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Lawmakers fear access to such data could be misused Body okays proposed tax rates for salaried class, calls for more relief Finance minister says no room for more concessions this year Panel rejects stricter penalties for filers, non-filers in certain cases Luxury vehicles above 3,000cc to face 41pc levy IT, related services to remain taxed at 4pc; professionals, independent software developers to face 15pc rate ISLAMABAD: A parliamentary committee on Friday questioned the governments claim of providing relief to the middle-income salaried class, while rejecting a proposal to grant tax authorities access to taxpayers bank account data and opposing stricter penalties for taxpayers in certain cases. The National Assembly Standing Committee on Finance and Revenue, chaired by MNA Naveed Qamar, approved higher surcharges for late filing of tax returns as well as the imposition of a special excise duty on imported luxury vehicles. Following extensive deliberations, the committee finalised its recommendations on the matters considered during the meeting and directed the secretariat to incorporate the approved recommendations into the committees report on the Finance Bill, 2026, for presentation before the National Assembly. The Senate committee has already finalised its recommendations and transmitted them to the National Assembly. The committee approved proposals to impose a special excise duty on imported luxury vehicles. It supported the proposal that cars with engine capacity between 2,000cc and 3,000cc would attract a 40pc excise duty, while vehicles above 3,000cc would face a 41pc levy. Salaried class The committee approved the proposed tax rates for salaried individuals amid calls for greater relief for the middle-income group. PPP lawmaker Sharmila Faruqui said the 11pc tax on monthly salaries between Rs100,000 and Rs200,000 was excessive. This is the middle class, and the rate should be reduced, she said, while welcoming the governments overall move to provide relief to salaried taxpayers. She pointed out that Rs600bn had been collected from salaried taxpayers this year, while the relief amounted to only Rs50bn. Ms Faruqui termed the relief insufficient and urged greater concessions for the Shahida Akhtar Ali stressed that the middle class was directly affected by the current tax burden, noting that most complaints received were from salaried individuals. Mr Aurangzeb said the reduction in super tax would also benefit salaried taxpayers, adding that public feedback had been positive. MNA Javed Hanif also criticised the relief measures, saying the middle class had been given very nominal relief. He suggested that super tax should be increased to offset concessions for salaried individuals. PPP MNA Hina Rabbani Khar defended the governments economic direction but questioned whether imposing 18pc sales tax on food items was appropriate in a country like Pakistan. FBR access to bank accounts The committee took up the governments proposal to access taxpayers account data in scheduled banks. Committee members voiced strong reservations, warning of potential misuse. I can say with certainty this data will be misused, remarked PPP lawmaker Sharmila Faruqi. FBR member Hamid Atiq Sarwar told the committee that the data already resided with the State Bank of Pakistan and would only be examined against income tax returns. He added that the move would allow the tax authority to monitor bank transactions. MNA Javed Hanif countered that the matter had already been settled with the State Bank and insisted that the FBR could not directly obtain account-holder data from scheduled banks. Director General Tax Policy Office Dr Najib Memon explained that details would only be sought if a large sum entered an account. Despite FBRs assurance that the amendment would be routed through the State Bank, the committee rejected the proposal and barred the tax authority from acquiring account-holder data directly. FBR officials informed the committee that Rs37tr was currently held in 1.8m accounts, of which only one million were registered with the FBR. It was further pointed out that while transaction details of large companies were already available, the FBR wanted direct access to scheduled banks to expand oversight. The committee also rejected FBR proposals in the Finance Bill, 2026, to tighten penalties for filers and non-filers under the Income Tax Ordinance, 2001, and directed the FBR to redraft the amendments. Members argued that taxpayers facing illness or any other genuine excuse would be unfairly penalised. Imposing fines in such circumstances is unjust, lawmakers observed. Fines and surcharges The committee approved proposals to increase fines for taxpayers failing to comply with audit requirements or concealing taxable assets. It agreed to raise the penalty for not undergoing audit from Rs25,000 to Rs100,000, and for providing false information from Rs25,000 to Rs100,000. The fine for hiding taxable assets was increased from Rs100,000 to Rs500,000. FBR officials clarified that penalties would apply only where concealment was proven, with fines set at either Rs500,000 or 100pc of the tax shortfall. Concealing taxable income is a crime harsher than murder, remarked Director General Tax Policy Office Dr Najeeb Ahmad Memon, prompting laughter from committee members. How can this be harsher than murder? asked lawmaker Javed Hanif Khan. Dr Najeeb explained that literature describes it as a crime against the nation. He added that it was the FBRs responsibility to prove concealment, both administratively and in courts. The committee ultimately approved the proposal to impose a Rs500,000 penalty for hiding taxable income or assets. It also endorsed proposals to impose heavier surcharges on taxpayers filing returns late or making false claims. The committee approved penalties on individuals claiming excess tax credits, requiring them to pay fines equal to the wrongly claimed amount. Tax officials also proposed that taxpayers submitting returns on time should not automatically be included in the Active Taxpayers List. The surcharge for companies filing returns late was raised from Rs25,000 to Rs100,000. For associations of persons, the surcharge was increased from Rs10,000 to Rs50,000, while for individual taxpayers it was raised from Rs1,000 to Rs25,000. Uniform rate on goods, services The committee approved FBR proposals to revise and unify tax rates on goods and services, raising the levy on most sectors to 7pc. Tax officials briefed the committee that payments for goods or services would now attract 7pc tax, up from 6pc. Previously, some sectors were taxed at lower rates while others faced higher rates. We are now standardising the regime, an FBR official explained. Transport, courier, security, hotel, advertising, engineering, warehousing, telecommunications, oil-field and travel services will all be taxed at 7pc. The same rate will apply to services provided by the stock exchange, mercantile exchange, data services, tower infrastructure and car rentals. IT and IT-enabled services will continue to be taxed at 4pc, while professionals such as doctors, lawyers, architects and accountants will face a 15pc rate. Independent software engineers and developers will also be taxed at 15pc. The committee approved the FBRs proposal to implement the revised tax structure. Published in Dawn, June 20th, 2026

Prime Minister Shehbaz Sharif on Thursday told Irans President Dr Masoud Pezeshkian that the recently signed Islamabad Memorandum of Understanding (MoU) between Washington and Tehran would go a long way towards rebuilding Iran. According to the Prime Ministers Office (PMO), the premier made the remarks during a phone call with the Iranian president that lasted over 30 minutes. This was the first contact between the two leaders since the signing of the historic Islamabad MoU today, after the 14-point agreement was reached earlier on Monday. Under the deal, the two sides have agreed on a framework to end the war, reopening of the Strait of Hormuz and a 60-day timeline for further talks. The prime minister congratulated Pezeshkian, the Iranian leadership and the brotherly people of Iran on the signing of the historic peace deal, said the PMO in an official press release. The landmark deal, he said, would not only help restore peace in the region, but also go a long way in rebuilding the Iranian nation and further strengthening Pakistan-Iran ties, across all areas of mutual interest. While lauding Irans decision to sign the peace deal, PM Shehbaz wished the Iranian side success in the next phase of negotiations and assured President Pezeshkian of Pakistans continued support for Iran as a brotherly and neighbouring country in all spheres. He also conveyed his regards to Irans Supreme Leader, Ayatollah Ali Khamenei. According to the PMO, President Pezeshkian thanked PM Shehbaz and Chief of Defence Forces and Chief of the Army Staff Field Marshal Asim Munir for their extremely critical roles in steering the mediation process with great skill and sincerity, which had ensured its success. Pezeshkian said Tehran would always remember Pakistans positive and constructive efforts and its support for Iran during these difficult times, the PMO said. While conveying his best wishes for the people of Pakistan, the Iranian president said Iran was keen to enhance and expand its bilateral ties with Pakistan across all areas of mutual interest, the statement added. Both leaders agreed to visit the capitals of each others countries at the earliest possible opportunity to carry forward the excellent cooperation between the two sides in bilateral as well as regional matters. They also agreed to remain in touch in the coming days. The phone call comes after the two leaders along with US President Donald Trump signed the Islamabad MoU, with PM Shehbaz signing as a mediator. The deal ending more than 100 days of war between the US and Iran has been widely welcomed by the international community, after the conflict sent shockwaves across the globe as energy prices skyrocketed due to the Hormuz crisis. Under the deal, the US will lift its blockade of Iranian ports and Iran will reopen the Strait of Hormuz for international commercial shipping. Washington also committed to immediately waiving oil sanctions crippling Irans economy. And once a final agreement is reached on Irans nuclear ambitions, the US will also facilitate the release of a 300 billion reconstruction fund supported by regional nations, the deal says.

Prime Minister Shehbaz Sharif said early on Thursday that the Islamabad Memorandum of Understanding (MoU) between the United States and Iran had been signed electronically by both sides. The memorandum has been signed by honourable presidents of both the countries and also endorsed by me as the mediator. The signing of this agreement at the highest level of the respective governments demonstrates the commitment of both sides to a diplomatic resolution of the conflict, he said in a post on the social media platform X. He added that the MoU shall enter into force with immediate effect and as a first step, Islamic Republic of Iran will instantly reopen the Strait of Hormuz and the United States of America will immediately lift the naval blockade. US President Donald Trump put his signature to the memorandum of understanding during a candlelit dinner at the Palace of Versailles following a G7 summit, as host French President Emmanuel Macron and other guests applauded, a video posted by a Trump aide showed. Just signed it, Trump told reporters as he emerged from the palace. Meanwhile, Iranian Foreign Ministry spokesman Esmaeil Baqaei, quoted by the state news agency IRNA, said the document was finalised with the signatures of the presidents. Later, the Prime Ministers Office posted on X a video of PM Shehbaz also signing the MoU as a mediator. PM Shehbazs post on X initially stated that Pakistan, with the support of Qatar, would host the official ceremony as scheduled on June 19 in Switzerland, to commemorate this landmark event and commence with the technical level talks. However, this was later removed while Iranian foreign ministry spokesperson Esmaeil Baghaei told IRIBs News Network that, because the two presidents had already digitally signed the agreement, No signing ceremony will be held in Switzerland. The Swiss government said on Thursday that initial talks between the US and Iran were planned at the Buergenstock mountaintop resort. Peace only path to progress In his post on X, PM Shehbaz offered his congratulations to Trump, saying his steadfast commitment to diplomacy and preference for peaceful resolution have once again helped end a conflict that could have led to devastating consequences for the region and beyond. He also commended the dedication and efforts of the US team, including Vice President JD Vance, special envoys Steve Witkoff and Jared Kushner for their invaluable contributions to this achievement. PM Shehbaz also expressed his respect and appreciation for Irans Supreme Leader Ayatollah Mojtaba Khamenei and Iranian President Masoud Pezeshkian for their wisdom, foresight and statesmanship in embracing the cause of peace. I also wish to recognise the efforts of the Iranian negotiating team, including Mohammad Bagher Ghalibaf, Abbas Araghchi and Eskandar Momeni, whose patience, perseverance and commitment to constructive engagement were instrumental in bringing this agreement to fruition, he added. PM Shehbaz also acknowledged the efforts and engagement of Qatar, Saudi Arabia, Turkiye and Egypt. He also made special mention of Chief of Defence Forces (CDF) and Chief of Army Staff Field Marshal Asim Munir, saying his tireless efforts, selfless dedication and instrumental role were critical in facilitating this breakthrough and advancing the cause of peace and regional stability. May this MoU serve as an enduring foundation for greater understanding, mutual respect and shared prosperity for the complete region, he said. Separately, President Asif Ali Zardari warmly welcomed the signing of the MoU, describing it as an historic moment for the region and the world, according to a statement issued by the Presidents Secretariat. In his message, the president said that the conflict which began in February 2026 inflicted immense suffering upon the peoples of the region and caused severe disruption to global energy supplies, trade and economic stability. He expressed hope that such a tragedy would never be repeated and that the nations of the region would now devote their energies to development, prosperity and the well-being of their peoples, the statement said. Zardari paid tribute to PM Shehbaz, Deputy Prime Minister and Foreign Minister Ishaq Dar, CDF Munir and Minister for Interior Mohsin Naqvi for their tireless diplomatic efforts that contributed significantly to bringing the parties to an agreement. He noted that Pakistan had played a principled, balanced and constructive role throughout the crisis, consistently calling for dialogue, restraint and a peaceful resolution of disputes while maintaining engagement with all parties concerned, the statement said. Zardari also appreciated the leadership of Trump, the Iranian supreme leader, the Iranian president and Iranian Foreign Minister Abbas Araghchi for ensuring a diplomatic resolution of the conflict and advancing the cause of peace. He also acknowledged the support of brotherly nations, including Qatar, Saudi Arabia, Trkiye and Egypt, as well as Russia and China, whose efforts and encouragement of dialogue contributed to the pursuit of peace. He called upon all parties to implement the MoU fully and expedite efforts to reach the final agreement within the stipulated timeframe to ensure lasting peace and progress. He expressed the hope that this MoU would serve as the foundation for a durable and comprehensive peace in the region, enabling nations to focus on economic development, energy cooperation and the advancement of their peoples. War brings nothing but destruction and misery. Peace is the only path to progress, the president was quoted as saying. Pakistan will continue to stand in solidarity with all brotherly nations of the region in their collective journey towards peace and prosperity, he said. The deal aims to draw a line under the war launched February 28 by the United States and Israel, prompting Iran to counterattack with missile and drone salvos across the region and effectively shutting down the Strait of Hormuz, a crucial waterway for the world economy. The US responded by blocking shipping to and from Iranian ports. Under the text of the deal, Washington also commits to immediately waive oil sanctions crippling Irans economy. And once a final agreement is reached on the Islamic republics nuclear programme, the US will also facilitate the release of a 300 billion reconstruction fund supported by regional nations, the deal says. Under the deal released by US officials, Iran will dilute its enriched uranium stocks, possibly by down-blending on site under the supervision of the IAEA the UNs nuclear watchdog. Additional input from AFP and Reuters

PPP Chairperson Bilawal Bhutto-Zardari said on Thursday that the federal government had promised that allocations for provinces under the 7th National Finance Commission (NFC) award would be protected, and that the Centre would not request any further help or sacrifice following the recent decision to freeze development allocations for the provinces. Bilawal joined the budget debate a day after he held a meeting with Prime Minister Shehbaz Sharif, who is reported to have convinced the head of his coalition partner PPP to attend the budget session in the NA. The provinces NFC award and financial resources have been kept protected; no damage will be caused to them, Bilawal declared while addressing the NA, which was debating the proposed federal budget for the next fiscal year (FY27). Besides this decision, the provincial governments will not be required to make any sacrifices, he added. The government has decided to freeze development allocations for the provinces for three years to generate more than Rs900 billion in additional resources for the Centres strategic needs. Referring to this decision, Bilawal said that the Centre and provinces had decided to jointly bear the burden of extraordinary needs pertaining to defence and national security. He affirmed that we came up with such a constitutional and democratic solution which meets the national security needs and also minimises complaints from the provinces. The PPP chairman emphasised that the decision was not taken unconstitutionally but rather under Article 164 of the Constitution. The Constitution enables that if the provinces and the federal government have to spend on a subject which does not fall under their domain, under the article, provinces can give grants to the Centre or the Centre can give grants to the provinces, he explained. He thanked Prime Minister Shehbaz Sharif, Deputy PM Ishaq Dar and Finance Minister Muhammad Aurangzeb for remaining engaged with PPP representatives and finding a constitutional and democratic solution. This is not just a financial or administrative success, but the success of Pakistans politics. It is proof that when national interest is at stake, then democratic institutions, political parties, and all parts of the federation can make decisions together, Bilawal said. He underscored the significance of the consensus reached on the development allocations at a time when the India-Israel nexus wants to harm Pakistan in every way, such as terrorism and our issues with Afghanistan. Bilawal also welcomed the opposition PTI for keeping aside its politics, noting that the decision was made not just by the parties in the ruling coalition but also by the PTI-ruled Khyber Pakhtunkhwa. If PTI and our opposition allies adopted similar politics, where there could be political differences but we work together like this in national interest, then there is no issue that we cannot face, he remarked. However, during his speech, Bilawal termed such temporary moves as non-sustainable solutions. He called for the federal and provincial governments to chart out a long-term, sustainable plan and introduce growth-oriented economic policies. On Tuesday, the PPP chief warned of the NA sessions boycott if their demands remained unmet. A source said Bilawal appeared upset with the budget, stating that it was different from the document shared with the PPP. During Wednesdays meeting at the PM House, the premier agreed to address all the PPP concerns regarding the federal budget. The PPP chairperson was also initially reluctant to join the NA session where the FY27 budget was presented. It had taken Deputy PM Dar and Interior Minister Mohsin Naqvi to convince him to come to the house so that the budget could be tabled. No province given its due share The PPP chairman also took note of strange rumours circulating before the budget was debated in the parliament, including the abolishment of the 18th Amendment and changes in the NFC award. He further noted that there had been an impression that the provinces have fiscal space after the 18th Amendment and the NFC and that the federal government does not. He stressed that although the Centre may have economic challenges, so do all the provinces. While it is true that the NFC and 18th Amendment were historic and constitutional achievements, it is also true that despite these, no province has been given its due share, the Bhutto scion asserted. Bilawal recalled that the petroleum development levy (PDL) had been temporarily introduced to help the country deal with the floods during the previous PPP government. Noting that it was still being collected, he contended that it was in violation of the NFC award and the 18th Amendment. Instead of distributing the petroleum levy among the Centre and the provinces under the NFC formula, the Centre retains 100 per cent of it, he said. That petroleum levy is being collected till today, and provinces are not getting their due share from petrol and gas levies. They are being deprived of their resources and their rights, the PPP chairperson asserted. Bilawal went on to decry that provinces also gave another sacrifice to prevent the country from economic default. Every provincial government is asked to show their surplus in their provincial budget, and that surplus means that we cannot spend that money on our people, he said, highlighting that Punjab made the biggest sacrifice in this. In the national economic interest and so we can complete the IMF programme and save the countrys economy, provincial governments and those residing in the provinces are making this sacrifice and giving funds to the Centre, he said. The PPP chairman remarked that the Sindh governments Rs400 billion surplus this year could have been utilised for Karachis Lyari and Korangi areas or Larkana or Nawabshah if it did not have to be shown as surplus. Bilawal went on to observe that KP had its own challenges, noting that despite the merger of the tribal districts, they were not accounted for in the NFC allocations. He asserted that both the provincial and federal governments had failed in fulfilling their promises of development in the tribal areas. He termed it unfortunate that the tax exemption for tribal areas, which is set to expire this year, could not be extended in the proposed budget. Bilawal began his speech by praising the efforts of Pakistans leadership, particularly the prime minister and the army chief, in the peace agreement between the United States and Iran. We have experienced the economic impact of uncertain situations. This is why Pakistan always promotes peace, he said, terming peace not just a moral necessity but also economic. When there is stability in the region, investment increases. When there is peace, the youth get employment, and the country progresses, he said. Today, when the world is inching towards peace, Pakistan will have to take a step towards development, the PPP chairman stressed, adding that he would present his budget speech with the same spirit. The truth is that peace has not been restored completely in the region, the former foreign minister said, before noting security challenges on the border with Afghanistan, the threats of Operation Sindoor 2.0 from India and New Delhis unilateral contestation of the Indus Waters Treaty (IWT). I can say with pride that Pakistan has responded to the challenge with political unity and democratic tradition, he added, referring to the freeze on provincial uplift funds. BISP also a national security programme Speaking on the floor of the NA, Bilawal said the Benazir Income and Support Programme (BISP) had been targeted in an unfortunate and shameful manner. The PPP head thanked the government, especially PM Shehbaz, for deciding to expand BISP in the FY27 budget despite the remarks made against it. Presenting four arguments in support of the PPP-launched programme, Bilawal highlighted that its success in supporting the lower-income groups had been acknowledged by international bodies such as the World Bank. He said that global platforms instead recommended expanding the programme to tackle poverty. The second argument is that it is both humanity and Islam, Bilawal said in defence of the BISP, adding that religious teachings advocate taking care of those in need. The third point he made was that BISP was a good economy, asserting that development takes place from the lower slabs to the upper instead of trickling down from the affluent to the masses. When one poor household gets BISP funds, , they buy flour, medicine, books for the kids, he said, highlighting that it creates more income opportunities. Lastly, Bilawal argued that BISP was also a national security programme as insurgencies of any kind, even foreign-backed, cannot be fought with weapons alone. If you have to fight insurgency, militancy, extremism and terrorism, you have to win hearts and minds, he emphasised, saying the assistance in the form of BISP wins peoples hearts. Most importantly, this is a programme of a stronger relation between Pakistan and its people, the Bhutto scion declared. He called on the government and those making economic decisions to adopt the mindset that the countrys economy will not progress until the downtrodden factions of society do so. Our policies should be such that we focus on growth and progress in underdeveloped areas, he said, advocating for a growth-oriented approach so that Pakistan has to rely less on loans. More to follow

PPP leader likely to deliver speech today, to share reservations on budget; lauds premier, Field Marshal Munir for Iran peace deal PM Office says Shehbaz, Bilawal agreed on sustained collaboration between Centre, provinces for completion of projects ISLAMABAD: Prime Minister Shehbaz Sharif managed to convince the head of his coalition partner, PPP Chairman Bilawal Bhutto-Zardari, to join the budget session after the latter skipped earlier debates owing to his grievances with the federal government. The PPP leader was also reluctant to join the budget debate, and it took Deputy Prime Minister Ishaq Dar and Interior Minister Mohsin Naqvi to convince him to come to the house so that the budget could be tabled. A source close to Bhutto-Zardari said the PPP leader still had reservations but agreed to deliver his speech in the lower house, most likely on Thursday (today), where he would share some of his concerns. In the meeting at the PM House, the premier agreed to address all the PPP concerns regarding the federal budget. A day earlier, the PPP chief had warned of the NA sessions boycott if their demands remained unmet. It was learnt that after the news was published in the print media that Mr Bhutto-Zardari would boycott the budget session, the prime minister contacted the PPP leader and invited him to a meeting to address their reservations regarding the budget. Chairman Bilawal will join the ongoing budget debate by delivering his speech on the floor of the house tomorrow (Thursday), a source close to the PPP chairman told Dawn after the meeting. The source said that the PPP chief was still unhappy despite agreeing to come to the house, adding that he would share his concerns and reservations in the budget speech. Another source, however, said all outstanding issues had been settled during the meeting between the two sides. The PPP leader also congratulated the premier on the US-Iran peace deal, mediated by Pakistan, set to be signed on the 19th. As the debate on the federal budget continues in the house, the PPP lawmakers are actively participating in it. They have not ruled out their support for the government, but have criticised almost all aspects of the finance bill. On Tuesday, the PPP chief also complained to PML-N leader Ishaq Dar that the budget document tabled in the house was different from the one shown to the PPP in the pre-budget meetings. A press release issued by the PMs Office said that PM Shehbaz met Bhutto-Zardari and discussed matters of national importance, the federal budget, development projects and the prevailing regional situation. The meeting reviewed the progress of development projects being implemented by the federal government in the province of Sindh and discussed measures to strengthen cooperation between the federation and the provinces. During the discussion on the federal budget, the prime minister underscored that effective coordination and close cooperation between the federal and provincial governments were indispensable for national development and economic progress. Both leaders agreed that sustained collaboration between federal and provincial institutions was essential for the timely completion of projects of national importance and for ensuring better public services and facilities for citizens. The PPP leader also thanked the prime minister for his support in the process of government formation in Gilgit-Baltistan. According to the press release, the PPP chairman paid tribute to PM Shehbaz and Field Marshal Asim Munir for Pakistans diplomatic efforts to promote global peace amid the evolving situation in the Middle East. The PM and the PPP chief also exchanged views on political developments and issues of mutual interest concerning the country. Deputy Prime Minister Ishaq Dar, Finance Minister Muhammad Aurangzeb, Federal Minister for Law and Justice Azam Nazeer Tarar, and Minister for Economic Affairs Ahad Cheema were also present during the meeting. Mr Bhutto-Zardari was accompanied by Senator Sherry Rehman and Member of the National Assembly Syed Naveed Qamar during the meeting held at the Prime Ministers House. Published in Dawn, June 18th, 2026

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 years 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 Pakistans 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 LSMs 22 sub-sectors. So its 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 Pakistans 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 countrys 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 countrys 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 countrys 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, Pakistans 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 IMFs EFF during JulyMarch 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.

Overall development outlay slashed by 25pc to Rs3.218tr Federal PSDP reduced to Rs1tr, provincial ADPs to Rs2.218tr No new projects except for interior, defence ministries PM says strengthening defence is countrys biggest challenge Ahsan says Pakistan lagged behind region due to weak investment in education, skills ISLAMABAD: Freezing provincial development plans at their actual utilisation this year, the National Economic Council (NEC) on Wednesday cut the federal and provincial development budget by one-fourth to Rs3.218 trillion for the next fiscal year from Rs4.264tr cleared by the Annual Plan Coordination Committee (APCC) last week. Of the Rs1.046tr total cut, the combined annual development plans (ADPs) of the four provinces were slashed by almost one-third (29.3pc) to Rs2.218tr roughly their actual utilisation so far in the current fiscal year compared to the Rs3.138tr provincial portfolio finalised by the APCC on June 1. Punjabs development plan was chopped by almost half, or 49pc, the biggest cut among all stakeholders, while Balochistan remained unaffected and actually secured more. The development freeze was agreed upon by the major coalition partners the PPP and PML-N before the NEC and budget dates were finalised. To provide political face-saving to provincial governments, the federal government also agreed to bring down its Public Sector Development Programme (PSDP) by Rs126bn, or 11pc, to Rs1tr from Rs1.126tr recommended by the APCC, Planning Minister Ahsan Iqbal told reporters after the NEC meeting. The meeting was presided over by Prime Minister Shehbaz Sharif and attended by three provincial chief ministers. Punjab Chief Minister Maryam Nawaz could not attend because of her recent surgery. The minister said provincial governments had argued that it would be difficult for them to defend ADP cuts if the Centres PSDP remained intact. Mr Iqbal said the Punjab chief minister had authorised the downward revision that restricted Punjabs ADP for next year to Rs749bn from Rs1.455tr cleared by the APCC only a week ago. Coalition partner PPP was able to minimise the dent to Sindhs ADP, which was contained at Rs706bn for next year down 13.5pc, or Rs110bn from last weeks Rs816bn, which was already lower than the current years revised ADP of Rs845bn. Khyber Pakhtunkhwa Chief Minister Sohail Afridi agreed to a revised ADP of Rs455bn exactly the same as budgeted this year instead of Rs564bn cleared by the APCC. Balochistan was the only province to retain its Rs308bn development programme for next year, almost Rs29bn higher than the amount budgeted for the current fiscal year. The separate development plans of federal state-owned entities remained unchanged at Rs451bn, putting the consolidated national development outlay at Rs3.669tr, down 22.2pc, or Rs1.046tr, from Rs4.715tr announced after the APCC meeting last week. The APCC is a forum of federal and provincial planning ministers that finalises development recommendations for the NECs approval. Informed sources said that with reappropriation of the development portfolio, around Rs800bn to Rs900bn could be repurposed for strategic needs such as water resources and national security. Responding to a question, the planning minister said the development programme would contain no new project except for the ministries of interior and defence and noted that the actual size of savings would depend on many variables, including actual tax collections and how these savings became available. For example, he said, the Diamer-Bhasha dam alone required Rs170bn but had been allocated Rs20bn. Total allocations for the water sector amounted to Rs103bn, he said. Strengthening defence Meanwhile, in a televised statement, Prime Minister Shehbaz Sharif said the biggest challenge the country faced was to strengthen our defence, particularly against terrorism. The entire nation, especially KP and Balochistan, as well as the law enforcement agencies and armed forces, is making sacrifices in the fight against terrorism, he said, adding that terrorism could only be eliminated if the country put up a collective struggle against it. The prime minister said the Centre and provinces had taken many decisions in the best interest of Pakistan, as consultations with the provinces on all matters were conducted with seriousness to see where more resources could be generated. PM Shehbaz said he had held a telephonic conversation with IMF Managing Director Kristalina Georgieva, who was extremely appreciative of Pakistans sincere efforts towards the IMF programme. He said that despite major challenges, Pakistan had achieved macroeconomic stability, but injecting growth was an extremely important process. Advancing employment, production, exports and economic activity is our collective responsibility, he said, adding that all governments had tried their best to stay on track with the IMF programme despite some difficult stages. Apparently hinting at the budget later this week, the prime minister stressed the need to inject incentives aimed at export growth and manufacturing capabilities into the economy to accelerate GDP growth. He noted that a common man would not concern himself with macro-level stability but wanted better employment opportunities, development in agricultural and industrial sectors, and growth in exports. Development deficit Mr Iqbal said the NEC agreed that the time had come for the entire nation and all stakeholders to sit together and work for export growth to 100bn in a few years, as well as import substitution, like the country had worked for its nuclear mission. The huddle agreed to his suggestion for quarterly NEC meetings to review and make adjustments by reviving the councils original mandate of coordinating financial, social and economic policies, as required under Article 156 of the Constitution, to overcome the development deficit. He said the NEC had turned over the years into a forum that merely stamped the development budget, although it was required under the Constitution to review the overall economic condition and advise both the Centre and the provinces in formulating plans in respect of financial, commercial, social and economic policies to ensure balanced development and regional equity. As a consequence, Pakistan had lagged behind regional competitors, he said. In the early 1990s, Pakistan, India, China and Bangladesh had almost similar per capita incomes between 324 and 363 but Pakistan fell behind, with its current per capita income at just 1,824 compared to 2,675 in India, 2,653 in Bangladesh and 14,000 in China, while Vietnam moved from 99 to 5,026 per capita. This was mainly because others invested aggressively in education, skills, population control, female workforce participation and export competitiveness, while Pakistan did not, he said. No country could deliver economic outcomes with 2.5pc population growth and less than 64pc literacy rate, Mr Iqbal said, adding that youth potential was being lost in Pakistan and inequality was rising. How can we have development while spending 74pc of revenues on debt servicing? he asked. The meeting decided to focus on public-private partnership in development at the next NEC meeting and on freeing the business environment of regulatory sludge. He said bureaucracy would be reoriented towards economic delivery from its existing role of maintaining law and order and revenue collection. He said the prime minister had approved 11 economic missions and directed the finalisation of key performance indicators in consultation with all stakeholders. Despite downward reductions in the development portfolio by almost a quarter, the minister said next years GDP growth target would stay at 4pc, to be aided by 3.6pc growth in agriculture, 4.5pc in industry and 4.2pc in services. Inflation, measured by the Consumer Price Index, was estimated at 8.2pc. The Rs1tr federal PSDP will also contain foreign assistance equivalent to Rs255bn, while the provincial Rs2.218tr portfolio will include Rs583bn in foreign aid, taking total foreign funding to Rs838bn or 26pc of the total Rs3.218tr development outlay. Giving a break-up, the minister said the PSDP contained Rs602.5bn for infrastructure, including Rs116bn for energy, Rs76bn for water, Rs356bn for transport and communication and Rs55bn for physical planning and housing. Another Rs181bn has been earmarked for the social sector, including Rs74bn for education and higher education, Rs22bn for health, Rs63bn for MNA schemes and Rs21bn for other social sectors. Likewise, Rs63bn has been allocated for coalition partners schemes. In addition, Rs89bn has been set aside for special areas, including AJK and GB, Rs56bn for the merged districts of KP, Rs41bn for science and technology and Rs13bn for governance. Another Rs12.6bn would be used for production sectors, including Rs4.6bn for food and agriculture and Rs8bn for industries, while the remaining Rs5bn has been allocated for miscellaneous areas. Published in Dawn, June 11th, 2026

Budget likely on Friday after president summons NA, Senate sessions today National Economic Council finally set to meet today; KP still weighing participation Federal, provincial govts to jointly cover Rs800bn shortfall Extra FBR revenue to stay with Centre; strategic needs may require Rs1.3-1.7tr Sindh, Punjab agree to cut ADPs; KP, Balochistan not yet on board Uplift plans worth Rs4.715tr likely to be revised down ISLAMABAD: Signs that the federal budget may be presented later this week emerged on Tuesday after the government finally called a meeting of the National Economic Council (NEC) on the same day that sessions of the National Assembly and Senate were summoned by President Asif Ali Zardari. A source in the NA Secretariat told Dawn that both sessions have been called budget sessions for 202627; however, it is expected that the budget will be presented in parliament on June 12. This echoed Parliamentary Affairs Minister Tariq Fazal Chaudhrys words, who said on Tuesday that the budget for the next fiscal year would likely be presented in parliament on Friday. The NEC, meanwhile, is set to meet today (Wednesday) to finalise federal and provincial development plans after a broader 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 reached between the PPP and PML-N, provincial shares from the federal divisible pool would stay frozen at the current fiscal years position. Any increase in FBR revenue next year on top of the current years collection would be retained by the Centre, informed sources said. To avoid permanence and legal precedent, an ad hoc mechanism would be put in place under which the Centre would transfer full provincial shares to provincial accounts and the provincial governments would then credit the extra amount higher than what they received this year back to the Centre. 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 Rs1.3 trillion and Rs1.7tr. To ensure that these additional amounts remain protected in favour of the Centre, both Sindh and Punjab would drastically cut their planned annual development plans (ADPs) for next year and reduce other expenditures. For this, the recent pattern of utilisation of petroleum subsidy by the Centre and provinces had already been practised, the sources said. Interestingly, smaller provinces Balochistan and Khyber Pakhtunkhwa were not part of the deal so far. Moreover, the KP government was reportedly still going through internal political consultations on whether to participate in the NEC meeting. There were, however, conflicting reports about additional fiscal space for the Centres strategic needs next year. Some sources said the PPP had been told that customs duty was not part of the list to be included in the Federal Consolidated Fund under Article 160(3) of the Constitution, but had been made part of the divisible pool under the National Finance Commission through a presidential order and could be removed from the list through a presidential order. This adjustment, they said, could provide close to Rs1tr in additional fiscal cushion to the Centre next year. For the current year, the target for customs duty was set at Rs1.588tr, resulting in a provincial share of Rs892bn. However, such an option involved political and permanent complications and was eventually dropped. PPPs former finance minister and member of the negotiating team Saleem Mandviwalla told Dawn that the idea of excluding customs duty from the divisible pool was nonsense and stood nowhere now. He, however, confirmed that an agreement had been reached on the Centre and provinces jointly covering the revenue shortfall this year and next year. Responding to a question, he said development expenditures as well as other expenses would be cut across the provinces and the Centre. He said next years additional fiscal requirement would be flexible, ranging between Rs1.2tr and Rs1.5tr or so. There was disagreement on procedures which has been settled now, he said, adding that under the agreement, whatever the requirement may be, it would be jointly covered by the Centre and the provinces. Declining to share details, he said it would be done within existing resources and without additional taxes. In return, informed sources said, the PPP reportedly secured an increase in federal funding for the Sukkur-Hyderabad Motorway (M6) from Rs20bn cleared by the Annual Plan Coordination Committee to about Rs70bn, along with commitments for its actual utilisation and accelerated progress during the coming fiscal year, not just an allocation on paper. The sources said the federal finance ministry had earlier indicated a maximum 7pc increase in salaries based on average inflation, but the freeze on provincial shares would mean no such facility for provincial employees. As a result, the NEC would significantly revise downwards federal and provincial development plans worth Rs4.715tr for the next fiscal year amid conflicting fiscal needs of critical political and institutional stakeholders. The sources said the Centres Rs1.126tr Public Sector Development Programme, as well as the combined provincial development portfolio of Rs3.138tr, would be brought down. Originally, the Rs3.138tr provincial ADPs for next year shared with the APCC last week included Punjabs Rs1.45tr allocation, up 17pc and accounting for 46pc of the total. This was followed by Sindhs restrained development indication of Rs816bn compared to its current fiscal year allocation of Rs887bn, down 8pc. KP also showed a higher development envelope of Rs564bn for next year, up almost a quarter from Rs455bn in the current fiscal year. On top of hefty federal allocations for the province, Balochistan had also pitched its ADP size at Rs308bn next year, up 10pc from Rs279bn this year. The NEC the highest economic decision-making forum of the federation, led by the prime minister and comprising the four chief ministers and four federal ministers has a four-point agenda for the meeting. The first item pertains to a review of the Annual Plan 2025-26, approval of the Annual Plan 2026-27 and a presentation on key socio-economic indicators of the provinces. This will be followed by a review of Public Sector Investment 2025-26, the proposed Public Sector Investment 2026-27 and confirmation of changes made in the PSDP 2025-26 through addenda, corrigenda and adjustments on the directives of the prime minister, including a cut of around Rs175bn. The meeting will also include presentations on provincial annual development plans by the four chief secretaries. Besides, the NEC will take up a progress report of the Central Development Working Party from April 1, 2025, to March 31, 2026, and schemes approved by the CDWP and the Executive Committee of the National Economic Council during the same period. Syed Irfan Raza in Islamabad also contributed to this report Published in Dawn, June 10th, 2026

سفیر ہریش نے کہا کہ افغانستانی برآمدات کے لیے انڈیا ایک بڑی منڈی بن چکا ہے جبکہ انڈیا کی جانب سے قائم کردہ خصوصی فضائی مال برداری راہداری، پاکستان کی جانب سے افغانستا

Two killed, dozens hurt as riot police use tear gas, batons to disperse protesters IGP terms attack on CMH outright terrorism AJK SC says changes to Constitution not a concession to be wrested from govt MUZAFFARABAD: At least four policemen were martyred and 20 were injured after fierce clashes broke out with supporters of the newly-proscribed Joint Awami Action Committee (JAAC) in Rawlakot, police said on Sunday. A statement issued on Sunday night by the office of AJK police chief Liaqat Ali Malik said four police personnel were martyred when demonstrators attacked CMH Rawalakot on Sunday. The statement maintained the men had been shot by firearms and shotguns, terming it outright terrorism and vowing not to compromise on the safety of citizens and public peace. Additionally, officials said that at least two people from among the protesters had lost their lives, while dozens were said to be injured. Locals fear that the toll could be much higher. The flow of information from AJK has been curtailed by the closure of mobile data services across the region. Tensions flared in Rawalakot over the death of a trader, who was allegedly shot during a confrontation with law-enforcers on Friday night. Initially, his family had announced his funeral would be held on Saturday, but they later changed their mind and brought the body back to the Combined Military Hospital (CMH), apparently for post-mortem examination, and deferred the funeral until Sunday. The body was shifted to the hospitals mortuary but a post-mortem examination was not conducted. In the meantime, scores of people continued a sit-in outside CMH. According to witnesses, when a police party arrived to disperse the protesters, a charged group of demonstrators confronted them. Riot police then resorted to baton charge and lobbed tear gas shells to disperse the group. In response, the demonstrators pelted police with stones, but no one was hurt. The family of the deceased man, meanwhile, declared they would not bury him until the home department notification, proscribing the JAAC, was withdrawn. Our son faces the allegation of being a terrorist. We will not bury him until the notification branding JAAC as a terrorist group is withdrawn, a source quoted a member of his family as saying. A senior administration official, who spoke to Dawn on condition of anonymity, said the sit-in outside the health facility was causing a great deal of inconvenience to patients, their families and other commuters. He said that the protesters had been asked to disperse peacefully, but to no avail. The area had not been cleared of protesters until the filing of this report. AJK SCs opinion Meanwhile, in its advisory opinion on a reference sent by AJK President Chaudhry Latif Akbar, the AJK Supreme Court has observed that any amendment in the regions constitution was not a concession to be wrested from the government. The reference dealt with the JAACs demand for the abolition of 12 refugee seats in the legislative assembly ahead of the July 27 elections. The 12 seats are reserved for refugees from Indian-occupied Jammu and Kashmir, who settled in mainland Pakistan after 1947. JAAC alleges that these seats were often used by mainstream Pakistani political parties to influence the formation of governments in Muzaffarabad. The presidential reference had sought answers to five key questions over the constitutional status of the refugee seats, the legislatures competence to introduce a fundamental constitutional amendment at the present stage, the constitutional limits of the rights of assembly and association, and the states obligation to protect the electoral process and reject extra-constitutional demands. In the advisory opinion, dated June 6 and available with Dawn, AJK SC Chief Justice Raja Saeed Akram Khan held that the constitution of the AJK was the supreme law of the state and its provisions the property of the people of Azad Jammu and Kashmir and of the whole Kashmiri people. The amendment of the constitution is a solemn constitutional act, not a concession to be wrested from a government under duress, the opinion declared. It can only be accomplished through the process the constitution itself prescribes, by an assembly possessed of the full democratic mandate of the people, after deliberation, consultation, and consensus-building, the advisory opinion read. The courts opinion came a day after the regions government proscribed the JAAC, days before the group is scheduled to stage a protest on June 9. The JAACs latest protest call centred around the highly contentious demand to abolish the 12 refugee seats in the regions Legislative Assembly. It has also been calling for economic reforms to lower energy prices and provide free healthcare. Minister for Parliamentary Affairs Tariq Fazal Chaudhry said on Sunday that most of those demands had been met. Its negative and false propaganda that the government hasnt addressed the demands. Out of 38 demands, 35 have been addressed, he told a press conference. Published in Dawn, June 8th, 2026