.
“Just a few days’ delay in water release can have devastating consequences for our agriculture,” he said. “This is the only water supply into Pakistan. In the context of climate vulnerability, the last thing we need is a fault line developing where cooperation once existed.”
His other delegation members maintained undermining the treaty would set a dangerous global precedent, allowing upper riparian states anywhere in the world to disregard binding water-sharing agreements.
“If this treaty is in abeyance, then no treaty signed after World War II is worth the paper it’s written on,” Musadik Malik, the climate change minister, said. “That threatens the rights of lower riparian countries across Africa, South America and beyond.”
Earlier, in a brief exchange with reporters, Bhutto-Zardari welcomed renewed interest from Washington in mediating between India and Pakistan.
“As you have seen, President [Donald] Trump said once again yesterday that he is ready to mediate on Kashmir,” he noted. “At the moment, Pakistan is talking about peace, America is also talking about peace. If anyone is still talking about war, it is India, and, by the grace of God, they will step back from this position soon.”
Responding to a query, Bhutto-Zardari strongly condemned Israel’s military operations against Iran and its broader regional policies.
“We strongly oppose the attack on Iran and the way the war is being waged in this region,” he said. “No amount of condemnation is enough. We demand that this war be stopped and that the entire world plays its role. Peace is very important in our territory. We cannot afford Israel’s war on Iran to continue for long.”
Pakistan’s top revenue-generating Sindh province unveils $12.4 billion budget with major tax cuts

- Sindh, home to commercial hub Karachi, wants to abolish five taxes to ease pressure on individuals, businesses
- Khyber Pakhtunkhwa, governed by jailed ex-PM Khan’s PTI, presents $7.63 billion budget for FY2025-26
KARACHI: Pakistan’s southern Sindh province on Friday proposed abolishing five taxes as it presented a Rs3.45 trillion ($12.41 billion) new budget for fiscal year 2025-26 to simplify taxation and alleviate financial pressure on people and small businesses.
Friday also saw Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province announcing a surplus budget of Rs2,119 billion ($7.63 billion) for next year, without proposing any new taxes. The province allocated significant financial resources for the militancy-hit tribal districts and social welfare programs, according to the budget document.
SINDH
Sindh’s budget, which carries a deficit of Rs38.46 billion ($138.35 million), includes plans to eliminate professional tax, cotton fee and entertainment duty among other levies as part of broader reforms to support salaried individuals, small businesses, and cultural industries.
“I would like to share some important changes being planned to make our tax system simpler and to reduce the financial burden on both individuals and businesses,” Chief Minister Murad Ali Shah said while presenting the budget in the provincial assembly.
Sindh generates most of Pakistan’s revenues, more than 60 percent, and is the second most populous province ruled by Pakistan People’s Party of President Asif Ali Zardari, a coalition partner of Pakistan Muslim League-Nawaz party which leads the federal government.
Pakistan remains under a $7 billion International Monetary Fund (IMF) loan program approved last year and the Washington-based lender wants Islamabad to broaden its tax base by taxing incomes from agriculture, retail and real estate sectors at the provincial level.
The two provinces announced their new fiscal plans days after Pakistan’s federal government announced its FY26 budget targeting 4.2 percent economic growth, while aiming to arrest fiscal deficit at 3.9 percent of the GDP.
In Sindh, the province’s total revenue receipts are projected at Rs3.41 trillion ($12.27 billion) for FY2025-26, up 11.6 percent from the current fiscal year ending June. Transfers from the federal divisible pool, which account for 75 percent of revenue, are expected to rise 10.2 percent to Rs1.93 trillion ($6.94 billion). With additional grants and straight transfers, total federal receipts are estimated at Rs2.10 trillion ($7.55 billion).
Current Revenue Expenditure (CRE) has been set at Rs2.15 trillion ($7.73 billion), a 12.4 percent increase from the prior year, driven by higher salaries, pensions, and grants to non-financial institutions.
Allocations for key sectors have seen marked increases. The education budget has risen to Rs523.73 billion ($1.88 billion) – a 12.4 percent hike – with major investments in primary and secondary education. New initiatives include hiring 4,400 staff, opening four community colleges, and funding for 34,100 primary schools through cost centers.
The health sector will receive Rs326.5 billion ($1.17 billion), up 8 percent, including Rs19 billion ($68.35 million) for the Sindh Institute of Urology & Transplantation (SIUT) and Rs10 billion ($35.97 million) for a new hospital in Larkana.
Enhanced ambulance and mobile diagnostic services are also planned.
Grants-in-aid total Rs702 billion ($2.53 billion), reflecting allocations for hospitals, universities, and development bodies. A Rs520 billion ($1.87 billion) Annual Development Program (ADP) focuses on 475 new schemes targeting flood recovery, renewable energy, and underserved regions.
Karachi, the provincial capital of Sindh, will see major upgrades in transport and infrastructure. Fifty electric buses will launch this year, with 100 more expected by August. Bus Rapid Transit (BRT) Yellow Line is nearing completion, and the Red Line has passed the halfway mark.
The Karachi Safe City initiative will expand CCTV coverage using artificial intelligence, while blockchain-based land records, a KPI monitoring dashboard, and digital birth registration aim to enhance governance.
In rural areas, Rs20 billion ($71.95 million) has been allocated for pro-poor initiatives, while the new Benazir Hari Card will support 200,000 farmers. The Sindh Cooperative Bank is being explored to provide interest-free loans to progressive farmers.
KHYBER PAKHTUNKHWA
Presenting the new budget, Khyber Pakhtunkhwa’s Finance Minister Aftab Alam said the province achieved a Rs100 billion ($359.71 million) surplus in the outgoing fiscal year despite receiving Rs90 billion ($323.74 million) less in funds from the federal government.
The province is ruled by jailed former Prime Minister Imran Khan’s Pakistan Tehreek-e-Insaf (PTI) party, which is in opposition at the federal level.
“Against all odds and skepticism, we not only met our budget targets but also ensured timely debt repayments of Rs49 billion [$176.26 million],” Alam said.
He added that KP’s own non-tax revenues rose by 74 percent this year, while the KP Revenue Authority collected Rs41.37 billion ($148.79 million) in the first 10 months of the outgoing fiscal year.
The province has set a tax revenue target of Rs83.5 billion ($300 million) and a non-tax revenue target of Rs45.5 billion ($163.71 million) for the next fiscal year, aiming to widen the tax net rather than impose new levies.
Federal transfers, including Rs1,147.91 billion ($4.13 billion) from tax revenues and Rs58.15 billion ($209.17 million) in oil windfall levy, are expected to form the bulk of receipts.
The tribal districts are set to receive Rs292.34 billion ($1.05 billion), including Rs50 billion ($179.85 million) under an accelerated implementation program and Rs39 billion ($140.28 million) for development.
Key initiatives include the expansion of the Sehat Card Plus with life insurance coverage, recruitment of 16,000 teachers, and establishment of new degree colleges.
The province’s police force will receive Rs693.7 million ($2.49 million) for modern arms and Rs1.22 billion ($4.39 million) for vehicles.
IFC to provide $400 million loan for Pakistan’s copper-gold Reko Diq mine

- The loan adds to a $300 million commitment announced in April, bringing the total to $700 million
- Reko Diq, one of the largest undeveloped copper-gold deposits, is being developed by Barrick Gold
ISLAMABAD: The International Finance Corporation will provide a $400 million subordinated loan for Pakistan’s Reko Diq copper-gold mine, according to an IFC disclosure on Friday.
The loan adds to a $300 million commitment announced in April, bringing IFC’s total financing for the project to $700 million. The estimated cost of the mine is $6.6 billion, to be funded through a mix of debt and equity from a consortium of lenders.
“The estimated total Project cost is $6.6bn, and it will be financed using a combination of debt and equity,” the disclosure said, adding that other parallel lenders will provide the remaining debt financing.
This type of loan, known as subordinated debt, is typically repaid after other senior loans and helps absorb more risk, making it easier for other lenders to invest.
Other financiers, including the US EXIM Bank, Asian Development Bank, Export Development Canada, and Japan’s JBIC, are also expected to join the financing package, project director Tim Cribb told Reuters in April.
Term sheets are expected to close by early in the third quarter. IFC chief Makhtar Diop said earlier this year that the institution was “doubling down” on Pakistan, with a focus on infrastructure, energy and natural resources.
Reko Diq, located in Balochistan, is one of the world’s largest undeveloped copper-gold deposits. It is being developed by Barrick Gold, which holds 50 percent, with the remainder split between Pakistan’s federal and provincial governments.
Production is expected to begin in 2028. Barrick has projected the mine will generate up to $74 billion in free cash flow over its estimated 37-year life.
Pakistan stocks drop over 1,900 points amid Israel-Iran tensions

- Analysts cite fears of broader regional escalation following Israeli strikes on Iran
- Israel struck Iran, claiming Tehran was “close” to developing a nuclear weapon
KARACHI: The Pakistan Stock Exchange (PSX) plunged more than 1,900 points on Friday, as investor sentiment soured following Israel’s strikes on Iran, triggering fears of wider regional escalation.
The benchmark KSE-100 index fell 1,949.56 points, or 1.57 percent, closing at 122,143.56, down from the previous close of 124,093.12.
Shares traded largely in the red, mirroring losses across regional and global markets after the Israeli attacks shook investor confidence, according to a market review by Pakistani brokerage Topline Securities.
“Geopolitical tensions after Israel’s attack in Iran weighed down on world equities, including the KSE100,” Raza Jafri, Head of Intermarket Securities, told Arab News. “In particular, if a geopolitical risk premium gets added to international oil prices on a prolonged basis, it could negatively affect the outlook for the current account deficit and inflation, given more than 25 percent of Pakistan’s import bill comprises of petroleum products.”
He noted that Pakistan was now “much more disciplined” economically, having avoided fuel subsidies and refrained from using foreign exchange reserves to support the currency. This, he said, would help the country better withstand a potential oil price shock than in the past.
Ahsan Mehanti, Chief Executive of Arif Habib Commodities Ltd, said stocks declined across the board in response to the strikes.
“Slump in global equities on geopolitical risks and weakening rupee played catalyst role in panic selling at PSX,” he said.
Israel launched strikes on Iran earlier on Friday, claiming Tehran was “very close” to developing a nuclear weapon. The attacks reportedly targeted nuclear facilities, scientists, and senior military commanders.
Pakistan urges religious devotees to postpone travel to Iran, Iraq amid regional tensions

- A senior government official says currently there are an estimated 5,000 Zaireen in Iran
- Israel launched strikes against Iranian military and nuclear facilities earlier in the day
ISLAMABAD: Pakistan on Friday advised its citizens planning religious travel to Iran and Iraq to reconsider their plans, citing security concerns after Israeli strikes on Iranian military and nuclear facilities earlier in the day.
The advisory mentions Pakistani “Zaireen,” or Shi’ite Muslim pilgrims who travel to Iran and Iraq to visit sacred religious sites, particularly in Mashhad, Qom, Najaf and Karbala.
The region has seen heightened tensions following Israeli attacks on key installations in Iran, prompting fears of broader instability.
“In view of the evolving security situation in the region, the Zaireen from Pakistan are advised to reconsider their travel plans to Iran and Iraq,” the foreign office said in a brief statement issued in Islamabad.
According to a senior government official who spoke on condition of anonymity, the number of Zaireen traveling to Iran fluctuates, and most do not contact the Pakistani diplomatic missions.
“Currently, there are an estimated 5,000 Zaireen in Iran,” he said, adding that Pakistan’s embassy in Tehran and its consulates remain available to assist citizens.
“Any Pakistani requiring guidance or support is encouraged to contact our relevant diplomatic missions, which will, as always, provide necessary assistance and facilitate their return to Pakistan,” the official added.
While no evacuation plans have been announced, the authorities say they are closely monitoring the regional situation.