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Pakistan-Afghanistan War Update
Pakistan rejects Afghan Taliban claim of hospital strike
Operation Ghazab lil-Haq continues into third week as UN calls for an independent investigation
On 17 March, Dawn reported that Pakistan dismissed claims by the Afghan Taliban that its forces struck a hospital in Kabul, asserting that the actual target was “Camp Phoenix”, a military site located several kilometres away. Information Minister Attaullah Tarar said satellite imagery and video evidence showed that only militant infrastructure was hit during “Operation Ghazab lil-Haq”. Officials termed the allegation “baseless”, insisting no civilian facility was targeted and accusing the Afghan Taliban of spreading misinformation. Pakistan maintained that the strikes were precise and aimed at dismantling infrastructure used to support cross-border terrorism threatening its security.
Meanwhile, the UN rights office spokesman Thameen Al-Kheetan called for restraint and investigation following the incident, insisting the results of any probe “be made public”. China also once again appealed to both sides to de-escalate tensions and ensure regional stability. Separately, security sources said Pakistani forces continued operations along the border, targeting Taliban checkposts adjacent to the Khyber and North Waziristan sectors using guided missiles. Officials claimed the Afghan Taliban suffered casualties and losses, reiterating that ongoing actions are part of efforts to curb terrorism emanating from across the border. According to the latest figures released by the Pakistani military, 684 Taliban fighters have been killed, while 912 have been injured. (“Information ministry rubbishes Afghan Taliban’s claims of hospital being hit in Kabul,” Dawn, 17 March 2026)
In Brief
ECONOMY
First Pakistani vessel carrying crude oil crosses Strait of Hormuz
On 18 March, The Express Tribune reported that the first Pakistani vessel carrying a consignment of 80 million litres of crude oil had transited through the Strait of Hormuz, reaching the Pakistan maritime zone. MT Karachi was granted special permission by Iranian authorities to transit through the Strait of Hormuz, utilising Iranian territorial waters during its passage. International reports said payment for the crude oil carried by MT Karachi was made in Chinese currency. (“First Pakistani vessel carrying oil shipment arrives via Strait of Hormuz,” The Express Tribune, 18 March 2026)
Pakistan and China continue to expand trade via Khunjerab Pass
On 18 March, Dawn reported that Pakistan and China continue to trade using the Khunjerab Pass. Consignments imported from China through the Khunjerab Pass were cleared at Sost Dry Port. Trade with Central Asian countries under the Multimodal Transports Internationaux Routiers (TIR) system through the Khunjerab route has also remained operational. Earlier, shipments from other countries destined for Central Asia were routed through Pakistan via Afghanistan, diverted to the Khunjerab route, and transported onward via China. It has led to an increase in customs collection revenue for the dry port. However, local traders raised concerns about the non-implementation of the PM’s announcement on tax exemptions for imported items for local consumption. (“Pakistan-China trade through Khunjerab ‘in full swing’,” Dawn, 18 March 2026)
Government launches massive crackdown on money laundering networks
On 18 March, Dawn reported that the federal government announced launching a massive crackdown on money laundering and hawala/hundi networks across the country. The Ministry of Interior, in collaboration with the Finance Ministry, prepared a framework to lay hands on those involved in illegal money transactions. The government is focused on preventing all illegal ways of sending money abroad at every level that affects the country’s finances and economy. (“Massive crackdown on money launderers across the country,” Dawn, 18 March 2026)
Auto loans rise for the 15th consecutive month
On 18 March, Dawn reported that auto loans rose for the 15th consecutive month to PKR 336 billion by the end of February from PKR 328 billion in January, as per State Bank of Pakistan data. Automobile companies expect disruptions and delays in the import of parts due to the ongoing West Asia crisis. Due to logistical congestion, higher freight costs, and shipping delays, auto supply timelines may change and impact the data figures for this month. (“Auto loans jump for 15th month,” Dawn, 18 March 2026)
Iran and Pakistan continue bilateral and transit trade amid regional tensions
On 18 March, The Express Tribune reported that, according to a statement given by Pakistan's ambassador to Iran, bilateral and transit trade between Pakistan and Iran remains operational despite ongoing regional tensions. Pakistan exports rice, food items, livestock, and textiles. The ambassador thanked Iranian authorities and appreciated the joint efforts that are underway to minimise disruptions and ease congestion. (“Pakistan, Iran trade continues smoothly amid tensions, envoy says,” The Express Tribune, 18 March 2026)
EXTERNAL
Dar reiterates diplomacy as Pakistan maintains outreach with Iran amid regional conflict
On 17 March, Dawn reported that the Deputy Prime Minister and Foreign Minister Ishaq Dar, in a meeting, mentioned that dialogue and diplomacy were the only way to address the issues and achieve lasting peace and stability in the region. The remarks were made during a meeting with Iran’s ambassador to Pakistan, Reza Amiri Moghaddam. Dar expressed the hope that the hostilities between Israel and Palestine would be brought to an end as soon as possible and offered condolences to the victims of the tragedy. He also appreciated the fact that the ambassador of the Islamic Republic of Iran was aware of the full solidarity of the government and people of Pakistan with Iran. Pakistan has been engaged in a tremendous amount of diplomatic activity on the Middle East conflict. Islamabad has portrayed itself as a bridge builder in this respect. Islamabad has been urging restraint from all the parties to the conflict. (“Dar stresses dialogue, diplomacy for achieving regional peace in meeting with Iranian ambassador,” Dawn, 17 March 2026)
Pakistan repatriates over 5,600 citizens from Iran as border response expands amid war
On 18 March, Dawn reported that Balochistan Chief Minister Sarfraz Bugti said 5,615 Pakistani citizens were brought back from Iran via the Gwadar and Chagai districts since 28 February, as well as 431 foreign nationals, including 217 Iranian drivers. Bugti said the move was a "complete government operation". "The Americans and Israelis have started a war on Iran, which has resulted in closure of all roads, sea routes and airways for the purpose of trade, pilgrims as well as migrant workers,” he stated. He said the district administrations of Gwadar and Chagai provided all the necessary facilities to the passengers, including shelters, food and transportation. Bugti also said the government was taking steps to protect the borders as well as improve the facilities for the passengers. (“Over 5,600 Pakistanis repatriated from Iran amid war: CM Bugti,” Dawn, 18 March 2026)
PM Shehbaz backs Tokayev’s reform agenda after Kazakhstan referendum
On 17 March, Dawn reported that Prime Minister Shehbaz Sharif congratulated Kazakhstan President Kassym-Jomart Tokayev on Sunday on the outcome of a constitutional referendum held there on 20 March. PM Shehbaz said the overwhelming endorsement of the draft new constitution was a sign of the confidence the Kazakh nation had reposed in Tokayev and his pledge to bring about transformative change to ensure good governance, strengthen institutions and ensure sustainable development. He said the referendum measures would also help reinforce Pakistan’s resolve to implement the decisions made when President Tokayev visited Islamabad last November. The two leaders also touched upon the situation in Afghanistan. They said the only way to achieve stability and prosperity in the region was through the promotion of peace negotiations, economic cooperation and connectivity that could ultimately lead to the betterment of the people of the region. Shehbaz accepted an invitation to visit Kazakhstan in the second half of this year. (“PM Shehbaz congratulates Kazakhstan president on successful constitutional referendum,” Dawn, 17 March 2026)
UN highlights rising Islamophobia, with Pakistan calling for stronger global response
On 17 March, Dawn reported that the United Nations marked the International Day to Combat Islamophobia, warning about rising Islamophobia, hate, discrimination and xenophobic rhetoric against Muslims all over the world. The International Day to Combat Islamophobia was established by a UN resolution tabled by Pakistan in February 2022. A UN spokesperson on Monday called on all stakeholders to take immediate action to combat Islamophobia and racism, and to promote peaceful and inclusive societies and tolerance. In his remarks, Pakistan’s Permanent Representative to the UN, Asim Iftikhar Ahmad, warned that “Islamophobia today is not simply prejudice against a religion. It is the systematic stigmatisation of a people, the denigration of an identity, and the normalisation of hostility towards a community of nearly two billion human beings." (“UN marks Islamophobia day with alarm over rising hate, discrimination against Muslims,” Dawn, 17 March 2026)
POLITICS & GOVERNANCE
PTI leaders warn of economic risks as Aleema raises concerns over Imran’s health
On 18 March, Dawn reported that Aleema Khan rejected media claims that she was opposing meetings between Imran Khan and party leaders, stating she herself had been unable to meet him at Adiala jail. Speaking to journalists, she alleged that authorities were denying access to conceal his health condition and reiterated a request for his medical treatment at Shifa International Hospital. Meanwhile, senior Pakistan Tehreek-e-Insaf leaders, including Shah Mahmood Qureshi, warned in an open letter from Kot Lakhpat Jail that Pakistan’s fragile economic stability could deteriorate within weeks if regional tensions persist. They highlighted rising fuel and input costs, falling agricultural output, declining exports, and increasing inflation, cautioning that continued instability could weaken remittances and complicate ongoing engagement with the International Monetary Fund (IMF). (“Unable to meet Imran, Aleema denies blocking PTI leaders’ access to him,” Dawn, 18 March 2026)
ENERGY
Solar boom helping Pakistan against Middle East energy shock, finds study
On 17 March, Dawn reported that Pakistan’s rapid expansion of rooftop solar installations is helping shield the country from supply disruptions and price shocks caused by tensions around the Strait of Hormuz, according to a joint analysis by Renewables First and the Centre for Research on Energy and Clean Air. The study found that Pakistan has avoided over USD 12 billion in oil and gas imports since 2018 due to solar adoption, with potential additional savings of USD 6.3 billion this year. While the country remains significantly dependent on Hormuz-linked LNG and oil supplies, the spread of rooftop solar across households and industries has reduced demand for imported fuel and eased pressure on the power system. Analysts noted that without this shift, load-shedding would likely have been necessary amid the current crisis, highlighting solar energy as a key buffer against rising geopolitical and energy risks. (“Pakistan’s solar boom shielding country from Hormuz disruptions: study,” Dawn, 17 March 2026)
Editorials/Opinions
War & geopolitics
Editorial, “Risk to stability,” Dawn, 17 March 2026
"The risks to Pakistan’s fragile economic recovery from the US-Israel war on Iran cannot be dismissed. Yet the ultimate scale of the damage will depend largely on how the conflict unfolds in the days and weeks ahead. If the war drags on and energy prices remain elevated, Pakistan could once again find itself facing the kind of macroeconomic stress that has repeatedly disrupted its growth trajectory."
https://www.dawn.com/news/1982916/risk-to-stability
Kamran Yousaf, “War next door, dilemma in Islamabad,” The Express Tribune, 17 March 2026
"The war between Iran and the US-Israel alliance has now entered its third week. There is still no sign of de-escalation, despite US President Donald Trump declaring victory on several occasions. The US and Israel may have bombed Iran extensively and eliminated some of its top leadership, but Iran appears to be winning the battle of narratives."
https://tribune.com.pk/story/2597952/war-next-door-dilemma-in-islamabad
Economy
Nadeem Javaid, “Pakistan's economic paradox,” The Express Tribune, 17 March 2026
"Public debate in Pakistan often becomes trapped in ideological binaries: pro-market versus pro-state; capitalist versus socialist; conventional versus Islamic. But prosperity does not emerge from labels. It emerges from aligned institutions. A country cannot function as capitalist at its central bank, patronage-driven in its ministries and selectively moral in its markets - and expect sustained progress. Pakistan's economic paradox is not that it blends systems. Many successful nations do. The paradox is that its systems operate in parallel rather than in harmony."
https://tribune.com.pk/story/2597957/pakistans-economic-paradox
Arifa Noor, “Speaking matters,” Dawn, 17 March 2026
"It was on the previous Friday (March 6) that the government raised petrol prices. And while the news about the price hike began doing the rounds shortly before it was announced, the amount took everyone by surprise – over Rs50 per litre. It is said to be our biggest hike in petrol prices in a single day — and it left citizens spitting fire. For most people struggling with inflation and weakened purchasing power, it was a cruel blow, regardless of the limited options in front of the government."
https://www.dawn.com/news/1982921/speaking-matters
Society
Editorial, “Enrolment push,” Dawn, 17 March 2026
"The federal government has embarked upon the welcome initiative to enrol 25,000 out-of-school children in Islamabad within three months. With Pakistan home to roughly 26m out-of-school children, a serious effort to get them into classrooms is essential and long overdue. The campaign’s structure suggests that the authorities recognise the scale of the challenge. Door-to-door surveys, the mobilisation of university volunteers, collaboration with NGOs and the creation of community schools near identified hotspots are all practical steps that could help locate children who have slipped through the education system. The focus on neighbourhood-level “carpet coverage” is particularly encouraging. In a city where children can often be seen selling flowers at traffic signals, washing cars in markets, or working in homes, the barrier to schooling is rarely simply the absence of classrooms. Poverty, distance and the opportunity cost of education often keep families from sending their children to school."
https://www.dawn.com/news/1982915/enrolment-push
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