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In Brief
ECONOMY
New gas reserves discovered in KP for second consecutive day
On 03 January, as reported by The Express Tribune, Pakistan Petroleum Limited (PPL) announced the discovery of new gas reserves in the TAL Block in Kohat District, Khyber-Pakhtunkhwa, for the second consecutive day, and informed the Pakistan Stock Exchange of the latest find. In its disclosure, PPL stated that the TAL Joint Venture, comprising MOL Pakistan Oil & Gas Co BV (as Operator), Oil & Gas Development Company Limited (OGDCL), PPL, Pakistan Oilfields Limited (POL) and Government Holdings Private Limited (GHPL), has discovered gas from the Hangu/Lumshiwal formations at its exploratory well Bilitang-1, located in Kohat district. (“New gas reserves discovered in K-P for second consecutive day,” The Express Tribune, 03 January 2026)
Pakistanis spend two-thirds of income on food, power as remittance reliance grows
On 03 January, according to the Household Integrated Economic Survey 2024-25, released by Minister for Planning Ahsan Iqbal, Pakistanis spent two out of every three rupees on just two basic needs: food and electricity, as reliance on foreign remittances and financial assistance increased to meet growing expenditures. The survey found that expenditures have risen faster than incomes amid inflation and a higher cost of living, leaving only 2.5 per cent of household spending for education. Reliance on foreign remittances increased sharply, rising to almost 8 per cent of household income, while gifts and financial assistance more than doubled, indicating shrinking domestic income sources. Although average monthly income nearly doubled over six years, consumption rose even faster, deepening disparities between rich and poor. Urban households earned significantly more than rural ones, where dependence on remittances was highest. Spending on education and health declined as food inflation and energy costs absorbed most household resources. (“Pakistanis spend two-thirds of income on food, power as remittance reliance grows,” The Express Tribune, 03 January 2026)
Trade deficit widens sharply as exports slump, imports surge
On 03 January, The Express Tribune reported that Pakistan recorded a trade deficit of USD 19.2 billion in the first half of the current fiscal year (July–December), nearly 35 per cent higher than the same period last year, as exports declined and imports rose faster than projections. Data released by the Pakistan Bureau of Statistics showed exports falling 8.7 per cent year-on-year to USD 15.2 billion, meeting only 42 per cent of the annual target, while imports increased 11.3 per cent to USD 34.4 billion, exerting pressure on the external account. December marked the fifth consecutive monthly decline in exports and the sixth month of imports exceeding USD 5 billion, with the deficit widening to USD 3.7 billion. Exporters blamed an overvalued rupee and rising costs, while trade liberalisation measures failed to deliver the expected export boost. Meanwhile, scrutiny of exporters’ tax returns by the FBR sparked concern within the business community over added pressure on an already strained export sector. (“Trade deficit widens to $19b,” The Express Tribune, 03 January 2026)
SECURITY
Gunmen attack the brother of PTI’s Sheikh Waqas Akram
On 03 January, Dawn reported that according to the police, on Friday, gunmen attacked the convoy of Jhang Chamber of Commerce and Industry President Sheikh Fawad Akram, who is the brother of PTI Information Secretary Sheikh Waqas Akram, leaving one of his guards dead and three others injured near Jhang’s General Bus Stand (GBS). The incident took place near a petrol pump where Fawad was heading to the office. The Jhang police arrested four suspects, who included two alleged gunmen and Fawad’s stepbrother. According to the district police officer, strict action has been taken against the suspects. Reports said that over the past six months, Fawad’s stepbrother had joined hands with the Grand Democratic Alliance (GDA) to contest the election against Waqas and his father. (“Gunmen attack brother of PTI’s Sheikh Waqas Akram in Jhang; guard killed, 3 others injured,” Dawn, 03 January 2026)
POLITICS & GOVERNANCE
Islamabad LG elections to be delayed for the fifth time in a row
On 03 January, as reported by Dawn, the local government elections in Islamabad, which were scheduled to be held on 15 February, are likely to be postponed again for the fifth time in a row due to implication of new amendments to the Act disrupting the flow of the procedure. There were over 14 amendments that were approved by the federal cabinet to be implemented in the Act, one of which was a change in the name of the Metropolitan Corporation Islamabad to “Town Corporations.” The new proposal states the presence of three town corporations in Islamabad, with each town corporation comprising the territorial limits of the NA constituency. The prejudice for delay in elections was already set by the PTI based on persistent delay in the elections due to several federal changes, like consistently increasing the number of UCs, and now the fresh amendments. The local government’s term had ended in 2019; nonetheless, the elections kept getting delayed, resulting in over 2.5 million residents of the state facing ongoing issues from water shortages to unpaved streets. (“LG elections in capital likely to be postponed again,” Dawn, 03 January 2026)
Sanaullah: PM not in a "minus Imran" mindset
On 3 January, as reported by Dawn, earlier PM’s adviser Sanaullah proposed a confidence-building measure between PML-N, the PTI, and PPP to stabilise the political situation, in response to which the PM offered negotiations on the legitimate matters with the opposition and invited the respective parties to the National Assembly chamber. Although due to the policies imposed by Imran Khan previously, the TTAP and PTI’s second and third tier leadership, despite the efforts, state that “nothing could materialise unless Imran Khan’s policy changes in favour of dialogue.” On the other hand, the PTI has authorised anyone to hold the negotiations. (“PM Shehbaz has not set a ‘minus Imran’ condition, says Rana Sanaullah, referring to negotiations,” Dawn, 03 January, 2026)
KP CM’s ready to hold talks over provincial issues
On 03 January, as reported by The Express Tribune, the KP CM stated his assent to hold talks with the establishment regarding the provincial issues while clarifying that the responsibility for PTI negotiations with the establishment has been assigned to Mahmood Khan Achakzai and Allama Nasir Abbas. The CM extends his concern regarding the restriction to meet the PTI founder and legitimises the founder’s political position whilst urging the PTI leadership to re-enter politics with resolve. He also proceeded to call for the withdrawal of the drone attacks and formulation of policies with all stakeholders, including the establishment in line with public interest. The CM proceeded to highlight the financial grievances with the federal government, claiming significant unpaid dues to KP, including funds for the merger of tribal districts and net hydel profits. Emphasising the refurbishment of the funds to eliminate militancy. (“K-P CM ready for talks on provincial issues,” The Express Tribune, 03 January, 2026)
JUDICIARY
Peshawar High Court declares the right to a fair trial applicable to all proceedings
On 03 January, Dawn reported that the Peshawar High Court has held that the right to fair trial and due process applies to all statutes and proceedings, including summary trials, even where the law is silent. Justice Mohammad Naeem Anwar rejected the plea of the provincial government against a session judge’s verdict to set aside the order of a special magistrate to convict a sugar hoarder. On 12 July 2023, the sessions judge accepted the appeal of convict Malik Jan and ordered the refund of PKR 200,00 received from him, as a fine for hoarding huge quantities of sugar in his godown. Discussing the Code of Criminal Procedure (CrPC) Price Control and Prevention of Profiteering and Hoarding Act of 1977, the bench declared that, likewise, Article 10-A of the Constitution guaranteed the fundamental right to a fair trial and due process, and it applied to every statute and proceeding, even when the law was silent. The Court said that even when procedural law is silent, the minimum standard of fairness under Article 10-A must be observed. (“Peshawar High Court declares right to fair trial applicable to all proceedings,” Dawn, 03 January, 2026)
Editorials/Opinions
Austerity policy
Sakib Sherani, “Trapped in sham austerity,” Dawn, 03 January 2026
“Since 2022, the installed government has imposed, under the watch of the IMF, a crushing burden on ordinary Pakistanis via austerity policy. A large fiscal adjustment has been carved out through massive taxation and cuts in subsidies instead of any hint of restraint in spending by the government either on itself or on its constituents and backers. On the contrary, the spending valves have been opened like never before. Discretionary expenditure has skyrocketed, much of it ‘pork barrel’ in nature, with public funds being lavishly used for patronage and cementing loyalties towards the making of a new political order.”
https://www.dawn.com/news/1964810/trapped-in-sham-austerity
Economy
Editorial, “OICCI proposals” Dawn, 03 January 2026
“The proposals of the Overseas Investors Chamber of Commerce & Industry, relating to Pakistan’s march towards a liberal electricity market, do not simply reflect the OICCI’s anxiety over the way reform is being executed. They also test the government’s willingness to transition to a robust Competitive Trading Bilateral Contract Market and power-wheeling framework. They expose a disconnect between reform aims and execution, and a power sector hampered by lack of regulatory clarity, transparency, predictable pricing and credible market institutions. It is this disconnect that worries investors. Their anxiety is reflected in OICCI’s insistence for “actionable reforms”, as poorly planned and badly executed liberalisation, marked by opaqueness, weak institutional capacity and policy reversals, will further erode investors’ trust while constraining competitiveness.”
https://www.dawn.com/news/1964812/oicci-proposals
PIA
Nadeem-ul-Haque & Shahid Kardar, “Lessons from PIA’s privatisation,” Dawn, 03 January 2026
“The transfer of Pakistan International Airlines (PIA) to private ownership is, on balance, a welcome development. Yet much of the public discussion has focused narrowly on the headline sale price and the promise of improved efficiency, obscuring more fundamental issues. In a recent podcast, we and two other analysts examined the transaction in detail and noted concerns about the post-sale ownership structure, which appears likely to be dominated by Fauji Fertiliser, raising questions about whether this represents genuine privatisation or a form of quasi-nationalisation.”
https://www.dawn.com/news/1964809/lessons-from-pias-privatisation
Jazib Mumtaz, “PIA, SOEs and the cost of delayed reform,” The Express Tribune, 03 January 2026
“Pakistan's state-owned enterprises (SOEs) continue to suffer from weak financial management, poor corporate governance, overstaffing and deep political interference, all of which have undermined their operational efficiency and commercial viability over time. Despite repeated reform attempts and privatisation agendas initiated by successive governments, progress has remained slow and inconsistent due to structural bottlenecks, lack of political commitment and the absence of a strong legal and regulatory framework."
https://tribune.com.pk/story/2585158/pia-soes-and-the-cost-of-delayed-reform
Politics & governance
Editorial, “PM’s optimism,” Dawn, 02 January 2026
“Prime Minister Shehbaz Sharif’s declaration on New Year’s Eve that the government would exit crisis mode — “with macroeconomic indicators stabilised” — and shift towards growth is more a political statement than an economic message. His remarks, in fact, betrayed the ruling party’s anxiety over the criticism that the government lacked a programme to move the economy from stabilisation to growth. The broad reform agenda rolled out by the PM comprises 142 actions — 59 priority reforms and 83 complementary measures — to be implemented by 58 institutions within defined timelines. The key areas where actions are to be implemented include taxation, energy, privatisation, SOEs, pensions, tariff rationalisation, regulatory simplification, rightsizing of the federal government and digital governance. Describing his new reform agenda as a shift from crisis management to institution-building, Mr Sharif said the programme was “home-grown” and “irreversible”, boosting institutional stability and supporting sustainable growth led by the private sector."
https://www.dawn.com/news/1964531/pms-optimism
Climate change
Mirza Mujtaba Baig, “Financial cost of climate inaction in Pakistan,” The Express Tribune, 03 January 2026
“Pakistan has surged to the top of the global climate risk index, climbing from its previous rank of fifth, raising alarm about the nation's lack of progress in addressing climate risks. While some argue that the increasing intensity and frequency of climate-related events, such as floods and heatwaves, have driven this ranking, others point to Pakistan's failure to bolster its fragile infrastructure and implement effective risk reduction measures as the primary cause."
https://tribune.com.pk/story/2585164/financial-cost-of-climate-inaction-in-pakistan
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