Photo : X@AfghanEmbPak
Photo : X@AfghanEmbPak
In Focus
Pakistan-Afghanistan sign Preferential Trade Agreement, duties on eight items “capped” at 27 per cent
On 24 July, Pakistan and Afghanistan inked a Preferential Trade Agreement (PTA). The agreement was signed by Jawad Paul who is Commerce Secretary of Pakistan and Mullah Ahmadullah Zahid who is the Deputy Minister of Industry and Commerce in the interim Taliban government. The agreement aimed at decreasing duties on “eight agricultural products.” After the signing of the agreement, import tariffs on Pakistan’s grapes, mangoes, kinnows, bananas, and potatoes were from a previous 60 per cent to a maximum of 27 per cent. Similarly, the duties on the import products from Afghanistan- grapes, pomegranates, apples, and tomatoes will also incur a maximum of 27 per cent tariffs. The new duty rates would come into force on 1 August 2025. The agreement can be “renewed” in the following year and new products could also be included in the list.
Separately, The News International reported that the foreign minister of Taliban government Mullah Amir Khan Muttaqi would be planning to travel to Pakistan in August. The official announcement regarding the same is still awaited. Previously, Muttaqi had visited Pakistan in 2021 during the Khan government. (“Preferential Trade Agreement: Pakistan, Afghanistan reduce tariffs on 8 agricultural products,” The News International, 24 July 2025)
Pakistan-Bangladesh decide to exempt visa requirements for “official and diplomatic passport holders”
On 23 July, Interior Minister Mohsin Naqvi held a meeting with Home Minister of Bangladesh Jahangir Alam Chowdhury in Dhaka. After the meeting, it was announced that people from the two countries who possessed “diplomatic and official passports” would be exempted from visa requirements. Interior Minister Naqvi termed his visit as “of great significance in strengthening bilateral relations.” The Bangladeshi home minister expressed gratitude towards Pakistan for providing “training opportunities” to police personnel from Bangladesh. During the meeting, the two leaders decided to work towards increasing collaboration in “counter-narcotics, anti-human trafficking, counter-terrorism, and police training.” Pakistan-Bangladesh ties are on an upswing after Sheikh Hasina’s government fell in 2023. There has been a surge in the number of bilateral visits between the two countries. FM Dar had planned to travel to Bangladesh in April; however, the India-Pakistan military confrontation resulted in “delaying” the visit. (Kamran Yousaf, “Pakistan, Bangladesh agree to relax visa rules,” The Express Tribune, 24 July 2025)
Pakistani passport ranked among ‘weakest’ worldwide
On 24 July, Dawn reported that Pakistan’s passport continues to be ranked among the ‘weakest’ in the world, with visa-free access available to a mere 32 destinations. According to the Henley Passport Index for 2025, Pakistan ranks 96th on the list. In 2024, the Pakistani passport was tied with Yemen as the fourth-worst passport in the world for the fourth consecutive year. The Henley Passport Index compares visa-free access of 199 different passports to 227 travel destinations, and ranks passports across the world based on the number of destinations their holders can enter without a visa acquired beforehand. Singapore has been ranked at the top, with Japan and South Korea sharing second place on the index. (“Pakistani passport still ranked among ‘weakest’ despite improvement,” Dawn, 24 July 2025)
In Brief
POLITICS & GOVERNANCE
PTI’s Salman Akram Raja calls reports of Shah Mehmood Qureshi assuming the party leadership as “premature”
On 23 July, the Secretary General of PTI Salman Akram Raja termed speculations of Shah Mehmood Quereshi assuming the party leadership as “premature.” The Secretary General reminded that eight to nine court case are still “pending” against Qureshi. He asserted that it was too early to speak about Qureshi’s “release.” On 22 July, the Anti-Terrorism Courts (ATC) had awarded 10-year prison sentences to a number of PTI leaders such as Yasmin Rashid. Shah Mehmood Qureshi, was however, acquitted in the case related to 9 May 2023 riots case. Raja conveyed the party's commitment towards fighting for “independence of judiciary.” He denounced the present “judiciary system” and called it a “system of attacks.”
On 24 July, an editorial in Dawn titled “Justice or spectacle?”, discussed the recent courts’ verdict in relation to 9 May 2023 riots case. The editorial opines that the verdicts would not settle the political disputes between PTI and the government, but further aggravate the “political instability”. The editorial highlights how in the past politicians had been charged with “serious charges” but were later acquitted by the higher courts. This however, had led a lot of politicians to spend a considerable amount of time in jail. The editorial criticizes the government for taking cases related to “political speeches and political violence” to ATCs. The editorial argues that if the government had substantial evidence in relation to PTI leaders being involved in the violence, it should have presented the same in the public. The editorial reminds the ones in power today that it is the common people who would “deliver political verdicts” in the end and that suppressing oppositions’ voices would not reap them any benefits in the long run. (Mumtaz Alvi, “Premature to say Qureshi taking over PTI leadership: Salman,” The News International, 24 July 2025;“Justice or spectacle?,” Dawn, 24 July 2025)
Islamabad Capital Territory institutes first digital police station for protection of women
On 24 July, The Express Tribune reported that Islamabad Capital Territory established an all new “online women police station.” Citizens can approach the police station any time regarding their complaints. The police station would aim to provide “protection to women, children, and vulnerable segments of the society.” As per a spokesperson from the police, the new police station would have the capacity to deal with cases of “domestic abuse, gender-based violence, and other crimes against women and children.” Women citizens can reach the police station through the helpline number regarding their “complaints” and can also receive “legal advice.” Further, the Inspector General of Islamabad Police Syed Ali Nasir Rizvi informed that services such as “video calling and online chat support” would be furnished by the police station so that women do not have to show up in person. (“Capital unveils first digital women police station,” The Express Tribune, 24 July 2025)
JUI-F’s Maulana Fazlur Rehman calls FATA’s merger with Khyber Pakhtunkhwa a ‘mistake’
On 24 July, Dawn reported that JUI-F President Maulana Fazlur Rehman called the merger of erstwhile FATA into Khyber Pakhtunkhwa a “mistake,” expressing strong support for this decision’s withdrawal. The JUI-F leader vociferously opposed the merger, alleging that the step was an attempt to implement an ‘American agenda’ to bring about geographic changes in the region. Rehman asserted that the party’s stand on the issue has been clear and consistent, claiming that “the provincial government admits that the decision to merge was not correct and they are talking about forming a commission in this regard.” He highlighted the plight of the tribals, stating that they were dying in their homes due to militancy. It is speculated that the reversal of this merger is being considered by the government. Rehman condemned armed insurgency against the state, arguing that ‘elimination of terrorism’ was a distant possibility since the government’s writ does not exist in the provinces of Balochistan and Khyber Pakhtunkhwa. Further, he questioned whether this lawlessness is because of the incompetence of state institutions or their deliberate intentions. He also raised the issue of displacement of people due to anti-terror operations taking place in Swat and Waziristan. Rehman questioned free movement of terrorists between Afghanistan and Pakistan, cautioning that state authorities must not shift the burden of its failures onto others. (Kalbe Ali, “Fazl terms Fata’s merger with KP a ‘mistake’” Dawn, 24 July 2025)
ECONOMY
PM Sharif advocates for transparency in privatization drive
On July 24, Dawn reported that Prime Minister Shehbaz Sharif on 23 July instructed relevant authorities to ensure that the Privatization Commission has full autonomy as per the law to eliminate ‘red tape’ and unnecessary regulatory hurdles during the denationalization process of the state-owned enterprises (SOEs). PM Sharif stressed that the privatization of loss-making national enterprises was critical for the improvement and development of Pakistan’s economy, assuring that it was the government’s top priority to carry out the privatization process “effectively, comprehensively, and efficiently.” He said that privatization targets should be formulated according to the economic environment of the market so that “the national exchequer could be protected from possible losses at all costs.” Further, he also raised the issue of illegal occupation and disposal of valuable land owned by national institutions during the privatization process. He warned that he will “regularly monitor the progress of the ongoing work” in the Privatization Commission, highlighting the importance of consultation with professional experts and maintenance of international standards during the privatization process. Privatization commission briefed PM Sharif about the progress on the phased privatisation of select institutions–including PIA and power transmission companies (DISCOs)–stating that it has was designed “keeping in view the legal, financial and sectoral requirements,” and following the established “economic, institutional and administrative targets.” (Syed Irfan Raza, “PM wants privatisation process to be transparent,” Dawn, 24 July 2025)
Government plans roadmap for servicing PKR 2.8 trillion circular debt in gas sector
On 24 July, The News International reported that a task force, previously assigned to address issues in the electricity sector, has now been given the responsibility of tackling the gas sector’s circular debt, which has reached PKR 2.8 trillion. The Petroleum Division collaborated with KPMG, a global consulting firm, to develop a preliminary strategy and subsequently a detailed roadmap to address the gas sector debt. In its proposal, KPMG proposed that end consumers would need to absorb the cost of retiring PKR 2.8 trillion circular debt. To achieve this, the firm recommended imposition of a special levy ranging between PKR 3 and PKR 10 (similar to the debt service surcharge currently applied to electricity bills) to raise funds for debt servicing through commercial bank loans. This debt would incrementally be retired over a 6 to 7-year period. Additionally, the firm proposed an increase in gas prices and suspension of existing PKR 160 billion cross-subsidy, to be phased out completely by January 2027. Overall, KPMG’s recommended strategy for resolving gas sector circular debt includes a combined approach consisting of new levies, tariff hikes, and subsidy removal. It is also speculated that the task force may not subscribe to the options prepared by the Petroleum Division with inputs from KPMG, since one of the recommendations involved a special levy on petroleum products to retire the debt to be attained from banks to erase the stock of PKR 2,000 billion. The task force believes that the IMF will not extend the sovereign guarantee for the government, which is needed to secure the required loan. Officials are reported to have said that their revised roadmap for the recovery of the gas sector would not invite objections from the IMF. (Khalid Mustafa, “Plan to clear Rs2.8tr gas circular debt without burdening consumers,” The News International, 24 July 2025)
ON INDIA
PM Sharif reiterates willingness for dialogue with India
On 24 July, The Express Tribune reported that PM Sharif stated that Pakistan was ready to participate in meaningful dialogue with India on all outstanding issues, during a meeting with British High Commissioner to Pakistan Jane Marriott. PM Sharif appreciated UK’s role in de-escalating tensions during Pakistan’s four-day conflict with India. He also expressed gratitude for the UK government’s decision to resume Pakistan International Airlines (PIA) flights to and from the UK, which shall help in reducing hardships of the Pakistani diaspora in the country along with enhancing people-to-people linkages. Both also discussed the regional environment in South Asia and the Middle East. (“PM reiterates talk offer to India,” The Express Tribune, 24 July 2025)
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