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DAR SLAMS INDIA’S ‘WATER TERRORISM’, VOWS TO DEFEND SOVEREIGNTY
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Tuesday, 1 July, 2025 | 5 Muharram, 1447
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DAR BLAMES INDIA FOR ATTEMPTING TO WEAPONISE WATER AGAINST PAKISTAN; ACCUSES INDIA OF AGGRESSION UNDER PRETEXT OF FALSE-FLAG OPERATIONS
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Rs 50.00 | Vol XV No 353 | 48 Pages | Karachi Edition
VOWS PAKISTAN WON'T ALLOW ANY INFRINGEMENT ON ITS SOVEREIGNTY OR TERRITORIAL INTEGRITY; SAYS INDIA CANNOT IMPOSE ITS WILL ON PAKISTAN AND MUST RECONSIDER ITS POLICIES
Pakistan asks India to resume functioning of IWT after Hague court’s supplemental award ISLAMABAD
staff report
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ISLAMABAD
staff report
EPUTY Prime Minister and Foreign Minister Ishaq Dar said on Monday that India was attempting to weaponise water against Pakistan, vowing that Islamabad would not allow any infringement on its sovereignty or territorial integrity. Speaking at an event marking the 52nd anniversary of the Institute of Strategic Studies Islamabad (ISSI), Dar said India was trying to hold 240 million Pakistanis hostage through what he described as “water terrorism” — a reference to New Delhi’s holding in abeyance of the Indus Waters Treaty. “India cannot impose its will on Pakistan and must reconsider its policies,”
the deputy prime minister said. He warned that India’s actions, including any attempt to suspend the Indus Waters Treaty unilaterally, would be unacceptable and counterproductive. Dar accused India of aggression under the pretext of a false-flag operation, referring to the Pulwama incident, and asserted that Pakistan had responded effectively and immediately at the time. He stressed that Pakistan remains committed to defending its sovereignty and will not allow its rights under international agreements to be compromised. “India wants to use water as a weapon, but Pakistan stands firm in protecting its interests,” he said. The foreign minister also reiterated Pakistan’s principled stance on Kashmir, calling it a globally recognised dispute. “A peaceful resolution of the Kash-
The Foreign Office (FO) on Monday welcomed the decision by the Permanent Court of Arbitration (PCA) in The Hague to issue a “supplemental award” in the Indus Waters case, urging India to resume the functioning of the Treaty, which it has held in abeyance since May. According to the PCA’s rules, a supplemental award is an additional ruling issued by a court or tribunal after its initial decision, usually to address a specific issue that wasn’t fully resolved or to clarify certain points, such as jurisdiction, competence, or interpretation of a treaty or agreement. India in April held the Indus Waters Treaty in abeyance following the attack in occupied Kashmir’s Pahalgam that killed 26 — an incident New
mir issue is essential for stability in the region,” he said, while accusing India of gross violations of international law. Dar welcomed the recent ceasefire between Iran and Israel, reaffirming Pakistan’s consistent support for Tehran’s legal position. He also urged that Iran’s nuclear issue be resolved through dialogue.
Delhi blamed on Islamabad without evidence. Pakistan termed any attempt to suspend its water share an “act of war”, noting the IWT had no provision for unilateral suspension. It later said it was considering court action, citing a violation of the 1969 Vienna Convention on the Law of Treaties. “In a supplemental award announced on 27 June 2025, the Court of Arbitration hearing the Pakistan-India dispute over Kishenganga and Ratle hydroelectric projects has found that its competence remains intact, and that it has a continuing responsibility to advance these proceedings in a timely, efficient, and fair manner,” the FO said in today’s statement. “The Court of Arbitration decided to announce this supplemental award in the wake of India’s illegal and unilateral announcement to hold the Indus Waters Treaty in abeyance.”
Commenting on the situation in Gaza, the foreign minister condemned the ongoing humanitarian crisis, expressing deep concern over atrocities being committed in the besieged Palestinian enclave. “Pakistan is seriously concerned about the deteriorating situation in the Middle East,” he added.
Electricity tariff likely to rise as gas hike drives up power generation costs g
Petrol price increased by Rs8.36 per litre for next fortnight ISLAMABAD news desk
The federal government on Monday announced an increase in the petrol price by Rs8.36 per litre for the next fortnight starting July 1. Earlier, on June 16, 2025, petrol became Rs4.80 more expensive per litre, while high-speed diesel went up by Rs7.95 per litre. International oil prices edged down on Monday as investors weighed easing Middle East risks and a possible OPEC+ output increase in August. Both Brent and US crude oil benchmarks posted their biggest weekly declines since March 2023. The hike in the petroleum products prices comes a day after the Oil and Gas Regulatory Authority (Ogra) notified a 50% increase in fixed gas charges for domestic consumers for the fiscal year 2025-26, effective from July 1. Petrol powers small vehicles, rickshaws, and bikes, making price hikes especially hard on middle- and lower-income households who depend on it for daily commuting. In contrast, a substantial portion of the transport sector depends on high-speed diesel. Its price is considered inflationary due to its widespread use in trucks, buses, trains, and farm machinery, such as tractors and tube wells. The increased cost of high-speed diesel directly contributes to the rising prices of vegetables and other essential food items.
CONSUMERS ALREADY PAYING RS323BN ANNUALLY IN DEBT SURCHARGE, WARNS CPPA PROFIT
ahmad ahmadani
Electricity consumers may face a further increase of up to Rs1 per unit in their bills from July 1, driven by the recent rise in gas tariffs for the power sector. The development was flagged by the Central Power Purchasing Agency (CPPA-G) during a public hearing held by the National Electric Power Regulatory Authority (NEPRA) on Monday. The hearing, presided over by NEPRA Chairman Waseem Mukhtar, focused on the Monthly Fuel Charges Adjustment (FCA) for May 2025. The CPPA-G had submitted a request for a 10 paisa per unit increase under the FCA for power distribution companies (DISCOs), with NEPRA reserving its final decision pending further scrutiny of submitted data. While the requested 10 paisa hike may only apply for a single month, NEPRA was cautioned during the hearing that broader upward pressure on power tariffs is likely in the coming months due to more expensive gas now being used for power generation. If approved, the 10 paisa adjustment would translate into an additional Rs1.25 billion burden on con-
sumers across the country. According to CPPA-G, the reference fuel cost for May 2025 was set at Rs7.3925 per kilowatthour (kWh), while the actual cost of generation was slightly higher at Rs7.4940 per kWh. The agency stated that 12,755 gigawatt-hours (GWh) of electricity were generated during the month at a total cost of Rs99.153 billion, reflecting an average fuel cost of Rs7.7739/kWh. After accounting for transmission losses (355 GWh or 2.78%), 12,367 GWh was delivered to DISCOs at a net cost of Rs92.676 billion. Hydropower remained the largest contributor to the energy mix in May, accounting for 37.98% (4,844 GWh) of generation. RLNG followed with a 16.99% share (2,168 GWh), while nuclear contributed 15.77% (2,012 GWh). Other sources included local coal (11.08%), imported coal (6.24%), natural gas (6.92%), furnace oil (0.16%), and smaller shares from solar, wind, and bagasse. Responding to questions during the hearing, CPPA officials warned that the recent increase in gas tariffs—particularly for power plants—could push the cost of generation up by as much as Rs1 per unit in future bills. They fur-
ther cautioned that if power bill recoveries remain weak, the government may have no choice but to raise existing surcharges to contain the growing circular debt. At present, electricity consumers are already paying a surcharge of Rs3.23 per unit purely to service the interest on circular debt, which translates into Rs323 billion annually, CPPA representatives revealed. NEPRA indicated that a final decision on the 10 paisa FCA adjustment for May will be taken after reviewing the complete data. However, the broader concerns raised during the hearing — including costlier fuel inputs and weak recovery mechanisms — point to sustained upward pressure on tariffs in the months ahead. The circular debt crisis in the power sector remains a key concern for the federal government, with mounting financial obligations posing risks to energy sector sustainability. NEPRA officials have repeatedly emphasised the need for structural reforms, improved governance of DISCOs, and stronger enforcement of billing and recovery processes to stabilise the sector and protect consumers from persistent tariff shocks.
Pakistan’s inflation expected to remain between 3-4% for June 2025 g
ECONOMY SHOWS GROWTH MOMENTUM, POSITIVE EXPORT OUTLOOK AS MAJOR TRADING PARTNERS SHOW STRONG DEMAND POTENTIAL PROFIT
news desk
According to the Ministry of Finance’s “Monthly Economic Update and Outlook,” inflation in Pakistan is projected to remain between 3-4% for June 2025. This comes after the year-on-year (YoY) Consumer Price Index (CPI) inflation in May 2025 was recorded at 3.5%, a significant decline from 11.8% in May 2024. The ministry reported that Pakistan’s economy continued growth momentum in FY2025, supported by strengthened macroeconomic fundamentals, prudent fiscal management, and improved external sector performance. The real GDP grew by 2.68%, while inflation eased. The current account recorded a surplus of $1.81 billion, and the fiscal deficit narrowed, reaching a primary surplus of 3.2% of GDP for July-April FY2025. The large-scale manufacturing (LSM) sector saw a mixed performance, with a YoY growth of 2.3% in April 2025, though it contracted by 3.2% on a month-on-month basis. LSM’s cumulative performance for the July-April period showed a decline of 1.5%, contrasting with a 0.3% growth in the previous year. However, the automobile sector saw impressive growth, especially in car (39.2%), truck & bus (94.8%), and jeep & pick-up (74.7%) production. Cement dispatches grew by 2.5%, reaching 42.8 million tonnes, with domestic sales slightly down by 1.9%, but exports surged by 25.7%. The report also noted that the uptick in loans to the private sector reflects rising production activities and stronger investor confidence, while remittances and exports continue to support the surplus in the current account. The fiscal performance for July-April FY2025 showed a 44.4% increase in net federal receipts, reaching Rs 8,124.2 billion, up from Rs 5,627.5 billion last year. This increase was primarily driven by a 68.1% growth in non-tax collections. Similarly, tax collection grew by 25.9% during the same period, amounting to Rs 10,233.9 billion. The government’s expenditure rose by 18.5%, reaching Rs 12,948.3 billion during July-April FY2025. However, this was offset by a rise in development spending, with current expenditures growing by 17.8% and PSDP expenditure increasing by 40.6%. As a result, the fiscal deficit for FY2025 was reduced to 3.2% of GDP, down from 4.5% the previous year. On the external front, the current account position improved further, supported by higher remittances and exports. Remittances reached $34.9 billion, up 28.8% from the previous year. Exports saw a 4.0% increase, amounting to $29.7 billion, while imports rose by 11.5%, reaching $54.1 billion, widening the trade deficit to $24.4 billion from $20.0 billion last year. The foreign direct investment (FDI) in the country remained relatively stable at $2.0 billion, while foreign portfolio investment (FPI) showed a net outflow of $624.4 million. Pakistan’s foreign exchange reserves stood at $17.0 billion as of June 13, 2025. Looking ahead, Pakistan’s export outlook remains positive, as key trading partners such as the UK, US, Euro Area, and China show strong growth in Composite Leading Indicators, which may drive demand for Pakistani goods.
Confusion deepens over Sehat Card as Punjab halts UHI in public hospitals but says health coverage continues g
PUNJAB SUSPENDS SEHAT CARD SERVICES IN GOVERNMENT HOSPITALS FROM JUNE 30, CITING SHIFT TO CM’S INITIATIVES; AZMA BUKHARI DENIES DISCONTINUATION, SAYS FREE CARE CONTINUES AND RS22BN SPENT PROFIT
staff report
Conflicting signals have emerged from the Punjab government over the status of the Sehat Sahulat Programme (SSP), after a Dawn report revealed that the Universal Health Insurance (UHI) scheme has been formally discontinued in all public sector hospitals across the province from June 30, 2025. Meanwhile, senior officials continue to insist that the Sehat Card remains operational.
According to Dawn, a notification issued by the Punjab Health Initiative Management Committee (PHIMC) directed all government hospitals to end UHI-based services by the end of June. The programme will, however, remain in effect at empaneled private hospitals. PHIMC Chief Executive Officer Ali Razaque, quoted by Dawn, stated that the move was intended to avoid duplication of financial benefits, as public hospitals are now covered under Chief Minister Maryam Nawaz’s selective health initiatives such as the CM’s Children Heart
Surgery Programme and Dialysis and Transplant Programme. Hospitals were instructed to submit all pending claims by June 30. After that date, the State Life Insurance Corporation (SLIC) will no longer process reimbursements under the UHI scheme. In response to public criticism and reports of closure, Punjab’s Minister for Information and Culture, Azma Bukhari, vehemently rejected claims about the discontinuation of the Health Card programme. “These elements were those who painted the card in their party’s colors and
now accuse us of ending it,” she said. “Free treatment and medicine distribution continues across Punjab,” Bukhari added, noting that Rs22 billion had already been spent under the health insurance scheme. While the government maintains that free treatment is ongoing, independent medical and public health experts cited by Dawn have expressed concern over the withdrawal of Sehat Card coverage from public hospitals. They argue that the CM’s initiatives only offer selective services, whereas the SSP previously provided broader, more
comprehensive coverage. The experts warned that the decision— taken, they claim, at the advice of long-serving health sector advisers—may prove controversial and detrimental to public access to care, especially for vulnerable populations who rely on government facilities for primary treatment. Launched in December 2021, the Sehat Card had offered cashless treatment at both public and private hospitals. With UHI now suspended at public facilities, its future as a truly universal health safety net remains uncertain.