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Pakistan’s inflation DAR SLAMS INDIA’S ‘WATER TERRORISM’, expected to remain between 3-4% for VOWS TO DEFEND SOVEREIGNTY June 2025
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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 | Lahore 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
D
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.
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 monthon-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%.