Photo : Reuters
Photo : Reuters
In Focus
IMF praises Pakistan’s performance under Extended Fund Facility (EFF), forecasts positive economic growth
On 14 July, The News International reported that the International Monetary Fund (IMF) Resident Representative for Pakistan, Mahir Binici, has praised Pakistan’s performance under the USD 7 billion Extended Fund Facility (EFF). Binici forecasted strengthened economic growth across the Middle East, North Africa (MENA) region, and Pakistan in 2025. He also stated that Pakistan’s performance has been strong, expressing optimism that the country’s economic growth will be strengthened this fiscal year, considering the completion of the first review by the IMF Executive Board in May. Additionally, he asserted that timely policy interventions have helped induce macroeconomic stabilization and restore investor confidence despite continuous external challenges. Further, he argued that structural reforms are essential for Pakistan’s long-term economic recovery, specifically the improvement of tax equity, strengthening of the investment landscape, and enhanced private sector initiative. Binici warned that “trade tensions, geopolitical fragmentation and weakening global cooperation” are fueling global economic uncertainty, underscoring the need for “prudent and forward-looking policy actions.”
Mahir Binici also reaffirmed the IMF’s support for Pakistan’s climate reform agenda. Binici highlighted Pakistan’s progress on climate-related reforms under the IMF’s Resilience and Sustainability Facility (RSF), stating that support through RSF will not only help bolster climate resilience but also enable future green investments and cultivate a climate-conscious economic trajectory in Pakistan. Critical areas of reform under the RSF include augmenting public investment planning, encouraging efficient and sustainable use of water resources, strengthening institutional cooperation for disaster preparedness and funding, and expanding the availability and transparency of climate-related data. According to Binici, the RSF is devised to “help countries like Pakistan bolster resilience to climate-related vulnerabilities and meet international climate commitments.”(“IMF praises Pakistan for strong performance,” The News International, 14 July 2025; “IMF sees growth ahead for Pakistan,” The Express Tribune, 14 July 2025)
President Zardari sets out ordinance to modify the Frontier Constabulary into Federal Constabulary
On 13 July, President Zardari set forth an ordinance which authorized the federal government to modify the Frontier Constabulary (FC) to the Federal Constabulary, making it responsible for ensuring law and order. This also gives a boost to the strength of the law enforcement agencies. The Frontier Constabulary was initially formulated to ensure law and order in the border and frontier regions. The modification of the Frontier Constabulary was required to effectively combat the surge in numbers of “emergencies, natural disasters, civil unrest,” etc. Since the National Assembly and Senate are not currently in session, President Zardari, taking note of the conditions, felt that it was essential to “take immediate action.” According to Dawn sources, the ordinance provides the federal government with complete authorization to utilize the newly modified FC for any purpose. Further, it is being speculated that the ordinance has given a free hand to the government to utilize the FC for the “personal security” of government members. As per the ordinance, the newly modified FC would be led by an inspector general which would be chosen by the federal government. (Syed Irfan Raza, FC upgraded to status of federal force, Dawn, 14 July 2025)
PM Sharif to visit China in August to enhance bilateral ties and evaluate “regional developments”
On 14 July, The Express Tribune reported that PM Sharif is expected to visit China in August. The visit is geared towards enhancing bilateral ties with China and taking note of the recent “regional developments,” which include the brief military confrontation with India. It is anticipated that the Chief of Army Staff, Asim Munir, will also be traveling to China along with PM Sharif. Previously, the head of the Chinese Air Force visited Pakistan and had conveyed China’s interest in drawing lessons from Pakistan’s military encounter against India. Also, recently, the Deputy Chief of Army Staff of India asserted that India was facing a threat from China, hinting the China’s assistance in the alleged victory of the Pakistani military against India in the brief confrontation. This was strongly contested by Chief of Army Staff Asim Munir, claiming the confrontation was “unmistakably bilateral.” A senior official from China also dismissed India’s assertion and claimed that China has no interest in exacerbating the conflict between India and Pakistan. He stated that China has continually pushed both India and Pakistan to solve contentious issues via dialogue. (Kamran Yousaf, “PM to visit China next month,” The Express Tribune, 14 July 2025)
In Brief
POLITICS
Five PTI MNAs suspended from the party for supporting the 26th Constitutional Amendment
On 14 July, The News International reported that the Pakistan Tehreek-e-Insaf (PTI) suspended five of its Members of National Assembly (MNAs) from the party, citing their violation of the party's stance by voting in favour of the 26th Constitutional Amendment in October 2024. The following MNAs have been suspended from PTI’s primary membership: Aurangzeb Khan Khichi, Muhammad Ilyas Chaudhry, Mubarak Zeb, Usman Ali, and Zahoor Hussain Qureshi. These MNAs were previously independent and were inducted into the party on the condition of staying loyal to the PTI. The legislation consisted of judiciary-oriented constitutional amendments, including providing a fixed three-year term for the Chief Justice of Pakistan (CJP). The government, consisting of 211 seats, required a majority of 224 votes in the National Assembly to pass this amendment. The amendments were successfully passed following support from PTI-backed MNAs, including Zahoor Qureshi, Aurangzeb Khichi, Usman Ali, and Mubarak Zeb, and the Pakistan Muslim League-Quaid (PML-Q) and Jamiat Ulema-e-Islam-Fazl (JUI-F). The party also claimed that MNA Aurangzeb Khan Khichi had joined the Pakistan Muslim League-Nawaz's (PML-N) parliamentary party and occupied the office of Federal Minister for National Heritage and Culture Division and was “hence liable to disqualification as well.” (Haider Sherazi, “Five PTI MNAs expelled from party for supporting 26th Constitutional Amendment,” The News International, 14 July 2025)
Internal differences arise within PTI regarding protest movement timeline
On 14 July, The News International reported that internal differences have arisen within the Pakistan Tehreek-e-Insaf (PTI) regarding the party’s timeline and planning of the protest movements which will take place this year. The objectives of the protest movement include safeguarding the constitution, democracy, and securing the release of the party leadership, especially the founder chairman, Imran Khan, from jail. PTI leader and Chief Minister of Khyber Pakhtunkhwa, Ali Amin Khan Gandapur, stated that the party has to decide in 90 days “whether to do politics or not,” asserting the protest movement will be a “do or die” in nature. In response, PTI Punjab Chief Organizer Alia Hamza raised questions about the movement. Hamza asked for clarification on the 90-day plan, questioning whether any plan of action was in place for the release of the imprisoned PTI founder. She also asked where and how the PTI protest movement began. Gandapur gave this statement after the PTI formally launched its anti-government campaign, set to reach its “peak” by August 5, when Imran Khan completes two years in jail. Gandapur warned that the “PTI would go all out in this movement whether we remain in government or not as it doesn’t matter to us. We will go to every corner of the country and mobilise the people.” (Faizan Bangash, “Rifts crop up in PTI over timeline of protest movement,” The News International, 14 July 2025)
ECONOMY
Local investors invited to establish industrial units in Gwadar
On 14 July, Dawn reported that the chairman of Gwadar Port Authority (GPA), Noorul Haq Baloch, has invited local investors to set up industrial units in the Gwadar Free Zone. Baloch informed businessmen that investors playing a key role in Gwadar’s economic development will be allocated government land based on concessional rates, besides the provision of other facilities. Additionally, he stated that the government is offering a “23-year tax holiday, customs duty exemptions, modern infrastructure and international-standard amenities to investors in Gwadar.” The GPA chairman also discussed the development of Gwadar Port, the expansion of the deep-sea terminal, and enhancing cargo handling. Further, he also inspected multiple pumping stations and water storage tanks constructed for water supply to Gwadar city, reviewing the existing water supply system, observing water transmission processes, storage, and availability. Baloch also announced that the longstanding desalination plant would be operationalised soon. Business stakeholders of the Gwadar Chamber of Commerce and Industry (GCCI) requested the government to further streamline investment processes and extend incentive packages. (“Investors invited to set up industrial units in Gwadar,” Dawn, 14 July 2025)
Federal government extended PKR 616 billion in fiscal support to SOEs in the first half of FY2025
On 13 July, The Nation reported that the government of Pakistan extended fiscal support amounting to PKR 616 billion to loss-making state-owned enterprises (SOEs) during the first half of FY2025 to sustain operations. Such a significant outlay demonstrates the fiscal burden imposed on common taxpayers by underperforming SOEs. According to the Bi-Annual Report on Federal State-Owned Enterprises (SOEs) FY 2025 (July 2024 to December 2024), released by the Ministry of Finance, this support consisted of PKR 113 billion in grants, PKR 333 billion in subsidies (mostly towards the power sector), PKR 92 billion in loans and equity injections totaling PKR 77.5 billion. Loss-making SOEs incurred a combined loss of PKR 343 billion during this period. The National Highway Authority (NHA) reported the largest loss of PKR 153.3 billion, with its accumulated losses totaling PKR 1,953.4 billion. Gross revenues of federal SOEs reached PKR 6,459 billion from July to December 2024, reflecting a 7.9 per cent year-on-year decline. Aggregate profits fell by 10 percent to PKR 457 billion. Pakistan’s power distribution companies (DISCOs) total core operating actual loss for the same period stood at PKR 283.7 billion. Overall, these losses are fueled by structural flaws. Rapid reforms are needed to promote energy sector recovery and investment. (Imran Ali Kundi, “Govt extended Rs616b support to sustain operations of SOEs in first half of FY2025,” The Nation, 14 July 2025)
SOCIETY
Punjab Emergency Operations announces three-day polio immunization campaign in Rawalpindi
On 14 July, The Express Tribune reported on the announcement from the Punjab Emergency Operations regarding a special polio drive. The polio drive would be carried out in 25 union councils in Rawalpindi and would begin from 14 July. As per the CEO of Rawalpindi District Health Authority, Dr. Ehsan Ghani, the drive would continue for three days and would aim to inoculate more than 124,000 children who are less than the age of five. To enhance the detection of polio in the province, the Punjab government has formulated “31 permanent environmental monitoring sites” spanning 19 districts.
Separately, on 13 July, the National Institute of Health’s (NIH) Polio Eradication Lab informed that the six environmental samples that were taken from Peshawar did not have the polio virus. This is the first time in the last two years that none of the environment samples collected from Peshawar tested positive. However, 11 more samples, which were collected from the rest of the country, contained polio virus. As per an official of NIH, 13 out of a total of 24 environmental samples collected from across the country did not have the polio virus. In KP, the “positivity rates” of environmental samples have decreased to seven in June. This number in January stood at 14. Four of the seven positive environmental samples were collected from southern KP. In Balochistan, the positive rate of environmental samples also saw a decrease. In January, 19 samples were detected positive. This number in June came down to four. In Punjab, five environmental samples had polio virus. Thus number in January stood at seven. To maintain progress, a polio drive in three districts of KP and Diamer would be carried out from 14 July to inoculate 158,497 children. (“Three-day anti-polio drive launched,” The Express Tribune, 14 July 2025; Ikram Junaid, “No poliovirus in Peshawar for first time in two years,” Dawn, 14 July 2025)
SECURITY
Two labourers wounded in a bomb attack on Deputy Inspector General’s office in Balochistan
On 14 July, Dawn reported that two people were wounded in a bomb attack which took place in the Rakshan Deputy Inspector General’s office in Kharan, Balochistan. As per the officials, the unidentified assailants were on motorbikes when they threw bombs at the Deputy Inspector General’s office. Two labourers fell victim to the bomb attack and were moved to a hospital for care. Balochistan’s minister of finance, Mir Shoiab Nosherwani, who was accompanied by the deputy commissioner, paid a visit to the hospital to meet the wounded labourers. (“Two injured in bomb attack on Quetta DIG office,” Dawn, 14 July 2025)
EXTERNAL
Foreign Minister Dar to visit China to attend SCO’s Council of Foreign Ministers meeting
On 13 July, The News International reported that Deputy PM and Foreign Minister Ishaq Dar would be traveling to Tianjin, China, to take part in the meeting of the Council of Foreign Ministers (CFM) of the Shanghai Cooperation Organization (SCO). The meeting would begin on 14 July and would continue till 16 July. Foreign Minister Dar would also convene separate meetings with the other foreign ministers who would be attending the summit. On 13 July, as per the Foreign Office, Foreign Minister Dar held a conversation with his Uzbekistani counterpart on the Uzbekistan-Afghanistan-Pakistan railway project. The two foreign ministers will also hold discussions on the sidelines of the CFM. It would be the first time that the foreign minister of Belarus would be taking part in the CFM. CFM ranks third amongst all the platforms of the SCO. CFM looks into the issues of “international relations, foreign and security policies.” The meeting of the heads of state of the SCO countries is scheduled from 31 August to 1 September, which will be hosted by China. (“DPM Dar to visit China for SCO CFM meeting, says FO,” The News International, 13 July 2025; Abdullah Momand, “Foreign Minister Ishaq Dar to travel to China for SCO meeting tomorrow,” Dawn, 13 July 2025)
ON INDIA
Senior leadership showcases support for people of Jammu and Kashmir on "Kashmir Martyrs’ Day"
On 14 July, The Nation reported that Pakistan’s senior leadership reiterated the country’s support for the people of Jammu and Kashmir’s "right to self-determination" and their resistance against alleged oppression, on "Kashmir Martyrs’ Day." President Asif Ali Zardari and Prime Minister Shehbaz Sharif pledged that Pakistan will continue to support the "Kashmir cause" until the region achieves self-governance and independence under United Nations (UN) resolutions. President Zardari expressed appreciation for the people of Jammu and Kashmir, claiming that they had made sacrifices against alleged “Indian control" and called upon international bodies and human rights groups to address the alleged state terrorism and rights violations in the region. Additionally, Interior Minister Mohsin Naqvi paid tribute to protesters killed on 13 July 1931 in the princely state of Jammu and Kashmir in British India. He described the day as “harbinger of free conscience against a system that sought to silence the oppressed”, drawing a parallel between the Dogra regime and the Indian government headed by Narendra Modi. Further, “Azad Jammu and Kashmir” Prime Minister Chaudhry Anwar-ul-Haq said that the Kashmir freedom movement is a fight that will “endure” and whose foundation was laid by the sacrifice of the protesters, whom he terms as “martyrs.” He urged the international community to recognise the “legitimate right to self-determination” of Kashmiris. Haq also accused India of fueling unrest in Balochistan. He alleged that India’s brutality and aggression continue and that it would “only harden the resolve of Kashmiris, escalate their struggle for freedom, and provoke a fierce and uncompromising response from Pakistan’s armed forces." (“Top leadership backs Kashmir cause with fresh resolve on Martyrs’ Day,” Dawn, 14 July 2025)