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PAKISTAN’S farmers are awaiting the next budget with growing fears and fading hopes. Their concerns this year are fundamental, as the government — amid pressure for reform — continues experimenting with subsidies, procurement prices, input-cost liberalisation and agricultural trade.

The cost of this trial-and-error has become an existential problem for farmers and the agricultural sector.

The agriculture sector’s fading hopes are a direct result of the government’s inability — or unwillingness — to adopt a long-term policy direction and muster the political will needed for its implementation.

Deregulation of agricultural inputs has led to a continuous rise in production costs, which the government hesitates to pass on to consumers because of political consequences.

Wheat policy reversals, deregulated input costs and controlled output prices are curtailing farm profitability

Consequently, farmers and agri-sector experts alike agree the government should make a clear decision this year, develop a consistent policy framework, and commit resources to it in the coming budget.

Iqrar Ahmad Khan, former vice chancellor of the University of Agriculture Faisalabad and author of the Punjab government’s last agricultural policy, supports the farmers’ demands.

“After all, this is going to be the third budget of this government; it must decide where it wants to take the sector. If it wants to regulate agricultural inputs and trade, it should do so clearly. If it plans to deregulate, it must do so unambiguously. But it must make the direction clear.

“If deregulation is the preferred path, as appears to be the case, then the government should stop interfering in the market on behalf of different stakeholders — whether farmers, consumers, traders or manufacturers — at different levels and times, and let the market find its own equilibrium.”

Citing policy somersaults on wheat — the national staple around which much of the agricultural economy revolves — farmers explain how an inconsistent mix of liberalised and controlled policies is proving ruinous for growers.

Responding to lenders’ demands, the federal and provincial governments withdrew from the wheat procurement process two years ago.

But after a crippling price crash last year, the Punjab government lured commercial wheat buyers into the market by promising to share their financial burden and ensure profitability. Within weeks, as the entire model began to collapse, the province reverted to old tactics: raiding farmers’ stocks, seizing wheat shipments on roads and using administrative power to build up the reserves of private buyers.

In the process, it incurred farmers’ wrath twice over — first by withdrawing from the wheat market and then by seizing their produce to rescue a failing liberalisation model. Such somersaults have become routine and now define the government’s handling of the entire agricultural sector.

Structural weaknesses

Beyond pricing and procurement issues, many believe the crisis in agriculture is also rooted in structural weaknesses that successive governments have failed to address.

Dr Asif Ali, vice chancellor of Nawaz Sharif Agriculture University, argues that since landholdings in Pakistan are already highly fragmented — and continue to be divided with each passing generation — the government needs to mitigate the effects through cluster farming and crop zoning.

These clusters could then be linked with providers of quality agricultural inputs, including seed, fertiliser and pesticides, which could also conduct training programmes for farmers. Such a model would help improve the marketing of agricultural produce as well.

He further points out that nearly 65pc of farmers own less than five hectares of land. For such small landholders, most forms of mechanisation are either financially unaffordable or commercially impractical. He suggests the government announce measures in the budget to establish farm machinery rental centres, enabling small farmers to access equipment without bearing the full cost of ownership.

A question of survival

While some experts focus on structural reforms, farmers’ representatives insist the most immediate issue remains economic survival.

Khalid Khokhar of the Pakistan Kissan Ittehad advocates making agriculture profitable on an urgent basis, arguing that it is no longer economically viable. He suggests the creation of a pricing commission to calculate the cost of production for each crop every year, add a 25pc profit margin and announce the price before the crop reaches the market.

“Either put a cap on the cost of inputs or remove the cap on the price of outputs,” he warns. “Otherwise, farmers may soon be pushed out of business and existence.”

Running dry

Water sector remains the most critical challenge facing agriculture. According to data from the Indus River System Authority, water shortages remained in double digits in six of the last 10 years, touching nearly 30pc in 2022-23. Not a single year during this period was free of a water deficit.

Naeem Hotiana, a farmer from central Punjab, points to a stark funding gap: the outgoing Wapda chairman demanded Rs400 billion annually to complete ongoing water projects but received only Rs35 billion — less than 10pc of the required amount.

“The irrigation system was originally designed for 65pc land utilisation, whereas the current cropping intensity in Punjab has already crossed 150pc. Now combine the realities of limited surface-water availability, shrinking groundwater reserves and barely one-tenth of the required investment being provided, and imagine the situation that is emerging. Doesn’t it scare one out of one’s senses?”

He warns the situation will worsen as environmental pressures mount. “Climate change, which is already testing the limits of existing water supplies, only deepens the anxiety.”

Published in Dawn, June 2nd, 2026

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European Union (EU) top diplomat Kaja Kallas on Monday said the bloc sought stability in the region, adding that it was in everyone’s interest for the ongoing war in the Middle East to end and for the Strait of Hormuz to remain open.

Kallas, who serves as vice-president of the European Commission and the EU high representative for foreign affairs and security policy, is visiting Pakistan at the invitation of Deputy Prime Minister and Foreign Minister Ishaq Dar to participate in the 8th round of the EU-Pakistan Strategic Dialogue, which was held earlier today.

In an interview on the Geo News programme ‘Capital Talk’, Kallas said, “This is in everybody’s interest that this war is stopped and the Strait of Hormuz is opened. We are paying a very high price. There are a lot of things dependent on the Strait of Hormuz.”

During the appearance on the show, she commended Pakistan for being a mediator between the United States and Iran, bringing all the parties together, adding that, “Eventually, the [warring] parties have to decide.”

“Everybody is hoping that the first phase of this agreement is signed, so the talks on the difficult topics like nuclear can be started,” she said.

Kallas added that the EU seeks stability in the region. “The problems of our neighbour today could be the problems for us tomorrow. We are all very interlinked.”

She called the Strait of Hormuz a “chokepoint”, mentioning that the EU was also looking forward to diversifying its trade routes and supply chain. “You cannot remain dependent on a single route.”

When asked if she sees any parallels between Russia’s war against Ukraine and Israeli actions in Gaza and Lebanon, she replied: “I see parallels in all these crises undermining international law. We have the UN Charter, which is very clear: you can’t attack another country; you have to respect another country’s sovereignty and territorial integrity. No one should be above the law.”

Talking about the renewal of Pakistan’s GSP+ status, Kallas said, “We discussed it with our counterparts today. The preferential access to our markets is also conditional.”

“It is true that we have a report coming up in July, and then the question of renewing this preference,” she added.

“However, the conventions have to be adopted, particularly on human rights issues, where we need to see improvements.”

She elaborated that the renewal process goes through the EU Parliament.

“The EU Parliament is always scrutinising, and we have been raising these issues on what more can be done to improve the situation,” she said.

When asked whether the EU was satisfied with Pakistan’s legislation to meet the conditions, she said: “Our counterparts are mentioning what they are doing in various files, but this is something where we clearly need to see improvements.”

“We are putting forward some very concrete questions. Hopefully, there is time for improvement in those areas, and then we can renew this scheme easily,” she concluded.

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The government must stop shifting the cost of weak revenue mobilisation onto households and the corporate sector and instead offer targeted tax relief to offset the burden imposed in recent years, including a reduction in the petroleum levy. While support for the most vulnerable remains necessary given high poverty levels, sustained job-creating growth is vital.

It is unreasonable to tax a monthly income of Rs50,000, which falls below the amount required for a family’s subsistence. To make the tax regime more logical and equitable, the income tax threshold should be raised to Rs1.5 million per annum (Rs125,000 per month) from the current Rs600,000. The tax slabs and rates should then be recalibrated accordingly to preserve progressivity while providing meaningful relief to low-income earners.

At the same time, there is little justification for imposing a super tax on the already compliant corporate sector while large segments of the economy — including many services, retail and wholesale trade, real estate, and farm landowners — continue to remain undertaxed or effectively enjoy a tax holiday.

With inflation once again edging upward, the persistently high petroleum levy is adding to the cost pressures across the economy. The levy needs to be rationalised and gradually reduced to levels comparable with regional averages to provide much-needed relief to consumers and businesses alike.

‘Attempting to extract more taxes from an already stressed private sector is likely to generate frustration and resentment rather than meaningful additional revenues’

Measures to broaden the tax base by effectively bringing big property owners and traders into the federal tax net, while ensuring that provinces adequately tax agricultural income and other undertaxed service providers, could not only offset the revenue loss from providing relief to overburdened taxpayers but also generate substantial additional revenues.

“A wider and more equitable tax base would improve compliance, reduce distortions, and strengthen fiscal sustainability without placing further pressure on already heavily taxed segments of society,” said a retired Federal Board of Revenue officer.

Meanwhile, revenue targets should be set realistically, considering the near-stagnant state of the economy, where economic growth is barely keeping pace with population growth. Under these circumstances, greater emphasis should be placed on reducing wasteful administrative spending and rationalising the costs of an oversized and inefficient state apparatus.

“Sizeable increase in tax revenues is rarely achieved in a low-growth environment,” observed a tax expert who requested anonymity. “Attempting to extract more taxes from an already stressed private sector is likely to generate frustration and resentment rather than meaningful additional revenues. It could further undermine business confidence, discourage investment, and deepen the economic slowdown at a time when the country can least afford it.”

The government will need to use the budget to convince the public that it is not only cognisant of the mounting economic pressures on households and businesses but is also committed to addressing rising poverty and inequality, while facilitating the private sector for accelerating GDP growth.

More importantly, it must demonstrate a credible strategy to lift growth to the levels capable of generating sufficient productive employment for the country’s expanding workforce and improving living standards on a sustained basis.

The spending patterns witnessed during Eid, where a small segment of society reportedly spent millions on sacrificial animals, in a country where half the population remain below or near the poverty line, underscored the widening gap between the affluent and the struggling majority.

Growing frustration among the youth over limited economic opportunities, coupled with widening income and wealth disparities, is increasingly viewed as a source of political and social risk not only for the government of the day but also for the country’s fragile democratic order and broader institutional framework.

Some observers caution that unless the upcoming budget sends a clear signal that the government is committed to expanding opportunities, reducing barriers to upward social mobility, and addressing economic exclusion, public discontent could intensify. Failure to tackle these underlying grievances may further erode trust in institutions and increase the risk of social unrest.

“We dread a Bangladesh-like situation if mounting economic grievances remain unaddressed. Our platforms are not merely advocating the interests of businesses; we are also urging the government to safeguard the economic rights of citizens and provide tax relief to the middle class,” remarked a leading Karachi-based business leader while explaining the budget proposals submitted to the government.

The reference was to the 2024 turmoil in Bangladesh, widely referred to as the “July Uprising”, a massive, student-led movement that toppled Prime Minister Sheikh Hasina’s government. Many analysts view it as a reminder of how economic pressures, perceptions of nepotism and inequality, and limited opportunities can amplify public discontent and trigger wider political instability.

Official estimates place Pakistan’s poverty rate at 28.9 per cent of the population. However, a recently released report by the Social Policy and Development Centre paints a bleak picture, suggesting poverty incidence at 43.5pc in 2024-25, with urban poverty rising at a faster rate.

The report also points to a widening income gap. According to its findings, inequality increased by 12pc between 2018-19 and 2024-25, with deterioration more pronounced in urban centres.

Members of Prime Minister Shehbaz Sharif’s economic team were approached for their views on the concerns raised in this report. While some chose not to comment ahead of the budget, the responses of others had not been received by the filing deadline.

Published in Dawn, The Business and Finance Weekly, June 1st, 2026

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A military official from Pakistan has said that the country’s “resolute response” to India during the May 2025 conflict had effectively debunked the notion of space for war in South Asia.

Commander I Corps Lieutenant General Nauman Zakria made these remarks during a special session at the Shangri-La Dialogue in Singapore on Saturday.

In May 2025, a four-day conflict between Pakistan and India was sparked by an attack on tourists in occupied Kashmir, which New Delhi, without evidence, linked with Pakistan. Islamabad strongly denied responsibility while calling for a neutral investigation.

After New Delhi launched deadly air strikes in Punjab and Azad Kashmir on May 7, Pakistan said it downed five Indian planes in air-to-air combat, later raising the tally to eight. After tit-for-tat strikes on each other’s airbases, it took American intervention on May 10 for both sides to finally reach a ceasefire.

Speaking at the Shangri-La conference, Lieutenant General Zakria said strategic stability in South Asia remained shaped by nuclear deterrence, conventional asymmetry, enduring political tensions, and unresolved territorial and ideological disputes between India and Pakistan.

And despite the complexities of great power contestation, China constituted a constructive and stabilising factor, contributing to strategic balance, regional connectivity and economic cooperation, he added.

Lt Gen Zakria said the May 2025 conflict demonstrated Pakistan’s effective multi-domain operations, which were enabled by tri-service synergy, integrated use of cyber, electronic warfare, intelligence, surveillance and reconnaissance, space-based capabilities and synergetic information manoeuvre, generating cross-domain effects.

“Pakistan’s resolute response has effectively debunked the notion of space for war in South Asia,” he said.

“Postconlict dynamics have further constrained the prospects for conventional war. However, continued Indian militarisation coupled with persistent adversarial rhetoric and absence of robust crisis management mechanisms continue to undermine regional stability,” he added.

In this evolving environment, he said, South Asia’s strategic equilibrium was increasingly contingent upon escalation control and effective crisis communication frameworks.

“Navigating the complex challenges of a fast-transforming geopolitical environment warrants a shift from competition-only postures to cooperative risk management across multiple domains, while remaining committed to upholding international norms,” he stressed.

Firstly, he said, states must prioritise responsible governance of emerging technologies. “Technological innovation cannot be divorced from ethical responsibility and strategic accountability.”

States should work towards internationally accepted norms regarding the military use of artificial intelligence, autonomous systems, cyber operations and space technologies. Human oversight must remain central in decisions involving the use of force, especially in systems with strategic implications, he said.

Lt Gen Zakria added that confidence-building measures, transparency mechanisms and technical dialogues among states were essential to reduce misunderstanding and prevent destabilising arms races.

Secondly, he said, institutionalised crisis management mechanisms and strategic communication channels needed to be strengthened, he said.

“Even during periods of geopolitical rivalry, dialogue must never collapse. History repeatedly demonstrates that strategic stability is preserved not only through deterrence but through communication as well.”

Thirdly, he said, nations needed to collaborate in codifying norms regarding space testing, prohibitions on attacks on civilian infrastructure, and human oversight requirements for autonomous weapon systems.

“Norms do not discourage competitiveness, but they do set boundaries that make deterrence more calculable.

“International law and multilateral institutions must be adaptive to emerging realities. Technological transformation is outpacing our existing institutional and legal frameworks,” he said.

Lt Gen Zakria said that strengthening global cooperation on cyber governance, responsible AI development, space security, digital ethics and information integrity was imperative to maintaining the geostrategic equilibrium.

“No country, regardless of its size or technological sophistication, can manage the emerging multifaceted risks alone. The challenges we face are transnational by nature and therefore require collaborative responses,” he asserted.

Moreover, strategic stability was not only about military capability but also about societal endurance, he pointed out.

“Countries must strengthen cyber resilience, protect critical infrastructure, improve digital and technical literacy and build institutional credibility.

“Public trust is a strategic asset. Resilient societies are far less vulnerable to external manipulation and internal destabilisation through misinformation, polarisation, and technological disruption,” he said.

At its core, strategic stability was ultimately about responsible statecraft, he added.

“Technology itself is not inherently destabilising. But the real challenge lies in how technologies are governed, integrated, and employed. Human judgement, political wisdom, and international cooperation for the greater good remain indispensable.

“We must resist the temptation for the greater good. We must resist the temptation to view every technological breakthrough solely through the lens of competition and militarisation, rather as a function of balance between innovation and responsibility, national security and global stability, strategic competition and collective survival,” he said.

Lt Gen Zakria added, “Let us remember that peace and stability have never been involuntary outcomes of technological progression. They have always depended on political responsibility, strategic restraint and sustained international engagement.”

Earlier in his address, he said the operationalisation of the emerging domains alongside the legacy domains had significantly complicated the strategic stability landscape.

“Rapid advances in AI, autonomous systems, cyber capabilities, quantum technologies, and multi-domain operations are transforming military decision making, command and control structures, and strategic competition, while simultaneously introducing new vulnerabilities, risks of miscalculations, attribution challenges, and unintended escalation,” he said.

As states, societies, and critical infrastructures become increasingly dependent on interconnected technological ecosystems, the erosion of predictability and compression of decision-making timelines were fundamentally reshaping the nature of inter-state conflict and strategic deterrence, he added.

Lt Gen Zakria said the information was becoming increasingly fragmented, as digital platforms, AI-generated content, and disinformation campaigns eroded trust, distorted narratives and compressed decision-making timelines.

“In this evolving landscape, the control of information and data integrity has emerged as a critical determinant of strategic stability, alongside conventional military balance,” he stressed.

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QUETTA: Pakistan Rai­lways resumed train operations from Balochistan on Saturday, restoring services after a three-day suspension, railway officials said.

According to the officials, train operations from the province have been fully restored, with the Jaffar Express departing from Quetta for Peshawar. They said that the return service of the Jaffar Express will also depart from Peshawar for Quetta as per the timetable, restoring connectivity between the province and other parts of the country.

The Jaffar Express, the only train service from Quetta to Peshawar, was suspended last Sunday following a vehicle-borne suicide bombing that targeted a shuttle train near the Chaman railway crossing.

The Jaffar Express, which was ready to depart for its destination, was immediately stopped and later cancelled. Passengers were asked to collect refunds. However, after two days, the train service was restored, but on Wednesday it was again suspended. Railway authorities have not mentioned the reason for the suspension of the Jaffar Express from both sides.

On Saturday, however, the Jaffar Express depa­rted for its destination on schedule following the restoration of rail traffic.

Published in Dawn, May 31st, 2026

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Paris Saint-Germain claimed back-to-back Champions League triumphs with a 4-3 shootout win over Arsenal following a 1-1 draw after extra time in Budapest, with Eberechi Eze and Gabriel missing from the spot.

Mikel Arteta’s Premier League champions showed great resilience to take the game beyond 120 minutes, but fell to a second final defeat, 20 years after their first in Paris against Barcelona.

Luis Enrique’s side became only the second besides Real Madrid to win the competition in consecutive years in the Champions League era.

PSG’s first triumph was 55 years in the making, 14 of those under Qatari ownership, the second could start what they hope is an era of dominance and dynasty-building.

Luis Enrique rebuilt the team swiftly and efficiently, removing the club’s superstars and building a cohesive and committed attacking side, capable of shredding opposition with terrifying pace.

It was the Spaniard’s third Champions League triumph, making him one of only five coaches to complete a hat-trick – the first coming with Barcelona in 2015.

For a while it looked unlikely as Kai Havertz powered Arsenal ahead after six minutes but Ousmane Dembele’s penalty midway through the second half took a tight game to extra time and ultimately penalties.

Arsenal’s Jurrien Timber was fit after a groin injury but his rust from over two months out led Arteta to deploy Cristhian Mosquera out of position at right-back.

The coach also opted for Havertz in attack over Viktor Gyokeres, and for an hour it seemed like his calls would pay off.

Luis Enrique selected 10 of the side which demolished Inter Milan 5-0 in last year’s final as PSG finally lifted the trophy they so badly craved.

In Arsenal’s only prior final German goalkeeper Jens Lehmann was sent off in the opening stages as they were defeated by Barcelona in Paris in 2006.

They got off to a far better start at the Puskas Arena, with Lehmann’s compatriot Havertz firing the Gunners ahead after just six minutes.

Havertz, who scored the winning goal in Chelsea’s 2021 Champions League final victory, could not believe his luck after Marquinhos’ attempted clearance hit Leandro Trossard and bounced into his path.

The forward galloped into open space behind PSG’s defence and towards Matvey Safonov’s goal. Havertz had a tight angle to overcome but rifled a strike into the roof of the net.

It was the worst possible start for PSG against a miserly Arsenal side who had conceded just six goals on the run to the final.

Their disciplined defending kept the Parisians at bay with consummate ease, as Luis Enrique’s side controlled the ball but could not break through Arsenal’s defensive bastion.

Gabriel Magalhaes made an excellent last-ditch challenge to pick Khvicha Kvaratskhelia’s pocket. The dynamic Georgian has been the tournament’s best player but in the first half was not allowed room to breathe.

The French champions appealed for a penalty when Bukayo Saka bungled an attempted clearance and the ball hit both his arms, but referee Daniel Siebert was unmoved.

Fighting back

PSG were reduced to frustrated pot-shots from distance and after the break moved the ball quicker to try to destabilise Arsenal’s rearguard.

Arsenal goalkeeper David Raya saved from Achraf Hakimi’s bouncing free kick before Kvaratskhelia finally had his say. After the winger’s slick one-two with Dembele, Mosquera bundled him down in the box with a clumsy foul.

Dembele sent Raya the wrong way with a low penalty to level, with PSG fans igniting several flares in celebration. It was their 45th goal of the competition, matching the all-time record.

PSG almost set a new one when Kvaratskhelia hurtled down the left but teenager Myles Lewis-Skelly deflected his shot against the post.

Substitute Bradley Barcola fired a fine chance wide on the break before extra time, as the French side threatened frequently, a tiring Arsenal suddenly giving them too much space.

The Gunners pleaded for a penalty of their own when substitute Noni Madueke went down under pressure from Nuno Mendes, but it would have been harsh on the PSG defender whom the winger was pulling.

To a shootout it went, with PSG confident after already claiming three trophies on penalties this season, and winning their last five. They also took the first spot kick, and at the end in front of their own supporters.

Arsenal blinked first, with Ebereche Eze firing wide but Raya then saved from PSG’s Mendes. Declan Rice drilled home to level at 2-2.

After Lucas Beraldo put the Ligue 1 winners 4-3 up, Arsenal defender Gabriel was left with the fifth kick for his side and lashed it high over the crossbar to hand PSG the trophy.

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Pakistan out-spun Australia by five wickets in the first one-day international in Rawalpindi with spinner Arafat Minhas becoming the first home bowler to take five wickets on ODI debut on Saturday.

Minhas finished with 5-32 as an under-strength Australia were bowled out for 200 in 44.1 overs before Pakistan chased down the target in 42.3 overs for a memorable win in their 1,000th ODI.

Babar Azam notched a 94-ball 69 while Ghazi Ghori hit an impressive 92-ball 65 as Australia’s inexperienced spinners failed to match Pakistan’s slow bowlers on a dry spin-assisting Pindi Stadium pitch.

Azam and Ghori added 127 runs for the third wicket after Sahibzada Farhan (28) and Maaz Sadaqat (eight) fell with the score at 49.

Azam hit four boundaries and a six while Ghori’s knock had eight hits to the rope before both falling to pacer Nathan Ellis, but with just 16 to win that did not hurt Pakistan.

Minhas smashed a six to complete the victory.

Australia are missing a host of key players, including regular skipper Pat Cummins, Mitchell Starc and Josh Hazlewood alongside opener Travis Head.

Australia, sent in to bat, saw Matthew Renshaw hitting a career best 63-ball 61 and opener Matthew Short scoring a 76-ball 55 amidst a spin assault with eight wickets going to slow bowlers.

It was Abrar (2-44) who broke the opening stand of 34 with the wicket of Alex Carey for 19, before Minhas destroyed the batting with guile and accuracy.

Minhas had stand-in skipper Josh Inglis (13) and Marnus Labuschagne (nought) in his fourth over before getting Cameron Green for a third-ball duck in his next.

At 68-4, Australia were in a spot of bother, but Short and Renshaw fought hard through a fifth-wicket stand of 55 before Minhas broke the stand, getting Short stumped.

Abrar returned for his second spell to dismiss Renshaw while Arafat completed his five-wicket haul by Nathan Ellis for eight.

Short hit six boundaries in his fourth ODI half-century, while Renshaw’s knock had five boundaries and a six.

The remaining two matches are in Lahore on Tuesday and Thursday.

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