{"id":63099,"date":"2026-06-13T05:38:26","date_gmt":"2026-06-13T09:38:26","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/lebanon-demands-hezbollah-disarmament-amid-regional-conflict-pakistan-hikes-defense-budget\/63099\/"},"modified":"2026-06-13T05:38:26","modified_gmt":"2026-06-13T09:38:26","slug":"lebanon-demands-hezbollah-disarmament-amid-regional-conflict-pakistan-hikes-defense-budget","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/lebanon-demands-hezbollah-disarmament-amid-regional-conflict-pakistan-hikes-defense-budget\/63099\/","title":{"rendered":"Lebanon Demands Hezbollah Disarmament Amid Regional Conflict; Pakistan Hikes Defense Budget"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Lebanese leadership has publicly declared Hezbollah &quot;militarily defeated,&quot; calling for the group to surrender its &quot;grip on the deep state&quot; and prioritize Lebanese national interests over Iranian regional goals.<\/strong><\/li>\n<li><strong>Prime Minister Najib Mikati is demanding a weapon-free zone in Southern Lebanon, asserting that Hezbollah must align with the government to secure an Israeli military withdrawal.<\/strong><\/li>\n<li><strong>Pakistan has proposed an 18% increase in its defense budget to Rs 3 trillion ($10.79 billion) for the 2026-27 fiscal year, leveraging provincial funds to sustain military preparedness.<\/strong><\/li>\n<li><strong>Croatia is rapidly emerging as a primary maritime hub for Asian trade entering Central Europe, utilizing strategic Adriatic ports to bypass traditional northern routes.<\/strong><\/li>\n<\/ul>\n<h2>Lebanon Challenges Hezbollah\u2019s Influence<\/h2>\n<p>In a series of high-stakes diplomatic maneuvers, Lebanese Foreign Minister <strong>Abdallah Bou Habib<\/strong> told <em>Le Figaro<\/em> that <strong>Hezbollah<\/strong> is currently &quot;militarily defeated&quot; but continues to maintain a restrictive hold on the country\u2019s &quot;deep state.&quot; The Foreign Minister emphasized that the Lebanese government has made &quot;courageous decisions&quot; regarding the group&#39;s arsenal, though he noted the state must move <em>cautiously to avoid internal friction or a potential civil war<\/em>.<\/p>\n<p>The Foreign Minister further asserted that Lebanon is capable of resolving the issue of <strong>Hezbollah&#39;s<\/strong> weapons independently, stating that the &quot;Lebanese file&quot; must be separated from the broader <strong>U.S.-Iran<\/strong> negotiations. He denied that a Lebanese ceasefire was included in recent agreements between Washington and Tehran, underscoring that <strong>Tehran\u2019s<\/strong> primary priority remains maintaining its own power base within Lebanon.<\/p>\n<p>Simultaneously, Prime Minister <strong>Najib Mikati<\/strong> issued a direct ultimatum to <strong>Hezbollah<\/strong>, demanding the group fulfill its obligations to the state if it truly cares for its constituency. <strong>Mikati<\/strong> insisted that <strong>Southern Lebanon<\/strong> must become a <strong>weapon-free zone<\/strong> and called on the group to publicly support the ongoing negotiations being conducted in <strong>Washington<\/strong>. <em>The Prime Minister\u2019s rhetoric marks a significant shift toward reasserting state authority and the application of the constitution.<\/em><\/p>\n<h2>Pakistan Bolsters Defense Amid Fiscal Constraints<\/h2>\n<p>Pakistan\u2019s Finance Minister, <strong>Muhammad Aurangzeb<\/strong>, has unveiled a federal budget for the 2026-27 fiscal year that includes a substantial <strong>17.65% hike in defense spending<\/strong>. The proposed allocation of <strong>Rs 3 trillion ($10.79 billion)<\/strong> comes as the country faces persistent security challenges along the Afghan border and ongoing tensions with India.<\/p>\n<p>To fund this increase while adhering to <strong>International Monetary Fund (IMF)<\/strong> targets, the federal government is reportedly pooling funds from provincial budgets. <strong>Aurangzeb<\/strong> noted that talks are ongoing for a <strong>three-year contribution framework<\/strong> from the provinces to support the federal defense outlay. <em>This fiscal strategy highlights the narrow path the government is walking between national security requirements and the stringent reform conditions set by international lenders.<\/em><\/p>\n<h2>Croatia Emerges as Strategic Trade Gateway<\/h2>\n<p>In the logistics sector, <strong>Croatia<\/strong> is solidifying its position as a critical maritime link between <strong>Asia<\/strong> and <strong>Central Europe<\/strong>. By leveraging its geographic advantage on the <strong>Adriatic Sea<\/strong>, the country is attracting significant interest from global shipping giants like <strong>A.P. Moller &#8211; Maersk<\/strong> (<a href=\"\/stock\/MAERSK-B\">MAERSK-B<\/a>) and <strong>Hapag-Lloyd<\/strong> (<a href=\"\/stock\/HLAG\">HLAG<\/a>).<\/p>\n<p>The shift toward Adriatic ports such as <strong>Rijeka<\/strong> is part of a broader &quot;Middle Corridor&quot; strategy intended to shorten supply chains and increase the resilience of European trade routes. <em>Analysts suggest that the continued development of Croatian infrastructure could significantly alter the competitive landscape of European logistics, drawing volume away from traditional northern hubs.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Lebanese leadership has publicly declared Hezbollah &quot;militarily defeated,&quot; calling for the group to surrender its &quot;grip on the 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