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Tuesday, 17 June, 2025 I 20 Zilhaj, 1446
Rs 20.00 | Vol XV No 339 I 8 Pages I Karachi Edition
PM Shehbaz unveilS MaritiMe viSion at PiMeC 2025; CallS blue eConoMy ‘GaMe-ChanGer’ g
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PM SAYS PAKISTAN NAVY IS FORMIDABLE FORCE THROUGH ALL CONFLICTS AND REMAINS A STRONG PILLAR OF OUR NATIONAL SECURITY
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STRESSES TRANSFORMATION OF PAKISTAN’S MARITIME SECTOR INTO A DRIVER OF INCLUSIVE, SUSTAINABLE ECONOMIC GROWTH
SAYS EVEN TAPPING A FRACTION OF THIS ECONOMY COULD BE A REAL GAME-CHANGER
Pakistan keen to benefit from UAE’s experiences in modern management system: PM ISLAMABAD
STAFF REPORT
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ISLAMABAD
STAFF REPORT
RIME Minister Muhammad Shehbaz Sharif on Monday declared the blue economy as Pakistan’s “new economic frontier,” calling for a unified national effort to unlock its vast potential. Speaking at the soft launch of the 2nd Pakistan International Maritime Expo and Conference (PIMEC 2025), the prime minister laid out the vision for transforming Pakistan into a regional maritime powerhouse. “It is a great pleasure to see the Pakistan Navy, under the patronage of the Ministry of Maritime Affairs and in collaboration with key partners, organizing the second edition of PIMEC,” said the prime minister. He lauded the leadership of Naval Chief, Admiral Naveed Ashraf and Federal Minister for Maritime Affairs, Muhammad Junaid Anwar Chaudhry, for their strategic foresight and dedication in steering this important initiative.
Highlighting the critical role of the Navy in national defense and regional security, he said, “The Pakistan Navy has been a formidable force through all conflicts and remains a strong pillar of our national security.” Reaffirming Pakistan’s commitment to international peace and maritime law, he cited the AMAN Exercise — featuring participation from over 50 countries as a symbol of Pakistan’s global engagement and cooperative maritime posture. With over 1,000 kilometers of coastline and a position at the crossroads of vital sea lanes, Pakistan, the Prime Minister said, was uniquely positioned to harness the trillion-dollar global blue economy. “Even tapping a fraction of this economy could be a real game-changer,” he asserted. “Our coastal trade already brings in nearly $7 billion a year and just imagine the potential if we fully develop this sector,” he said. He urged the nation to take inspiration from global success stories such as Japan, which rose from limited maritime
Prime Minister Shehbaz Sharif on Monday said the United Arab Emirates (USE) has positioned its country among the developed countries with its modern management system, and Pakistan was keen to benefit from its experiences. The prime minister made these remarks in a meeting with UAE’s Deputy Minister of Cabinet Affairs for Competitiveness and Knowledge Exchange, Abdulla Nasser Lootah here, a Prime Minister’s Office news release said. Prime Minister Muhammad Shehbaz Sharif met with a high-level delegation from the United Arab Emirates led by Abdulla Nasser Lootah, Deputy Minister of Cabinet Affairs for Competencies and Knowledge Exchange and flanked by UAE Ambassador, Hamad Obaid Al Zaabi and Abdullah Al Balouki and Ibrahim Al Ali from the Government Knowledge Exchange Office. PM Shehbaz said that Pakistan has taken steps such as digitization and pa-
resources to become a global leader in marine infrastructure and regional trade. “Let there be open competition,” he added, emphasizing the importance of resilience, innovation, and strategic investment. PM Shehbaz Sharif stressed the need to transform Pakistan’s maritime sector into a driver of inclusive, sustainable economic growth while calling for synergy among public and private sectors. “The
perless economy to improve its administrative structure. In addition, a faceless customs system has also been implemented. The prime minister underlined that Pakistan wanted to benefit from the experiences of the UAE to achieve good governance so that these steps could be made more effective as effective steps were being taken to improve databased decision-making. The prime minister, recalling his meeting with UAE President, Mohamed bin Zayed Al Nahyan during his previous visit to Abu Dhabi, said that the meeting was very fruitful. The UAE played a significant role in reducing tensions between Pakistan and India during the Pakistan-India conflict, he added. On the occasion, UAE Minister Abdulla Naseer said that the UAE and Pakistan have long- standing brotherly relations and appreciated the important role of the Pakistani community in the development of the UAE. He said that the UAE was happy to exchange experiences and information with Pakistan.
time has come to take the lead,” he said. Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry outlined the government’s strategic roadmap for the maritime sector. He reaffirmed Pakistan’s commitment to building a vibrant blue economy and introduced the “Maritime at 100” Vision, a long-term plan to grow the sector into a $100 billion economic force by 2047 marking Pakistan’s centennial.
Punjab unveils Rs 5.33 trillion FY26 budget with Rs 740 billion surplus g
GOVT ANNOUNCES RECORD RS1.24TR DEVELOPMENT OUTLAY AMID RS5.335TR BUDGET PROFIT
MONITORING DESK
Punjab Finance Minister Mujtaba Shuja-ur-Rehman on Monday presented a Rs5.335 trillion provincial budget for FY2025-26, featuring a record Rs1.24 trillion development outlay—a 47% increase over the previous year. The budget was unveiled a week after the federal budget, and in line with the federal government’s agreement with the International Monetary Fund (IMF), the Punjab government announced a Rs740 billion estimated provincial surplus (EPS) for FY26. Out of the total outlay, Rs2.706 trillion has been allocated for current (non-development) expenditures, including pensions and salaries, marking a 6% increase over the previous year. An additional Rs590 billion has been budgeted under current capital expenditure. Federal transfers are expected to amount to Rs4.062 trillion, while Punjab’s own-source revenue target has been set at Rs828.2 billion. The minister highlighted that achieving the provincial surplus will be contingent upon the Federal Board of Revenue (FBR) meeting its revenue target.
In his address, the minister noted the completion of 6,104 projects in the outgoing fiscal year. He also reiterated the government’s commitment to long-term investments in health, education, infrastructure, and municipal development. Development Focus The Rs1.24 trillion development budget prioritizes social sector spending, with Rs494 billion—or 40% of the total—allocated for this segment. Within this, the education sector will receive Rs148 billion for development, while non-development education expenditure is budgeted at Rs661 billion. Among major new initiatives is the Rs72 billion Nawaz Sharif Institute of Cancer Treatment and Research in Lahore. Additionally, the government plans to expand the Nawaz Sharif Medical City under a public-private partnership framework. A Rs70 billion social security package has been proposed, alongside allocations of Rs764.2 billion for local governments. The budget also earmarks Rs150 billion and Rs20 billion as special grants for waste management companies and municipal corporations, respectively.
Education Initiatives Under the Chief Minister’s Laptop Scheme, Rs15.1 billion has been allocated for laptop distribution to students. A further Rs15 billion has been budgeted for a merit-based scholarship programme to support deserving students. Tax Policy and Infrastructure No new taxes were introduced in the budget, in line with earlier indications of a tax-free provincial fiscal plan. Infrastructure development remains a central component of the government’s agenda, alongside broader initiatives to expand access to clean drinking water and improve sanitation systems across the province. Assembly Reaction The budget session was marked by protests from opposition lawmakers affiliated with the Pakistan Tehreek-e-Insaf (PTI), who disrupted the proceedings as the finance minister delivered his speech. The Punjab budget for FY26 reflects the provincial government’s intent to support economic growth through higher development spending, while maintaining fiscal discipline under the IMF-led federal framework.
Iran, Israel intensify attacks as war escalates TEHRAN/TEL AVIV AGENCIES
Israeli and Iranian forces continued attacks at each-other’s facilities late Monday night as the Israeli military said two Iranian F14 fighter jets were struck on Monday during airstrikes against an airport in Tehran. “An IAF aircraft flying over Tehran struck a pair of F14 fighter jets at an airport in Tehran. These jets were intended, among other things, to intercept IAF aircraft.” It also struck a truck transporting surface-to-air missile launcher identified on the main road between Tehran and Qom. “Within a few minutes, the IAF struck the truck, and neutralised the launcher and the missiles.” Meanwhile, Iranian air defences have shot down another f35 in Tabriz, Iran’s staterun Nour News reported. Iran also said that key Israeli military and intelligence centress including the Ramat David air base near Haifa are on Iran’s list of targets for airstrikes. “In the coming hours, a crushing and proportionate response will be given within the framework of legitimate defence,” the
state news agency said. Moreover, Iran state TV resumed live coverage after Israel’s attack on the Islamic Republic of Iran Broadcasting (IRIB) building on Monday. “The Zionist regime the enemy of the Iranian nation minutes ago conducted a military operation against the Islamic Republic of Iran news network”, part of IRIB, said a senior official at the broadcasting service Hassan Abedini. “The regime (Israel) was unaware of the fact that the voice of the Islamic revolution and the great Iran will not be silenced with a military operation,” the official added. On the fourth day of the escalating conflict between Iran and Israel, both nations have launched fresh military strikes, causing heavy casualties and increasing concerns over regional stability. Iran hits Israel with ballistic missiles Iran launched a wave of ballistic missile attacks on Israeli cities, including Tel Aviv and Haifa, on Monday morning, killing at least 24 people. The strikes came hours after Israeli forces bombed key locations in Tehran
overnight. Air raid sirens wailed across central Israel, and videos posted online showed fireballs lighting up the sky. Israeli Prime Minister Benjamin Netanyahu responded by declaring that Israel is committed to “eliminating threats” from Iran’s nuclear and missile infrastructure. Russia is appealing to Israel to show restraint in the crisis with Iran, and believes Tehran is exercising its right to self-defence, Deputy Foreign Minister Sergei Ryabkov was quoted as saying on Monday. Israel launched a wave of strikes last Friday against Iran’s nuclear sites and military leadership, and Iran has responded by firing missiles at Israeli cities. “The potential dangerous consequences of strikes on nuclear infrastructure facilities are obvious to everyone. This is a cause for concern for the entire international community, but, in addition to this, we are, of course, watching how world markets react to what is happening,” state news agency TASS quoted Ryabkov as telling reporters. The Iranian health ministry reported that over 220 people have been killed in Israeli attacks since the conflict began, including at
MPC keeps interest rate at 11%; flags inflation and trade deficit risks PROFIT
STAFF REPORT
The State Bank of Pakistan (SBP) on Monday held the benchmark policy rate steady at 11%, in line with market expectations, as the Monetary Policy Committee (MPC) assessed rising inflation and external sector vulnerabilities amid regional tensions and budgetary pressures. In its post-meeting statement, the MPC said that May’s inflation reading of 3.5% year-on-year aligned with its forecast, while core inflation declined slightly. The committee noted that inflation is expected to gradually rise and stabilise within the 5–7% target range in the next fiscal year. The decision to maintain the current policy rate was based on the view that real interest rates remain sufficiently positive to anchor inflation expectations and maintain price stability. The MPC acknowledged moderate improvements in economic activity, supported by earlier rate cuts, but also highlighted downside risks, particularly to the external account. Among key concerns were the widening trade deficit, sluggish financial inflows, and the possible impact of proposed FY26 budget measures that could raise imports. The committee also cited risks from volatile global oil markets and the uncertain regional geopolitical environment, particularly in the Middle East. The MPC reviewed several recent developments, including provisional GDP growth of 2.7% for FY25 and the government’s target of 4.2% growth for FY26. Despite a growing trade gap, the current account remained nearly balanced in April, and foreign exchange reserves rose to $11.7 billion following the first review under the Extended Fund Facility. Fiscal indicators showed improvement, with the primary balance surplus for FY25 revised to 2.2% of GDP, and a 2.4% surplus targeted for FY26. However, the committee noted that increased reliance on domestic financing and limited external inflows could pose fiscal management challenges. The external account outlook remains mixed. While remittances continued to support the current account, weak exports and rising imports are expected to push the balance into a moderate deficit next year. The SBP’s reserves are projected to reach around $14 billion by end-June 2025, contingent on planned inflows materialising. Real sector data pointed to a gradual recovery in economic activity. According to provisional estimates, GDP growth accelerated to 3.9% in the second half of FY25, driven by industry and services, while agriculture lagged due to lower crop output. The MPC expects this sectoral trend to continue, though weather-related risks could affect Kharif crop yields. Private sector credit growth stood at 11%, reflecting improved sentiment and easing financial conditions. However, broad money growth moderated to 12.6%, and reserve money expanded, largely due to seasonal Eid-related currency demand and central bank liquidity operations. Inflation risks remain in focus. The rise in headline inflation in May marked a reversal from the previous month, driven by base effects in food prices. Energy prices remained subdued, but the MPC warned of potential volatility from global commodity markets, domestic energy adjustments, and regional instability. Market analysts had anticipated a status quo stance. Brokerage houses and research firms pointed to the rebound in oil prices and unresolved geopolitical tensions as key factors deterring further monetary easing. A Reuters poll also reflected a consensus view that the central bank would keep rates unchanged to manage inflation risks. In conclusion, the MPC reiterated that future policy decisions would depend on the timely materialisation of foreign inflows, execution of fiscal consolidation plans, and implementation of structural reforms to support sustainable growth and macroeconomic stability.
least 70 women and children. One of the most severe incidents occurred in Kermanshah, where Farabi Hospital was damaged during an Israeli airstrike. Footage from Fars News Agency showed a collapsed ceiling in the intensive care unit
(ICU), with several patients reportedly injured by falling debris and shattered glass. Iran’s Foreign Ministry condemned the hospital strike as a “war crime,” while the Israeli military said it was “not aware” of any such incident.