Reserved Seats
The Election Commission of Pakistan has notified reserved seats for minorities and women in light of the June 27 ruling of the Supreme Court’s Constitutional Bench. The decision has seen the ruling coalition’s strength rise from 218 to 235 members in the National Assembly, granting it a two-thirds majority. The biggest winner is the PMLN, whose seats have soared from 110 to 123 in the Lower House.
Hybrid 2.0
Defense Minister Khawaja Asif has hailed the success of the “hybrid” system of governance, claiming it ensures political stability and effective governance. Referring to the “hybrid” model popularized by former prime minister Imran Khan, Asif has claimed it failed because of distrust between the PTI and the former military establishment.
Gandapur’s Chest Thumping
Khyber-Pakhtunkhwa Chief Minister Ali Amin Gandapur has claimed there are no lawful means to oust his government. He has “challenged” the federal government that he will quit politics if they can topple him. The center maintains it has no desire to oust the KP government, but the PTI leadership has repeatedly alleged attempts to remove it from power in the province.
Salaried Burden
The Federal Board of Revenue collected Rs. 545 billion in direct taxes from the salaried class during FY2024-25, significantly higher than the Rs. 180 billion paid by exporters and Rs. 62 billion of retailers, who successive governments have allowed to evade taxes with impunity. Lawmakers last month dampened attempts to penalize tax evaders, granting them significant concessions.
Weather Advisory
The National Emergencies Operation Center has issued impact-based weather alerts across Pakistan, warning of a severe weather forecast from July 2-8. The advisories highlight a growing risk of flash floods, Glacial Lake Outburst Floods and urban flooding in different parts of the country, particularly Khyber Pakhtunkhwa, Azad Jammu and Kashmir and north Punjab.
Exceeding Targets
The State Bank of Pakistan (SBP)’s reserves increased by $5.12 billion to $14.51 on June 30, exceeding the $13.9 billion target set by the International Monetary Fund under the ongoing $7 billion Extended Fund Facility. In a statement, the central bank the increase reflects an improvement in the country’s current account balance and realization of planned inflows during the last fiscal year.
No More Subsidies
The IMF has rejected a plan of the Government of Pakistan to offer subsidized electricity tariffs for crypto mining and certain industrial sectors, warning the initiative could create new distortions in the power sector. The Power Division has also informed the National Assembly it has no plans to impose a surcharge in electricity bills to pay off bank loans to resolve the circular debt.
Slashing Profits
The government has slashed profit rates on most National Savings Schemes by 15 to 59 basis points, effective June 27, 2025, according to data released by National Savings. While the cuts apply to various Islamic products, income certificates, and pensioners’ accounts, the standard Savings Account Rate remains unchanged at 9.5%.
Terror Resurgence
A roadside bombing targeting an official vehicle in Bajaur killed five people, including an assistant commissioner and a tehsildar, and injured 17 others. Local police say the bomb was planted on a motorcycle parked on the road. Both the banned Tehreek-e-Taliban Pakistan and the Islamic State-Khorasan militant group have claimed responsibility.
Temporary Setback
A spokesman for the Pentagon has claimed U.S. strikes on Iran’s nuclear facilities have set back Tehran’s nuclear program by up to two years, adding it is likely a full two years. The statement has been backed by Iranian Foreign Minister Abbas Araqchi, who told CBS News the U.S. strikes had “seriously and heavily damaged” the Fordow nuclear site.