Cholistan Canals
Road blockades in Sindh persist despite Prime Minister Shehbaz Sharif announcing the controversial Cholistan canals project will not proceed without consensus of all provinces. The protesters are demanding the complete scrapping of the project even as transporters sound the alarm over the adverse impacts of the ongoing sit-in to trade.
Neutral Stance
While condemning the attack in Indian Illegally Occupied Jammu and Kashmir’s Pahalgam area, the U.S. State Department has said that it is not taking any position on the status of Jammu and Kashmir. A spokesperson told a press briefing that Washington is monitoring the evolving situation and calls for the perpetrators of the attack to be brought to justice.
Reciprocal Actions
Pakistan has warned India that any attempt to divert waters allocated to Islamabad under the Indus Water Treaty will be treated as an act of war. A National Security Committee meeting has also decided to scale down diplomatic ties with India, closed the Wagah border, and blocked access to its airspace for Indian owned and operated airlines.
Missed Target
Amidst ongoing protests from farmers, Pakistan has missed its wheat production target for this year, harvesting 28.42 million tons from an area of 9.1 million hectares against the set target of 33.58 million from an area of 10.368 million hectares of land. The reduction marks a 10 percent decrease in production over the last year.
Fake Documents
The Senate Standing Committee on Interior has been informed that, over the past five years, more than 12,000 Afghans were caught traveling to Saudi Arabia on fake Pakistani passports. Of these, 3,000 had photo-swapped passports, while 6,000 passports involved tampered NADRA data. Authorities say action has been taken against several NADRA and Passport Department officials involved in the illegal actions.
Intelligence Failure
The Indian government has acknowledged that the terrorist attack in Pahalgam was facilitated by a security lapse, with the high-tourist area lacking adequate police presence. The opposition Congress has also accused the BJP-led government and its social media proxies of “exploiting” the tragedy to sow discord, mistrust, polarization and division within India.
Reforms Needed
The State Bank of Pakistan has stressed on the need for ongoing, visible progress on structural reforms if the country is to achieve sustained economic growth, rebuild external buffers and reduce external financing risks. In its annual Financial Stability Review, the central bank has noted risks to the domestic economy from the recent wave of protectionist measures introduced by the U.S.
Seeking Relief
Finance Minister Muhammad Aurangzeb has urged China to roll over guaranteed debt and increase the size of the $4.3 billion currency swap agreement aimed at cushioning low foreign exchange reserves. Beijing had earlier assured the IMF of rolling over Pakistan’s $4 billion cash-deposit. Authorities are now seeking the rescheduling of Chinese Exim Bank debt maturing during IMF program’s tenure.
Climate Losses
Pakistan faces average annual losses of over $2 billion due to climate disasters, exacerbating the country’s already high poverty levels, the Asian Development Bank has cautioned. In its annual report for 2024, the lender has noted that women and vulnerable groups are disproportionately affected by the losses and advised a new urbanization model to help make cities more resilient and livable.
Another Attempt
The government has formally invited fresh bids for the sale of the Pakistan International Airlines, offering more incentives for potential buyers. Investors have been directed to submit an expression of interest by June 3, with the bidding process expected to take place between October and December. The new deal offers 51-100% share capital, with management control of the national flag carrier.