AGP Executive Report

Budget & Parliament: Pakistan’s federal budget for FY27 is now set for June 10 instead of June 5, with the delay blamed on coalition consultations and IMF-linked fiscal steps. Energy Relief: Power Division says June bills will see a net 20 paisa per unit relief after fuel and quarterly tariff adjustments. Electricity Costs: Energy Minister Leghari admits fixed charges in power bills have jumped to about 10% from 3–4%, while subsidies protect low-consumption users. Trade & Tariffs: The US proposes new 10%–12.5% tariffs on imports from 60 economies, including Pakistan, over forced-labour enforcement failures. Elections in GB: Government and PTI trade accusations over alleged restrictions on campaigning ahead of June 7 Gilgit-Baltistan polls. Foreign Policy: Pakistan’s FM Ishaq Dar discusses regional developments with Kuwait, highlighting Pakistan’s mediation on US-Iran talks. Diplomatic Row: Pakistan’s embassy in Japan distances itself from a Kawagoe mosque project after local authorities said it was built without required approvals. Provincial Governance: Sindh cabinet clears Rs11.2bn for Karachi infrastructure and Rs8.8bn for water/drainage; Punjab education authorities order strict summer-camp SOP compliance. Security: President and PM commend intelligence-based counter-terror operations in Balochistan that killed 17 terrorists. Sports: Australia levelled the ODI series 1-1 with a 41-run win over Pakistan in Lahore; Nathan Ellis took 4-33.

Budget & Tax Policy: Pakistan is reportedly weighing a fixed tax scheme for traders plus higher petroleum levies in the next budget, with IMF-linked pressure to lift GST and expand sales-tax coverage on key consumer goods—raising fears of fresh price pressure. Digital Government: Immigration and Passports is pushing QR-code digital payments for passport fees via JazzCash, EasyPaisa and 1LINK, alongside faster data entry to cut manual delays. Islamabad Governance: Islamabad has revised market and business timings under summer austerity—shops close earlier, restaurants run longer, and essential services stay exempt. Accountability: NAB handed KP recovered assets worth over Rs6bn in the first phase of an Upper Kohistan fraud case, with more recoveries expected. Foreign Policy & Palestine: Pakistan joined other Muslim states in strongly condemning Israeli settler incursions into Al-Aqsa and the raising of an Israeli flag, calling it a violation of international law. Regional Diplomacy: Kuwait praised Pakistan’s mediation role in US-Iran engagement, while Pakistan’s delegation is set to attend Russia’s SPIEF economic forum in St Petersburg. Security: ISPR said security forces killed 17 militants in intelligence-based operations across Balochistan after the Quetta train bombing.

Middle East Diplomacy: Pakistan urged an immediate Lebanon ceasefire at the UN Security Council, warning of a fast-growing humanitarian crisis and civilian harm. Islamabad Energy Austerity: Islamabad ordered markets and commercial centres to shut by 8 pm amid fuel/power pressures, with traders criticising early closures. Inflation Watch: Consumer inflation hit 11.7% in May, driven by energy, transport and food costs, while the PSX slid on renewed geopolitical and oil-price fears. Budget/Development Pipeline: APCC recommended a record Rs4.715trn development outlay for 2026-27 and a 4% growth target, but IMF-linked constraints left PSDP utilisation below 53%. Governance & Courts: FCC struck down a 4% extra tax on poultry feed mills as unlawful. Health Regulation: Health ministry approved a track-and-trace system to curb fake medicines, with DRAP oversight and digital verification. Security & Terror: A report said terror attacks rose 27% in May. Digital Crime: NCCIA arrested five cyber fraud suspects impersonating bank officials. Sports & Culture: ICC confirmed Pakistan as host for the 2028 Women’s T20 World Cup (India matches at a neutral venue); Punjab pushed film-industry revival via Film City and Film Funds.

Middle East Diplomacy: Pakistan’s Ishaq Dar spoke by phone with Iran’s Abbas Araghchi, urging Islamabad’s continued mediation to preserve the US-Iran ceasefire amid Israeli Lebanon ceasefire violations and reported Beirut operation plans. EU Engagement: PM Shehbaz Sharif met EU top diplomat Kaja Kallas, pushing trade, climate and security cooperation and highlighting EU support for Pakistan’s Gulf peace efforts. Energy & Economy: Shehbaz told chambers of commerce the budget will back export-led industrial growth; he ordered FBR to clear pending tax refunds by June 15 and directed PRAL’s HQ shift to Karachi. Governance & Courts: President Zardari approved Justice Dr Syed Muhammad Anwar as acting chief justice of the Federal Shariat Court; SJC dismissed PTI’s complaint against the chief election commissioner. Islamabad Business Hours: Islamabad reimposed revised market timings with early 8pm closure under energy conservation. Security/Regional Threats: Pakistan’s envoy for Afghanistan met EU officials on terrorism threats from Afghan territory, including TTP activity. Sports: Pakistan won gold and silver at the Under-17 Asian Beach Wrestling Championship in Vietnam. Weather Alert: PMD forecast rain, dust storms and thunderstorms from June 2-5, with risks of flash floods and hail.

Islamabad Business Hours: Islamabad re-imposes revised operating timings from June 1—markets and malls close by 8pm, while restaurants and grocery outlets run until 10pm; essential services like hospitals, petrol pumps and CNG stay exempt. Gilgit-Baltistan Election Push: PPP chief Bilawal Bhutto arrives in Skardu to kick off the GB election campaign, with rallies lined up across Shigar, Skardu, Chilas, Ghizer and Gilgit. EU Strategic Dialogue: EU top diplomat Kaja Kallas lands in Islamabad for the 8th Pakistan-EU Strategic Dialogue, co-chaired by Ishaq Dar, with meetings planned with President Zardari, PM Shehbaz and the army chief. Karachi Accountability: NAB launches an inquiry into alleged illegal NOCs for Karachi marriage halls and marquees, seeking details from SBCA on violations and any losses. Power Sector Claims: Energy minister Owais Leghari rejects reports of ending subsidies for protected consumers, saying subsidy support continues via a QR-based system. Sports Governance: Pakistan Olympic Association backs a performance-based funding model for federations under the National Sports Policy 2026. Hajj Success: Pakistan’s Hajj 2026 operations win international recognition, including the Labbaitum Excellence Award for the second straight year. Tour Safety: Authorities issue a travel advisory for Babusar Top, warning tourists to avoid non-essential travel due to hazardous snowfall and reduced visibility. Education Disruption: University of Karachi students face exam uncertainty as a teachers’ boycott drags into its fourth week.

US–Pakistan Diplomacy Test: Trump’s push to expand the Abraham Accords is putting Pakistan under fresh pressure to normalize ties with Israel, raising alarm in Islamabad as leaders try to balance Washington’s demands with domestic support for Palestine. Power Sector Reform Row: Energy minister Owais Leghari denied any plan to end electricity subsidies for “protected” consumers, saying the protected count has risen to 21.5 million and subsidies continue via a QR-based system. Karachi Water Crisis: K-Electric’s emergency shutdown at Dhabeji pumping station disrupted Karachi’s water supply after 10 of 21 units were halted, with no clear restoration timeline. Sindh Water Rights: Sharjeel Memon accused IRSA of unjustly cutting Sindh’s water share under “shortage equalisation,” warning it could worsen shortages for Karachi. GB Election Security: Punjab approved deployment of 6,000 police personnel in Gilgit-Baltistan for the June 7 election as PTI alleges pre-poll rigging. FARA Lobbying Debate: Reports cite Pakistan spending about $900,000 monthly on US lobbying, including a $1.2m deal, as scrutiny grows over influence-building. Sports (Pakistan): Arafat Minhas’ five-wicket ODI debut helped Pakistan beat Australia by five wickets; FIFA/AFC also urged Pakistan’s football federation to revise its constitution.

US-Iran Brinkmanship: Washington says it’s “more than capable” of resuming war if Trump’s Iran red lines aren’t met, as diplomacy—reportedly mediated with Pakistan’s role—faces fresh pressure amid Hormuz and strike-related tensions. Hormuz Control: Iran reiterates full authority over the Strait of Hormuz, warning vessels to follow IRGC-authorised routes and threatening action against any interference. Diplomatic Outreach: EU foreign policy chief Kaja Kallas is set to visit Islamabad on June 1 for the 8th EU-Pakistan Strategic Dialogue with Ishaq Dar, plus meetings with President Zardari, PM Shehbaz and the military leadership. Regional Politics: PTI’s Asad Qaiser warns the party is “seriously considering” exiting the system over alleged denial of political space, citing restrictions ahead of the Gilgit-Baltistan campaign. Local Governance & Security: Karachi’s railway land crackdown recovers 2.72 acres worth Rs1.42bn, with 12 arrests tied to an encroachment network. Hajj Operations: Pakistan begins post-Hajj return flights; the first 165 pilgrims land in Islamabad, with repatriation running until June 30. Sports: Arafat Minhas steals the spotlight with a five-wicket ODI debut as Pakistan beat Australia by five wickets in Rawalpindi to lead 1-0.

US-Iran Brinkmanship: The US warned it is “more than capable” of resuming war with Iran as Trump’s Iran deal remains elusive and talks continue amid fresh strikes and counter-strikes. Middle East Diplomacy: Iran’s President Pezeshkian said Tehran is ready for a “dignified framework” to end the war, while Qatar-backed mediation efforts keep momentum. Pakistan-US Israel Question: In Washington, Ishaq Dar and Marco Rubio left a meeting without answering a reporter’s “Will Pakistan recognise Israel?” question, with Dar reiterating Pakistan will not shift on Palestine/ Gaza without an independent Palestinian state. Abraham Accords Line in the Sand: Dar again ruled out any flexibility on joining the Abraham Accords until Palestinian statehood is recognised. Security & Law: Lahore High Court restored Rahat Fateh Ali Khan’s appeal in a property dispute, stressing appeals shouldn’t be denied on technical court-fee grounds. Provincial Governance: Punjab CM Maryam Nawaz ordered high alert during heavy rains, directing WASA monitoring, drainage checks, and safety measures. Economy & Markets: Pakistan’s FX reserves rose to about $22.65bn; gold fell Rs500 per tola to Rs474,862. Hajj Repatriation: Post-Hajj flights begin June 1, with 22 flights on day one bringing 5,237 pilgrims home. Sports: Pakistan face Australia in the first ODI at Rawalpindi; Shaheen Afridi flagged concerns over declining fast-bowling speeds.

US-Iran Mediation: US Secretary of State Marco Rubio met Pakistan’s FM/Deputy PM Ishaq Dar in Washington, praising Islamabad’s “constructive” mediation role as a US-Iran ceasefire extension heads toward Trump’s “final determination,” with Hormuz reopening and nuclear red lines at the center. Regional Security: Iran’s FM Abbas Araghchi held a “very productive” call with Oman on legal management of the Strait of Hormuz and said Pakistan-brokered talks can only move if the US drops its “excessive approach.” Diplomatic Pushback: Iran rejected Trump’s push to expand the Abraham Accords, calling it a foreign-pressured “political show” lacking “ground realities.” Trade Connectivity: Pakistan and Iran operationalised new road routes linking Gwadar, Karachi and Port Qasim to Iranian crossings at Gabd and Taftan, aiming to keep Central Asian trade flowing despite Hormuz disruption. Domestic Relief: Pakistan cut petrol and diesel prices by Rs22 per litre for Eid relief. Security & Economy: Punjab’s labour code update and Pakistan-US cooperation on trade, security and counterterrorism were highlighted alongside reports of Pakistan’s booming freelancing exports.

Budget Countdown: President Asif Ali Zardari has approved summoning National Assembly and Senate budget sessions for June 5, with the NA at 5pm and the Senate at 6pm, as the government finalises FY 2026-27 plans amid IMF-linked fiscal pressure and talks on salary/pension relief. Rights & Law: The Lahore High Court ruled FIA cannot stop citizens from foreign travel on mere suspicion or vague reasons, ordering written justification for offloading passengers. Diplomacy: Deputy PM and Foreign Minister Ishaq Dar arrived in Washington to meet US Secretary of State Marco Rubio, after New York talks with China’s Wang Yi that reaffirmed Pakistan’s mediation role on US-Iran issues and broader UN reform coordination. Regional Security: Pakistan’s Army troops at Siachen sent Eidul Azha greetings while staying on high alert; ISPR also highlighted Pakistan’s UN peacekeeping contributions. Labour Reform (Punjab): Punjab notified the Labour Code 2026, extending protections to gig and app-based workers and tightening rules against forced and child labour. Energy Watch: Petrol and diesel prices may fall following global oil drops, with the final decision expected in the next pricing review.

US-Iran Mediation: Pakistan’s role in the US-Iran ceasefire talks stays in focus as Washington and Tehran trade accusations over violations, while Ishaq Dar is set to meet US Secretary of State Marco Rubio in Washington to review regional and global developments and push peace through dialogue. Pakistan-China Diplomacy: In New York, Dar met China’s Wang Yi, with Beijing praising Pakistan’s constructive mediation and both sides reaffirming peaceful coexistence and multilateral cooperation. Defence Cooperation: China also reiterated deeper military coordination with Pakistan, highlighting joint exercises and training as ties move beyond infrastructure. Eid & National Security: On Youm-e-Takbeer, Pakistan’s political and military leadership renewed pledges on nuclear deterrence and sovereignty, while Punjab police enforced Eid restrictions including Section 144 and crackdowns on illegal sacrificial hide collection. Provincial Politics: Punjab CM Maryam Nawaz underwent major surgery in Lahore and was discharged to recover at home, with governance continuing during treatment. Internal Security Crackdown: NCCIA Punjab arrested 11 people for alleged anti-state propaganda and inciting unrest online. Sports Administration: Pakistan’s U20 football team was left out of AFC U20 Asian Cup qualifiers due to funding gaps, drawing criticism over planning.

Youm-e-Takbeer: Pakistan’s top civil-military leadership marked the 28th anniversary of the May 28, 1998 nuclear tests, with PM Shehbaz Sharif, President Asif Zardari and ISPR stressing deterrence, unity and sovereignty, while the armed forces vowed to defend against internal and external threats. US-Iran Tensions: Fresh US strikes hit Iranian military sites near the Strait of Hormuz after drones were shot down; Trump again said Iran is “negotiating on fumes,” as Kuwait reported air defences intercepting missiles and drones. Diplomacy & Mediation: Pakistan’s role in US-Iran talks remains central, with Malaysia’s PM Anwar Ibrahim praising Pakistan’s mediation and discussing progress on reopening Hormuz; meanwhile, US officials and lawmakers keep debating whether Islamabad should be a mediator. Security Flashpoints: In Balochistan’s Harnai district, armed men reportedly killed five after checking CNICs; in India’s Uttar Pradesh, ATS/STF claimed arrests of a Pakistan-linked sleeper-cell network using digital platforms. Cricket: Cricket West Indies released the schedule for Pakistan’s two-Test Caribbean tour (July 25–29 and Aug 2–6) plus wider home-series fixtures. Eid & Governance: Eid-ul-Azha celebrations featured leadership prayers and nationwide cleanliness/security planning, while Karachi faced Eid waste and water-supply strain reports.

Iran-US Mediation: PM Shehbaz Sharif exchanged Eidul Azha calls with Iranian President Masoud Pezeshkian, with both sides stressing regional peace and crediting Field Marshal Asim Munir’s role as talks continue toward a possible framework. US Pressure/Abraham Accords: Trump escalated demands that Muslim-majority states—including Pakistan—join the Abraham Accords as part of any Iran deal; Pakistan rejected the idea, and the debate is now spilling into passport and diplomatic logistics. China-Pakistan Pivot: Xi Jinping urged faster “shared future” cooperation with Pakistan during Sharif’s Beijing visit, while China’s FM Wang Yi backed Pakistan’s mediation and called for a breakthrough in US-Iran negotiations. Regional Security: India’s Amit Shah ordered demolition of illegal structures within 15 km of the Pakistan border, citing infiltration and trans-border crime concerns. Islamabad Civic Issues: Eid al-Adha sanitation complaints hit Islamabad, with animal waste piling up in sectors like G-6 amid delayed cleanup. Human Rights: A Christian family in Punjab says nearly two years after a 2024 mob lynching they still seek justice and compensation. Economy/Prices: Oil markets dipped on hopes of US-Iran understanding, reviving talk of petrol staying near or below Rs400—though officials remain cautious.

UN Clash Over Terror: India escalated its UNSC attack on Pakistan, insisting it has “every right” to defend itself and warning Islamabad of “consequences” for cross-border terrorism sponsorship. Pakistan Diplomacy: In New York, FM Ishaq Dar met UN chief António Guterres, who praised Pakistan’s engagement; Dar stressed continued dialogue to restore peace after Pakistan-brokered ceasefire efforts. China Backs Mediation: China’s Wang Yi backed Pakistan’s “active mediation” between the US and Iran, urging negotiations and ceasefire commitments. Eidul Azha National Mood: Eid prayers were held nationwide with security tightened in Sindh; President Zardari, PM Shehbaz and the military leadership urged unity, sacrifice and compassion, while Karachi set up 105 Eid waste collection centres. US Pressure on Israel: US Senator Lindsey Graham renewed criticism of Pakistan’s mediator role and pressed Islamabad to answer Trump’s Abraham Accords push. Local Governance: Lahore’s heritage road-name restoration was reportedly deferred after backlash, showing how extremist pressure can stall policy.

Abraham Accords Clash: Pakistan’s Defence Minister Khawaja Asif says Islamabad will not join any deal normalising ties with Israel, rejecting Trump’s push to “immediately” sign on as part of Iran peace talks. UN Mediation Spotlight: Deputy PM/Foreign Minister Ishaq Dar arrived in New York for a UN Security Council debate, urging a diplomatic end to the US-Iran war and warning that prolonged conflict threatens regional peace. China-Pakistan Reset: In Beijing, PM Shehbaz Sharif and China agreed to “unswervingly safeguard” ties and deepen cooperation across defence, security, economy and CPEC, with China reiterating Kashmir should be resolved peacefully. India Pushback: India hit back hard, calling J&K references in the China-Pakistan statement “unwarranted” and opposing CPEC projects in areas it claims as sovereign. Regional Heat & Risk: Sindh braces for an intense Eid heatwave, while NDMA warns rising temperatures are accelerating glacier melt and boosting landslide/flash-flood risks. Security & Society: A 4.7 quake shook parts of Islamabad and Punjab; meanwhile, Karachi’s airport stepped up Ebola screening.

Abraham Accords Standoff: Defence Minister Khawaja Asif says Pakistan will not join Trump’s push to expand the Abraham Accords, calling it a clash with “fundamental ideologies” and warning, “How will you sit with those people whose word cannot be trusted,” while pointing to Pakistan’s passport policy that does not even list Israel. China-CPEC Boost: In Beijing, PM Shehbaz Sharif marked 75 years of ties, calling China a “global economic model,” and secured fresh consensus with Beijing to upgrade CPEC 2.0, revamp the corridor and strengthen road/port links, including Gwadar, with “targeted steps” to protect Chinese workers and investments. Iran Talks Under Strain: The wider backdrop remains US-Iran diplomacy amid fresh US “self-defence” strikes near the Strait of Hormuz, keeping markets jittery. Hajj Oversight: Interior Minister Mohsin Naqvi inspected Mina facilities, meeting pilgrims including a 100-year-old, and praised Saudi support. Sports & Cricket: Pakistan women arrived in Dublin for a T20 tri-series ahead of major World Cup preparations; Australia’s Mitchell Marsh is a doubt for the ODI series due to injury/fatigue.