PM Shehbaz terms Iran-Israel conflict threat to regional, global peace

Prime Minister Shehbaz Sharif termed the escalating armed conflict between Iran and Israel as “very alarming,” warning that the situation poses a grave threat to both regional and global peace.

Speaking during a cabinet meeting on Wednesday, the premier reiterated Pakistan’s “complete solidarity” with Iran in the face of Israeli aggression and urged the international community to ensure an immediate ceasefire.

“The global community should ensure a ceasefire,” PM Shehbaz stressed, adding, “We stand firmly with the brotherly people of Iran.”

He said he had spoken to Iranian President Masoud Pezeshkian to express condolences and Pakistan’s support. He also discussed the regional crisis with Turkish President Recep Tayyip Erdogan.

On the humanitarian crisis in Gaza, the PM said the suffering of Palestinians was “heart-wrenching,” noting that over 50,000 had been killed. “The brutality is being unleashed — but when will the world’s conscience wake up?” he asked.

Foreign Minister Ishaq Dar is set to attend the OIC foreign ministers’ meeting in Turkiye on June 21–22 to discuss the ongoing crises.

Turning to domestic matters, PM Shehbaz praised the fiscal 2025 budget, highlighting that the government convinced the IMF not to impose taxes on the agriculture sector. He said the tax rate for incomes between Rs600,000 and Rs1.2 million had been reduced to 1% from 5% last year.

He said Rs1 trillion had been allocated for the Public Sector Development Programme (PSDP) to stimulate growth and development.

He further lauded the professionalism of the armed forces and public unity during the recent military confrontation with India, calling the outcome a “great victory.” He noted that budgetary space for defence had been increased to address the needs of security forces fighting terrorism.

In closing, PM Shehbaz commended the diplomatic mission led by Bilawal Bhutto Zardari and Sherry Rehman for effectively presenting Pakistan’s stance on India’s recent “unilateral and illegal actions” during visits to the US and Europe.

Meanwhile, the federal cabinet approved a major financial scheme to eliminate circular debt of Rs1,275 billion ($4.6 billion), marking the country’s most ambitious move yet to stabilise its troubled power sector.

According to an official statement, the plan aims to restore investor confidence and strengthen the financial viability of the energy sector without burdening the national budget. “The scheme will eliminate the circular debt over the next six years,” the statement said.

Of the total amount, Rs683 billion of Power Holding Company’s debt will be refinanced, while outstanding payments to Independent Power Producers (IPPs) will be settled. The remaining liabilities will be addressed through institutional reforms and structural adjustments.

Officials described the move as a critical milestone in efforts to overhaul the energy sector and ease Pakistan’s fiscal pressure.

“This reflects the Government of Pakistan’s commitment to implementing sustainable institutional reforms, reducing financial burdens, and restoring investor confidence in the energy sector,” the statement added.