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Trump signals move on Kharg Island, claims US could control Iran oil infrastructure

ISLAMABAD: United States President Donald Trump has suggested that the US could, in the future, take control of key Iranian oil infrastructure, including Kharg Island, as part of a broader strategic approach toward the country’s energy sector.

In a post on his Truth Social platform, Trump said that “at some point in the not too distant future,” the US would consider “taking Kharg Island, and other oil infrastructure points,” and assuming “total control” of Iran’s oil and gas markets.

He drew a comparison with Venezuela, claiming that US involvement there had been “working out brilliantly for both Venezuela and the United States of America,” without providing further details to substantiate the assertion.

He threatened that the US would be “hitting Iran … VERY HARD TONIGHT.”

US-Iran talks still on track despite overnight escalations, CNN claims

Talks to reach a deal between the US and Iran are on track despite a recent exchange of strikes, CNN reported on Thursday, citing a diplomatic source.

An exchange of attacks between the US and Iran continued for a second consecutive day, with Trump warning that Washington would launch additional strikes unless Tehran immediately accepts the peace deal.

In a statement, the US Central Command said American forces struck multiple military targets in Iran from late Wednesday into early Thursday, describing the attacks as an act of “self-defence” following the downing of a US helicopter in the Strait of Hormuz.

Trump earlier said Iran had taken too long to negotiate a deal, and would have to pay a price.

PPP, PML-N discuss formula to form GB govt in Gilgit meeting

ISLAMABAD: Delegations of the PPP and the PML-N met in Gilgit-Baltistan to discuss proposals for forming a government in the region after the recent elections, the parties said on Thursday.

The PPP is all set to form a government in the region after it gained 11 out of 24 seats in the Gilgit-Baltistan Legi­slative Assembly, according to unofficial results (Forms-47) of the June 7 elections.

Key leaders of the PPP and the PML-N, which secured six seats, met in Gilgit to hold detailed deliberations on proposals related to the formation of the upcoming GB government.

In its statement, the PPP claimed a “major breakthrough” in the process, saying that the parties decided to present the proposals for government formation to their respective central leadership.

It said the discussions also pertained to political cooperation, along with various national and domestic issues.

The PPP delegation asserted that the people of GB had given it the mandate by “making it the largest party”, its statement said.

The party leaders stated that all decisions on government formation will be made keeping in view democratic principles, political consultations and public interests.

Meanwhile, the PML-N statement said that “several proposals came under consideration and it was agreed to move forward with the consultation process”.

It noted that the future course of action would be determined after the proposals are reviewed and both parties’ central leadership were taken into confidence.

PPP Secretary General Nayyer Hussain Bukhari, Qamar Zaman Kaira, Sindh Senior Minister Sharjeel Inam Memon and Sindh Local Government Minister Nasir Hussain Shah were part of the PPP delegation.

The main contender for the chief minister’s slot from the PPP, its GB chapter president Advocate Amjad Hussain, was also present.

The PML-N side included Minister for Kashmir Affairs and Gilgit-Baltistan Amir Muqam and its GB President Hafiz Hafeezur Rehman, also a former chief minister.

As per Forms-47 issued by returning officers from 24 constituencies, the PPP bagged 11 seats in the elections, with the PML-N trailing with six seats.

The candidates backed by the PTI won two seats, and its ally Majlis Wahdat-i-Muslimeen (MWM) was victorious in one seat. Independent candidates secured four seats.

The consolidation of the results has been barred until re-polling at certain polling stations in five constituencies is complete — Skardu-II (GBA-8), Ast­ore-I (GBA-13), Diamer-I (GBA-15), Diamer-II (GBA-16) and Diamer-III (GBA-17).

Khawaja Asif urges JAAC to let AJK voters decide refugee seats

ISLAMABAD: As tensions persist in Azad Jammu and Kashmir (AJK), Defence Minister Khawaja Asif on Thursday urged the now proscribed Joint Awami Action Committee (JAAC) to let the people of the region decide whether the 12 refugee seats should be abolished.

The regional administration and the JAAC remain at odds over various issues, most notably the committee’s demand to abolish the 12 seats in the region’s Legislative Assembly that are reserved for refugees from Indian-occupied Jammu and Kashmir who settled in mainland Pakistan after 1947.

Speaking on the floor of the National Assembly, the defence minister called on the JAAC to raise the issue in the upcoming elections, scheduled for July 27, and “take the issue to the public”.

He questioned why the group was intent on deciding the issue pre-emptively, suggesting that it might be an attempt to shape the assembly “as per their will”.

Asif noted that Kashmiri refugees settled in Pakistan had paid a “heavy price” to migrate to the country, and that the JAAC had no right to demand the “taking away of their right to vote”.

“The AJK that we have today is due to the sacrifices made by the Pakistan armed forces and people from across the country, not just Kashmiris,” the defence minister said, asserting that 250 million Pakistanis had a “stake” in the region.

He held that there was a story in every Pakistani household of the sacrifices made for the disputed region.

“Does that mean nothing? I do not want to take names, but what have they sacrificed for Kashmir? They do not have any stake, nor have they invested anything in the liberation of Kashmir,” the defence minister said.

The defence czar warned that if people took the law into their own hands, the government could not be expected to “stay silent”.

He also recalled that Kashmiri refugees in his constituency did not have access to basic facilities such as electricity and gas due to uncertainty surrounding their status. However, “we had their status finalised”, he said, reiterating that the way forward was dialogue, not confrontation.

“I wonder if this hatred has been imported from across the line,” Asif said, in an apparent reference to the Line of Control (LoC).

He maintained that the group could not “take away the identity” of Kashmiri refugees, advising that the matter should be resolved in the Legislative Assembly.

“How could you exclude them from the electoral process?” the defence minister said.

Asif remarked that the status “Azad” in AJK had been secured and protected by Pakistanis.

“The word Azad would not have been there if it were not for Pakistan,” he said, adding that the armed forces stationed atop mountains protecting Kashmir were all Pakistanis, including Punjabis, Baloch, Pashtuns and Sindhis.

Blocking water will have far-reaching consequences: FO

ISLAMABAD: The Foreign Office on Thursday warned that any deliberate attempt to block water essential to Pakistan’s survival and development would have “far-reaching consequences”.

“Any such act would be treated with utmost seriousness and could possibly amount to an act of war under Article 51 of the UN Charter,” said FO spokesperson Tahir Andrabi during a weekly media briefing while responding to a question about recent remarks by Indian water minister.

A day ago, Indian Minister of Water CR Patil told India’s ANI news agency that “not a single drop of water will go [to Pakistan] in the coming years”.

Patil said that India was “actively working on it” after “directives” from Prime Minister Narendra Modi.

Taking note of the remarks, Andrabi said that “any attempt to block or substantially curtail water that is vital to the livelihood, agriculture and well being of over 25o million Pakistanis would be a deeply irresponsible act”.

He added it would violate established international obligations “concerning transboundary rivers and indeed India’s own bilateral agreement with Pakistan”.

“Pakistan firmly rejects any notion that water can be treated as a political tool or instrument of coercion or a weapon,” he said, emphasising that such an action would be a threat to the regional peace and security in South Asia and beyond.

He said that the responsibility of such a threat “to international peace and security would fall squarely on India’s shoulders”.

The FO spokesperson added that Pakistan’s rights and interests regarding its water resources were non-negotiable.

He said that Pakistan would “vigorously” defend those rights, utilising all available diplomatic, political, legal, economic and other measures consistent with international law and the UN Charter.

“Any deliberate attempt to block water essential to Pakistan’s survival and development would constitute an extremely grave act with far-reaching consequences, as stated at the top leadership level by Pakistan,” Andrabi warned.

Every state had the right of self-defence, she said, adding that Pakistan would take “all necessary measures to safeguard its economy and its vital national interests and lives of 250m people”.

Andrabi called on India to “act responsibly, honour its international commitments and refrain from statements and actions that could further escalate tensions in the region”.

He stated that Pakistan remained committed to safeguarding its interests and “will closely monitor developments on the ground in India-occupied Kashmir and elsewhere from where these water resources emerge”.

Expansion of India’s nuclear arsenal ‘not surprising’

In response to a question over India expanding its nuclear arsenal, as per a recent report by the Stockholm International Peace Research Institute (SIPRI), Andrabi said the finding was not surprising to Pakistan.

“It broadly corroborates concerns that Pakistan has consistently been raising regarding India’s continued vertical proliferation,” he stated, hinting that the findings may not “fully reflect” India’s scale of nuclear arsenal.

The spokesperson noted that Pakistan also remained aware of recent developments in India’s strategic capabilities, including “cannisterisation of the missile systems, expansions of sea-based nuclear-capable submarines and pursuit of increasingly longer-range intercontinental ballistic missile systems that go beyond India’s periphery, neighbourhood or legitimate defence deals”.

Andrabi warned of “grave consequences” for international peace and security in the context of the development.

“These developments enhance operational readiness, complicate crisis stability, and carry implications that extend beyond South Asia,” he remarked.

Andrabi said while Pakistan did not seek an arms race and was “not interested in matching warheads and ammunition by number,” it also remained cognisant of the “evolving security environment”.

He said Pakistan continued to work towards the preservation of “strategic stability and deter any possible Indian aggression,” and urged the international community to “closely monitor” the situation.

“Deployment of India’s nuclear arsenal may affect strategic stability in South Asia and undermine peace and security at the regional and global level,” he cautioned.

In the given context, he said the international community, in particular the suppliers of high technology, should be cognisant of the implications of “advanced technologies and emerging capabilities being incorporated into India’s posture with grave international consequences”.

Release of Pakistani seafarers in Somalia ‘high priority’

On the issue of Pakistani sailors held captive by pirates aboard a vessel off the coast of Somalia, Andrabi said their rescue and safe repatriation remained a “high priority”; however, he also acknowledged that the situation had so far proved to be “difficult and operationally challenging”.

The seamen were taken hostage more than a month ago when pirates hijacked the MT Honour 25 off the southeastern coast of Somalia on April 21. There were 11 Pakistanis among the vessel’s crew, who remain in the pirates’ captivity.

“Sadly, despite our best efforts, we have not been able to secure their release,” Andrabi said of the 11 Pakistani seafarers, but voiced optimism that Pakistan was making “earnest efforts” to secure their release.

“We are engaged with the Somali authorities and the ship owner, both of whom are engaged with the pirates to secure early release,” he said.

He recalled that the Deputy Prime Minister and Foreign Minister Ishaq Dar had been in touch with the Somali Foreign Minister Abdisalam Abdi Ali over the issue.

In a phone call with the Somali FM, DPM Dar had conveyed his “grave concern” about the situation and stressed the need to ensure the early release and safe repatriation of the individuals, Andrabi said.

DPM Dar also urged measures to improve the living conditions of all the captives aboard the vessels.

Dar’s Somali counterpart assured him of the Somali government’s “continued and sincere” efforts to secure the release of the Pakistani individuals.

“Both leaders agreed to remain in close coordination until the matter is resolved,” Andrabi said.

Further elaborating on the steps taken by the government to secure their release, Anbrabi said that the Somali ambassador in Islamabad was called to the Ministry of Foreign Affairs (MOFA) over the issue.

He also recalled that the Pakistani embassy in Djibouti had dispatched teams to the Somali capital Mogadishu and added that authorities were holding “interministerial and inter-departmental meetings” on the issue as well.

“Another important in-person meeting will be held next week here at MOFA,” Andrabi said.

The spokesperson said that the situation was “operationally challenging”.

“They (captives) are held in a part of Somalia which is a semi-autonomous region [..] there are tribal societies and the pirates belong to a certain tribe and the ship owners belong to another tribe.”

He called on the families to exercise patience, vowing that the matter remained a high priority.

Pakistan economy expands 3.7pc in FY26, misses growth target

ISLAMABAD: The government unveiled the Pakistan Economic Survey (PES) for FY2025-26 on Thursday, according to which GDP growth was recorded at 3.7pc in the outgoing fiscal year.

This is higher than last year’s growth of 3.18pc but falls short of its target of 4.2pc.

Economic survey highlights

GDP growth recorded at 3.7pc, up from 3.18pc last year

Agriculture sector posts growth of 2.89pc

Industrial sector expands by 3.51pc, driven by a 6.1pc rebound in large scale manufacturing

Services sector records 4.09pc growth

Per capita income increases to $1,901 from $1,751 last year

Fiscal deficit narrows to 0.7pc of GDP (July-MarchFY26), down from 2.6pc in the same period last year

Primary surplus strengthens to 3.2pc of GDP

CPI Inflation averages 6.2pc (July-April FY26)

Workers’ remittances reach $30.3bn

Addressing a press conference in Islamabad, Finance Minister Muhammad Aurangzeb presented the survey, which he said told a story of resilience and discipline shown during the previous year.

He said the country began the outgoing fiscal year with uncertainty due to tariffs. “Then, by the end of July, we reached a point where we could be in a competitive position with respect to our exports, especially to the US,” he added.

Then there were floods in August and September 2025, followed by a regional conflict in March this year, the minister said.

“These challenges tested Pakistan’s resilience,” he said, adding that the government was able to deal with them and remained on the path of moving from stabilisation to growth.

GDP growth

He said GDP growth in FY26 was recorded at 3.7 per cent, against a target of 4.2pc.

However, the economic survey stated that the economy “accelerated its growth momentum in FY2026” compared to the previous year, when GDP growth was recorded at 3.18pc.

“The improvement owes to effective macroeconomic management, better fiscal account, growth in large scale manufacturing (LSM) sector, resilience of the agriculture sector to floods of 2025, exchange rate stability and reforms under the IMF Extended Fund Facility (EFF) Programme,” it stated.

For his part, Aurangzeb also pointed out that global growth had reduced to 3.1pc from 3.7pc due to the factors he elaborated on earlier in the press conference.

The finance minister said that Pakistan had recorded GDP growth of 3.7pc, which was the highest in the past four years. The finance minister recalled that GDP growth in FY2023 was -0.2pc, 2.6pc in FY2024 and 3.2pc in FY2025.

He said it was earlier estimated that GDP growth would exceed 4pc, but it did not happen due to the ongoing conflict in the Middle East.

“But having said that, we have still reached a historically high size of the economy at Rs126.9 trillion,” he said.

The minister said per capita income had reached $1,901, which was $1,751 in FY2025.

Agriculture

Giving a sector-wise breakdown, he said growth in agriculture was recorded at 2.89pc, compared to 1.53pc in the last fiscal year. “This was despite floods,” he said, adding that the crop sub-sector showed positive growth. It was recorded at 1.44pc, the finance minister said.

He added the livestock sector also “continues to go from strength to strength”.

Industrial sector

Overall, the industrial sector grew by 3.51pc in FY2026, the survey document stated. It said the mining and quarrying sector recorded positive growth after contraction during the last fiscal year, signalling recovery in mineral extraction and quarrying activities.

However, the electricity, gas, and water supply industry contracted due to a decline in subsidies, slow growth in the output of the Water and Power Development Authority and companies, and an increase in the deflator, it said.

The construction sector recorded growth of 5.73pc in FY 2026, contributing positively to overall industrial performance, the document said.

LSM

According to the economic survey, overall, the manufacturing sector recorded a growth of 6.6pc on the back of “robust performance of large-scale manufacturing”.

Aurangzeb said 6.1pc growth was recorded in large-scale manufacturing (LSM) in FY26, which was the highest in the last four years. He elaborated that positive growth was seen in 16 of LSM’s 22 sub-sectors.

“So it’s not one single sector that is leading or contributing to this 6.1pc turnaround in LSM. It is broadband [growth],” he said.

He further said that prominent year-on-year growth was witnessed in this sector. “To give you some examples, there was a 10pc increase in the demand for cement, 17pc for fertiliser, 5pc for petroleum, 31pc for automobiles and 9pc for mobile phones.”

Services

Noting that the services sector made up close to 58pc of Pakistan’s GDP, he said 4.09pc growth was recorded in this sector in the outgoing fiscal year.

“This, too, is the highest in the last four years,” he said.

Aurangzeb particularly mentioned communication and information services, which he said recorded a growth of 7.52pc. The growth in this sub-sector in FY26 was also the highest over the past four years.

Moreover, he continued, this sub-sector held significance for the digital economy.

Fiscal deficit

The survey document stated that the fiscal deficit “narrowed significantly” to 0.7pc of GDP (Rs 856.4bn) during July-March FY26 from 2.6pc of GDP (Rs2,970bn) in the corresponding period last year.

Similarly, primary surplus also improved to 3.2pc of GDP from 3pc, the survey document said, terming the increase “historic”.

Aurangzeb said during his press conference that tax revenues had increased by 10.1pc and markup payments saw a decrease of 23pc, which he said increased fiscal space.

Inflation

According to the economic survey, CPI inflation for the period between July-April FY2025-26 was recorded at 6.2pc, against 4.7pc during the same period last year.

“Inflation measured by the sensitive price indicator (SPI) stood at 4.1pc as against 4.8pc during the same period last year … The inflation remained broadly stable during the first three quarters of FY 2026. However, the emergence of an external shock amid geopolitical tensions at the end of the third quarter has increased its vulnerability to renewed price pressures, warranting continued vigilance and timely policy response to preserve macroeconomic stability,” the survey document said.

Inflation rose from 7.3pc in March to 10.9pc in April due to a rise in global oil prices and supply disruptions amid the Middle East crisis.

“Average inflation for July-April FY2026 was recorded at 6.2pc, higher than 4.7pc recorded during the same period of the previous year,” the survey document said.

Moreover, it stated that the national poverty headcount increased to 28.9pc in 2024-25, while inequality also rose, reflecting the impact of Covid-19, increase in inflation, climate and flood shocks, and economic adjustment.

For his part, Aurangzeb argued that inflation had been decreasing over the years. “We began with 28pc, and today we are at a point where the policy rate is 11.5pc,” he said.

Current account surplus

The survey document stated that on the external front, the current account recorded a marginal surplus of $72m during July-March FY 2026 compared to a surplus of $1.7bn in the same period last year.

“Workers’ remittances remained a key source of external sector support, rising by 8.2pc to 30.3bn,” it said.

In this regard, Aurangzeb said a debate had been ongoing regarding exports and remittances. But it was not an “and/or discussion. This is an and/and discussion”, he said.

Acknowledging that there was a need to increase exports, he argued that remittances were also an important structural component of economies that were compared to Pakistan in this regard.

“We can debate how much remittances should be contributing to the GDP and to what extent we should rely on them, but remittances are and would remain a very important component of our external balancing position as we move forward,” he said.

Exports

The finance minister said the decline in the country’s exports was led by the food sector.

“In the food sector, our rice exports have declined by $1.1bn,” he said, adding that a decline of $403m was recorded in sugar exports.

Overall, a decline of around $1.5bn was recorded in food exports, he said.

On the other hand, he said, textile exports had increased. He also highlighted the increase in the export of sports goods, mentioning that the football that was to be used during the upcoming FIFA World Cup was manufactured in Pakistan.

He said that from July-May FY2026, 18pc growth was recorded in the export of sports goods.

The minister said the country’s IT exports had crossed $3.8bn, expressing hope that they would reach $4.5bn. In this connection, he said the freelancer export was now touching $900m.

He said the country’s foreign exchange reserves currently stood at $17.bn, hoping that they would reach $18bn by the end of June. “This will give us three months of export cover, which is an internationally recognised standard, and this should allow us to further upgrade over the course for the next year,” he said.

According to the economic survey, foreign exchange reserves stood at $20.6bn as of April 17, including $ 15.1bn held by the State Bank of Pakistan, “reflecting strengthened external buffers”.

It stated that foreign exchange reserves rose to multi-year highs during the outgoing year.

Meanwhile, the trade deficit for the outgoing fiscal year was recorded at 8.5pc.

Capital markets and corporate sector

According to the economic survey, Pakistan’s capital markets, specifically the equity market, performed well compared to major global stock markets in FY2026.

“The KSE-100 index demonstrated significant growth of 18.4pc during July-March FY2026. This increase can be attributed to strong corporate earnings, a decline in both the policy rate and inflation, the successful review of the IMF-EFF Programme, and subsequent tranche disbursements, all of which contributed to a stable macroeconomic environment that bolstered investor confidence,” the survey document stated.

It said Pakistan Stock Exchange (PSX) market capitalisation recorded Rs15,237bn on June 30 2025 and closed at Rs16,534bn on March 31 2026, reflecting an increase of 8.5pc or Rs1,297.5bn in the period under review.

During July-March FY 2025, a net inflow of Rs 226.69bn was recorded under the National Savings Schemes, the document said, adding that the Securities and Exchange Commission of Pakistan issued 53 certificates of Shariah-compliant securities to corporate Sukuk issuers under the Shariah Governance Regulations, 2023 during July-March FY2026, amounting to Rs229.6bn.

In the sovereign Sukuk segment, total issuances worth Rs1.86 trillion were carried out and secondary market trading surpassed Rs1.38tr during this period, “reflecting robust market activity and investor participation”, the survey document stated.

For his part, Aurangzeb said 39,000 new companies had been registered in FY26, taking the number of registered companies to 300,000.

On investment, he said it was often mentioned often mentioned that some companies had winded up their businesses in Pakistan. “But, it is also true that multinational companies in the fields of telecom, energy, IT, digital services and industrial sectors have either entered the Pakistani market or increased their investments or plans in Pakistan,” he added.

Debt

During July-March FY2026, out of the total external public debt stock of $92.2bn, multilateral loans remained the largest component at $42.5bn, while IMF debt stood at $9.9bn, according to the survey.

Paris Club debt was recorded at $5.5bn while bilateral loans from non-Paris Club countries amounted to $19bn, it said, adding that “the external debt portfolio continued to be largely supported by long-term and concessional financing from multilateral and bilateral sources, helping limit refinancing risks and support debt sustainability”.

External budgetary disbursements were recorded at $6.1bn, including $2.7bn from multilateral sources, $1.1bn from bilateral development partners, $2bn from Naya Pakistan Certificates and $0.2bn from commercial banks, the document said. It added that the government also received $1.2n under the IMF’s EFF during July–March FY 2026.

According to the survey, total public debt was recorded at Rs83,285bn by the end of March this year, comprising Rs57,566bn in domestic debt and Rs25,720bn in external debt.

“During the first nine months of FY 2026, public debt growth remained contained at 3.4pc, compared to 6.7pc during the same period last year, supported by a strong primary surplus, prudent borrowing strategy, and active debt management operations,” the document said.

On this, Aurangzeb said the overall public debt-to-GDP ratio was 75pc in 2023, it decreased to 70.7pc in 2025 and further reduced to 68.5pc this year.

“This means we are moving in the right direction,” he said.

Tax revenue

The survey shows that tax revenue increased by 11.3pc to Rs10,166.6bn in the outgoing fiscal year.

“The increase in tax revenues was contributed to by growth in both federal and provincial tax collections. FBR tax collection increased by 10.1pc to Rs9,305.9bn, while provincial tax revenues increased by 25.8pc to Rs860.7bn,” the survey document stated.

On this, Aurangzeb said digital production monitoring had been introduced in various sectors, and he particularly mentioned the cement and sugar sectors.

“In these sectors, we have received Rs60bn additional revenue because of digital production monitoring,” he said, adding that this mechanism was also being introduced in other sectors.

Moreover, he said AI-based audit selection had yielded an additional Rs34bn in revenue.

He also said that the government intended to increase the number of merchants using digital payments to two million by June 2026, and “we are close to about 1.7m. So, we are getting there”.

Similarly, he said the government planned to increase the number of digital banking users to 120m by June 2026 and had exceeded that target, as the number had reached 133m.

India ‘actively working’ to deprive Pakistan of water

NEW DELHI: India is working to ensure “not a single drop of water” will flow into neighbouring Pakistan, the water minister has said, after New Delhi put the Indus Waters Treaty (IWT) into abeyance following the Pahalgam attack in April 2025.

“It is certain, not a single drop of water will go (to Pakistan) in the coming years,” Minister of Water CR Patil told India’s ANI news agency late Tuesday. Patil, speaking in Hindi, said that India is “actively working on it” after “directives” from Prime Minister Narendra Modi.

The treaty governs the use of water from six rivers, whose headwaters originate in India but flow into Pakistan as part of the Indus basin — a resource relied on by hundreds of millions. The Indus cuts through ultra-sensitive demarcation lines between India and Pakistan in contested, Muslim-majority Kashmir — a Himalayan territory both countries claim in full.

Indian water minister says working to ensure ‘not a single drop of water’ flows downstream

India in May 2025 suspended its IWT membership after accusing Islamabad of backing a deadly attack on tourists on the Indian side of Kashmir—charges Pakistan denied. The nuclear-armed neighbours fought a four-day conflict—with intense drone, missile and artillery exchanges, killing nearly 70 people on both sides.

The issue of water has remained a bitter point of contention since.

Experts say that India’s existing dams do not have the capacity to block or divert water, and can only regulate timings of when it releases flows.

Cutting flows would have serious implications for Pakistan’s agriculture and overall economy, but any project would take several years before it has an impact. An official in the Indian-held Kashmir said that any work would “not be possible to start before mid-2027”, and would take at least five years to complete.

Pakistan has previously said it would consider any attempt to change the flow of cross-border waterways as an “act of war”, saying the 1960 treaty remained in force as there was no mechanism to unilaterally withdraw from it. It had also urged the UN Security Council to take up the dispute over the IWT, warning that India’s continued unilateral suspension of the treaty carries “grave peace and security, and humanitarian consequences” for South Asia.

Pakistan strikes terrorist hideouts along Afghan border, kills 26 militants: Tarar

ISLAMABAD: Pakistan carried out “precision strikes” along the Pakistan-Afghanistan border targeting terrorist hideouts, killing 26 Fitna al-Khawarij terrorists in response to recent terrorist attacks in the country, Information Minister Attaullah Tarar said on Wednesday.

The statement comes a day after six Federal Constabulary (FC) embraced martyrdom while bravely confronting terrorists belonging to the outlawed Tehreek-e-Taliban Pakistan (TTP) during an operation in the Hassan Khel area on the outskirts of Peshawar.

According to a statement shared on X, Tarar said the operations were conducted in the aftermath of recent attacks, including the assault on a Federal Constabulary post in Khyber-Pakhtunkhwa on June 9, a vehicle-borne suicide attack on a military post in North Waziristan on June 2, and an attack on a police station in Bannu on May 9.

He said, “precise strikes were carried out along Pakistan Afghanistan Border areas on hideouts and safe havens of masterminds and planners belonging to Fitna Al Khawarij, killing twenty six Indian sponsored khawarijs.”

The statement said the action was based on “credible intelligence” and involved the “selective targeting of camps and hideouts… with precision and accuracy.”

It added that four targets were “completely destroyed,” including “a training centre, a hideout, an ammunition cache and Marakiz belonging to Fitna Al Khawarij Commander Aleem Khan Khushali and Commander Akhtar Muhammad Jani Khel.”

Read: Security forces kill 27 terrorists in North Waziristan IBOs: ISPR

The information minister further said Pakistan has “always strived for maintaining peace and stability in the region,” but stressed that “the safety and security of our citizens remains our top priority.”

He added that Pakistan’s “relentless counter-terrorism campaign under vision Azm-e-Istehkam will continue at full pace to wipe out the menace of foreign-sponsored and supported terrorism from the country.”

The statement said the campaign is being carried out by “security forces and law enforcement agencies of Pakistan” under the framework approved by the Federal Apex Committee on the National Action Plan.

Officials said the operation reflects Pakistan’s ongoing response to terrorist threats operating along its western border, though independent verification of the claims was not immediately available.

K-P remains a key focus of the country’s counterterrorism efforts, with security forces regularly conducting IBOs against militants.

Also Read: 4 terrorists killed in DI Khan, Mohmand IBOs

The province witnessed a significant rise in militant violence last year, with more than 500 attacks reported, marking a 50% increase compared to the previous year.

K-P recorded 1,588 terrorism-related incidents, underscoring the growing militant threat across both settled and tribal districts. Despite the increase in attacks, security forces reportedly thwarted 320 major strikes, while 137 police personnel were killed in the line of duty.

The report said joint operations by the K-P Police, the Counter Terrorism Department (CTD) and other security agencies led to the arrest of 1,244 suspected militants, while 420 militants were killed in intelligence-based operations.

Bannu, Dera Ismail Khan, Lakki Marwat, Hangu and Peshawar were among the districts most affected by militant violence, with the report noting a pattern of attacks allegedly planned and launched from across the Afghan border.

The CTD report also recorded a 56% increase in attacks targeting police personnel, rising from 327 in 2024 to 510 in 2025. During the year, security agencies conducted 2,791 search operations and identified 25 foreign militant operatives, while extortion networks operating in Peshawar and other districts were dismantled, according to the report.

Operation Ghazab Lil Haq was launched around the end of February following renewed clashes along the Pakistan-Afghanistan border, after Afghan Taliban forces fired on multiple locations, prompting swift military retaliation by Pakistan.

The neighbouring countries have been engaged in escalating hostilities along the frontier since then. The clashes intensified after Afghanistan launched a border offensive in response to Pakistani air strikes targeting terrorist positions and abated during a temporary ceasefire on the occasion of Eidul Fitr.

Pakistan in April put forth three core demands to the Afghan Taliban during peace talks in Urumqi, China, including Kabul formally declaring the Tehreek-e-Taliban Pakistan a terrorist organisation, dismantling its infrastructure, and providing verifiable proof of the action. These demands form the basis of Pakistan’s negotiating position, which sources say has hardened amid persistent security concerns.

No survivors in Pakistan Army Mi-17 helicopter crash near Muzaffarabad: ISPR

RAWALPINDI: No survivors were reported after an Mi-17 helicopter of Pakistan Army Aviation crashed near Muzaffarabad on Wednesday during take-off “due to a technical fault”, the Inter-Services Public Relations (ISPR) said.

Rescue and recovery teams immediately reached the crash site. “All personnel on board embraced martyrdom. There were no survivors,” the ISPR said in a statement.

“A board of inquiry has been ordered to ascertain the exact technical cause of the accident,” the military’s media affairs wing said.

Chief of Defence Forces (CDF) and Chief of the Army Staff Field Marshal Asim Munir, along with all ranks of the army, expressed “deep grief over the tragic loss of precious lives and extended heartfelt condolences to the bereaved families”, the ISPR said.

Smoke billows after a Pakistan Army Aviation Mi-17 helicopter crashed near Muzaffarabad, Azad Jammu and Kashmir on June 10, 2026. — Reuters

The army’s aviation wing began operating Russian-made Mi-17 transport helicopters in the late 1990s. Mi-17s are considered reliable workhorses of Pakistan Army Aviation.

The helicopter can perform utility, transport and combat roles. It carries a crew of three and has space for up to 24 troops or four tonnes of cargo.

Over the years, the United States has helped Pakistan refurbish and overhaul 22 Mi-17 helicopters.

Condolences

President Asif Ali Zardari and Prime Minister Shehbaz Sharif expressed deep grief and sorrow over the helicopter crash, state-run APP reported.

In separate statements, the president and the prime minister extended their heartfelt sympathies to the families of those martyred in the accident.

“The entire nation pays tribute to the great sacrifice of the martyrs and shares the grief of the bereaved families,” President Zardari said.

Paying tribute to the personnel who embraced martyrdom in the crash, PM Shehbaz said that the entire nation salutes the brave soldiers for their sacrifices.

Both leaders prayed for the elevation of the martyrs’ ranks and for strength and patience for the bereaved families.

Deputy PM Ishaq Dar said he was “deeply saddened by the tragic crash”.

“We salute their service, courage and sacrifice in the line of duty. Our thoughts and prayers are with the bereaved families during this hour of grief,” he said in a post on X.

The deputy PM prayed for the highest ranks of the martyrs and for strength and patience for their loved ones.

Balochistan Chief Minister Sarfraz Bugti also expressed his grief, commending the martyrs as the “pride of the nation who sacrificed their lives for the country’s security and defence”.

Bugti extended his tribute to the martyred personnel and prayed for the bereaved families.

The Senate also offered fateha for those who lost their lives in the incident, with Senator Maulana Attaur Rehman leading the special prayer.

Aurangzeb to unveil FY2026-27 budget on June 12

ISLAMABAD: Finance Minister Muhammad Aurangzeb will present the federal budget for the next fiscal year (FY26–27) in the National Assembly on June 12, an adviser to the minister has confirmed.

Adviser to the Finance Minister Khurram Schehzad shared the revised budget schedule in a post on X.

He added that the Pakistan Economic Survey for the outgoing FY2025–26 would be launched at 2:20pm on Thursday by Aurangzeb.

Budget sessions of the National Assembly and Senate have already been summoned by President Asif Ali Zardari.

The National Economic Council (NEC), the highest economic decision-making forum of the federation, met earlier on Wednesday to finalise federal and provincial development plans ahead of the budget presentation.

Prime Minister Shehbaz Sharif, who chaired the meeting, said the Centre held consultations with the provinces on all matters “with extreme seriousness, and we made decisions in the best interest of Pakistan”.

The NEC finally met after being delayed three times, as negotiations had continued over the freezing of provincial shares in the federal divisible pool under the National Finance Commission (NFC) award.

The budget presentation in the parliament had earlier been set for June 10.

The federal government, its coalition partners and provincial governments had been struggling to reach a consensus over the Centre’s demand for more than Rs1 trillion for strategic needs.

However, the ruling PML-N and its major ally, the PPP, on Monday reached a consensus on the broad framework of the federal budget.

They reached a broad agreement on cutting development and other expenditures at all tiers of the federation to cover around Rs800 billion revenue shortfall this year and jointly create similar, but higher, fiscal space next year for additional “strategic needs”.

Under the agreement, provincial shares from the federal divisible pool would stay frozen at the current fiscal year’s position. Any increase in the targeted revenue next year on top of the Federal Board of Revenue’s (FBR) collection in the current year would be retained by the Centre, informed sources said.

The sources said the additional amount being discussed for next year to be given up by the provinces was not fixed but dynamic, depending on FBR revenue collection, and could range anywhere between Rs1.3tr and Rs1.7tr.

Interestingly, Balochistan and Khyber Pakhtunkhwa were not part of the deal so far.

Under tight International Monetary Fund (IMF) oversight, the government has trimmed allocations for most sectors in the next federal development programme to create additional fiscal space for the PML-N’s trademark national highways, a new Rs87 billion share for coalition partners and a Rs70bn allocation for ruling party lawmakers’ schemes.

Yet, the government has unveiled a record national development programme of Rs4.715tr.

The overall deve­l­opment portfolio comprises the largest share of provincial annual development plans (ADPs) at Rs3.138tr (up 9.6pc), followed by the federal Public Sector Development Programme (PSDP) of Rs1.126tr, up 12.6pc from the current year, and Rs451bn from state-owned enterprises (SOEs), up 27pc from Rs355bn in the current fiscal year.

PM Shehbaz has said that the government was taking measures to bring the informal economy into the tax net.

The government last week unveiled the ‘Fixed Tax Asaan Scheme’ to bring small traders and shopkeepers into the tax net, with an annual turnover of up to Rs200 million.

The government is also considering relaxing the remittance cap in the upcoming budget as overseas Pakistanis in several countries face difficulties in protecting their investments and liquid assets abroad, according to sources in the financial industry.

Dar-led committee extends closing time for grocery stores to 10pm

ISLAMABAD: The committee for monitoring austerity measures and fuel conservation on Wednesday decided to extend the closing time for standalone grocery and kiryana stores by an hour to 10pm.

Pakistan had initially announced austerity measures on March 9 to deal with the impacts of the ongoing war in the Middle East. Last month, Prime Minister Shehbaz Sharif had approved the extension of the austerity measures till June 13.

In a meeting chaired by Deputy Prime Minister (DPM) and Foreign Minister Ishaq Dar, the committee also recommended extending the application of these austerity measures till June 30, according to a statement by the DPM’s office.

The measures include a 50 per cent reduction in fuel allowance for official vehicles, with the exemption of operational vehicles such as ambulances and public buses. Other steps include the grounding 60pc of official vehicles and a complete ban on foreign visits by ministers and government officials, excluding those deemed essential for the country’s interests, as specified the last time.

The Dar-led committee on Wednesday also reviewed several cases by different ministries “seeking exemptions from applicability of certain austerity measures and finalised recommendations accordingly”.

“It was also decided that consular attestation services at the Ministry of Foreign Affairs (Mofa) and its liaison offices in Quetta, Karachi, Peshawar, Gujrat, and Lahore would remain operational on Fridays as well for public facilitation,” the statement read.

This decision comes after previously announced austerity measures reduced the working week for all government offices to four days — Monday to Thursday.

In attendance at the meeting were ministers for petroleum, climate change, and IT & telecom; the special assistant to the prime minister (SAPM) on finance; the special assistant to the DPM; the secretaries of cabinet, commerce, petroleum, and IT & Telecom; as well as senior officials from Mofa and other relevant ministries and divisions.