AGP Executive Report

Finance & Governance: President Asif Ali Zardari has signed the Finance Act 2026-27, formally taking the Rs18trn-plus federal budget into effect from July 1, with a 7% rise in salaries and pensions and new tax/customs measures. Local Government & Karachi: Karachi’s KMC approved Rs750m for a mega solarisation drive, while Sindh’s Sharjeel Memon hit back at Saad Rafique over Punjab’s delayed LG polls, arguing Karachi’s municipal system is constitutionally run. Islamabad & Public Services: Islamabad International Airport launched “Khushaamdeed” premium Meet & Assist service, and the capital kept Muharram 9th processions under tight security with emergency readiness at PIMS. Human Rights & Law: HRCP urged reforms to Pakistan’s anti-torture framework, saying the law still misses psychological torture and needs stronger safeguards. Health Diplomacy: Pakistan pushed at the UN for stronger action on hepatitis C, citing a PM’s programme with $250m for free screening, diagnosis and treatment. Energy & Infrastructure: Pakistan and Türkiye signed three power-sector MoUs in Istanbul, and SIFC approved a 435km white-oil pipeline to cut fuel logistics costs. Security & Accountability: FIA, with HOTA, arrested seven in an organ-smuggling/placenta processing raid in Islamabad’s F-7. Regional Politics: Pakistan’s mediation role in US-Iran peace efforts drew praise from Pakistani-Americans, as US-Iran technical talks are set to resume.

US-Iran Mediation: Deputy PM/Foreign Minister Ishaq Dar says Pakistan is now widely seen as a “peacemaker” after helping bring Washington and Tehran back to talks, as Islamabad also assured Tehran it will keep backing the peace process and Pakistan, China co-hosted a UNSC meeting focused on making resolutions actually stick. Regional Security: EU and UK envoys reiterated Pakistan’s right to self-defense against TTP safe havens in Afghanistan, while Pakistan’s Interior Minister Mohsin Naqvi told Iran it will continue efforts for lasting peace. Domestic Politics (AJK): Defence Minister Khawaja Asif faced PPP pressure after remarks on Kashmiris; JUI-F chief Fazl accepted JAAC’s request to mediate, escalating the AJK political heat. Local Governance: PPP again demanded Islamabad and Lahore hold long-delayed local government polls within 90 days, criticizing the absence of elected grassroots bodies. Security & Religion: Karachi’s 9th Muharram procession is underway with heavy deployment and phone-service suspensions; nationwide processions continue under tightened security. Aviation Incident: DGCA ordered probes after an Air India flight briefly entered Pakistani airspace during an Amritsar go-around, with action against crew/ATC. Crime & Rights: Pakistan saw fresh outrage after child abuse and murder cases in Sargodha and Karachi. Economy/Trade: Punjab defended its budget in the assembly and launched the Parwaz Card for overseas jobs; Commerce minister praised Pakistan’s Rice Festival push in the Netherlands. Diplomacy & Defence: CDF Asim Munir met Libya’s Haftar to expand defence cooperation.

US-Iran Mediation Update: Pakistan says US-Iran technical talks will resume next week, with progress from Switzerland and a 60-day roadmap under the Islamabad MoU, plus working groups on sanctions, nuclear affairs, reconstruction and implementation. Diplomatic Backing: Qatar’s emir and PM Shehbaz exchanged calls praising Islamabad’s role in sustaining momentum after the first technical round. Regional Trade Focus: China’s FM Wang Yi urged early restoration of normal navigation through the Strait of Hormuz, linking it to global supply-chain stability, while Pakistan’s Dar discussed the next steps. Domestic Accountability: Finance Minister Aurangzeb tabled auditor-general reports in the NA, highlighting improved timeliness of audit scrutiny. Public Order & Rights: Lahore High Court ruled no licence is needed for Muharram majalis held inside private homes, while public processions require permission. Economy & Markets: Barclays upgraded Pakistan’s sovereign dollar bonds to “overweight” citing steadier external buffers and improved oil outlook. Human Stories: Police rescued a French woman and her children from alleged 12-year captivity in Khyber Pakhtunkhwa; Karachi saw a child found dead after alleged abduction. Balochistan Justice Row: Anti-terror court sentenced Mahrang Baloch to life, drawing international criticism and calls for release. Pakistan-UN Push: Pakistan sought stronger global action against hepatitis at the UN, citing WHO-linked urgency. Aviation Safety: DGCA probed an Air India go-around that briefly entered Pakistan airspace, with interim action against crew/ATC.

UN Diplomacy Clash: India hit back at Pakistan at an informal UN Security Council meeting, calling Kashmir “strictly internal” and urging review of outdated UN mandates, after Pakistan raised the issue. Iran-US Peace Mediation: Pakistan’s Foreign Office said the Islamabad MoU and Lucerne talks have boosted confidence in dialogue, while technical US-Iran talks are set to resume next week; Pakistan also reiterated it will keep facilitating. Missile Clause Row: Iran’s President Pezeshkian warned “without missiles” Iran would face the fate of Gaza, as PM Shehbaz insisted the US-Iran MoU and Islamabad MoU contain no mention of ballistic missiles and rejected “double standards.” Regional Security Talks: Interior Minister Mohsin Naqvi met Iran’s Eskandar Momeni in Islamabad, agreeing to expand cooperation on security, counterterrorism, cybersecurity and immigration. Domestic Accountability: Auditor General flagged major federal budget irregularities for 2024-25, including supplementary spending not approved by Parliament. Legal/Rights: Lahore High Court restored NADRA authority in CNIC citizenship cases, stressing pre-1979 records; separate reports say activists Mehrang Baloch and others received life sentences. Local Incident: A major fire destroyed dozens of shops at Islamabad’s H-9 Sunday Bazaar.

Iran-US Peace Track: Iranian President Masoud Pezeshkian arrived in Islamabad for high-level talks as Pakistan pushes the US-Iran “Islamabad MoU” toward a final deal within 60 days, with officials stressing the MoU is about ceasefire, nuclear talks and Hormuz access—not Iran’s missile program. Missile Clause Row: PM Shehbaz Sharif told reporters and lawmakers there is “no mention” of ballistic missiles in the MoU, warning “spoilers” are trying to derail the process; Pezeshkian echoed that Iran will never negotiate defense and deterrence capabilities. Diplomatic Theatre in Islamabad: Pezeshkian received a guard of honour at PM House and an aerial escort by PAF jets, while Zardari and Army Chief Asim Munir met him to reaffirm bilateral ties and regional peace. Regional Security at BRICS: BRICS security advisers discussed Afghanistan-Pakistan tensions and broader regional stability, with India and others raising counterterrorism and tech-security themes. Trade & Connectivity: Pakistan and Iran agreed to accelerate agricultural trade, while talks also covered energy and transit cooperation. Domestic/International Noise: India rejected Pakistan’s Indus-water “war” remarks and PoK claims; meanwhile, FIH apologized to Pakistan after a flag display error before the India-Pakistan hockey match. Markets: Gold prices in Pakistan fell sharply, with 24-karat per tola down to Rs432,236.

US-Iran Peace Track via Pakistan: PM Shehbaz praised Qatar’s “critical support” and said the US-Iran MoU signed in Switzerland could become a “long-lasting agreement” within 60 days, with a high-level political oversight committee and further technical talks. Diplomatic Next Steps: DPM/Foreign Minister Ishaq Dar said no tolls or fees will be imposed on ships transiting the Strait of Hormuz during the 60-day period, while warning Israeli strikes in Lebanon are trying to derail the process. Iranian President in Islamabad: Masoud Pezeshkian departed Tehran for a one-day official visit, expected to meet President Asif Ali Zardari, PM Shehbaz, and senior parliament and foreign ministry leadership, with talks focused on trade, energy, border security and connectivity. Security Measures in Islamabad: Red Zone offices moved to work-from-home and bus terminals/Metro Bus and hiking trails were shut ahead of Pezeshkian’s arrival. Courtroom Rights: A Lahore court acquitted a blind Christian man in a blasphemy case, ordering his immediate release. Tax Pressure on State Firms: FBR issued a Rs2.217bn recovery notice to PIA over withheld salary income tax. Balochistan Unrest: Balochistan government offices stayed shut for a fifth day as employees protest. Human Rights Verdict: Rights groups condemned life imprisonment for Baloch activist Mahrang Baloch as “judicial terrorism.” Karachi & Lahore Governance: Karachi’s economic strain and federal-provincial funding tensions drew renewed criticism; in Lahore, PHA’s “Adopt a Park” drive gained momentum with a new MoU for Fatima Jinnah Park.

US-Iran Mediation: Pakistan and Qatar say the Islamabad Memorandum is building a 60-day path to a final US-Iran deal, with a high-level political oversight track and continued technical talks in Switzerland; US VP JD Vance calls it a “very good foundation,” citing progress on Strait of Hormuz navigation and Lebanon deconfliction, while Iran signals IAEA inspectors’ return. Iran-Pakistan Diplomacy: Iran President Masoud Pezeshkian is set for a state visit to Pakistan on Tuesday, with FO confirming talks across top leadership and a focus on trade, energy and regional cooperation. Regional Security Mechanism: Qatar and Pakistan announce a Lebanon deconfliction mechanism tied to US-Iran tracks, reportedly excluding Israel, and raising questions about how it will work amid ongoing hostilities. Gilgit-Baltistan Politics: PPP’s Amjad Hussain is elected Chief Minister unopposed, with PPP and IPP agreeing coalition arrangements and leadership posts. Qatar LNG Blast: A “technical accident” at Ras Laffan killed 13 (including Indians and Pakistanis) and injured dozens; Pakistan’s FO says it is seeking official confirmation while embassy teams coordinate. Domestic Governance: Islamabad Metro Bus routes face partial suspension during Pezeshkian’s visit; Pakistan also moves to end fuel subsidies for targeted groups after oil prices fell.

US–Iran Mediation Update: Qatar and Pakistan say the first high-level round at Switzerland’s Lake Lucerne Summit delivered “encouraging progress,” including a 60-day roadmap to a final deal, a high-level oversight committee, and a mechanism for continued technical talks; Iran’s FM Abbas Araghchi adds that oil/petrochem export tariffs were eased, a blockade lifted, some frozen assets unfrozen, and a reconstruction plan launched, with the “de-confliction cell” for Lebanon flagged as the first real test. Regional Security & Trade Routes: The mediators also report a communication channel to prevent incidents and ensure safe passage for commercial vessels through the Strait of Hormuz. Pakistan–India Water Tensions: Defence Minister Khawaja Asif warns Pakistan will “go to war” if water security is threatened after India suspends the Indus Waters Treaty. Domestic Governance & Economy: Lawmakers discuss easing PTA phone registration costs via installment options, while govt plans to hand over PIA to new owners by end-June. Public Order: Karachi transporters end their strike after talks; Lahore police book an inspector on begging charges; a Karachi motorcyclist is arrested over an obscene act caught on video. Politics in the Regions: PPP nominates Amjad Hussain as Gilgit-Baltistan CM candidate. Human Rights: Pakistan’s missing-person crisis remains a deep, underreported burden for families.

US-Iran Mediation in Switzerland: Prime Minister Shehbaz Sharif and Army Chief Asim Munir met Iran’s delegation in Zurich to press for US implementation of the Islamabad Memorandum, as JD Vance said talks have made “significant progress” at Burgenstock, with Pakistan and Qatar mediating. Regional Backing: Türkiye, Egypt, Pakistan and Saudi Arabia welcomed the MoU in Cairo, urging swift next-stage talks and stressing Gulf and Levant security, while Switzerland’s Ignazio Cassis praised Pakistan’s role. Strait of Hormuz Tensions: Trump renewed threats over Lebanon and warned against closing Hormuz, as Iran reportedly protested and again shut the route, clouding the talks’ scope. Domestic Politics: In Lahore, Punjab budget debate turned into a fight over priorities and allocations, while in Islamabad the TTAP demanded removal of the IT minister over the telecom reorganisation bill. Public Safety & Governance: Sindh formed a panel to scrutinise criminal case challans, and Karachi’s CM ordered action after a car crash injured 11 near DHA. Economy & Trade: Reports say Middle East conflict is already hitting Pakistan’s mango exports, with traders expecting at least a 30% drop.

Islamabad MoU Diplomacy: PM Shehbaz Sharif and Army Chief Asim Munir arrived in Switzerland’s Burgenstock to join high-level talks on implementing the Islamabad Memorandum of Understanding between the US and Iran, with US Vice President JD Vance and Iranian and Qatari delegations also in the mix; Pakistan says it will keep pushing dialogue and stability as technical discussions get underway. India-Pakistan Diplomatic Spat: India’s MEA rejected President Asif Ali Zardari’s remarks over alleged demolition of Muslim religious sites, saying he has “no locus standi” on India’s internal matters and citing Pakistan’s own human-rights record. West Asia Fallout on Pakistan’s Economy: Pakistan’s mango exports are expected to drop by up to 30% as Middle East war-linked demand shocks and shipping costs bite, hitting both export earnings and domestic sales amid inflation. Security Update (KPK): Twin roadside blasts in Bannu killed at least seven and injured three, with police launching an investigation. Counterterrorism (Karachi): Rangers arrested a wanted militant, Javed Ali Khan alias Swati, in Shah Latif Town and handed him to CTD. Domestic Governance: The government moved to review a controversial telecom bill’s right-of-way clauses after backlash over potential access to private property for connectivity projects.

US-Iran Mediation: Pakistan’s PM Shehbaz Sharif and Army Chief Asim Munir are reportedly heading to Switzerland to help steer the US-Iran dialogue, as technical talks are set for Sunday in Burgenstock under the Islamabad MoU with Qatar as co-mediator. Diplomatic Pressure: Iran says it has closed the Strait of Hormuz again, blaming US breach and Israel’s Lebanon attacks, while the US disputes Iran’s claim—raising uncertainty over how fast negotiations can move. Fuel Relief at Home: Pakistan cut petrol by Rs74 and diesel by Rs67 after the US-Iran deal eased oil costs, with jet fuel also reduced, a move likely to lower transport and aviation pressures. Security Update: Twin roadside bombings in Bannu, Khyber Pakhtunkhwa killed at least seven, prompting PM Shehbaz to condemn the attacks and renew anti-terror resolve. Local Politics: PPP and PML-N agreed a power-sharing formula for Gilgit-Baltistan, with PPP set to lead the GB government and PML-N to take key posts. India Tensions: India rejected Zardari’s Kashmir remarks as “no locus standi,” calling them a political attack. Governance & Services: IT ministry clarified a telecom bill won’t allow private land acquisition without due process, while Pakistan moves toward full e-passport transition including home delivery.

US-Iran Diplomacy: Pakistan’s Interior Minister Mohsin Naqvi has flown to Tehran as Islamabad pushes the next phase of US-Iran talks after the Islamabad MoU, while Iran warns Washington over any violations and says Lebanon ceasefire breaches could derail the process. Regional Security: Two remotely detonated roadside bombs in Bannu, Khyber Pakhtunkhwa killed at least seven and wounded three, with President Zardari condemning the attacks and warning “handlers” of terrorism. UN & Middle East: Pakistan’s UN envoy urged the Security Council to act immediately over Gaza’s worsening humanitarian crisis and called for an end to occupation and a sovereign Palestinian state. Saudi-Pak Economic Track: PM Shehbaz and Saudi Crown Prince Mohammed bin Salman agreed to finalise and sign a comprehensive economic package, linking it to the broader regional stability push. Domestic Governance & Law: The Judicial Commission approved key rules for judicial appointments and constitutional bench nomination criteria, while Islamabad Police arrested a suspect in the murder of two women. Economy & Tax: Finance Minister Aurangzeb defended the FY27 budget as pro-growth, and the government plans to bring about 3.5 million shopkeepers into the tax net. Punjab Muharram Security: Punjab set up a digital media cell for round-the-clock monitoring during Muharram, with thousands of majalis/processions under surveillance.

US-Iran Diplomacy via Pakistan: Prime Minister Shehbaz Sharif hailed Saudi Crown Prince MBS for backing the US-Iran “Islamabad Memorandum of Understanding,” stressing vigilance so the next phase of talks isn’t derailed; Pakistan’s National Assembly also passed a resolution praising Islamabad’s mediation role. Fuel Relief: Shehbaz announced a major cut in petrol and diesel prices—petrol down Rs74 to about Rs299/litre and diesel down Rs67 to about Rs311/litre—while transporters welcomed a 15% freight-rate reduction. UN Water & Kashmir Clash: India hit back at Pakistan at the UN Human Rights Council, calling the Indus Waters Treaty outdated and branding Pakistan a “Frankenstein state,” while Pakistan raised alarm at the UNSC over Indus Waters Treaty violations. Middle East Security: Pakistan warned the UN Security Council about worsening Gaza humanitarian conditions and urged unrestricted aid access. Afghan Border Tensions: Afghanistan’s Taliban claimed air strikes on ISIS hideouts inside Pakistan; Islamabad rejected the claims as baseless. Domestic Politics: Rana Sanaullah reiterated the government’s openness to political consultations with the opposition, including discussion of a “Charter of Stability.” Balochistan Health: Balochistan approved overseas treatment for acid-attack victim Dr. Mahnoor Nasar. Economy & Markets: Gold and silver prices in Pakistan plunged sharply, offering relief to buyers.

US-Iran Diplomacy: PM Shehbaz Sharif says the electronically signed “Islamabad MoU” will enter into force immediately, with Iran to instantly reopen the Strait of Hormuz and the US to lift the naval blockade—Pakistan’s mediation is being credited globally, while India’s Congress calls it a setback for Modi’s foreign policy. Fuel Relief: Shehbaz told the National Assembly a “significant” petrol and petroleum price cut is expected after weekly review as oil prices fall on the peace breakthrough. Indus Waters Clash: Pakistan delivered a letter to the UN Security Council warning India’s Chenab-linked projects could divert treaty-governed flows, urging UNSC action and accountability. Passport Overhaul: Interior Minister Mohsin Naqvi approved a full transition to e-passports, with home delivery prep, cashless passport offices from July 1, and online applications moving to the Pak Identity platform. Judicial & Rights: President Zardari okayed top judges’ Russia visit for a legal forum; LHC ordered FIA probe into the killing of 9-year-old Hania in Chakwal. Security & Regional Ties: Taliban claimed airstrikes on ISIS targets in Balochistan and KP; Pakistan and other Muslim states condemned Israeli settler violence in West Bank mosques. Society & Governance: UNICEF held an Islamabad event on child labour surveys; separate reports flag salary disparities across federal institutions. Cricket: South Africa Women U-19 set for a maiden Pakistan tour in July for a five-match T20 series in Karachi.

Islamabad MoU Diplomacy: PM Shehbaz Sharif spoke with Iran’s President Masoud Pezeshkian, saying the “Islamabad Memorandum of Understanding” will help rebuild Iran and strengthen Pakistan-Iran ties as the accord takes effect immediately, with Strait of Hormuz reopening and US naval blockade lifted. International Reactions: Russia’s Putin praised the MoU as a major step toward lasting regional stability, while Trump hailed the deal as proof of US strength and security. Regional Humanitarian Pressure: UN/IOM reporting says over 6 million Afghan returnees have come back from Iran and Pakistan since late Sept 2023, stressing shelter and reintegration needs. Pakistan Economy & Tax Tech: FBR approved fully electronic income tax return filing via IRIS, and SECP backed an investor-friendly stock market app (Asaan Connect) for July. Freelancing Boom: Pakistan’s freelancers crossed $1bn in export earnings in 11 months, with $1.6bn total, highlighting digital services growth. India Tensions: Ishaq Dar warned India is weaponising water by violating the Indus Waters Treaty, and Pakistan extended the airspace ban on Indian flights until July 24. Domestic Courts & Politics: IHC referred KP CM Sohail Afridi’s PTI-related jail-meeting petition to the chief justice; jailed PTI leaders urged a “Charter of Pakistan.” Public Safety: Islamabad court upheld non-bailable arrest warrants for KP CM Afridi; a Sikh caretaker couple was shot dead inside a gurdwara in Mardan.

US-Iran Peace Breakthrough: Pakistan’s mediation culminated in the electronically signed “Islamabad Memorandum of Understanding,” with the interim deal taking immediate effect—Iran to instantly reopen the Strait of Hormuz and the US to immediately lift the naval blockade—while a 60-day clock begins for a final nuclear arrangement. Diplomacy & Regional Reactions: PM Shehbaz hailed Qatar, Saudi Arabia, Türkiye and Egypt for support; President Zardari called it a historic moment and urged hate-free, peace-building public discourse. Energy Relief Watch: Petroleum Minister Ali Parvaiz Malik says PM Shehbaz has directed that falling global oil prices be passed on quickly, with a transparent weekly pricing formula in the works; reports also flag a possible petrol/diesel cut. Trade & Economy: Karachi Port froze a proposed 5% tariff hike for FY2026-27, offering Rs500m+ relief to importers/exporters; PSX climbed back above 181,000 points. Governance & Security: Muharram processions in Islamabad will be digitally monitored via drones with geo-tagging and a Safe City control room. Industry Push: BYD met Finance Minister Aurangzeb to deepen EV localisation; ADB approved a $700m loan to reform Pakistan’s insurance sector. Legal & Rights: Shariat Court upheld women’s inheritance rights as constitutionally protected. Public Safety: Islamabad police reported a domestic shooting case—an alleged man killed his ex-wife and mother-in-law after divorce.