ISLAMABAD: Pakistan’s government on Monday decided not to build new canals on River Indus, Prime Minister Shehbaz Sharif’s office said, following weeks of protests in the southern Sindh province over the key irrigation project.
Pakistan’s government launched the ambitious agricultural project in February to build a network of six canals on the Indus. The government said it aimed to irrigate millions of acres of barren lands and ensure food security for 240 million people of the country.
But critics said the project would trigger water shortages in the southern parts of the country, mainly Sindh. The project sparked protests by lawyers, civil society and supporters of nationalist parties that disrupted trade and traffic on National Highway in Sindh, forcing the government last week to pause it.
On Monday, PM Sharif summoned a meeting of the Council of Common Interests (CCI), a constitutional body aimed at resolving the disputes between the federation and its provinces, to discuss the irrigation project and heightened tensions with New Delhi over a recent attack in Kashmir among other things.
“Federal Government has decided that no new canals will be built without mutual understanding from CCI,” Sharif’s office said in a statement after the meeting. “It has been decided that the Federal Government will not move further until mutual understanding is evolved among the provinces.”
The development comes at a time when India has suspended the Indus Waters Treaty with Pakistan that splits Indus River and its tributaries between Pakistan and India, threatening Pakistan’s food security. Islamabad has described the move as an “act of war” and said it would take “all appropriate steps” to safeguard its due share of water.
Sharif’s office said the government was forming a committee to engage all provincial governments to chart out a long-term consensus roadmap for the development of an agriculture policy and water management infrastructure across Pakistan, adding that water rights of all provinces were enshrined in the Water Apportionment Accord-1991 and Water Policy-2018.
“The committee will propose solutions to Pakistan’s long-term agriculture needs and water use of all provinces in line with the two consensus documents,” it said, adding that any concerns on the proposals would be addressed through due diligence among all stakeholders.
“Water is one of the most precious commodities and the makers of the constitution recognized this, mandating all water disputes to be resolved amicably through mutual understanding.”
Pakistan says won’t build new canals, dousing row over key irrigation project
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Pakistan says won’t build new canals, dousing row over key irrigation project
- Government launched project in Feb. to build network of six canals on Indus to irrigate millions of acres of barren lands
- Critics say project would trigger water shortages, weeks of protests forced government to pause plans last week
Pakistan announces $62 billion budget 2025-26, raises defense spending by 20% to $9 billion
- Rs17.57 trillion ($62 billion) outlay represents overall decrease in spending by 7 percent
- Total gross revenue of Rs19.28 trillion, total tax revenue of Rs14.1 trillion targeted
KARACHI: Pakistan on Tuesday announced its federal budget for fiscal year 2025-26 with a total outlay of Rs17.57 trillion ($62 billion), an overall decrease in spending by 7%, but hiked the defense expenditure by 20% following a recent military conflict with nuclear-armed neighbor India.
Finance minister Muhammad Aurangzeb presented a budget that allocated Rs2.55 trillion ($9 billion) for defense spending in FY26, compared to Rs2.12 trillion in the fiscal year ending this month.
“This budget is being presented at a very important and historic moment when the nation in recent days showed extraordinary unity, determination and strength,” Aurangzeb said, referring to the recent military confrontation with India, in which the militaries of the two nations exchanged drone, missile and artillery attacks, with a combined 70 people killed on both sides.
“With this same national unity and determination, we should turn our focus to our economic strength, growth and welfare,” the finance minister said.
“The spirit with which we protected and strengthened our national sovereignty, we need to ensure our financial security and the welfare of the people with the same unity and strength.”
The military clash between India and Pakistan was sparked by an April attack by assailants who targeted Hindu tourists in Indian Kashmir in April, killing 26 men. New Delhi blamed the attack on militants backed by Pakistan, a charge denied by Islamabad. The two sides used fighter jets, missiles, drones and artillery against each other before agreeing to a ceasefire on May 10 after four days of fighting, their worst in nearly three decades.
Here are some of the key highlights from the country’s 2025-26 budget:
GDP/DEFICIT
* GDP growth projected to be 4.2 percent
* Nominal GDP seen at 129.57 trillion rupees
* Fiscal deficit expected to be 3.9 percent of GDP
* Targets primary surplus of 2.4 percent of GDP
INFLATION
* Targets inflation at 7.5 percent
EXPENDITURE
* Total spending seen at 17.57 trillion rupees
* Defense expenditure of 2.55 trillion rupees targeted
* Interest payments projected at 8.21 trillion rupees
REVENUE
* Total gross revenue of 19.28 trillion rupees targeted
* Targets total tax revenue of 14.1 trillion rupees
* Aiming for net external receipts of 106 billion rupees
($1 = 282.0000 Pakistani rupees)
- With inputs from Reuters
Pakistan PM urges global powers to take ‘immediate action’ to end Israeli offensive in Gaza
- Over 54,000 Palestinians have been killed since Israel launched its latest military offensive in Oct. 7, 2023
- Pakistan has for decades called for establishment of independent Palestinian state based on pre-1967 borders
ISLAMABAD: Pakistan’s Prime Minister Shehbaz Sharif on Tuesday urged world powers to take immediate action to end Israel’s military offensive in Gaza, saying he hoped innocent Palestinians would achieve their dream of freedom soon.
Over 54,000 Palestinians have been killed and much of the coastal enclave of Gaza devastated since Israel’s latest air and ground offensive began in October 2023, health authorities in Gaza say.
“The oppression, cruelty and barbarism taking place in Palestine and Kashmir — no matter how much we condemn it, it is not enough” Sharif said while addressing a federal cabinet meeting.
“But I believe this is a very critical time for the global powers to effectively use their influence to ensure a ceasefire in Palestine, because what is happening there is the shedding of innocent Muslim blood — the blood of little girls, children and parents.”
The Pakistani PM added:
“I have strong hope in Allah Almighty, God willing, that the people of Palestine will gain freedom, the people of Kashmir will gain freedom. They have made tremendous sacrifices.”
Pakistan has been calling for a ceasefire and unimpeded humanitarian access to Gaza since the latest war broke out.
Pakistan, which does not recognize Israel, has for decades called for the establishment of an independent Palestinian state based on pre-1967 borders, with Al-Quds Al-Sharif as its capital.
Although nearly 150 countries have recognized Palestine statehood, most major Western powers including the United States, Britain, France, Germany and Japan, have not.
Muslim countries that do not recognize Israel include Pakistan, Saudi Arabia, Iran, Iraq, Syria and Yemen.
Pakistan shares range bound amid uncertainty over budget announcement
- Index recorded intraday high of 970 points and low of 51 points, eventually closing at 122,024, gaining 383 points or 0.32 percent
- Pakistan will unveil annual federal budget, seeking to kickstart growth while finding resources for hike in defense expenditure
ISLAMABAD: The Pakistan Stock Market witnessed a range-bound session today, Tuesday, with the index fluctuating within a narrow band amid uncertainty surrounding the budget announcement.
Pakistan will unveil its annual federal budget for the coming fiscal year on Tuesday evening, seeking to kickstart growth while finding resources for an expected hike in defense expenditure following a military conflict with India last month, the worst between the nuclear-armed neighbors in decades.
Islamabad will also have to contend with remaining within the discipline of its International Monetary Fund program and the uncertainty from new trade tariffs being imposed by the United States, its biggest export market.
“The index recorded an intraday high of 970 points and a low of 51 points, eventually closing at 122,024 — gaining 383 points or 0.32 percent,” brokerage house Topline Securities said in its daily market review.
“Market participation remained healthy, with total traded volume reaching 591 million shares and a traded value of PKR 21 billion.”
Media reports say the government is likely to present a 17.6 trillion rupee ($62.45 billion) budget for the fiscal year beginning July 1, down 6.7 percent from this fiscal year. It has projected a fiscal deficit of 4.8 percent of GDP, against a targeted 5.9 percent deficit in 2024-25, the reports say.
Analysts said they expect an increase of around 20 percent in the defense budget, likely offset by cuts in development spending.
Pakistan allocated 2.1 trillion Pakistani rupees($7.45 billion) for defense in the outgoing fiscal year, including $2 billion for equipment and other assets. An additional 563 billion rupees ($1.99 billion) was set aside for military pensions, which are not counted within the official defense budget.
The government of Pakistani Prime Minister Shehbaz Sharif has projected 4.2 percent economic growth in 2025-26, saying it has steadied the economy, which had looked at risk of defaulting on its debts as recently as 2023. Growth this fiscal year is likely to be 2.7 percent, against an initial target of 3.6 percent set in the budget last year.
Pakistan’s growth lags far behind the region. In 2024, South Asian countries grew by an average of 5.8 percent and 6.0 percent growth is expected in 2025, according to the Asian Development Bank.
With inputs from Reuters
Pakistan deports over 216,000 illegal migrants since April under ongoing repatriation drive
- The drive against illegal foreigners was launched in November 2023 amid a surge in militancy
- The country has repatriated a total of 1,102,441 illegal foreigners since the deportations began
ISLAMABAD: Pakistan has deported over 216,000 undocumented foreign nationals since April this year as part of a nationwide campaign targeting illegal migrants, mostly Afghan citizens, the country’s interior ministry said on Tuesday.
The repatriation drive, which began in November 2023, was launched in the wake of a spike in suicide bombings and militant activity that Pakistani officials linked to Afghan nationals, though no public evidence was provided to support the claim.
“Since April 1, 2025, a total of 216,103 illegal foreigners have been repatriated and the campaign is ongoing,” the ministry said in its statement.
“Since October 2023, a total of 1,102,441 illegal foreigners have been repatriated under the Illegal Foreigners Repatriation Program,” it added.
Initially, authorities had said the crackdown would focus on those lacking any legal documentation. However, in early 2025, the government expanded the scope to Afghan Citizen Card (ACC) holders, ordering them to leave by March 31 or face deportation starting April 1.
The interior ministry said food and health care arrangements had been made for those in the repatriation process, and that women, children and the elderly are being treated “with dignity and respect.”
It warned that anyone aiding undocumented foreigners with employment or accommodation would also face legal action.
Pakistan has hosted more than 2.8 million Afghan refugees over the past four decades due to prolonged conflict in Afghanistan.
The current deportation campaign has drawn criticism from human rights groups and the Afghan Taliban, who have accused Islamabad of harassment and called for the safe and dignified return of Afghan nationals.
The Pakistani government has denied these allegations, maintaining the repatriation process is being carried out respectfully and in accordance with the law.
Pakistan tells UK lawmakers it wants Indus Waters Treaty revived amid India tensions
- The Pakistani delegation in London says Islamabad wants ‘composite dialogue’ with New Delhi on all issues
- It says Pakistan’s military response to the Indian actions was measured and consistent with international law
ISLAMABAD: A Pakistani parliamentary delegation visiting key global capitals in the wake of last month’s military standoff with India told British lawmakers Islamabad remains committed to ensuring the revival of the Indus Waters Treaty and promoting regional peace, according to an official statement issued on Wednesday.
The outreach comes after India and Pakistan engaged in their most intense military exchange in years, sparking fears of a full-scale war under a nuclear overhang. Over four days in May, both sides exchanged missile strikes, launched drone attacks and engaged in air combat before a US-brokered ceasefire was announced by President Donald Trump on May 10.
The crisis was triggered by a militant attack that killed 26 tourists in Indian-administered Kashmir. New Delhi blamed the assault on Pakistan-based elements, an allegation Islamabad denied, instead calling for an independent international probe. As tensions escalated, the global community moved swiftly to defuse the situation.
Before launching its military strikes, India took several punitive measures against Pakistan, including suspending a decades-old, World Bank-backed water-sharing treaty between the two countries.
“The High-Level Parliamentary delegation from Pakistan, led by the Chairman of Pakistan People’s Party and former Foreign Minister Bilawal Bhutto-Zardari, briefed the All Party Parliamentary Group (APPG) on Pakistan during a meeting hosted by APPG Chair Yasmin Qureshi MP at Westminster Palace, which was attended by cross-party British parliamentarians,” the statement said.
“The delegation underscored Pakistan’s commitment to restraint, revival of the Indus Waters Treaty and initiation of a composite dialogue between the two countries on all outstanding issues, particularly the Jammu and Kashmir dispute.”
According to the statement, Bhutto-Zardari briefed lawmakers on the consequences of what he described as India’s unprovoked aggression, including violations of Pakistan’s sovereignty in the aftermath of the attack in Indian-administered Kashmir.
He rejected India’s allegations against Pakistan as baseless, saying they lacked credible investigation or verifiable evidence.
He further warned India’s unilateral suspension of the Indus Waters Treaty violated international law and could have serious implications for regional and global peace.
Pakistan’s Minister for Climate Change and Environmental Coordination Musadik Malik also addressed the session, highlighting the environmental and food security risks of disrupting the treaty.
He warned the suspension threatened the survival of Pakistan’s 240 million people, most of whom rely on agriculture.
The delegation also emphasized Pakistan’s military response to the Indian actions was measured and consistent with international law, including the right to self-defense under Article 51 of the UN Charter.
