Pakistan

Pakistan has made “meaningful” progress on fiscal federalism since 2010; however, deviations from “international norms” and “good practices” remain, including in the current federal–provincial transfer arrangements, the World Bank said in a report released on Tuesday. In its report titled “Strengthening Fiscal Federalism in Pakistan”, the WB highlighted four critical dimensions in which Pakistan lacked in terms of fiscal federalism. “First, expenditure assignments remain incompletely implemented and inadequately defined in some areas,” the report said and highlighted that the government continued to “operate” in constitutionally devolved areas despite the 18th Constitutional Amendment. It added that the involvement had caused waste and blurred “accountability”, while local governments lack clearly defined or adequately resourced functional mandates. It also pointed out that the 18th Amendment had caused “fragmentation” of the tax system. “While the Amendment strengthened provincial tax authority, particularly...

Sony on Wednesday announced that PlayStation will end physical disc production for games on its consoles from January 2028. In a statement on PlayStation’s blog, the gaming giant said the decision was taken “as consumer preferences and the broader entertainment industry continue to shift away from physical discs to digital formats”. “Following this date, new games will be available on the PlayStation Store and at retailers in digital formats only. This transition has no impact on games that have already been released, or will be released prior to January 2028 in disc format,” the statement added. Sony noted that the move was “a natural direction” to adapt to consumer trends, where demand for digital media has surpassed physical discs. “This transition will enable us to align more closely with how most of our community prefers to access and play games today,” the statement read. “We’ll continue to prioritise our resources to drive innovation in how players can access games and provide choices as to where playe...

ISLAMABAD: Pakistan’s consumer inflation rate eased slightly to 11.1 per cent in June from 11.7pc a month earlier, mainly due to lower prices of energy and essential food items, according to data released by the Pakistan Bureau of Statistics on Wednesday. The modest decline suggests that recent cuts in petrol and diesel prices have provided some relief to households. However, the government has yet to fully pass on the benefit of lower international oil prices to domestic consumers, limiting the overall reduction in inflationary pressures. On a month-on-month basis, inflation decreased by 0.3pc compared to the previous month. Inflation between July 2025 and June 2026 was recorded at 7.05pc, over the 4.49pc in the corresponding months last year. This was despite a high base effect from last year. The government has projected a revised inflation target of 7.5pc for the current fiscal year. For FY27, it has projected an inflation target of 8.2pc. The continued increase in monthly inflation, measured by the Consu...

Sindh Chief Minister Murad Ali Shah on Wednesday defended the province's local government system, saying those criticising it should first ensure effective local bodies are functioning in their own provinces.

LAHORE: The National Cyber Crime Investigation Agency (NCCIA) will establish a dedicated special cell in Punjab to ensure the prompt registration, investigation, and prosecution of cybercrime cases involving women and children, according to an official statement. NCCIA Punjab Director Muhammad Ali Wasim said in the statement on Wednesday that the initiative was aimed at providing the victim women and children with expedited legal assistance, protection and institutional support while ensuring that complaints were investigated without delay. “Cases involving online harassment, cyberstalking, blackmail, digital exploitation, identity theft, misuse or circulation of private photographs and videos, as well as other technology-enabled offences against women and minors will be processed through the newly established specialised unit,” he said. The official added that all such cases would remain under the direct supervision of the relevant deputy director to ensure close monitoring, swift investigations, and effecti...

India urged Pakistan on Wednesday to release and repatriate 97 Pakistani prisoners who have completed their sentences, according to a statement issued by the Foreign Office (FO). These prisoners include 64 civilians and 33 fishermen, the FO said, as it detailed the exchange of prisoner lists between India and Pakistan — a biannual practice that takes place in pursuance of the Agreement on Consular Access, 2008. The agreement requires both sides to share the lists of prisoners in each other’s custody on January 1 and July 1 every year. The FO said the “government of Pakistan handed over a list of 250 Indian prisoners in Pakistan (52 civilians and 198 fishermen) to the Indian High Commission in Islamabad”. It added that the Indian government shared a list of 439 prisoners who were “Pakistani or believed to be Pakistani”, including 386 civilian prisoners and 53 fishermen. It added that India was also urged to ensure the safety, security and well-being of all prisoners who were Pakistani or believed to be Pakista...

ISLAMABAD: The Board of Executive Directors of the World Bank has approved a $70 million loan for Pakistan’s Connected Punjab Programme (CPP) to help the province expand broadband internet access, improve digital service delivery, and enhance cashless transactions. A World Bank statement said the loan programme is designed to operate in tandem with Pakistan’s broader national digital agenda. The federal government is investing in national digital public infrastructure through the Digital Economy Enhancement Project (Deep). The CPP builds directly on these foundations, ensuring that national platforms, policies, and connectivity investments translate into tangible benefits for Punjab’s citizens and businesses. “Digital connectivity is no longer a luxury, it is the infrastructure of opportunity”, said Bolormaa Amgaabazar, World Bank Country Director for Pakistan. “The federal government has laid out a bold vision for Pakistan’s digital future, and Connected Punjab is how that vision reaches the doorsteps of mil...

The rapid development of AI offers huge potential benefits to countries and people around the world, but also poses big risks, 40 leading scientists and experts said in the first report by a United Nations independent scientific panel on the technology. The report, to be presented to governments at an inaugural UN Global Dialogue on AI governance in Geneva July 6 to 7, offers the first global, independent scientific assessment of AI, with a fuller, comprehensive report planned next year. Members of the panel were drawn from every region of the world, and its members serve a three-year term, independent of any government, institution or company. According to the report, policymakers need scientific evidence to govern AI but its capabilities are outpacing scientific understanding and governments’ ability to adapt, with few methods available for controlling highly autonomous AI systems. Panel co-chair Yoshua Bengio also noted growing evidence of deceptive AI behaviour and said science could not guarantee AI will...

LAHORE: Both runways of Lahore’s Allama Iqbal International Airport will remain closed for three hours daily for 70 days, from July 5 to September 15, for commercial flights during the upcoming monsoon season, the Pakistan Airports Authority (PAA) said on Wednesday, citing precautionary measures owing to increased risk of bird activity. “During the monsoon season, bird activity in and around the airport, particularly below 3,000 feet, increases significantly. Accordingly, pilots have been advised to exercise heightened caution during the aircraft’s approach and departure,” the authority said. It added that airlines had also been advised to carry adequate fuel for any anticipated ground or airborne holding. “As part of these precautionary safety measures, both runways [of the Lahore airport] will remain unavailable daily from 5am to 8am, from 5 July to 15 September 2026, when bird activity is at its peak. Scheduled commercial flights will continue to operate outside these hours,“ the PAA said, adding that in c...

Pakistan and India have exchanged lists of prisoners held in each other's custody under the provisions of the 2008 Consular Access Agreement, diplomatic sources confirmed on Tuesday.

Pakistan's aviation sector is set to welcome a new private airline as the Pakistan Civil Aviation Authority (CAA) has issued an Air Operator Certificate (AOC) to South Air, paving the way for the carrier to begin commercial operations.

Foreign Office (FO) spokesperson Tahir Andrabi on Wednesday rejected India’s “preposterous statement” regarding Pakistan’s recent strikes against terrorists and their hideouts along the Afghan border. In a post on X, the FO spokesperson said Pakistan rejected the “baseless statement” by India on its “legitimate, targeted and proportionate actions” against terrorist infrastructure in Afghanistan. “This preposterous statement has been made by a country that has historically interfered in and undermined the sovereignty and territorial integrity of its neighbouring countries, in contravention of the UN Charter, and continues to suppress the right to self-determination of the Kashmiris in Indian Illegally Occupied Jammu and Kashmir, in violation of the relevant UN resolutions,” he said. “India has also been actively aiding and sponsoring terrorist groups operating from Afghan soil against Pakistan, in violation of the relevant UN Security Council sanctions regime, and continues to play the role of a regional spoil...

President Asif Ali Zardari on Wednesday extended felicitations to the Governor General of Canada Louise Arbour, and the people of the country on their National Day, celebrated annually on July 1.

India’s opposition party Congress has demanded the resignation of Defence Minister Rajnath Singh and stepped up criticism against him for “lying” in parliament about the deaths of Indian soldiers during the May 2025 conflict with Pakistan, according to Indian media. The criticism comes days after the Indian government on June 26 disclosed the names of six armed forces personnel who died during the military conflict, dubbed “Operation Sindoor” by New Delhi. The names were included in the Roll of Honour on the National War Memorial website, marking the first official disclosure of military casualties from the period, The Hindu noted. Subsequently, on Monday, chairperson of the Congress’s Ex-servicemen Department Col. (retd) Rohit Chaudhry and Wing Commander (retd) Anuma Acharya slammed Prime Minister Narendra Modi’s government for concealing the deaths of the six personnel, The Hindu reported. In a press conference, Chaudhry demanded that Singh be removed from his position and that Modi and his party lawmakers ...

WASHINGTON: US President Donald Trump has held a series of meetings with senior national security officials to review US policy towards Iran, including whether Washington should continue negotiations with Tehran or resume broader military strikes, according to the Wall Street Journal. Trump has been briefed on options for a possible return to broader military confrontation with Iran but has, for now, chosen to continue diplomatic negotiations, according to a report by the Wall Street Journal citing US officials familiar with internal deliberations. The Journal said the discussions involved Defence Secretary Pete Hegseth and Joint Chiefs Chairman Gen. Dan Caine, as officials assessed whether the United States should abandon talks with Tehran and resume full-scale military strikes. Some officials involved in the deliberations reportedly described the harder option internally as “finishing the job”. While the deliberations reflect renewed debate within the administration over escalation, the report said Trump ha...

US President Donald Trump reported more than $1.4 billion in income from his family’s crypto ventures last year, showing how Trump now derives most of his income from digital assets that have benefitted from his policies, according to a review of his latest financial disclosures on Tuesday. The filings, his annual disclosure for 2025 with the US Office of Government Ethics, disclosed that his companies received almost $800 million from World Liberty Financial, a crypto venture he and his sons co-founded. That income, which the president splits with family members, included more than $520m from sales of crypto tokens and more than $250m from the sale of interests in the World Liberty business. Trump reported another $635m from the sale of his Trump meme coins. The news underlines how crypto has transformed the president’s fortunes. In his disclosure a year ago, for example, the president reported $57.35m from token sales at World Liberty, which then leaped nine-fold in this year’s filing. Reuters recently esti...

The Pakistan Meteorological Department (PMD) has forecast above-normal temperatures across most parts of the country during the July-September period, warning of an increased risk of flash floods, urban flooding, glacier melting and heat-related impacts.

The Supreme Court has reaffirmed women's inheritance rights by setting aside decades-old court rulings that had deprived a mother and her daughters of their lawful share in ancestral property.

PESHAWAR: A woman was killed while six others were injured in a suspected drone strike in the Pastawana area of the Hassan Khel subdivision on the outskirts of Peshawar late on Tuesday night. Sources initially said that seven people, all belonging to the same family, were immediately taken to the hospital after the incident was reported. They added that one of the injured persons, a woman, was seriously wounded and in critical condition. Later, locals said that two people, including a man identified as Sher Mast and his 15-year-old son, were still being treated at Lady Reading Hospital while the others were discharged early on Wednesday. An elder from Hassan Khel confirmed to Dawn that Sher Mast’s daughter-in-law had died. In April, a suspected drone strike had caused minor damage to a mosque also located in Hassan Khel subdivision. However, no casualties were reported in the incident. Sources said the strike took place in Chandoka area, on the border between Peshawar and Kohat.

QUETTA: The military said on Tuesday the Afghan Taliban regime launched four rudimentary drones across the border into Balochistan as part of its patronage and support for terrorist outfits operating from territories under its control. According to the Inter-Services Public Relations (ISPR), the hostile aerial platforms were imme-diately detected by Pakis­tan’s robust air defence network. “Demonstrating a high level of operational readiness, the security forces successfully neutralised all four incoming drones using sophisticated countermeasures. As a result of the swift and effective res­ponse, the hostile attempts were successfully foiled,” ISPR said. Such actions by the Afg­han Taliban regime appear to be aimed at misleading the Afghan population, which continues to suffer under its oppressive rule. The Taliban should realise that such irresponsible behaviour only adds to the hardships faced by the Afghans, it added. Published in Dawn, July 1st, 2026