AGP Executive Report

Middle East Diplomacy: PM Shehbaz Sharif urged restraint as Iran-Israel tensions roiled again, saying peace talks with the US are nearing a “final objective” and warning of humanitarian fallout if violence continues. Regional Security & Mediation: Pakistan’s interior minister Mohsin Naqvi arrived in Iran amid fresh missile/drone exchanges in the Gulf, while Washington weighs using frozen Iranian assets—raising pressure on the ceasefire track. PoK Flashpoint: In Pakistan-administered Kashmir, clashes around a banned JAAC protest in Rawalakot left at least 11 dead and dozens injured as curbs and shutdown threats spread; Pakistan also rejected UK remarks on AJK, calling them interference. GB Elections Fallout: PPP led Gilgit-Baltistan election results in unofficial counts, but PTI rejected the outcome, alleging rigging and promising a white paper. Budget & Governance: President Zardari and PM Shehbaz met on security, the federal budget and regional issues; PPP signalled support for the 2026-27 budget after talks, while the budget presentation date is reportedly under review. Accountability & Public Policy: NAB vowed tougher anti-fraud steps, including publishing fraudsters’ photos in newspapers; OGRA dismissed LPG “expiry code” viral claims. Trade & Economy: Pakistan and Mauritius explored new trade opportunities as Pakistan’s trade deficit concerns linger, while sugar mills pressed for export approvals citing surplus.

Iran-US Mediation Under Strain: Pakistan’s interior minister Mohsin Naqvi arrived in Tehran as the Gulf crisis deepened, with Iran firing missiles/drones toward Bahrain and Kuwait and the US shooting down more Iranian drones near the Strait of Hormuz; Washington is also weighing ways to use frozen Iranian assets for Gulf war damages, while Israel struck Beirut’s southern suburbs days after a ceasefire. Market Jitters: PSX opened the week lower as Middle East escalation pushed oil prices up, raising worries over Pakistan’s external account and pre-budget uncertainty. Budget Politics: A proposed tax relief package is awaiting IMF approval ahead of FY27, including cuts for salaried taxpayers and Super Tax, while officials also weigh raising GST on items like solar panels and hybrid vehicles. AJK Crackdown and Elections: Clashes in Rawalakot in Pakistan-administered Kashmir left 7 dead as authorities sealed JAAC’s office and banned gatherings; meanwhile, AJK elections are reiterated as scheduled for July 27. GB Vote Dispute: PPP and PTI alleged irregularities in Gilgit-Baltistan election results, Form-45 issuance and withheld counts as unofficial results showed PPP leading. Security Operations: ISPR said 27 militants were killed in North Waziristan operations. Public Health & Food Safety: President and PM urged a safe, resilient food system on World Food Safety Day, while experts pushed for higher taxes on sugary drinks to fund nutrition reforms. Local Governance: Punjab announced an electric bike rental service in Lahore and issued heatwave alerts across the province. Women’s Rights Shock: Celebrities and the public reacted to Quetta’s acid attack on a doctor, now shifted to Karachi for treatment.

Iran-US War & Pakistan Mediation: With the Middle East conflict hitting its 100th day, the US says it shot down two more Iranian drones over the Strait of Hormuz while Iran warns escalation could follow Lebanon strikes; Pakistan’s Interior Minister Mohsin Naqvi is in Tehran delivering a “special letter” from Army Chief Asim Munir and PM Shehbaz to Iran’s Supreme Leader, as Washington weighs tougher steps including possible use of frozen Iranian assets. AJK Politics & Security: In Pakistan-administered Kashmir, the AJK top court protects 12 refugee-reserved seats ahead of elections, even as authorities detain JAAC supporters and ban the group under anti-terror laws; PPP leaders Bilawal Bhutto and others push for dialogue with Islamabad and PM Shehbaz to defuse the crisis. Budget Talks (PPP vs PML-N): PPP raised tax and Sindh development concerns in pre-budget meetings with DPM Ishaq Dar, who assured proposals would be incorporated in the FY2026-27 budget set for June 10. Counterterror Operations (KP): ISPR says security forces killed 27 militants in North Waziristan in intelligence-based operations, recovering weapons and ammunition. Water Crisis (Indus): Reports flag political friction between Punjab and Sindh over Indus water allocations, with acute shortages hitting canals like Dadu and worsening drought conditions. Humanitarian/Refugees: Deportees from Pakistan in Afghanistan say aid is inadequate, calling for housing and longer-term settlement support. Sports & Governance: NCA Lahore schedules red/white-ball camps under Sarfaraz Ahmed and Mike Hesson, while cricket and football updates continue alongside broader governance and public-policy debates.

US-Iran Mediation Push: Pakistan’s Interior Minister Mohsin Naqvi arrived in Tehran for high-level talks, carrying messages from PM Shehbaz Sharif and Field Marshal Asim Munir to Iran’s Supreme Leader, as Islamabad tries to revive a stalled US-Iran understanding amid fresh Gulf flare-ups. Gulf Reconstruction Funding Dispute: Reuters reports the US is weighing redirecting Iranian frozen assets to pay for reconstruction and repairs in Gulf states hit by Iran-linked attacks, a move that could further strain the fragile ceasefire. Hormuz Escalation: US forces shot down additional Iranian drones over the Strait of Hormuz and struck Iranian coastal radar sites, while Iran said the strikes broke the April 8 truce. GB Elections: Polling is underway in Gilgit-Baltistan for 24 seats with tight security; PPP and PML-N are seen as main rivals, while PTI alleges pre-poll rigging and external force deployment. AJK Crackdown: AJK police arrested 72 people linked to the banned JAAC ahead of planned protests, with the AJK government defending the ban under anti-terror laws. Money Laundering Case: FIA Lahore arrested four suspects in separate raids over alleged hawala/hundi and copyright violations, recovering Rs20.4m in cash and foreign currency. Food Safety Drive: President Zardari and PM Shehbaz urged stakeholders to strengthen safe food practices on World Food Safety Day. Karachi Water Crisis: JI staged protests over worsening water shortages, blaming repeated failures at key pumping stations and warning of wider action if relief is not provided.

Kashmir Crackdown: Pakistan-administered Kashmir police arrested dozens of supporters of the banned Jammu Kashmir Joint Awami Action Committee (JAAC) ahead of a planned Tuesday protest, after the AJK government proscribed the group under anti-terrorism laws; JAAC says it will not withdraw its march, while AJK PM Faisal Mumtaz Rathore says dialogue is possible only on unresolved issues. UN Diplomacy: Pakistan told the UN General Assembly that Indian Illegally Occupied Jammu and Kashmir “never was, neither is, and nor will ever be” integral to India, stressing the dispute remains on the UN Security Council agenda. Iran-US Mediation: Interior Minister Mohsin Naqvi arrived in Tehran for talks, meeting Iranian officials and carrying messages from Pakistan’s top leadership as Islamabad pushes new proposals to revive a US-Iran interim understanding amid renewed strikes. Lebanon Security: Lebanon’s army chief Rudolf Haykal left for Pakistan as Israeli strikes killed three Lebanese soldiers, with Pakistan positioned as a key mediator in the wider Iran-US-Lebanon talks. GB Elections: Gilgit-Baltistan votes for the Legislative Assembly on Sunday after a four-month delay; 24 constituencies, 396 candidates, and PTI alleges pre-poll rigging via heavy external security deployment. Karachi Waterfront Deal: Pakistan signed an MoU with Saudi and local partners to develop a 140-acre Karachi Port Trust waterfront maritime business district. Public Safety & Governance: Lahore police booked a contractor after a girl fell into an open manhole; authorities also stepped up monsoon and glacier-melt hazard preparations across Punjab and northern areas. Telecom Compliance: PTA warned citizens against illegal SIM transfers and identity misuse, saying misuse will be traced to registered owners.

Security & Counterterrorism: Pakistan’s security forces killed six terrorists in an intelligence-based operation in Balochistan’s Panjgur, with weapons, ammunition and IEDs recovered. UN Diplomacy (Kashmir): India and Pakistan traded sharp rebuttals at the UN Security Council/GA over Kashmir, with Islamabad rejecting New Delhi’s “baseless” claims and warning the dispute must be resolved through UNSC resolutions. Regional Security Cooperation (SCO): Interior Minister Mohsin Naqvi signed agreements with Russia and met SCO counterparts to boost cooperation against illegal immigration, narcotics trafficking and cyber threats, including focus on Afghanistan-based terrorist camps. Governance & Services (Islamabad): Islamabad’s district administration reviewed ACs and magistrates’ monthly performance, including price control, anti-encroachment and anti-dengue enforcement. Local Administration (NADRA): A NADRA centre in Lakarmar (Attock) is ready but stalled due to a political credit dispute between PML-N and PPP leaders. Economy & Policy: Planning Minister Ahsan Iqbal warned the NFC formula is squeezing federal fiscal space and floated shifting poverty-burden funding to provinces under the 18th Amendment. Public Order (Punjab): Punjab announced tight, approved-only security arrangements for Muharram processions, with permissions, routes and vetting required. Health/Regulation: Pakistan secured observer status at the global medicines regulator forum ICH, aiming to align DRAP with international standards.

Fuel & Cost Relief: Pakistan cut petrol by Rs4 to Rs377.78 per litre while keeping high-speed diesel unchanged at Rs380.78 for the next fortnight, continuing a weekly easing after earlier “Eid gift” reductions. AJK Security & Politics: Azad Jammu and Kashmir banned the Joint Awami Action Committee (JAAC) under the Anti-Terrorism Act, citing “terrorism” and “anarchy,” as the group still plans a June 9 protest amid AJK election preparations. Islamabad Governance: A 138-page reform proposal would create a 27-member elected local assembly for Islamabad with more financial and administrative autonomy, while law-and-order and master planning stay federal. Regional Security (SCO): Interior Minister Mohsin Naqvi urged Shanghai Cooperation Organisation members to coordinate against terrorism, cybercrime and terror financing, warning militants increasingly use AI and digital platforms. GB Elections Diplomatic Clash: Pakistan rejected India’s “baseless” protest over June 7 Gilgit-Baltistan polls, while India again lodged objections over the election and Kashmir claims. Local Governance & Law Enforcement: Lahore tightened entry rules for commercial vehicles, demanding valid driving licences, fitness certificates and proper lights, with checks at city entry points. Public Services Pressure: Karachi’s Qayyumabad saw protests and traffic disruption over a years-long water shortage, with residents alleging diversion of supply to other areas.

Balochistan Security Crackdown: Pakistan launched a large-scale military operation across Mastung, Kalat, Noshki, Kech, Khuzdar and Panjgur, with residents reporting casualties, arbitrary detentions and mobile/communication shutdowns, raising fresh human-rights alarms. Civic Space Under Pressure: A separate report says dissent is being increasingly criminalised—protests fade, journalists and activists face surveillance and arrests, and social media users are targeted for challenging official narratives. Gilgit-Baltistan Polls: Campaigning for June 7 GB elections enters the final stretch, with PPP and PML-N leaders trading claims of rigging and promising development and jobs; Bilawal also renewed calls for GB’s provincial status. Pakistan-Iran Border Talks: Interior ministers agreed to tighten border security and curb illegal cross-border activity after talks in Dushanbe. Tax Tech in Islamabad: PM Shehbaz ordered a pilot of an AI-driven automated tax collection system in the federal capital, aiming to reduce discretion and boost transparency. Water Diplomacy: Pakistan again warned India over Chenab-related water projects, saying any diversion would breach the Indus Waters Treaty. Environment & Health: World Environment Day messages from President and PM stressed climate risks to health, food security and water, while maritime officials warned of an Arabian Sea marine heatwave. Sports: Pakistan beat Australia 3-0 in ODI series decider (2-1 overall) in Lahore and also routed Maldives 3-0 in football, ending a long win drought.

Pak-US Diplomacy: PM Shehbaz Sharif called Pakistan and the United States a “true and special relationship” at the US Embassy’s 250th Independence Day event, highlighting cooperation from counterterrorism to trade and praising Trump’s role in restoring a Pakistan-India ceasefire after the Pahalgam crisis. Regional Mediation: Qatar’s foreign ministerial channel discussed Pakistan’s mediation push to de-escalate US-Iran tensions, urging all sides to respond positively to talks. UN Spotlight: Zimbabwe won a UN Security Council seat with 182 votes, returning after 33 years—an international governance signal for the region’s diplomatic calendar. Cricket & National Mood: Pakistan beat Australia by four wickets in the Lahore ODI decider to clinch the series 2-1, with Shaheen’s 3-30 and Shadab’s finishing role. Security Operations: ISPR reported four terrorists killed in Khyber Pakhtunkhwa intelligence-based operations in Dera Ismail Khan and Mohmand. Tax Reform Drive: PM Shehbaz ordered an AI-driven automated tax system pilot in Islamabad as part of FBR modernization and faceless collections. GB Politics: PPP chief Bilawal urged Gilgit-Baltistan voters to give a clear mandate on June 7 to pass land ownership legislation. Business Pressure: Karachi business groups warned FY27 budget risks hurting exports and urged an export-led approach ahead of the June 10 budget.

Iran-US Tensions: Trump said Iran talks could yield results “over the weekend,” while Tehran insists there’s “no tangible progress,” as Israel-Lebanon move to a ceasefire and Kuwait reports dozens injured after strikes that damaged Kuwait International Airport. Budget & Tax Pressure: MQM-P demands abolishing the petroleum levy and shifting the burden to wealthy groups in its shadow budget ahead of June talks, while the government signals relief for the salaried class and pushes broader tax collection. Energy Policy: Pakistan shares an IMF-linked plan to raise fixed electricity charges for industries moving off-grid, aiming to deter solar migration and recover idle-capacity payments. Islamabad Governance & Courts: Islamabad High Court faces a challenge to MCI’s Rs100 New Blue Area entry fee, and a separate case notes a man booked for entering Parliament House without authorisation. KP Politics: KP CM Sohail Afridi seeks IHC permission to meet PTI founder Imran Khan for budget consultations. Pakistan-China & CPEC 2.0: Chinese envoy calls on PM Shehbaz, urging follow-up on CPEC 2.0 cooperation in agriculture, IT, industries and mines. Minority Rights: Info minister meets Christian delegation, reiterating government commitment to minority rights and legal reforms. International Flashpoint: Japan orders demolition of an illegally built mosque in Kawagoe tied to Pakistan’s ambassador, sparking diplomatic embarrassment. Security & Justice: Lahore High Court upholds death sentences for two men convicted of gang-raping a French tourist in front of her children.

US Tariff Pressure: Washington has proposed new Section 301 tariffs of up to 12.5% on imports from 60 economies, including Pakistan, citing failure to curb forced-labour goods—an accusation trading partners reject. Budget Talks in Focus: In Islamabad, Deputy PM Ishaq Dar and Finance Minister Aurangzeb held pre-budget consultations with PPP leaders; both sides agreed to recommend the FY2026-27 budget be presented on June 10, with PPP pushing back on new taxes amid IMF-linked constraints. Power Sector Lawmaking: A National Assembly panel unanimously recommended two bills to strengthen Pakistan’s power sector regulatory framework, including amendments to generation, transmission and distribution rules. Police Digital Verification: Punjab police will require biometric verification for complainants, accused and witnesses before FIR entry, aiming to curb fake identities and fabricated cases. Education Drive in ICT: A door-to-door survey in Islamabad Capital Territory identified 22,057 out-of-school children under the “No Child Left Behind” push, with multiple education partners involved. Regional Security & Diplomacy: Iran said it will continue self-defence strikes against sites used in attacks on Iran, while regional tallies report thousands of drone and missile strikes on Gulf states since the war began. Property Tax Relief Under Review: The government is considering cutting property transaction taxes sharply for FY2026-27 to revive real estate, though IMF scrutiny looms. Health & Governance: WHO honoured Pakistan’s tobacco control efforts with the World No Tobacco Day award, citing a 15.7% drop in tobacco consumption (2014-2024). Trade/Travel Update: UK visa applications from Pakistan are now fully online via GOV.UK, reducing reliance on agents.

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.