Pakistan says won’t build new canals, dousing row over key irrigation project

A drone view shows the Kotri Barrage on the Indus River in Jamshoro, Pakistan April 26, 2025. (REUTERS)
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Updated 28 April 2025
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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

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 will continue to play ‘constructive role’ for Middle East peace, PM Sharif tells US

Updated 26 June 2025
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Pakistan will continue to play ‘constructive role’ for Middle East peace, PM Sharif tells US

  • Prime Minister Shehbaz Sharif speaks to United States Secretary of State Marco Rubio, says Sharif’s office
  • Both agreed to continue working closely to strengthen Pakistan-US ties, particularly through enhanced trade, says PMO

ISLAMABAD: Prime Minister Shehbaz Sharif spoke to United States Secretary of State Marco Rubio on Thursday, telling him Islamabad will continue to play a “constructive role” to bring peace in the Middle East, the Pakistani premier’s office said amid regional tensions following the Iran-Israel military conflict.

The 12-day war between Iran and Israel began on June 13 after Israel carried out airstrikes on Iranian nuclear facilities, killing several senior military commanders and scientists, while officials in Tehran were engaged in nuclear negotiations with the US. The conflict worsened when before the ceasefire announced by Trump, US forces struck three Iranian nuclear sites last week. The American president claimed the strikes set back Iran’s nuclear program by years.

Pakistan had remained engaged in talks with regional partners Saudi Arabia, Iran, China, Qatar and other states to de-escalate tensions in the Middle East. Sharif said on Thursday Tehran had thanked Pakistan’s political and military leadership for playing a constructive role during the war.

“While exchanging views on the current situation in the Middle East, the Prime Minister stated that Pakistan would continue to play a constructive role for bringing peace to the Middle East,” Sharif’s office said in a statement.

“While appreciating these efforts, Secretary Rubio said the US would like to work with Pakistan for promoting peace and stability to the region.”

Pakistan and India also engaged in a days-long conflict last month before US President Donald Trump announced on May 10 that both countries had agreed to a ceasefire. India and Pakistan had pounded each other with missiles, fighter jets, artillery fire and drone strikes during the four days of conflict that killed over 70 on both sides.

Pakistan has repeatedly thanked Trump for his mediation during the crisis and decided to formally nominate him for the 2026 Nobel Peace Prize. The American president has claimed he convinced both sides to back down by threatening not to do a trade deal with them.

During their conversation, Sharif thanked Rubio for the “key role” Washington played in the Pakistan-India ceasefire, the Prime Minister’s Office (PMO) said.

“The Prime Minister and Secretary Rubio agreed to continue working closely to strengthen Pakistan-US relations particularly through enhanced trade,” the statement said.

While the May 10 ceasefire continues to persist between the nuclear-armed nations, tensions simmer as New Delhi refuses to budge from its earlier stance of suspending a decades-old water-sharing treaty with Pakistan.

Pakistan has said any attempts to stop or divert its flow of water by India will be regarded as an “act of war” and will be responded to with full force.


Pakistani stocks decline by 715 points over profit-taking after two days of gains

Updated 26 June 2025
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Pakistani stocks decline by 715 points over profit-taking after two days of gains

  • KSE-100 Index closes at 122,046.46 points, witnessing a decline of 0.58 percent, as per stock market data
  • Profit-taking driven by fiscal year-end considerations, short-term portfolio rebalancing, says financial analyst

ISLAMABAD: The Pakistan Stock Exchange (PSX) witnessed a bearish trend on Thursday after two days of gains, losing 715.18 points to close at 122,046.46 points, which a financial analyst attributed to profit-taking driven by fiscal year-end considerations.

The PSX closed at 122,046.46 points when trading ended on Thursday, witnessing a negative change of 0.58 percent. The KSE-100 had closed at 122,761.64 points on Wednesday and before that on Tuesday, it surged by 6,079 points or 5.23 percent to close at 122,246 points. Analysts attributed the surge on Tuesday to the ceasefire announcement between Iran and Israel.

As many as 473 companies transacted their shares in the stock market on Thursday, with 200 of them recording gains and 237 sustaining losses, state-run Associated Press of Pakistan (APP) said, adding that the share price of 36 companies remained unchanged.

“After two consecutive sessions of strong gains, the local bourse witnessed a round of profit-taking today, driven by fiscal year-end considerations and short-term portfolio rebalancing,” Maaz Mulla, the vice president of equity sales at Topline Securities Limited, said in a statement.

Mulla said the benchmark KSE-100 index saw a “volatile ride“— climbing 656 points intraday before losing 715 points at close of business. He said the closing figure of 122,046 points reflected “a cautious investor mood” as the quarter draws to a close.

He said despite the decline at the end of the day, the overall market activity remained “vibrant.”

“Total traded volume clocked in at 750 million shares, with a traded value of PKR 29.8 billion,” Mulla said.

APP reported that the three top trading companies on Thursday were Pak Int. Bulk with 37,503,501 shares traded at Rs 8.52 per share, WorldCall Telecom with 33,285,442 shares at Rs 1.45 per share and Pervez Ahmed Co. with 32,962,174 shares at Rs 3.29 per share.


Pakistan’s National Assembly passes $62 billion budget for next fiscal year

Updated 26 June 2025
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Pakistan’s National Assembly passes $62 billion budget for next fiscal year

  • Budget reflects Pakistan’s attempt to balance security concerns with fiscal reform efforts under $7 billion IMF loan program
  • Government has aimed to reduce fiscal deficit to 3.9% of GDP for next year’s budget, increase defense spending by over 20%

ISLAMABAD: The lower house of Pakistan’s parliament passed the federal budget for the next fiscal year on Thursday, which has a total outlay of Rs17.57 trillion [$62 billion] and projects economic growth at 4.2%, state-run media reported.

The federal government unveiled the federal budget on June 10, which reflects a 7% decrease in overall spending compared to the current fiscal year. The largest portion of the budget – Rs8.21 trillion ($29 billion), or nearly half of total expenditures – will go toward debt servicing, continuing to strain Pakistan’s fiscal space.

Another salient feature of the budget is Pakistan’s move to increase defense spending by more than 20% in the 2025-26 fiscal year to Rs2.55 trillion ($9.04 billion). Islamabad seeks to bolster military capabilities following Pakistan’s worst confrontation with India in nearly three decades in May.

“The National Assembly has passed the federal budget for the next fiscal year, with a total outlay of 17,573 billion rupees, focusing on sustainable and inclusive economic growth,” state broadcaster Radio Pakistan reported.

The House passed the budget with certain amendments, giving effect to the federal government’s proposals for the financial year set to begin from July 1.

The bill was read out in the National Assembly and approved clause by clause before the session was adjourned until 11 am, Friday.

Pakistan remains under a $7 billion IMF loan program approved last year, and the budget reflects an attempt to balance security concerns with ongoing fiscal reform efforts.

The government has aimed to reduce the fiscal deficit to 3.9% of the GDP for the next year’s budget. While it has projected a growth of 4.2% for the upcoming year, Pakistan’s economy grew just 2.6% in 2024/25, falling short of its 3.6% target due to weak agriculture and industrial output. Inflation has been projected for next year’s budget at 7.5%.

The Federal Board of Revenue (FBR), Pakistan’s main tax authority, has been tasked with collecting Rs14.1 trillion of the projected Rs19.3 trillion in gross revenue in the budget, marking a 19% year-on-year increase.

While announcing the budget on June 10, Finance Minister Muhammad Aurangzeb had announced plans to grow IT exports to $25 billion over the next five years and forecast a rise in workers’ remittances to $38 billion by the end of the current fiscal year.


Pakistan issues rain and flood alert for multiple regions from June 26–28

Updated 26 June 2025
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Pakistan issues rain and flood alert for multiple regions from June 26–28

  • Rains lashed Pakistan’s eastern Punjab province over last 24 hours, killing at least four and injuring 19
  • Disaster management authority calls for drain clearance, deployment of emergency services measures

ISLAMABAD: Pakistan’s National Disaster Management Authority (NDMA) on Thursday issued a rain and flood alert for multiple regions in the country from June 26-28, warning local authorities to ensure preemptive measures are in place with the monsoon season expected to trigger heavy downpours in the coming days. 

The Pakistan Meteorological (Met) Department forecast on Monday that several parts of the country are expected to receive heavy monsoon rains from June 25 onwards, urging masses to take precautions against the resulting flash floods and landslides in low lying and hilly areas. Rains have also lashed Pakistan’s eastern Punjab province over the last 24 hours, the provincial disaster management authority said on Thursday, killing at least four people and injuring 19 in rain-related incidents. 

“National Emergencies Operation Center (NEOC) of NDMA has issued impact-based alerts due to expected widespread monsoon rainfall and associated flooding risks across several regions of Pakistan from 26th to 28th June,” the NDMA said in a press release. 

It said heavy rain, windstorms, and thunderstorms are likely in multiple districts of Punjab including Lahore, Rawalpindi, Gujranwala, Sialkot, Narowal, Faisalabad, Sargodha, Mianwali, Bahawalpur, Rahim Yar Khan, Multan and Islamabad cities.

“Urban flooding is particularly expected in Lahore, Gujranwala, Rawalpindi, Multan, Bahawalpur, and Rahim Yar Khan, with possible disruption of transportation, drainage overflow and interruption of essential services,” the statement said. 

The disaster management authority said urban flooding is anticipated in Sindh’s Karachi, Hyderabad, Thatta, Jamshoro, Shahid Benazirabad, and Sujawal cities due to rain and thunderstorm with isolated and heavy falls in the same period.

It said widespread moderate to heavy rainfall may affect Jacobabad, Sukkur, Larkana, Nawabshah, Khairpur, Kashmore, Tharparkar, Mirpurkhas, Umerkot, Sanghar, Tando Allahyar, Tando Muhammad Khan, and Badin in Sindh, posing threats of waterlogging, road blockages, and infrastructure damage.

“In Khyber Pakhtunkhwa, Chitral, Swat, Shangla, Kohistan, Abbottabad, Mansehra, and Battagram may experience moderate to heavy rainfall with possible flash flooding and landslides, particularly in vulnerable mountainous terrain,” the NDMA warned. 

It said in Azad Kashmir, including Muzaffarabad, Neelum Valley, Bagh, Rawalakot, Haveli, and Hattian Bala, the forecast predicts moderate to heavy rainfall with the risk of flash floods, landslides, and riverine overflow. It said the Potohar region is also likely to be affected by similar weather patterns.

“NEOC has advised all provincial and district disaster management authorities to ensure preemptive measures such as drain clearance, public adviseries, deployment of emergency services, and readiness for evacuation or rescue operations where needed,” the disaster management authority said. 

It advised residents in flood-prone areas, particularly near nullahs, low-lying zones and slopes, to remain alert and avoid unnecessary movement. 

The authority called on emergency services to ensure readiness for any potential response operations, urging people to stay updated with real-time alerts and guidance from the official NDMA mobile application. 

The NDMA’s warning comes as Pakistan braces for another season of extreme weather, following deadly heatwaves and catastrophic floods in recent years. Ranked among the ten most climate-vulnerable countries in the world, Pakistan is ramping up preparedness efforts, especially in Punjab, where authorities expect significantly above-average rainfall this monsoon.


Pakistan grouped with Saudi Arabia, Iraq in AFC Futsal Asian Cup 2026 qualifiers

Updated 26 June 2025
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Pakistan grouped with Saudi Arabia, Iraq in AFC Futsal Asian Cup 2026 qualifiers

  • Thirty-one international teams to partake in qualifiers from Sept. 20-24
  • AFC Futsal Asian Cup Indonesia 2026 will be contested in Jan. 27-Feb. 7

ISLAMABAD: Pakistan’s football team has been selected in Group D along with Saudi Arabia, Iraq and Chinese Taipei for the qualifiers of the upcoming AFC Futsal Asian Cup Indonesia 2026, the Pakistan Football Federation (PFF) confirmed on Thursday.

Thirty-one teams have confirmed their participation for the 11th qualifiers, which will take place between September 20 to 24. The draw has divided the teams into eight groups— seven groups of four and one group of three— with each to be played in a centralized league format.

“Our journey to the AFC Futsal Asian Cup Indonesia 2026 begins in Group D, sharing the pitch with hosts Saudi Arabia,” the PFF wrote on social media platform X.

“An exciting draw that sets the stage for some incredible matches. Time to prepare!“

India are in Group A with Kuwait, Australia and Mongolia while top seeds Thailand will have to contend with Korea Republic, Bahrain and Brunei Darussalam in Group B.

Four-time winners Japan are the top seeds in Group C with hosts Tajikistan, Macau and Cambodia their challengers. Group E will see Vietnam, Lebanon, hosts China and Hong Kong face each other while Group F includes Uzbekistan, Kyrgyz Republic (hosts), Timor-Leste and Palestine.

Iran, Malaysia, United Arab Emirates and Bangladesh are part of Group G while Afghanistan, Myanmar and Maldives are part of Group H.

The AFC Futsal Asian Cup Indonesia 2026 will be contested from January 27-February 7.