Pakistan can bring Iran, America back to the table

The protests by Jamaat-e-Islami (JI) against rising petroleum prices, the petroleum levy and inflation should not simply be treated as a political activity. The government needs to understand that the public’s economic pain is real. Whenever petrol and diesel prices increase, their impact goes far beyond the fuel station. Transport becomes expensive, food prices rise and the cost of doing business increases. A daily-wage worker, a small shopkeeper, a farmer and a salaried person all feel the pressure. The government’s petroleum levy may provide additional revenue, but it also adds to the burden on ordinary citizens. At a time when many families are already struggling to manage household expenses, every increase in fuel prices creates another problem. The protests in Karachi, Lahore and Peshawar show that this issue has become a serious public concern. The government should listen to these voices instead of dismissing them as opposition politics. This does not mean that the government can ignore its own financial difficulties. Pakistan needs revenue to run the state, pay for public services and meet its financial obligations. But revenue collection should not depend too heavily on indirect taxes that affect everyone equally, including poor and middle-class citizens. The government must find a better balance. It should review the petroleum levy, reduce unnecessary taxes and control non-development expenditure. At the same time, it should improve tax collection from sectors and individuals with greater ability to pay. Most importantly, the government must communicate honestly with the public. If higher fuel prices are unavoidable because of international oil prices or economic conditions, people deserve a clear explanation and a plan for relief. The JI protests should therefore be seen as a warning. The government may disagree with the party’s politics, but it cannot ignore the economic reality behind the protests. Pakistan’s economic recovery will have little meaning if ordinary people continue to struggle to afford transport, food and basic necessities. The government must act with sensitivity and provide practical relief before public frustration grows further.

The country is having an important conversation again. Should the country create new provinces to fix its governance problems? Or should it strengthen local governments and give real power to mayors instead? Federal Minister Mohsin Naqvi recently argued that the current system of governance has become outdated. He warned that without real reform, Pakistan will still face the same problems ten years from now. He is right that something needs to change. Large provinces, especially Punjab, are simply too big to manage efficiently from one provincial capital. But former State Bank Governor Dr Ishrat Hussain offers an important word of caution. He points out that creating new provinces means building an entirely new layer of bureaucracy. Each new province needs its own secretariat, its own cabinet, its own departments, its own buildings and vehicles. All of this adds permanent, recurring costs to a country that is already struggling with debt and financial pressure. Creating a new province does not solve a problem. It often creates an expensive new one. Dr Ishrat Hussain’s proposed solution deserves serious attention. He suggests that instead of drawing new provincial boundaries, Pakistan should strengthen mayoral systems and local governments in every major city. If cities like Lahore, Karachi and Faisalabad were given real financial and administrative powers, with elected mayors controlling budgets and development projects, this could fix governance problems without the heavy cost of new provincial structures. His argument makes sense. The real issue is not how many provinces Pakistan has. The real issue is that power has never properly reached the local level, where problems are actually felt and solved. This is a reasonable middle path. Strengthening city governments should be the first priority. Giving elected mayors genuine control over budgets, infrastructure and daily administration would bring government closer to the people it serves, without adding new layers of expensive bureaucracy. That said, there may still be a limited case for new provinces where genuine historical, linguistic and administrative grounds exist. Punjab is an unusually large province, and two regions within it, the Seraiki belt in the south and the Potohar region in the north, have long-standing and distinct identities, dialects and development needs that differ from central Punjab. If any new provinces are ever created, these two are the most defensible candidates, since they rest on real cultural and administrative logic rather than short-term political convenience. But this should remain the exception, not the rule.

The Senate Standing Committee on Industries and Production has exposed a governance failure that Pakistan cannot afford to ignore. The Export Processing Zones Authority has been running without a permanent chairman for an extended period. This is not a minor administrative gap. It is a warning sign of how casually the government treats institutions that are meant to drive industrial growth and attract investment. Senator Saleem Mandviwalla was right to raise alarm during the committee session. Leadership vacuums do not just delay paperwork. They shake investor confidence, stall strategic decisions, and put Pakistan at risk of falling short on commitments made under the IMF Extended Fund Facility. The phase-out of incentives and restrictions on EPZ sales to the domestic market are not small technical details. They are conditions tied directly to Pakistan’s economic credibility on the world stage. The situation around the draft Automotive and Auto Parts Manufacturing Policy 2026-31 tells a similar story. The policy has admirable goals. It wants to promote New Energy Vehicles, increase domestic value addition, and boost exports. But good intentions are not enough. Local manufacturers are being squeezed by high tariffs on raw materials and steep duties that put them at a serious disadvantage. Without resolving these operational bottlenecks first, the policy risks becoming another document full of promises that never translate into results on the ground. The government must understand that ambition without execution is meaningless. If domestic producers cannot compete because of avoidable cost disadvantages, foreign competitors will fill the gap while Pakistan’s own industry falls further behind. It is encouraging that the committee has directed stakeholders to submit formal grievances and scheduled a follow-up session with the Ministry of Commerce and the Ministry of Industries and Production. But scheduling meetings is not the same as solving problems. The government must move quickly to appoint permanent leadership at the EPZ Authority and address the structural issues raised by industry representatives. The country does not have the luxury of time. Every delay chips away at investor confidence and puts the country’s IMF compliance and international trade credibility further at risk. The government must take stock of this situation now, before it becomes yet another missed opportunity for industrial growth.

The government says it closed the financial year with a primary budget surplus of around Rs3.6 trillion. This is the third year in a row that the government has managed this feat. On paper, this looks like good news. It shows fiscal discipline and helps Pakistan meet its IMF targets. But a closer look tells a different story, one that ordinary citizens are living through every day. The surplus was not built on stronger tax collection. The Federal Board of Revenue actually missed its target by nearly Rs1 trillion. Instead, the government leaned heavily on the petroleum levy. Collections from this single source jumped by 28 per cent and crossed Rs1.567 trillion. This levy is charged at Rs80 per litre on petrol and diesel. It hits every citizen directly, from the farmer running a tube well to the daily wage worker commuting to a factory. This is the real problem. A government struggling to widen its tax net is instead squeezing more money out of fuel prices. Every rupee added to the petroleum levy pushes up transport costs. It raises the price of food, medicine and almost everything else that must be moved from one place to another. This is exactly why inflation continues to bite ordinary households, even as officials celebrate a fiscal surplus in press releases. The government now plans to collect Rs1.7 trillion through this levy in the current year. That means more pressure on fuel prices is coming. A surplus achieved through petroleum taxes instead of genuine reform is not a lasting solution. It only shifts the burden onto people who are already struggling with high prices. Pakistan does not need more levies. It needs real tax reform that brings undertaxed sectors into the net, so ordinary citizens are not made to carry the weight of fiscal discipline alone.

A powerful earthquake of magnitude 7.4 has struck western Colombia. The disaster has taken at least 164 lives. More than 880 people are injured. Over 3,200 people remain missing. These numbers may still rise as rescue teams continue searching through collapsed buildings. Our hearts go out to the people of Colombia. Families have lost loved ones. Homes have turned into rubble. Hospitals meant to save lives have themselves collapsed, forcing doctors to treat patients on the streets. Even a historic cathedral, standing tall since the 1920s, could not survive the shaking earth. This is a moment of deep grief for Colombia and for all of humanity. This tragedy reminds us of another dark chapter closer to home. In October 2005, a massive earthquake struck Azad Jammu and Kashmir and northern Pakistan. That disaster killed over 73,000 people. Entire towns were destroyed within seconds. Schools collapsed while children were still inside. The scars of that day remain fresh in the memories of countless families even today. Nature does not choose its victims. Earthquakes can strike any nation, rich or poor, prepared or unprepared. Yet the scale of destruction often depends on how ready a country is. Colombia’s new government now faces this crisis just days after taking office. Pakistan knows well how difficult such moments can be. The world must treat these repeated disasters as a wake-up call. Governments should invest more in earthquake-resistant buildings. Hospitals and schools must be built to withstand strong tremors. Early warning systems and trained rescue teams can save many lives when disaster strikes. Colombia now needs support from the international community. Rescue equipment, medical aid and financial help can ease the suffering of affected families. Pakistan, having faced similar pain in 2005, understands this need better than most nations. We mourn with Colombia today. We also hope this tragedy pushes every vulnerable nation, including our own, to take earthquake preparedness seriously before the next disaster strikes.

The Foreign Office has welcomed a new development in the Gaza peace process. The development is about Hamas agreeing to disarm. Officials in Islamabad say this could open the door to a lasting political solution and the creation of an independent Palestinian state. Prime Minister Shehbaz Sharif praised the mediation work of the United States, Egypt, Qatar, and Türkiye. He spoke after US President Donald Trump announced that an agreement had been reached on the complete disarmament of Hamas. This issue had remained one of the biggest obstacles since the ceasefire began in October 2025. The prime minister said Pakistan supports the work of the Board of Peace. He said he hopes all commitments under the Gaza Peace Plan will now move toward real action. He also said diplomatic efforts should lead to a clear and time bound political process. This process should follow United Nations resolutions. The goal remains an independent Palestinian state, based on the Palestinian people’s right to self-determination. According to Hamas officials, a committee under the Board of Peace will now supervise how the group’s weapons are stored. Hamas has also asked mediators to make sure Israel keeps its side of the deal. This includes the withdrawal of Israeli forces from Gaza. This raises an important question. While Hamas has agreed to give up its weapons, what steps have been taken to hold Israel accountable? Based on available reports, Hamas and mediating countries have raised the demand for Israeli withdrawal, but no confirmed timeline or enforcement mechanism for this withdrawal has been announced yet. The ceasefire framework places this responsibility on continued diplomatic pressure from mediators such as the United States, Qatar, Egypt, and Türkiye, rather than on any independent monitoring body with power to act against Israel. Meanwhile, Israeli aggression has not fully stopped. Fresh Israeli strikes reportedly killed at least four Palestinians, including two children. This shows how fragile the situation remains, even as diplomatic talks continue. Egyptian media report that Cairo will host another meeting of ceasefire mediators soon. Representatives from the United States, Qatar, and Türkiye are expected to attend and discuss the next phase of the peace plan. Pakistan has long supported the Palestinian cause. It continues to call for an independent Palestinian state based on the pre-1967 borders, with Al-Quds Al-Sharif as its capital.