AGP Executive Report

US-Iran Peace Breakthrough: Pakistan’s PM Shehbaz Sharif says the US and Iran have agreed on the “final, agreed-upon text” of a peace deal, with Islamabad now coordinating next steps as Iran’s FM Abbas Araghchi says the “Islamabad Memorandum of Understanding has never been closer,” while Trump disputes some reported details. Budget 2026-27 Relief vs Squeeze: Finance Minister Muhammad Aurangzeb presented a Rs18.77tr budget, boosting defence spending by about 18% to Rs3tr and trimming development, while targeting higher tax collection under IMF pressure. Worker Support: The government raised the minimum wage by 10% to Rs40,700 and abolished the salaried class surcharge. Fuel Update: Petrol cut to Rs373.78 per litre and HSD to Rs378.78 in the new pricing revision. Digital Tax Push: Budget proposals include taxing social media income via bank withholding, bringing creators into a tighter tax net. Trade & Industry: KGTL dredging completion at Karachi Port boosts channel depth for larger ships, and Pakistan, Indonesia and Romania are moving toward a trilateral trade push.

Budget 2026-27 in Focus: Pakistan is set to unveil a “growth and relief” federal budget today, with tax revenue targeted at Rs15.267tr, debt servicing at Rs7.824tr, defence around Rs3tr, and a petroleum levy of Rs1.727tr, while exports are pegged at $32.8bn and imports at $70bn. PIA Privatisation: President Asif Ali Zardari has approved the PIA Conversion (Repeal) Bill 2026, clearing legal steps for privatising the national carrier after Senate and NA nods. Digital Economy Watch: Smartphone usage hit 71.6% in FY26, broadband users reached 161m, and ICT exports rose to $3.38bn (July–March), but Easypaisa admitted intermittent service disruptions affecting users nationwide. Human Development & Poverty: Economic Survey data shows poverty jumped to 28.9% and education spending fell to 0.8% of GDP, while Pakistan still lags South Asia on key health indicators. Indus Water Tensions: Pakistan warned India that blocking Indus waters would be treated as an “act of war,” after Indian remarks about stopping “not a single drop.” Security & Kashmir: PoK civilian killings and crackdown drew fresh criticism from human rights voices amid reports of internet shutdowns. Sports & Defence: Pakistan Army’s PMA team won the International Pace Sticking Competition 2026 at Sandhurst, sweeping top honours.

Economic Survey & Growth: Finance Minister Muhammad Aurangzeb unveiled Pakistan’s Economic Survey 2025-26, saying the economy grew 3.7% in FY26 to a record $452.1bn, with per capita income up 9% to $1,901; remittances are expected to cross $41bn and foreign exchange reserves stand above $17bn. Poverty & Jobs: The same survey flags poverty rising to 28.9% and unemployment at 5.9 million, with rural poverty far higher than urban. Railways Reform: PM Shehbaz approved a strategic roadmap to overhaul Pakistan Railways, focusing on digitisation, track upgrades, better passenger facilities, financial sustainability and private-sector participation. Markets: PSX closed slightly higher after a volatile session, while SECP said the stock market delivered strong performance with KSE-100 up 18.4% and improved liquidity. Security & Tragedy: A Pakistan Army Mi-17 helicopter crash near Muzaffarabad in AJK killed all on board; funerals held for the 22 soldiers. Regional Tensions: Pakistan warned India that blocking Indus waters would be treated as an “act of war,” as Middle East and Afghanistan-Pakistan tensions continue. Health Alert: Pakistan reported its first rabies death of 2026 linked to a mongoose bite, urging immediate treatment after any animal bite. Weather: PMD forecasts intermittent rain, thunderstorms and hail in parts of Pakistan, with urban flooding risk in major cities including Lahore.

Health Reform: Federal Health Minister Mustafa Kamal says premarital thalassemia testing will be made mandatory and Pakistan’s first genetic policy will be introduced within a month, with screening centres being set up nationwide. Water Tensions: Pakistan’s Foreign Office warned India that any attempt to block water vital to Pakistan could have “far-reaching consequences” and be treated seriously under international law, after Indian remarks on stopping water flows. Afghanistan Cross-Border Strikes: Pakistan launched fresh airstrikes in eastern Afghanistan, with Kabul alleging civilian deaths (including children) while Islamabad says it targeted militant hideouts and killed 26. Diplomacy & UN: Pakistan urged dialogue among civilizations at the UN, while also pushing for a negotiated settlement amid US-Iran escalation. Economy & Markets: Economic Survey 2025-26 is set to be released as reports say GDP growth and per-capita income missed targets; PSX saw sharp swings amid Iran-US worries. Power Sector Data: Pakistan established its first public sector Data Governance Council for the power sector to unify data and improve planning. Lahore Weather: Strong winds and rain are expected in Lahore and other parts of Punjab until June 13. Sports: Pakistan ended a 74-year football title drought, beating Afghanistan 2-0 in the Diamond Jubilee final; PM Shehbaz and Tarar congratulated the team.

Kashmir Crackdown: Pakistan-administered Kashmir saw deadly clashes after authorities banned JAAC, with at least 11 killed in Rawalakot and a wider shutdown including internet blackouts, while sedition cases and a ₹10 million reward were announced for JAAC leaders. Tragedy in the Skies: A Pakistan Army Mi-17 helicopter crashed near Muzaffarabad shortly after take-off due to a technical fault, with all personnel on board killed; a board of inquiry has been ordered. Afghanistan Tensions: Pakistan renewed airstrikes on Afghanistan’s Khost, Kunar and Paktika, with Afghan officials alleging civilian deaths including 11 children, while Pakistan says it targeted militant hideouts and killed 26. Economy Watch: Pakistan’s Economic Survey 2025-26 is set for release Thursday, showing growth below target (3.7% vs 4.2%), inflation pressure (11.66% in May), and weak agriculture, industry and exports despite strong remittances. Budget Countdown: The federal budget for FY2026-27 will be presented in parliament on June 12 after NEC finalised development plans with provinces. Digital Payments: SBP launched a nationwide feedback survey on digital payment services, open until July 10. Travel & Services: Pakistan approved doorstep passport delivery nationwide, with cashless passport offices planned within 15 days. Weather Alert: PMD forecasts dust storms, rain, thunderstorms and hail from June 11-13, warning of flooding and landslide risks in vulnerable areas. Sports: Sahibzada Farhan captains Pakistan at Asian Games 2026, and Pakistan beat Afghanistan 2-0 to win the Diamond Jubilee football title.

Afghanistan-Pakistan Clash: Taliban officials say Pakistan carried out airstrikes in Khost, Kunar and Paktika, killing at least 13 civilians including 11 children, and injuring 14; Pakistan hasn’t commented, as Kabul accuses Islamabad of bombing homes and violating sovereignty. Border Security: A day earlier, militants attacked a Federal Constabulary post in Hasan Khel near Peshawar; six personnel were killed, and security forces repelled the assault, killing eight attackers. UN Tensions: India hit Pakistan at the UN Security Council over the Afghanistan strikes, calling them “trade and transit terrorism” and “dressing up a massacre,” while Pakistan urged restraint and diplomacy amid US-Iran escalation. PoK Unrest: After Pakistan banned JAAC, protests turned violent in Rawalakot and other areas, with reports of at least 11 killed and widespread shutdowns. Cricket (Lahore): PCB is set to reshuffle Pakistan’s Test setup after the Bangladesh series loss, with Mohsin Naqvi to review performance; meanwhile Sahibzada Farhan has been named captain for Asian Games 2026. Economy & Services: Pakistan extended small grocery store hours to 10pm and PTA launched easy USSD codes to check/cancel mobile value-added services; SBP reported May remittances at $4.251bn.

Kashmir Crackdown: Pakistan-administered Kashmir saw markets shut and transport halted after clashes tied to a banned JAAC alliance, with authorities registering sedition cases and announcing bounties for leaders; India also renewed calls for international accountability over alleged police brutality. Cricket Pitch Probe: The ICC rated Lahore’s Gaddafi Stadium pitch “unsatisfactory” (and Lord’s too), issuing demerit points and giving boards 14 days to appeal. Privatization Push: The federal government approved rightsizing and privatization, with PMDC included in the first phase and the Geological Survey of Pakistan set for a more commercial, tech-driven overhaul. Visa & Asylum Concern: FIA said about 10,000 Pakistanis who went to the UK on student visas later sought asylum, warning of misuse and illegal migration routes. Economy Watch: PSX rebounded, with KSE-100 gaining over 1,300 points to close above 170,000; meanwhile, Pakistan’s debt rose to Rs81.93trn in April. Lahore & Culture: Pakistan Post will issue Blue Pottery commemorative stamps for World Handicrafts Day, and the Ruet-e-Hilal Committee will meet at Badshahi Mosque to confirm Muharram moon sighting. Regional Defence: Pakistan and Bahrain discussed expanding military cooperation, including training and advanced defence collaboration.

UN Showdown: India hit back at Pakistan at the UN Security Council over Islamabad’s “Fitna al-Hindustan” label, calling it “officially sponsored misinformation” and an “organised factory of hate,” while Pakistan urged the Taliban to take “verifiable and non-reversible” action against Afghan-based terrorists. Regional Defence Talks: Pakistan’s Field Marshal Asim Munir met Lebanese Army chief General Rodolphe Haykal at GHQ in Rawalpindi, with both sides agreeing to expand defence cooperation and discuss the evolving regional security environment. PoK Violence: Clashes in Pakistan-administered Kashmir ahead of a JAAC shutdown left at least 11 dead and 70+ injured, after protests erupted in Rawalakot following a ban on the group. Markets & Economy: The PSX rebounded strongly, reclaiming the 170,000-point level as oil prices eased and budget optimism grew; Punjab also approved buying 1 million metric tonnes of wheat from PASSCO to stabilise flour prices. Budget Watch: Pakistan said the FY27 budget presentation is likely in the coming days, with a fresh delay after rescheduling.

US-Iran Mediation: PM Shehbaz Sharif says the “final objective” in US-Iran peace talks is “just about to be achieved,” urging restraint as regional tensions flare. Counterterror Ops: Pakistan security forces killed 27 terrorists in North Waziristan in intelligence-based operations, with further clearance underway. Gilgit-Baltistan Politics: PPP leads the GB election race amid controversy; PTI rejects results, alleging rigging and promising a white paper. Azad Kashmir Flashpoint: In Pakistan-administered Kashmir, clashes ahead of a JAAC protest left 11 dead and 70+ injured as police tried to disperse protesters; Pakistan also rejected UK remarks on AJK and warned against interference. Budget & Economy: Talks continue on shifting the 2026-27 budget presentation date; PPP signals support for the federal budget, while auto and consumer sectors brace for new levies and sales tax enforcement. Markets & Prices: KSE-100 plunged over 1,500 points on Middle East uncertainty; OGRA debunks viral LPG cylinder “expiry code” claims. Sports & Lahore Interest: PFF plans to revive domestic football via District Football Championship; Shaheen Afridi’s Test future faces doubts as selectors restructure red-ball squads.

Gilgit-Baltistan Elections: Unofficial results after Sunday voting show the PPP leading with nine seats (with counting still underway), while PML-N and independents trail; both PPP and PTI have raised concerns over delays and election irregularities. Middle East Tensions: Pakistan’s interior minister Mohsin Naqvi is in Tehran to push US-Iran de-escalation talks as the US says it shot down two more Iranian drones near the Strait of Hormuz, keeping oil prices and market sentiment jittery. Markets: The PSX opened lower on Monday as selling pressure hit the KSE-100 amid the Middle East flare-up and pre-budget uncertainty. Security & Protests in PoK: Clashes in Pakistan-administered Kashmir linked to the banned JAAC left seven dead and dozens wounded, with more arrests reported. Lahore Weather: NDMA warns of heatwave risks across Pakistan, with rain and thunderstorms expected in Lahore and parts of Punjab on June 11–12. Muharram Security: Punjab has requested Army and Rangers deployment for Muharram, with 137 companies planned across 39 districts. Sports: Hasan Ali set a T20 world record for fastest to 350 wickets; Australia’s Bangladesh tour squad changes also reported.

US-Iran Escalation & Pakistan Mediation: The Middle East war hit its 100th day as the US said it shot down two Iranian drones over the Strait of Hormuz. Amid the standoff, Pakistan’s Interior Minister Mohsin Naqvi is in Tehran carrying a “special letter” from Army Chief Asim Munir and PM Shehbaz Sharif to Iran’s Supreme Leader, as Islamabad pushes for de-escalation. AJK Politics & Protests: Pakistan-administered Kashmir’s top court ruled refugee seats in the Azad Jammu and Kashmir Assembly are constitutionally protected, clearing the way for elections. The ruling comes as authorities crack down on the JAAC, which says it will still hold a June 9 long march. Sindh Water Crisis: Indus water overdrawn by Punjab has triggered acute shortages in Sindh, with farmers hit hard in canals like Dadu, deepening political friction between PML-N and PPP. Gilgit-Baltistan Polls: Unofficial results from the Gilgit-Baltistan Assembly elections show PPP leading with four seats, including wins in Nagar-1, Skardu-1, Skardu-3 and Skardu-4. Security in KP: ISPR said 27 “India-backed” terrorists were killed in North Waziristan’s Miran Shah during operations. Sports & Local Interest: Pakistan beat Afghanistan 2-0 in the Maldives tournament to reach the final; PCB is also reportedly considering changes after Bangladesh’s drubbing.

US-Iran Mediation: Interior Minister Mohsin Naqvi has arrived in Tehran for talks aimed at de-escalation, carrying messages from PM Shehbaz Sharif and Army chief Asim Munir to Iran’s Supreme Leader, as Washington and Tehran trade fresh strikes and accuse each other of breaking the April 8 ceasefire. Food Safety Push: President Zardari and PM Shehbaz urged stronger food safety across Pakistan on World Food Safety Day, calling for better inspections, labs, surveillance and hygiene to cut foodborne illness. Gilgit-Baltistan Polls: Voting is underway for 24 assembly seats with tight security; PPP and PML-N are the main rivals, while PTI alleges pre-poll rigging and extra forces from outside the region. Heatwave Alert: PMD warns heatwave conditions from June 7-12, with Karachi expected around 40–43°C and some areas hitting 48–51°C. Hajj Repatriation: Over 34,000 Pakistani pilgrims have returned home so far, with 84,791 still in Saudi Arabia as post-Hajj operations continue until June 30. NAB Action: NAB has frozen Bahria Town-linked foreign accounts worth $4.5m in Mauritius. Local Security: Supporters of a banned group were arrested in Pakistan-administered Kashmir ahead of a planned protest. Economy Watch: Gold prices fell sharply in Pakistan, while SECP concluded enforcement proceedings against 36 state-owned enterprises with penalties.

Kashmir Crackdown: Pakistan-administered Kashmir authorities arrested dozens of supporters of the banned JAAC ahead of a Tuesday protest, after the AJK government outlawed the group citing security concerns; JAAC says it won’t back down until all demands are met, including reserved seats for Kashmiri refugees. UN Kashmir Row: Pakistan told the UN General Assembly that Jammu and Kashmir is an internationally recognised dispute and “never was, neither is, and nor will ever be” integral to India, as India and Pakistan traded sharp remarks. Iran-US Mediation Push: Interior Minister Mohsin Naqvi arrived in Tehran for talks with Iranian officials, carrying messages linked to Field Marshal Asim Munir and Pakistan’s role in reviving US-Iran dialogue; Lebanon’s army chief Rudolf Haykal also headed to Pakistan amid the same mediation efforts. Security Update: Two suspected TTP militants were killed in a CTD operation in Koh-e-Suleman, while Pakistan’s security situation is also being flagged as worsening in a broader militant cycle. Business & Ports: Pakistan signed an MoU with Saudi and local partners for a 140-acre Karachi waterfront maritime business district at KPT. Local Watch: A viral “Made in Pakistan” bedsheet claim in Pune triggered a police probe. Sports: Pakistan won bronze in the U18 Hockey Asia Cup with a 3-0 win over Malaysia.

Kashmir at UN: India hit back at Pakistan at the UN Security Council/UNGA, calling Islamabad’s Kashmir remarks “biased and false narratives” and warning UNSC membership is a “huge responsibility,” while Pakistan rejected the criticism and reiterated Kashmir as an internationally recognised dispute. Gilgit-Baltistan Elections: Pakistan also dismissed India’s objections to GB polls as baseless, as New Delhi protested the planned elections. SCO Security Pacts: Interior Minister Mohsin Naqvi signed agreements with Russia at the SCO meeting in Bishkek to curb illegal immigration and drug trafficking, and discussed Afghanistan-linked security concerns with regional counterparts. Tax for Small Retailers: Govt launched a fixed tax scheme for small shopkeepers (1% of turnover, with exemptions from POS and routine audits), aiming to bring millions of informal retailers into the tax net. Lahore Heatwave: Lahore faces intensifying heat with mercury expected to climb to around 42°C in coming days. Sports Spotlight: Wrestler Ayesha Baloch won gold for Pakistan at Asian Games 2026; meanwhile, Pakistan’s U18 hockey campaign ended after a 5-3 loss to India in the Asia Cup semi-final. FIA-FATF Steps: FIA decided to set up FATF desks nationwide to track implementation ahead of Pakistan’s mutual evaluation.

Fuel Relief: Pakistan cut petrol by Rs4 to Rs377.78 per litre while keeping high-speed diesel unchanged at Rs380.78 for the next fortnight. HEC Rules: The Higher Education Commission tightened recognition of foreign degrees, warning that unapproved online/blended study modes won’t be recognized after Spring 2026. GB Poll Row: Pakistan rejected India’s “baseless” protest over Gilgit-Baltistan elections set for June 7, reiterating Kashmir’s UN resolution-based dispute. Weather Watch: NDMA issued alerts for thunderstorms, heavy rain, hail and landslide/flash-flood risks across Punjab, KP, GB and AJK. Economy Signals: SBP-held foreign exchange reserves rose to $17.19bn, a modest weekly gain, while overall liquid reserves stayed near $22.64bn. Security & Diplomacy: Interior Minister Mohsin Naqvi urged SCO members to coordinate against terrorism, cybercrime and terror financing. Sports (Lahore): Pakistan beat Australia in the ODI decider to clinch the series 2-1, with spin-friendly pitches drawing debate.

ODI Spotlight (Lahore): Pakistan wrapped up a 2-1 ODI series win over Australia with a four-wicket chase in the decider at Gaddafi Stadium, bowling out the visitors for 157 as Shaheen Afridi struck 3-30 and Babar Azam anchored the run chase. Civic Space Under Pressure: A report says Pakistan’s silence around dissent is tightening, with protests, media and online criticism facing growing legal and security pressure. Tax Tech Push: PM Shehbaz ordered a pilot launch of an AI-driven automated tax collection system in Islamabad to cut manual work and reduce discretion at the FBR. Pakistan-Iran Security: Interior ministers Mohsin Naqvi and Eskandar Momeni met in Tajikistan and agreed to boost border security and internal safety coordination. Water Tensions: Pakistan again warned India against Chenab River water infrastructure plans, saying they could breach the Indus Waters Treaty. Markets & Energy: PSX rebounded to close higher, while NEPRA approved June power bill relief of about Re0.80 per unit. Sports Beyond Cricket: Pakistan beat the Maldives 3-0 in football, ending a long international win drought.