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In Brief
EXTERNAL
Pakistan and the US make significant progress on reciprocal trade agreement
On 11 July, Dawn reported that Pakistan and the United States made significant progress over two days of trade talks in Washington, with Commerce Secretary Jawad Paul describing the discussions as positive. The talks covered tariff-related concerns and broader areas of economic cooperation, including energy, information technology, mining and investment. Pakistan is among nearly 60 countries facing Section 301 investigations by the Office of the United States Trade Representative (USTR) over alleged forced labour practices, with Islamabad having submitted detailed responses ahead of the talks. The US is Pakistan's largest single-country export market, while Pakistan is the second-largest importer of US cotton. ("Pakistan, US make 'significant progress' in talks on proposed reciprocal trade agreement," Dawn, 11 July 2026)
Pakistan urges restraint as Middle East escalation intensifies
On 12 July, Dawn reported on Pakistan expressing deep concern over a fresh escalation in the Middle East after the United States and Iran traded strikes, with Tehran announcing it had closed the Strait of Hormuz and attacked US facilities in Jordan, Kuwait, Oman and Qatar. Deputy Prime Minister and Foreign Minister Ishaq Dar called Iranian Foreign Minister Abbas Araghchi, stressing the need for de-escalation and urging both sides to uphold their commitments under the Islamabad Memorandum of Understanding (MoU). The Foreign Office (FO) reaffirmed Pakistan's commitment to supporting lasting peace through dialogue and diplomacy. ("Pakistan expresses 'deep concern' over Middle East escalation, urges all sides to exercise restraint," Dawn, 12 July 2026)
Pakistan hosts Organisation of Islamic Cooperation's ministerial conference on women's empowerment
On 12 July, Dawn reported that the Organisation of Islamic Cooperation's (OIC) 9th Ministerial Conference on Women opened in Islamabad, bringing together around 190 delegates, including ministers and senior officials from all 57 OIC member states. The two-day conference, hosted by Pakistan at the Jinnah Convention Centre under the theme "Socio-Economic and Political Empowerment of Women in the OIC Countries", focuses on expanding women's access to education, healthcare, employment, and digital opportunities. The moot is set to conclude with the adoption of an Islamabad Declaration, and Pakistan will assume the chairmanship of the OIC Ministerial Conference on Women from Egypt for the next two years. ("2-day OIC moot on women empowerment begins in Islamabad with technical-level meetings," Dawn, 12 July 2026)
FM Dar calls Pakistan's geographic location an asset for regional connectivity
On 12 July, Dawn reported that the Deputy Prime Minister and Foreign Minister Ishaq Dar chaired a high-level meeting on port connectivity, where he described Pakistan's geographical location at the crossroads of Central, South and West Asia as an asset that needed to be fully explored. The meeting reviewed steps to improve port efficiency, streamline operational processes, strengthen inter-agency coordination and position Pakistan's ports as regional trade gateways. Dar separately chaired an inter-ministerial meeting on economic diplomacy, where he directed all stakeholders to intensify efforts to promote the country's economy and ensure greater compliance with international standards. ("Pakistan’s location an ‘asset’ that needs to be explored: Dar," Dawn, 12 July 2026)
Iran thanks Pakistan for abstaining from the UNSC nuclear programme vote
On 12 July, Dawn reported on Iran thanking Pakistan and Somalia for not supporting a United Nations Security Council (UNSC) meeting on Tehran's nuclear programme, which was called by Bahrain and five European members of the council. Iran's Ambassador and Permanent Representative, Amir Saeid Iravani, rejected the session as legally unfounded, arguing that Resolution 2231, which endorsed the 2015 Iran nuclear agreement, had expired in October last year and no longer provided a legal basis for such discussions. He also accused Western countries of using the council for political purposes and reiterated that Iran's nuclear programme remained peaceful and under international monitoring. ("Iran thanks Pakistan for abstention at UNSC meeting," Dawn, 12 July 2026)
ECONOMY
Two-year cabinet delay on medicine pricing drives shortages of 105 essential drugs and counterfeiting risk
On 13 July, Dawn reported that over 100 essential medicines, including cancer drugs, heart attack treatments, and paediatric medications, remain in critical short supply after the federal cabinet has failed for more than two years to act on Drap's recommendations to revise prices for 105 hardship-category medicines. Drap's Drug Pricing Committee concluded in February 2024 that rising costs of imported raw materials, energy, packaging, and currency depreciation had made production commercially unviable, leading several manufacturers to scale back or suspend production. The Pakistan Chemists and Druggists Association warned that prolonged shortages were creating opportunities for counterfeit and substandard products to fill the gap, particularly for expensive cancer medicines. Drap's CEO confirmed the cases remained pending with the federal cabinet, whose decision is required to restore supplies. ("Pricing delay raises shortage of medicine, counterfeiting risks," Dawn, 13 July 2026)
LPG importers warn of nationwide shortage within days as official price fails to cover import costs
On 12 July, Dawn reported that the LPG Importers Association of Pakistan warned Petroleum Minister Ali Pervaiz Malik of a serious nationwide LPG shortage within two to three days, saying Ogra's notified price of PKR 241.43 per kg did not cover actual landed costs including freight, exchange rate fluctuations, port handling, and financing, forcing importers to absorb heavy losses. Several importers and storage operators had already reduced or suspended operations. The association called for an emergency stakeholder meeting to develop a transparent and sustainable pricing framework. Despite Ogra reducing the official price by PKR 67.33 per kg for July, LPG was being sold at PKR 480 to 550 per kg in Lahore, Multan, and Muzaffargarh, well above the official rate. ("LPG importers association warns of serious gas shortage in next few days, seeks 'sustainable' pricing framework," Dawn, 12 July 2026)
Lesco field teams accused of harassing Lahore consumers over single-month unpaid bills
On 12 July, Dawn reported that consumers across Lahore's Johar Town, Gulberg, Multan Road, and other areas have complained of Lesco field teams pressuring them to pay bills immediately or face disconnection, including cases involving only a single month's unpaid bill with no prior notice. The Lahore commissioner's office has scheduled a meeting with senior Lesco officials on 14 July to address the matter. Lesco CEO Ramzan Butt confirmed the company now treats consumers who have not paid even a single month's bill as defaulters, a change from the previous two-month threshold, while denying systematic harassment and pledging to investigate individual complaints. ("Lesco teams 'harassing' consumers for recovery of bills," Dawn, 12 July 2026)
GST on services dominates provincial tax revenues but masks weak mobilisation of other taxes
On 12 July, Dawn reported that GST on services accounted for 69.6 per cent of Punjab's provincial tax revenues, 66.7 per cent in Balochistan, 60.8 per cent in KP, and 56.7 per cent in Sindh in FY26, with over 70 per cent of GST collections in each province coming from the telecommunications sector. Sindh collected the highest provincial tax revenue at PKR 608 billion, exceeding Punjab's PKR 519 billion, largely due to its structural advantage from the Infrastructure Development Cess on Karachi port imports (PKR 180 billion), though property and motor vehicle tax collections remained well below potential. KP collected PKR 79 billion, with IDC falling to PKR 7 billion due to the Afghan border closure, while Balochistan's PKR 51 billion in collections were similarly concentrated in GST and IDC. Despite GST improvements, combined provincial GST contributes only 0.5 per cent of GDP and all other provincial taxes just 0.3 per cent, with analysts pointing to property taxes, agricultural income tax, and broader enforcement as major untapped revenue opportunities. ("Sales tax masks provincial collection weaknesses," Dawn, 12 July 2026)
Exchange companies sold USD 6 billion to banks in FY26 as over-regulation prompts licence surrenders
On 12 July, Dawn reported that exchange companies sold between USD five and six billion to banks during FY26, averaging around USD 500 million per month, according to the Exchange Companies Association of Pakistan. However, the State Bank of Pakistan (SBP) closed at least five exchange companies during the year for regulatory violations, with one recently surrendering its licence, and currency dealers warned that over-regulation was making it difficult to remain profitable, with more companies considering exit. The SBP has been encouraging banks to establish their own exchange subsidiaries, with 14 banks having already done so. Business circles noted that despite government targets of USD 60 to 100 billion in exports, neither domestic nor foreign investment in manufacturing improved meaningfully in FY26, leaving export growth well below potential. ("Exchange firms sell $6bn to banks in FY26," Dawn, 12 July 2026)
Inquiry blames Wapda, contractor and consultant for Tarbela-5 cofferdam collapse as costs soar to PKR 317 billion
On 13 July, Dawn reported that a government inquiry committee held all three key stakeholders, contractor Power Construction Corporation of China, consultant MM Pakistan-BIDR China, and employer Wapda, responsible for the August 2025 cofferdam collapse at the 1,530MW Tarbela-5 Extension Hydropower Project. The committee found that the contractor proposed an unauthorised design change to a weaker rock-filled structure, the consultant accepted it without ensuring technical compliance, and Wapda approved it without questioning its contractual validity. Wapda attributed the collapse to flooding, but the inquiry found flows were within historic levels and well below the cofferdam's design capacity. The collapse has caused at least a two-year delay and ballooned costs from PKR 82 billion to PKR 317 billion, with completion now targeted for June 2028. The Planning Commission warned the levelised generation cost could reach PKR 27 to 28 per unit, making the project, which carries USD 700 million in World Bank and AIIB loans, economically unviable. ("Stakeholders blamed for Tarbela-5 cofferdam collapse," Dawn, 13 July 2026)
SECURITY
Balochistan: Terrorists target workers in Washuk district near Pakistan-Iran border
On 13 July, Dawn reported that five workers hailing from Punjab were gunned down in Mashkel town of Balochistan’s Washuk district close to the Pakistan-Iran border. PM Shehbaz strongly condemned the killing of the five labourers by Baloch insurgent terrorists in Mashkel. The chief minister said militants, who claimed to be fighting under the guise of a so-called freedom movement, had once again exposed their true agenda by targeting unarmed civilians. Security forces and law enforcement agencies have launched a search operation to trace those involved in the attack. The incident came as Operation Shaban and other counterterrorism operations are ongoing in the province, where security forces have claimed the elimination of 109 terrorists since 05 July. (“Five labourers shot dead near Pakistan-Iran border,” Dawn, 13 July 2026)
Balochistan: 14 more militants killed by security forces under Operation Shaban
On 12 July, Dawn reported that Security forces killed 14 more terrorists on Saturday as the Pakistan Army, Frontier Corps and Balochistan Police continued Operation Shaban following the terrorist attack on the Mangi Dam police station. The kinetic actions in the province are being carried out under Operation Shaban, a high-intensity counter-terrorism and counter-insurgency campaign launched by Pakistan’s security forces following multiple high-casualty and high-profile terrorist attacks in Balochistan. Security forces also killed two terrorists linked to Balochistan insurgent groups during an intelligence-based operation near the N-25 crossing in the province. In the terrorist attacks and subsequent operations since 05 July, at least 42 people, four civilians, 27 policemen and 11 security personnel have lost their lives. (“14 more terrorists killed as Operation Shaban continues,” Dawn, 12 July 2026)
POLITICS & GOVERNANCE
Incarcerated PTI leaders unhappy with accusations of supporting dialogue mandate with government
On 12 July, Dawn reported that incarcerated Pakistan Tehreek-e-Insaf (PTI) leaders, upon hearing claims from the National Dialogue Committee (NDC) that they supported a mandate to begin talks with the government, were unhappy with the accusations and maintained that only Imran Khan could make that decision. Party leaders remarked that Khan had entrusted the mandate to negotiate on behalf of the PTI to Opposition Leaders. It was reported that the incarcerated leaders might formally respond to the NDC’s claims through their council sometime on 13 July. Former minister for information and broadcasting Fawad Chaudhry had tweeted that NDC members had met the incarcerated leaders and “fully supported” the NDC suggestion. He further stated that the support needed to be acted on, and that the government should begin the dialogue by allowing PTI leaders to meet with incarcerated PTI founder Imran Khan and releasing the incarcerated PTI leaders at Kot Lakhpat jail. A source close to the incarcerated PTI members stated, “PTI founder Imran Khan has a clear mindset about the way negotiations should be held, which leaves no room for doubt about any ‘deal’.” (“PTI leaders reject NDC claim of mandate for dialogue,” Dawn, 12 July 2026)
Balochistan: Quetta split into two districts as part of larger restructuring
On 11 July, Dawn reported that Quetta district in Balochistan has been split into East Quetta and West Quetta, according to a notification issued by the Balochistan government’s Revenue Department. East Quetta now comprises Saddar, City and Sariab subdivisions, while West Quetta comprises Kuchlak and the new Brewery and Panjpai subdivisions. Matsung district is also now included in Quetta division, which now has three subdivisions as a result. Tribal chiefs and politicians have raised concerns over the restructuring, which spans throughout the region and affects many historical boundaries. (“Quetta split into two districts as Balochistan undergoes administrative restructuring,” Dawn, 11 July 2026
SOCIETY
HIV cases among children rise in Khairpur district
On 13 July, Dawn reported that the Anti-Retrovirals Treatment (ART) Centre at Chandka Medical College (CMC) Children’s Hospital registered 73 new HIV-positive cases among children in June alone. Officials at the centre pointed out that the centre was functioning without a pharmacist and required additional junior doctors to cope with the increasing caseload. Most of the patients are between five months and eight years old and belong to different parts of Khairpur district. Boys accounted for 52 per cent of reported paediatric HIV cases and girls for 48 per cent. ART Centre sources said unsafe blood transfusions, weak surveillance, medical malpractice and the repeated use of syringes remained among the major factors contributing to HIV transmission. (“73 children tested positive for HIV in Larkana Antiretroviral Treatment Centre in June,” Dawn, 13 July 2026)
PM Shehbaz emphasises significance of National Population Council in population management
On 11 July, Dawn reported that Prime Minister Shehbaz Sharif called for recognising Pakistan’s rapidly expanding populace and reaffirmed the government’s commitment to “responsible” population planning for an equitable and prosperous future. The premier’s message on World Population Day focused on Pakistan’s annual population growth rate of 2.55 per cent. He highlighted that population growth represents “significant challenges for a country with regards to economic planning, employment generation, education, healthcare, housing, food security, infrastructure development, and environmental sustainability. He urged all stakeholders to recognise the urgency of the population rise as a national issue. PM Shehbaz said this year’s theme for World Population Day, “Realising the Hopes and Aspirations of Young People, Today and for the Future”, underscored the pivotal role of young people in shaping a prosperous future. PM Shehbaz noted that the government has recently established the National Population Council (NPC) to formulate a “comprehensive and effective national strategy on population and development. The forum would ensure policy coordination between the federal and provincial governments, strengthen institutional collaboration, and provide strategic policy guidance for the implementation of the National Population Programme and will also facilitate timely and effective decision-making in line with national priorities. (“On World Population Day, govt pledges 'responsible' planning to tackle alarming demographic boom,” Dawn, 11 July 2026)
MEDIA
Geo News resumes transmission after 15-day ban
On 11 July, Dawn reported that, following a 15-day transmission ban due to depictions of religious figures, the channel resumed its programming around midnight on 12 July. The violations recorded were deemed by the authority to be of a “serious nature” and a violation of the standards of responsible broadcasting. While it was acknowledged that Geo News had attempted to atone for the depictions, it was noted that this did not erase legal consequences. It was further ruled that individuals removed from service as a result of the proceedings would not be allowed to work with any Perma-affiliated media. It was emphasised that any further negligence from Geo News would result in cancellation of its broadcasting license. (“Geo News resumes transmission after 15-day suspension, warned of licence cancellation over future violations,” Dawn, 11 July 2026)
AF-PAK
Stranded Pakistani medical students return from Afghanistan via Torkham
On 13 July, Dawn reported that around 70 Pakistani medical students stranded in Afghanistan since the closure of pedestrian crossings at the Torkham border returned home after authorities permitted them to cross. The students, whose academic sessions had ended weeks earlier, had been unable to re-enter Pakistan due to border restrictions in place since October 2025. Their return followed interventions by local elders and Awami National Party leaders, with border officials providing food, refreshments and transport upon arrival. (“70 students return home after being stranded in Afghanistan,” Dawn, 13 July 2026)
POK
One man killed in clashes between protestors and Police in Poonch
On 12 July, Dawn reported that at least one man was killed and several others were injured in clashes between protesters and law enforcement personnel along a key road linking Arja and Rawalakot district of Pakistan Occupied Kashmir. According to the Poonch Divisional Commissioner, activists of the proscribed Joint Awami Action Committee (JAAC) had blockaded the road and were allegedly preventing people from travelling freely between the two sides. He also referred to the alleged assault on a traders’ leader from Arja at the same location recently. Following the incident, traders in Arja ended their weeks-long shutter-down strike and resumed business activities. (“One dies amid fierce clashes in Poonch,” Dawn, 12 July 2026)
Jamaat-i-Islami proposes peace jirga to mediate AJK crisis
On 13 July, Dawn reported that the Jamaat-i-Islami (JI) decided to establish a "grand" Kashmir peace jirga to facilitate dialogue between the “Azad Jammu and Kashmir (AJK)” government and the banned Joint Awami Action Committee (JAAC) amid escalating unrest in the region. Chaired by JI Deputy Emir Hafiz Naeemur Rehman, the party's central council formed a committee to lead the initiative and said it would later include retired judges, former civil servants, ex-military officials and civil society representatives. JI urged immediate negotiations, warning that prolonged instability in “AJK” could undermine the broader Kashmir issue following recent clashes, arrests and the government's ban on the JAAC. (“JI to form Kashmir peace jirga to facilitate dialogue between govt, JAAC," Dawn, 13 July 2026)
Former JAAC leader urges withdrawal of Rawalakot protest
On 13 July, Dawn reported that former Joint Awami Action Committee (JAAC) leader Raja Amjad Ali Khan urged the banned group's leadership to withdraw its planned long march and sit-in in Rawalakot, saying the month-long agitation had caused severe hardship in Poonch and resulted in multiple deaths. Khan, who left the JAAC after it was declared a proscribed organisation, appealed to residents and the Kashmiri diaspora to support efforts to restore peace and criticised the movement for, in his view, straying from its original objectives. (“Ex-JAAC leader urges withdrawal of sit-in, long march call,” Dawn, 13 July 2026)
ON INDIA
PPP stages rallies across Sindh against India's Indus Waters Treaty move
On 13 July, Dawn reported that the Pakistan Peoples’ Party (PPP) held rallies across Sindh to protest India's unilateral suspension of the Indus Waters Treaty (IWT) and alleged plans to divert Pakistan's share of Indus waters. Demonstrations were held in Karachi, Hyderabad, Larkana and other cities under the slogan "Marsoon Marsoon, Sindhu Na Desoon" ("We will die, but we will not give up the Indus"). PPP leaders, including Nisar Ahmed Khuhro and Saeed Ghani, reiterated support for Pakistan's water rights, and warned that any attempt to block treaty-allocated water would threaten regional stability. (“'We will not give up Indus': PPP holds Sindh-wide rallies condemning India's threats to Pakistan's water share,” Dawn, 13 July 2026)
Editorials/Opinions
External
Maleeha Lodhi, “Thousand-day war,” Dawn, 13 July 2026
"(Israel) continues despite the ceasefire brokered by the US last October. Death and destruction have been on an epic scale. More than 73,000 Palestinians have been killed, including over 21,000 children. Thousands remain missing. Gaza lies in ruins with 80 per cent of it devastated. Over 200 journalists have been deliberately targeted and killed by the Israeli army. Israel has expanded its control of more territory in Gaza, ignoring UN warnings that “this increases deadly risks for Palestinians”.
https://www.dawn.com/news/2014978/thousand-day-war
Muhammad Ali Ehsan, “Iran War: the need for a political framework,” The Express Tribune, 12 July 2026
“President Trump has declared the interim MoU and the 60-day negotiating framework over. Once again, the principal actors in the conflict are back to using gunpowder to settle the conflict. This represents a significant deterioration in the diplomatic process and leads me to ask some relevant questions. Has diplomacy failed? Why has the MoU been set aside? What is the actual challenge that the principal actors in the war face now? Is war now the only preferred outcome for the belligerents?"
https://tribune.com.pk/story/2617736/iran-war-the-need-for-a-political-framework
Economy
Shahid Kardar, “World Bank’s ‘magical discovery’,” Dawn, 13 July 2026
“Barely had the dust settled on the IMF’s insipid report on governance than the World Bank launched, with much fanfare, its latest prescription — this time on fiscal federalism. The bank’s report presents itself as a fresh diagnosis of Pakistan’s malfunctioning intergovernmental system, when actually there is little that is either new or thought-provoking about it."
https://www.dawn.com/news/2014977/world-banks-magical-discovery
Society
Editorial, “Justice imperilled,” Dawn, 13 July 2026
“The Human Rights Commission of Pakistan and the International Federation for Human Rights have raised concerns about Pakistan’s justice system. Some of its recommendations, especially its call to repeal the 26th and 27th constitutional amendments, will divide opinion. But many others should attract broader support. Assigning cases through transparent rules, publishing court fees and hearing schedules online, requiring judges to declare their assets, investigating complaints promptly and protecting whistleblowers would all make the courts more open and accountable. Public confidence cannot be restored through promises alone. It will return when Pakistanis are convinced that justice depends on the law rather than on money, influence or political pressure.
https://www.dawn.com/news/2014973/justice-imperilled
Editorial, “Growing pains,” The Express Tribune, 12 July 2026
“Pakistan's population crisis has been at least over seven decades in the making. Despite repeated family planning initiatives and various population control measures, it stands as the fifth most populous country in the world today. This year, a National Population Council is now joining the ranks of past - failed or forsaken - attempts, such as the Population Welfare Programme, at curbing this growing demographic."
https://tribune.com.pk/story/2617732/growing-pains-1
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