Economy showing signs of recovery: Khawaja Asif

Defence minister says improvement in Pak-Iran relations, easing of sanctions on Tehran can create opportunities

Defence Minister Khawaja Asif on Tuesday said Pakistan’s economy had moved “out of the ICU”. is now showing signs of recovery, adding that the country could achieve 6–7% growth in the coming years.

Addressing the National Assembly. the defence minister said, “Whatever time we are living in is a time of celebration; we also have successes,” he said, adding that in the first budget the Pakistan Muslim League-Nawaz's government tabled three years ago, the economy was “insolvent” before being stabilised with support from the International Monetary Fund on "strict conditions."

“We were suffering,. from insolvency we are now solvent,” he said, adding that the economy was now “breathing” after a period of severe stress.

Asif said he was not claiming that Pakistan had fully recovered, but argued that indicators pointed towards gradual improvement. "Our trajectory shows that in one or two years Pakistan will reach a growth rate of 6–7%,” he said.

He said inflation. global energy prices remained linked to international markets, adding that expectations of lower domestic fuel prices were constrained by global trends. “When people say petrol prices should come down. do be aware that prices in the international markets have not come down yet,” he noted.

Turning to taxation, the defence minister said the current system contained multiple layers of levies. “We know there are problems with the levy, there are multiple taxes—25 different types—. they have been built into every purchase,” he said.

Asif further stated. the broader goal should be to expand the tax base rather than increase pressure on existing taxpayers. “The only way is that all 250 million people pay taxes,” he said. adding that people often find ways to avoid taxation. “We need to create an atmosphere in which people pay taxes with pride,” he added.

The defence minister hailed Pakistan’s role in helping bring about the recent understanding between the United States. Iran, saying the development had enhanced the country’s standing internationally and should be celebrated as a national achievement.

Asif congratulated the nation on what he described as a major diplomatic success. praised the efforts of Pakistan’s civil and military leadership. “Pakistan’s role was recognised in the world,” he said. adding that Pakistan had played a role in helping achieve the breakthrough.

“These moments in a country’s life come after centuries and become golden moments,” he told lawmakers. “No matter what complaints exist, these moments of jubilation should be celebrated as a nation, as one entity.”

The minister said he would like to thank “the field marshal. the entire team that was working”, adding that “the whole country should thank them”. “They steered a situation that was impossible and made the impossible possible,” he said.

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Asif noted that Indian Prime Minister Narendra Modi had congratulated US President Donald Trump on the development. had not acknowledged Pakistan’s role.

Turning to regional implications, the defence minister said recent improvements in Pakistan-Iran relations. the easing of sanctions on Tehran could create economic opportunities for Pakistan.

“With Iran, our relations have seen good developments in the past few months. Sanctions are being relaxed, their oil and gas exports [are increasing],” he said. “Pakistan can benefit immensely from this change, and the biggest beneficiary will be Balochistan,” he added. “Let’s see how we can proceed in this direction.”

The defence minister speaking on the security situation in Balochistan said that the crisis in the province “was not born yesterday”. that responsibility for it was shared across political forces over many decades.

“Many colleagues have rightly discussed the situation in Balochistan. This situation was not born yesterday; many people have contributed to it,” he said. adding that he would avoid naming individuals because “it would become partisan”.

He further said terrorism in Balochistan and K-P should be treated as a national issue rather than a party issue. “If roads are not safe in Balochistan, if terrorists have made highways unsafe. acts of terrorism occur, I understand this is the collective responsibility of this House,” he said.

He rejected the idea that political parties should trade accusations over the crisis. “Should I accuse them or should they accuse us?” he asked. adding that the roots of the problem stretched back to the 1950s, when agreements made with tribal communities were later broken. “We need a collective solution. If Balochistan faces terrorism, then responsibility is collective,. there must be a solution that the people of Balochistan accept,” he said.

Asif also spoke emotionally about the human cost of the insurgency. counterterrorism conflict, saying he had attended “21 funerals in the last few days”. “Small children are being orphaned. People are told, just days after their weddings, that they must report to the border,” he said, adding that many personnel request transfers because they fear postings to Balochistan. conflict zones.

“These soldiers standing on the borders of Balochistan and K-P are young men with families. Their sacrifices will bear fruit and will not be wasted,” he said.

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The minister also criticised what he described as hypocrisy across the political spectrum regarding the role of the establishment. “We complain that power centres have shifted elsewhere, but they have shifted because of us,” he said.

Asif said, “I am given establishment taunts. Tell me one party. is innocent.” He added that the soldiers being killed in attacks should not be reduced to political labels. “These are not martyrs of a party; they are martyrs of the army, which we call the establishment,” he said.

The defence minister urged lawmakers to speak “the language of the federation” rather than narrow provincial or partisan politics. “This is the whole of Pakistan’s House,” he said. “Do not come here with political angling and posturing that makes the common man lose trust in this House.”

Asif also accused political parties of selectively forgetting their own dealings with the establishment while criticising opponents for similar conduct.

Referring to former National Assembly speaker Asad Qaiser, he said he had attended legislative meetings at Qaiser's residence during the Pakistan Tehreek-e-Insaf's tenure, where politicians from the Pakistan Peoples Party (PPP). individuals linked to the intelligence services were present.

“Asad Qaiser, whom I respect, in his room I attended meetings at his house on legislation. PPP would sit there, ISI people sent by General [retd] Faiz would sit there,. they would monitor our conversations and, where they wanted, they would decide our direction,” Asif alleged.

The defence minister claimed he was disclosing this to “lower the burden on my conscience”. arguing that politicians often ignored their own past conduct when attacking rivals.

“When you pound your chest. taunt us, do you forget that under your roof the Anti-Money Laundering Bill and NAB law were discussed there under the watchful gaze of people sent by Gen Faiz at that time?” he stated, adding, “This is our problem. In politics, there are grey areas, but we expand them with new levels of hypocrisy.”

Asif was referring to Faiz Hameed, who is a retired three‑star general of the Pakistan Army’s Baloch Regiment. served as the director general of the Inter‑Services Intelligence (ISI), Pakistan’s premier intelligence agency, from June 2019 to 2021.

Hameed. on December 11, wassentencedto 14 years of rigorous imprisonment by a Field General Court Martial after being found guilty on multiple charges after 15 months of proceedings. He was tried on four charges, including engaging in political activities, misuse of authority. government resources, violation of the Official Secrets Act in a manner “detrimental to the safety and interest of the state,” and causing wrongful loss to individuals.

Responding to criticism that Islamabad had not sufficiently engaged with Kabul, Asif said that Pakistan had repeatedly engaged with the Afghan Taliban multiple times. had failed to secure guarantees that Afghan territory would not be used for attacks inside Pakistan.

Asif said that senior political, military and intelligence officials had held extensive talks with Taliban authorities over several years. “Lots of people complained that we should negotiate with them,. maybe our approach is impersonal, that we are not directly approaching them,” he said. “But this Afghanistan issue is directly linked to terrorism. Whether in Balochistan or Khyber-Pakhtunkhwa, the origin of the terrorism comes from Afghanistan.”

Rejecting suggestions that Pakistan had not pursued dialogue. the minister said he had personally travelled to Afghanistan twice as part of high-level delegations. “This complaint that we didn’t talk — I went twice myself. Both times senior delegation members were there, and I had the DG ISI with me,” he said. “They would agree to everything but would refuse anything in writing,” he added.

The minister disclosed that Afghan authorities had sought financial assistance from Pakistan during the discussions. “They asked us for $10 billion. We agreed, but we told them that terrorists residing in Afghanistan will not come back to Pakistan,” he said. “Apart from Kabul, I also met them inTurkeyandQatar. Negotiations would go on day and night, with high-powered delegations, but there was no conclusion,” he added.

“We were ready to do anything, but we wanted a guarantee that their land would not be used against us. That’s all we wanted.” The defence minister said Pakistan had exhausted diplomatic channels in seeking cooperation from the Taliban government.

Asif also reflected on Pakistan’s role in past regional conflicts, arguing that decisions taken during the Cold War. the US-led war in Afghanistan had left lasting consequences. “I don’t say that our policies of the 1980s. the first two decades of this century, when we were American proxies, were correct,” he said. “We thought we would win a lottery by being an American proxy. Pakistan became a battleground,” he added.

The minister further said that those [Americans] who "came here used us. then went home," leaving behind their arms and terror. "We are still suffering the consequences, and God knows for how long we will continue to suffer,” he added.

Calling for a practical approach, the minister said Pakistan remained open to further engagement but expected tangible outcomes. “My companions should conduct talks and go there. We are ready, but don’t come back without results,” he said. “Two generations have already suffered, and it seems the coming generations will also suffer.”

Khyber-Pakhtunkhwa had witnessed asignificant risein militant violence last year. with more than 500 attacks reported, marking a 50% increase compared to the previous year.

According to a security assessment obtained byThe Express Tribune, K-P recorded 1,588 terrorism-related incidents, underscoring the growing militant threat across both settled. tribal districts. Despite the increase in attacks. security forces reportedly thwarted 320 major strikes, while 137 police personnel were killed in the line of duty.

The report said joint operations by the K-P Police, the Counter Terrorism Department (CTD). other security agencies led to the arrest of 1,244 suspected militants, while 420 militants were killed in intelligence-based operations.

Bannu, Dera Ismail Khan, Lakki Marwat, Hangu. Peshawar were among the districts most affected by militant violence, with the report noting a pattern of attacks allegedly planned and launched from across the Afghan border.

The fighting ​betweenPakistan. Afghanistan that started in October​has ⁠killed scores of people on both sides, with Afghans taking the brunt. Islamabad accuses theAfghan Taliban of harbouring ⁠militants​who launch attacks in Pakistan. ​although Kabul denies this, calling the militancy its neighbour's domestic problem.

Operation Ghazab Lil Haqwas launched around the end of February following renewed clashes along the Pakistan-Afghanistan border. after Afghan Taliban forces fired on multiple locations, prompting swift military retaliation by Pakistan.

The clashes intensified after Afghanistan launched a border offensive in response to Pakistani air strikes targeting terrorist positions. The two sides had agreed to aweek-long ceasefire on the eve of Eidul Fitron March 18, following requests from Türkiye, Saudi Arabia. Qatar.

Pakistan in April put forththree core demandsto the Afghan Taliban during peace talks in Urumqi, China, including Kabul formally declaring the Tehreek-e-Taliban Pakistan a terrorist organisation, dismantling its infrastructure,. providing verifiable proof of the action. These demands form the basis of Pakistan's negotiating position, which sources say has hardened amid persistent security concerns.

In the most recent development. Pakistan carried out“precision strikes”along the Pakistan-Afghanistan border targeting terrorist hideouts, killing 26Fitna al-Khawarijterrorists in response to recent terrorist attacks in the country.

Information Minister Attaullah Tarar said the operations were conducted in the aftermath of recent attacks, including theassaulton a Federal Constabulary post in Khyber-Pakhtunkhwa on June 9, a vehicle-borne suicide attack on a military post in North Waziristan on June 2,. anattackon a police station in Bannu on May 9.

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