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PM rEAffirMs ExPort-LEd Growth, ProMisEs PUBLiC rELiEf in BUdGEt Thursday, 4 June, 2026 | 18 ZilHaj, 1447
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PREMIER SHEHBAZ SAYS STRONG PRIVATE SECTOR PARTNERSHIP KEY TO ECONOMIC RECOVERY g
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HOLDS DETAILED EXCHANGES WITH BUSINESSMEN ON PACE OF ECONOMIC GROWTH, UPCOMING BUDGET
GOVT BRIEFS BUSINESS LEADERS ON TAX, AI AND STRUCTURAL REFORMS AS BUDGET 2026–27 TO BE PRESENTED ON JUNE 10 AMID IMF PROGRAMME
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Rs 20.00 | Vol XVII No 70 | 8 Pages | Islamabad Edition
INFRASTRUCTURE UPGRADES PLANNED TO BOOST TRADE AND LOGISTICS NETWORK
BUSINESS LEADERS SEEK LOWER TAXES, CHEAPER ENERGY, FASTER TAX REFUNDS
fEdErAL BUdGEt 2026-27 to BE UnvEiLEd on JUnE 10: AUrAnGzEB ISLAMABAD miAN AbrAr
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ISLAMABAD
sAleem JADooN
RIME MINISTER Shehbaz Sharif on Wednesday assured leading business figures that the government’s upcoming budget would include public relief measures, reaffirming its commitment to an export-led growth strategy, which he described as the central pillar of economic policy amid efforts to balance recovery with fiscal discipline under a $7 billion International Monetary Fund (IMF) programme. “Measures to provide relief to the public are being included in the budget,”
the prime minister was quoted as saying in a statement issued after consultations with some of the country’s most prominent industrialists and business leaders ahead of the federal budget 2026–27. “You are the ambassadors of Pakistan,” he told the delegation, expressing gratitude for the business community’s support during “difficult economic conditions”. PM Shehbaz Sharif said a strong partnership with the private sector was a “guarantee of economic growth” and stressed the “utmost importance” of consulting stakeholders in economic policymaking.
Pakistan’s oil sales fall 23% YoY in May as petrol, diesel prices curb demand
Finance Minister Muhammad Aurangzeb on Wednesday confirmed that the federal budget for the fiscal year 2026-27 will be presented on June 10, as the government continues consultations with coalition partners and finalises key fiscal measures. Speaking to the media, the finance minister said discussions with allied political parties had been constructive and another round of consultations was expected later this week. He emphasised that the government would proceed in close coordination with the International Monetary Fund (IMF), coalition partners and other stakeholders while focusing on enhancing tax collection through stronger enforcement measures and expansion of the tax base. Aurangzeb also underlined the government's commitment to avoiding additional tax burdens on citizens, stating that efforts were underway to ensure no
Pakistan among 60 economies ‘likely’ hit by US forced-labour tariffs
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WASHINGTON
stAff report/AgeNcies
PROFIT
News Desk
Pakistan’s oil marketing companies recorded petroleum product sales of 1.17 million tonnes in May 2026, down 23% year-on-year and 14% monthon-month, as higher petrol and diesel prices reduced consumption, according to Topline Research. Despite the May decline, cumulative OMC sales during the first eleven months of FY2026 rose 1% year-on-year to 14.9 million tonnes, compared with 14.8 million tonnes in the same period of FY2025. Sales excluding furnace oil stood at 1.14 million tonnes in May, reflecting a decline of 21% year-on-year and 7% month-on-month. During 11MFY26, ex-furnace oil sales reached 14.4 million tonnes, up 2% from the same period last year. The brokerage attributed the fall in demand to higher fuel prices as average motor spirit prices rose 59% year-on-year to Rs402 per litre in May 2026, compared with around Rs253 per litre in the same month last year. High-speed diesel prices also increased 57% year-on-year to an average of Rs401 per litre. Product-wise data showed petrol sales fell 12% year-on-year to 617,000 tonnes in May, while remaining largely unchanged from April. Diesel sales declined 32% year-on-year and 17% month-on-month to 455,000 tonnes. Furnace oil sales recorded the steepest fall, dropping 64% year-on-year and 79% month-on-month to 29,000 tonnes. The decline in furnace oil sales likely reflected normalisation in demand after unusually high consumption in April 2026. Among listed companies, Pakistan State Oil (PSO) posted sales of 518,000 tonnes in May, down 19% year-on-year and 12% month-on-month. Despite lower volumes, PSO’s market share increased by 67 basis points to 44.15%. Attock Petroleum Limited (APL) reported sales of 97,000 tonnes, down 30% year-on-year and 19% month-on-month. Wafi Energy was the only major company to record month-on-month growth, with sales rising 3% to 103,000 tonnes. Its volumes, however, were still 16% lower than May 2025. Hascol Petroleum reported sales of 34,000 tonnes, down 37% year-on-year and 5% month-on-month. The federal government collected around Rs1.33 trillion in Petroleum Development Levy during 11MFY26. This is about 91% of the Rs1.47 trillion PDL collection target set for FY2026. Analysts said petroleum demand may remain sensitive to future fuel price changes, economic activity and transportation sector consumption trends. They said petroleum levy collection is expected to remain strong if current pricing levels continue.
new taxes were imposed in the upcoming budget. Deputy Prime Minister and Foreign Minister Ishaq Dar later formally confirmed June 10 as the date for the budget presentation following a high-level consultation meeting with Pakistan Peoples Party (PPP) leaders. Finance Minister Aurangzeb accompanied Dar during the meeting, where participants reviewed current expenditure requirements, development priorities and the overall fiscal framework for the next financial year. According to an official statement, both sides unanimously agreed to recommend to Prime Minister Muhammad Shehbaz Sharif that the federal budget for fiscal year 2026-27 be presented on June 10. The PPP delegation included Sindh Chief Minister Murad Ali Shah, Syed Naveed Qamar, Senator Sherry Rehman, Senator Saleem Mandviwala and Sindh Irrigation Minister Jam Khan Shoro.
The United States Trade Representative (USTR) has proposed new tariffs on imports from 60 economies, including Pakistan and India, over their alleged failure to effectively curb the importation of goods made with forced labour, as the Trump administration seeks to revive its trade agenda following a series of legal setbacks. The proposed duties, ranging from 10pc to 12.5pc, were outlined in a government filing and will be subject to a public comment period before a final decision is taken. The move comes months after Washington launched investigations into several major trading partners, including China, the European Union (EU) and Japan, to determine whether they had taken adequate measures against the import of goods produced through forced labour and whether such practices adversely affected US commerce. On Tuesday, the USTR said 54 economies had “failed to impose and effectively enforce a forced labour import prohibition”. The group includes China, Vietnam, Taiwan, the United Kingdom and India. Six other economies — Canada, Ecuador, the EU, Indonesia, Mexico and Pakistan — were found not to have effectively enforced such prohibitions. “The failure of our most important trading partners to address the importation of goods made with forced labour is unacceptable,” USTR Jamieson Greer said in a statement. “This creates a dynamic where American workers
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are forced to compete globally on an unlevel playing field,” he added. “We will no longer tolerate this disparity,” Greer said, adding that “each of our trading partners must do more to ensure that trade does not perversely encourage and entrench forced labour globally”. According to the USTR, imports from Canada, Ecuador, the EU, Indonesia, Mexico, Pakistan, Argentina, Bangladesh, Cambodia, El Salvador, Guatemala, Malaysia, Taiwan and Britain would be subject to a 10pc duty under the forced labour investigation. The agency said an additional tariff of 12.5pc would be imposed on imports from the remaining 45 economies covered by the probe. The proposed measures, however, include a number of exemptions covering products such as beef, coffee, and certain fruits and nuts. Goods from Canada and Mexico that comply with the North American free trade agreement will also be exempt, along with selected textile and apparel products. The USTR has invited written comments from the public until July 6 and will subsequently hold hearings before finalising its decision. The announcement comes ahead of the July 24 expiry of a temporary 10pc tariff imposed by the Trump administration on February 20, the same day the US Supreme Court struck down President Donald Trump's tariffs enacted under the International Emergency Economic Powers Act.
PM asks for swift follow-up on China visit MoUs in meeting with Chinese envoy ISLAMABAD
stAff report
Prime Minister Shehbaz Sharif has called for immediate follow-up on the memoranda of understanding signed during his recent visit to China, as he met Chinese Ambassador Jiang Zaidong at the Prime Minister House on Wednesday, according to a statement issued by the Prime Minister’s Office. The PMO said the Chinese envoy congratulated the premier on Eidul Azha, while the prime minister thanked him for his efforts in making the China visit successful in every respect. During the meeting, Mr Sharif reaffirmed his commitment to further strengthening the Pakistan-China All Weather Strategic Cooperative Partnership and stressed the need to begin implementation steps on decisions taken during the visit without delay. According to the statement, the prime minister placed particular emphasis on broadening cooperation under CPEC 2.0, especially in agriculture, information technology, industry including special economic zones, and mines and minerals. He also said both sides now needed to work together to deliver on the decisions made by the leadership of the two countries. The PMO said the meeting also covered the fast-tracking of the Karakoram Highway realignment project, as well as the expansion of cooperation in security, counter-terrorism and defence. Economic and financial support also came under discussion, the statement added. AGREEMENTS SIGNED DURING CHINA VISIT: On May 24 in Hangzhou, the prime minister chaired the opening session of the third PakistanChina Business-to-Business Investment Conference, which focused on charging infrastructure, battery energy storage, solar technologies and pharmaceuticals. At that conference, agreements and MoUs worth more than $7 billion were signed between Pakistani and Chinese participants to promote investment and cooperation across multiple sectors.
After 20-year gap, GB to hold LG polls on Aug 2: CEC SKARDU
AsAD NizAmi
The Gilgit-Baltistan Election Commission on Wednesday announced that, after a gap of more than 20 years, long-delayed local government (LG) elections in the region will now be held on August 2. Addressing a press conference, Gilgit-Baltistan Chief Election Commissioner (CEC) Raja Shahbaz Khan said the schedule for the local body elections had been formally issued, and returning officers (ROs), district returning officers (DROs) and assistant returning officers (AROs) had been appointed. Earlier this month, the GB Election Commission had stated that preparations for the polls were underway but had not announced a final date. Polling for the Gilgit-Baltistan Legislative Assembly is scheduled to take place on June 7, after being rescheduled from January 24, 2026. The local government elections — announced after more than two decades — were earlier set for February 14, 2026, but were later postponed indefinitely due to harsh weather conditions in the region. Under the newly issued schedule, a public notice will be released by returning officers on June 6, while nomination papers will be received from June 9 to 15. The elections will be held for union councils, district councils, town committees, municipal committees and municipal corporations. CEC Raja Shahbaz Khan said the remaining phases of the electoral process have been outlined in the complete schedule. He noted that the last local government elections in the region were held in 2004, marking a gap of 22 years. He added that delimitation and demarcation had been completed under the GilgitBaltistan Local Government Act 2014. Khan further explained that the region previously operated under two systems — a local district council and union councils, with municipal committees in urban areas. Under the new structure, he said, town committees, municipal committees and municipal corporations would now function in urban areas. Meanwhile, political parties in the region had remained uncertain about the timing of the elections before June, with some fearing a possible delay until October.
Araghchi defends retaliatory strikes in Kuwait and Bahrain as ‘self-defence’ TEHRAN/RIYADH/WASHINGTON AgeNcies
Iranian Foreign Minister Abbas Araghchi on Wednesday said Tehran would continue military strikes against sites allegedly used in attacks on Iran, after the Islamic Revolutionary Guard Corps (IRGC) fired missiles on Kuwait and Bahrain in retaliation for US attacks on an Iranian oil tanker in the Strait of Hormuz and a telecommunications tower on Qeshm Island, Iranian state media reported. “Our armed forces are conducting self-defence strikes on sites the US is permitted to use to attack civilian shipping and violate the ceasefire,” Araghchi said in a post on X. “Any hostile act will be met with an immediate, decisive response. What sanctions and war failed to achieve won’t be won with more war,” he added. The Iranian foreign ministry also condemned what it described as US attacks on an Iranian oil tanker in the Strait
of Hormuz and a telecommunications tower on Qeshm Island, saying the actions violated a ceasefire understanding and international law. It said Kuwait and Bahrain bore “direct and clear responsibility” for the incidents, alleging their territory and facilities were being used to support US military operations against Iran. Tehran said it reserved the right to self-defence and would use all available means to respond, including targeting the source of any future attacks. The remarks came in response to comments by US Secretary of State Marco Rubio, who praised the cooperation of Washington’s regional allies, including the United Arab Emirates and Kuwait. “I think our allies in the region have been very cooperative — some, obviously, very aggressively cooperative, like the UAE, for example. Kuwait’s been fantastic in this part,” Rubio said. The IRGC said it had targeted a US base in Kuwait
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and the US Fifth Fleet headquarters in Bahrain in retaliation for the alleged US overnight attack on its communications tower on southern Qeshm Island.
UN SECRETARY-GENERAL ALARMED: Meanwhile, UN Secre-
tary-General Antonio Guterres expressed alarm over the reported exchange of fire between the United States and Iran, as well as reports that Iran had targeted Kuwait and Bahrain, his spokesperson said.
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