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PUBLIC JOLTED AS PETROL HITS RS458, HSD RS520 PER LITRE
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Friday, 3 April, 2026 | 14 Shawwal, 1447
g FINANCE MINISTER ANNOUNCES A
TARGETED SUBSIDY PROGRAMME, SAYING RS100 PER LITRE SUBSIDY WOULD BE GIVEN FOR TWO-WHEELERS
Rs 20.00 | Vol XVII No 8 | 8 Pages | Lahore Edition
g SMALL FARMERS TO GET ONE-TIME
RS1,500 PER ACRE SUBSIDY WHILE INTER-CITY AND GOODS TRANSPORT WILL GET RS100 PER LITER SUBSIDY
Pakistan commits to IMF to raise fuel prices if subsidies end PROFIT
staff report
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PROFIT
staff report
ETROL and high-speed diesel prices in Pakistan surged to unprecedented levels on Thursday, slamming consumers with record increases amid global oil market turmoil and limited fiscal space under the International Monetary Fund (IMF) programme. Petrol jumped Rs137 per litre to Rs458.4, a 43% rise, while diesel climbed Rs185 per litre to Rs520.35, marking a 55% increase. The hikes come less than a month after a March 6 increase of Rs55 per litre for both fuels, bringing cumulative monthly rises to 63% for petrol and 75% for diesel—the steepest fuel shock in decades. Kerosene and light diesel oil prices also rose sharply, by Rs34 and Rs30
per litre, to Rs468 and Rs395 respectively. Prime Minister Shehbaz Sharif approved a historic increase in the petroleum levy on petrol, from Rs106 to Rs161 per litre, to generate additional revenue. In contrast, the levy on high-speed diesel was abolished, with only a Rs2.5 per litre carbon levy retained. Officials said the adjustments were announced a day early to discourage hoarding and panic buying at petrol stations. Petroleum Minister Ali Pervaiz Malik and Finance Minister Muhammad Aurangzeb delivered the announcements via pre-recorded video, marking a departure from previous occasions when the prime minister directly addressed the nation. Officials said the hikes were unavoidable after the government failed to convince the IMF to allow additional subsidies, with the fund capping total fuel relief at Rs152 billion.
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Pakistan has committed to passing on fuel price increases to consumers if fiscal space is insufficient to sustain subsidies, while expanding targeted subsidies and strengthening social protection under its programme with the International Monetary Fund (IMF), as inflation rose to 7.3% in March 2026, according to two media reports. Under the Memorandum of Economic and Financial Policies, the government has agreed to maintain
regular fuel price adjustments while introducing targeted subsidies to protect vulnerable groups. It has also decided to postpone the imposition of Federal Excise Duty on fertilisers and pesticides due to volatility in global prices and risks to the agricultural sector. Officials said the assurance was given to the International Monetary Fund ahead of a staff-level agreement for the release of $1.2 billion in loan tranches, with further approval linked to revenue collection targets.
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pakistan to seek iMF flexibility amid regional tensions and oil price pressures ISLAMABAD
staff report
Pakistan will seek flexibility in its International Monetary Fund programme to make room for emerging contingencies linked to the US-Israeli war on Iran and to pass on the impact of petroleum prices to consumers, according to the Ministry of Finance. The announcement came after a meeting on Thursday between Finance
Minister Muhammad Aurangzeb and US Charge d’Affaires Natalie Baker ahead of the upcoming spring meetings of the IMF and the World Bank later this month. In an official statement, the finance ministry said the two sides reviewed Pakistan’s ongoing engagement with international financial institutions and development partners, including efforts to sustain the pace of reforms under the IMF programme.
pakistan cautiously drives diplomacy for uS-iran mediation ‘despite obstacles, rhetoric’: Fo ISLAMABAD
staff report
Pakistan on Thursday expressed cautious optimism over ongoing efforts to facilitate US-Iran negotiations, underscoring that despite heightened rhetoric from various sides, diplomatic momentum remains intact, reinforced by broad international support for Pakistan-backed peace initiatives emerging from Beijing and Islamabad. Highlighting the growing traction of the five-point peace plan unveiled in Beijing and the seven-point outcome of the quadrilateral talks in Islamabad, Foreign Office spokesperson Tahir Andrabi said these frameworks reflected a collective push towards deescalation and dialogue. “It is an effort towards ending war. It is an effort towards cessation of hostility. And it is an effort towards paving the way for a sustainable pathway towards finding a lasting settlement of these ongoing hostilities,” Andrabi said during his weekly press briefing. He said Pakistan was encouraged by the confidence shown by both the United States and Iran in its role as a facilitator, reiterating that Islamabad’s approach remained principled and balanced. He noted that Pakistan had condemned attacks carried out against Gulf coun-
tries by Iran, as well as earlier strikes on Iran itself. “Our position is anchored in principles—on the principles of the human charter— with the aim of promoting peace and stability in the region,” he said. Responding to queries regarding potential visits of US and Iranian delegations, Andrabi said the scheduling, composition, and agenda of such engagements would be determined by the concerned parties. On the possible participation of Israeli representatives, he said he had no information but
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noted that Pakistan remained engaged with the United States, European partners, the OIC, and GCC countries—some of which maintain diplomatic ties with Israel. “So, our efforts will continue despite the complications inherent in this challenging facilitative process. While obstacles exist, our pursuit of dialogue and advocacy for diplomacy remains unwavering,” he added. The spokesperson firmly rejected suggestions that Pakistan was pressuring Iran to accept US demands, clarifying that Islamabad’s role was limited to facilitating dialogue and should not be misconstrued as policy imposition. In a positive development, he said Iran had allowed 20 additional Pakistan-flagged ships to transit the Strait of Hormuz, with two vessels crossing daily. “This announcement marks a meaningful step forward in strengthening collective efforts towards dialogue, diplomacy, and confidencebuilding measures—the only viable path forward,” he added. Deep nexus between fake news networks in Afghanistan, India Andrabi cautioned against the spread of misinformation, saying remarks by the Iranian foreign ministry’s spokesperson regarding participation in talks had been misrepresented.
Eight Muslim nations slam Israel's death penalty law for Palestinians as 'dangerous escalation' ISLAMABAD
staff report
Eight Muslim-majority countries, including Pakistan, strongly condemned Israel on Thursday over a controversial new law that mandates the death penalty for Palestinians convicted of deadly attacks in military courts. The joint statement, issued by the foreign ministers of Pakistan, Turkiye, Egypt, Indonesia, Jordan, Qatar, Saudi Arabia and the United Arab Emirates, denounced the legislation passed in the Israeli parliament, the Knesset. The ministers described the move as a “dangerous escalation,” warning that the law enables the imposition of capital punishment in the occupied West Bank with a discriminatory application against Palestinians. They cautioned that such measures deepen inequality and reinforce what they termed a system of apartheid, while denying the fundamental rights of Palestinians in the occupied territories. Expressing alarm over the treatment of Palestinian detainees, the statement highlighted “credible reports” of torture, inhumane conditions, starvation and denial of basic rights in Israeli custody, calling these part of a broader pattern of violations. The ministers urged Israel to refrain from actions that could further inflame tensions, stressing the need for accountability and stronger international efforts to prevent further deterioration in regional stability. Under the newly passed law, Palestinians in the West Bank convicted by Israeli military courts of attacks labelled as “terrorism” will face the death penalty as the default sentence.
Kh Asif warns India against 'illusion of war' between nuclear states ISLAMABAD
staff report
Defence Minister Khawaja Asif on Thursday issued a stern warning to his Indian counterpart Rajnath Singh, stressing that the notion of a conventional conflict between two nucleararmed states was “inconceivable” and fraught with catastrophic consequences. The remarks came in response to recent statements by Singh cautioning Pakistan against any “misadventure” amid the backdrop of heightened tensions linked to the ongoing Middle East conflict. In a strongly worded post on X, Asif — while not directly quoting Singh — criticised what he described as recurring “threat-mongering”, attributing it to “visible strategic anxiety” in New Delhi as the anniversary of the Pahalgam attack approaches. He alleged that the incident, which India blamed on Pakistan, failed to stand up to international scrutiny and exposed a pattern of “manufactured crises”. Referring to past tensions, the minister said such rhetoric reflected a
broader tendency to externalise internal challenges and provoke escalation for political objectives. He reiterated that Pakistan had categorically rejected allegations linking it to the Pahalgam incident and had called for an impartial investigation. Asif also invoked Marka-i-Haq — the term used by Pakistan for the period of military standoff following the April 2025 escalation — warning that any future confrontation would be met with an even “more forceful and decisive” response. “History stands as a stark reminder that miscalculation has consequences,” he said, underlining Pakistan’s readiness to respond swiftly and effectively to any aggression. Despite the tough tone, the defence minister reaffirmed Pakistan’s commitment to peace and regional stability while making it clear that the country’s resolve to defend its sovereignty remained unwavering. “Let there be no ambiguity,” he said, adding that any assumption of space for war between nuclear powers was dangerously flawed and could lead to devastating outcomes.
uzbekistan, egypt and turkiye back pakistan-China five-point initiative to de-escalate gulf crisis ISLAMABAD
saleem jadoon
Uzbekistan Foreign Minister Bakhtiyor Saidov, Egyptian Foreign Minister Dr. Badr Abdelatty and Turkiye Foreign Minister Hakan Fidan on Thursday welcomed the Pakistan-China five-point initiative, designed to promote dialogue, foster peace and stability, and de-escalate tensions in the Gulf and the wider Middle East, the Foreign Office (FO) said. In a statement on X, the FO said that Deputy Prime Minister and Foreign Minister Ishaq Dar held a crucial phone conversation with FM Saidov to review recent regional developments. Both leaders agreed to maintain close contact on matters of mutual interest. During the talks, FM Saidov lauded Pakistan’s proactive role in advancing regional peace and de-escalation, particularly its leadership in hosting the recent quadrilateral meeting of foreign ministers in Islamabad. “The Uzbek FM commended Pakistan’s efforts to promote stability in the Gulf and the Middle East and expressed full support for the Pakistan-China Five-Point Initiative,” the FO added. The conversation underscored Islamabad’s ongoing diplomatic efforts as a venue and facilitator for potential US-Iran talks,
highlighting Pakistan’s growing recognition as a neutral mediator in regional conflicts. Since the escalation in the Gulf and Middle East following coordinated US and Israeli airstrikes on Iran on February 28, including the reported assassination of a senior Iranian figure, Pakistan has played a prominent role in seeking to de-escalate tensions. Egyptian FM Welcomes Initiative, Appreciates Pakistan’s Hospitality Meanwhile, Egyptian FM Dr. Badr Abdelatty expressed gratitude to FM Dar for the hospitality extended during the recent quadrilateral meeting in Islamabad. He welcomed the Pakistan-China five-point initiative, noting that it promotes dialogue and encourages resolution of conflicts. The discussion highlighted Islamabad’s efforts to rally support for negotiation-led so-
lutions amid heightened regional instability. The Egyptian minister’s endorsement signals that Pakistan’s outreach is resonating with key regional actors, emphasizing de-escalation over confrontation. Both ministers reaffirmed close fraternal relations between Pakistan and Egypt and agreed to maintain ongoing contact. The exchange reflects Pakistan’s broader position as an advocate of dialogue, political settlement, and peace, while strengthening coordination with influential partners in the Muslim world. Pakistan, Türkiye reaffirm commitment to regional peace Meanwhile, Deputy PM Ishaq Dar also spoke with Turkiye Foreign Minister Hakan Fidan in another phone this evening, the FO said in a separate statement on X.
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pakistan emerges as mediator in iran conflict after diplomatic turnaround ISLAMABAD
staff report
Pakistan has moved from diplomatic isolation to a more prominent regional role, with officials and analysts pointing to its growing engagement with the United States, China and Gulf states, as well as its involvement in efforts linked to the conflict involving Iran. According to the report, Pakistan was widely seen as isolated a year ago but has since become a regional partner trusted by key capitals. Chief of Defence Forces and Chief of Army Staff Field Marshal Asim Munir has held several meetings with US President Donald Trump, including a oneon-one lunch at the White House. The government also apprehended an Islamic State bomber accused of killing American troops and transferred him to the United States. The report said Pakistani diplomats have undertaken broad outreach with world leaders while maintaining close ties with China. Arsla Jawaid, a global risk analyst
at Control Risks, told Reuters, Pakistan's civil-military leadership has been on a charm offensive primarily balancing relations between the US and China as it seeks to employ a diversified foreign policy. She added, All these efforts are beginning to show some signs of success. Ties between Pakistan and the United States had deteriorated sharply after Osama bin Laden was killed by US Navy SEALs in Pakistan in 2011. The report said relations were further strained by the imprisonment of former prime minister Imran Khan and accusations from Washington that Pakistan had supported the Taliban behind the scenes during the 20-year war in Afghanistan. Economically, the country had also come close to debt default before securing a new agreement with the International Monetary Fund after difficult negotiations around 18 months ago. Turning points in ties with Washington Analysts and government officials identified two major developments in rebuilding trust with Washington.