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In Focus
Government approves changes to oil refining policy after six years
PM Shehbaz orders increase in strategic reserves and USD six billion upgrade plan to strengthen energy security
On 28 July, Dawn reported that the federal government approved the revised Brownfield Refining Policy, paving the way for an estimated USD six billion investment to modernise Pakistan's five existing oil refineries. Prime Minister Shehbaz Sharif also directed authorities to expand the country's strategic petroleum reserves following concerns over oil supply disruptions during the recent US-Iran conflict. The policy seeks to strengthen Pakistan's energy security while encouraging long-delayed refinery upgrades.
The reforms require refineries to produce Euro-V compliant petrol and diesel, significantly increasing domestic fuel output while cutting furnace oil production. Under the policy, petrol production is projected to rise by 72 per cent to 18,400 tonnes per day, diesel output by 39 per cent to 29,520 tonnes per day, and furnace oil production to decline by 63 per cent, according to Dawn. The government has also introduced tax incentives, investment protection measures, and regulatory reforms to revive refinery expansion projects.
The revised policy includes a seven-year fiscal incentive package, sales tax exemptions on upgrade equipment, tariff protection for locally refined fuels, and provisions allowing refineries to export surplus petroleum products after meeting domestic demand. It also requires refineries to maintain larger crude oil reserves to improve resilience against future supply disruptions. Officials said the reforms would reduce reliance on imported fuels, improve fuel quality, lower emissions, and unlock long-delayed investments that had stalled because of tax disputes and IMF-related fiscal constraints. (“PM orders increase in country's strategic petroleum reserves; changes to oil refining policy approved,” Dawn, 28 July 2026; “Govt finally revamps oil refining policy; what does it mean?” Dawn, 28 July 2026)
In Brief
EXTERNAL
Iran's Consul General calls for removing barriers to Pakistan-Iran trade
On 28 July, Dawn reported that Iran's Consul General in Quetta, Mohammad Karimi Todashki, urged both governments to take effective measures to remove barriers to bilateral trade at a meeting with office-bearers of the Quetta Chamber of Commerce and Industry (QCCI). Todashki said Iran was fully committed to strengthening trade ties and would extend every possible cooperation to resolve issues faced by the business community, adding that discussions were underway to improve facilities at the Gabd-Rimdan border crossing and simplify customs procedures. The QCCI president called for the Gabd-Rimdan border to remain open 24 hours a day to prevent congestion and financial losses for traders. ("‘Hurdles to Pakistan-Iran trade must be removed’," Dawn, 28 July 2026)
Pakistani passport ranking drops to 101st globally, remains fourth worst in the world
On 28 July, Dawn reported that the Pakistani passport slipped one place to 101st on the Henley Passport Index, with visa-free access falling from 30 countries in May to 29 countries in July. The only countries ranked lower are Syria, Iraq, and Afghanistan. Cape Verde Islands, Mozambique, and Qatar withdrew visa-free or visa-on-arrival access to Pakistani passport holders this year. Singapore retains the top spot on the index with access to 192 destinations. Pakistan has ranked among the bottom four passports globally since at least January 2021, though its position has improved from 113th in 2021. ("Pakistani passport's ranking slips to 101st, still 4th-worst in the world," Dawn, 28 July 2026)
Pakistan-US trade can double to USD 20 billion in five years, Foreign Minister tells US Congressmen
On 28 July, Dawn reported that Deputy Prime Minister and Foreign Minister Ishaq Dar told a visiting delegation of US congressmen and businessmen that trade between the two countries could double to USD 20 billion over the next five years. Dar noted that bilateral goods trade in the last fiscal year reached USD 9.4 billion and called the Pakistan-US partnership mutually rewarding, highlighting Pakistan as one of the largest importers of US cotton and an emerging market for US hydrocarbons. He also encouraged the delegation to work with the Special Investment Facilitation Council (SIFC) and expressed hope for continued support from US financial institutions for projects including the Reko Diq mine. ("Dar says Pakistan 'confident' bilateral trade with US can double to $20bn in next 5 years,” Dawn, 28 July 2026)
ECONOMY
Two per cent decline in Middle East exports recorded in FY26
On 28 July, Dawn reported that Pakistan’s exports to the Middle East fell two per cent year-on-year to USD 3.09 billion in FY26, reflecting the impact of regional conflicts on trade. Exports to Saudi Arabia, Qatar, Bahrain, and Jordan declined, while shipments to Kuwait increased and exports to the UAE remained largely unchanged. Imports from the region also fell four per cent to USD 16.41 billion, although purchases from the UAE, Saudi Arabia and Jordan rose. As a result, Pakistan’s trade deficit with the Middle East narrowed by 4.48 per cent to USD 13.32 billion. Exports to Saudi Arabia alone declined 3 per cent to USD 682.56 million, while Pakistan continued to rely heavily on Gulf states for energy imports. (“Pakistan's exports to Middle East dip in FY26,” Dawn, 28 July 2026)
Board of Revenue launches simplified tax scheme for small retailers
On 29 July, Dawn reported that the Federal Board of Revenue (FBR) introduced a voluntary simplified income tax regime for small shopkeepers to encourage tax compliance and expand Pakistan’s tax base. Under the scheme, individual retailers with an annual turnover of up to PKR 200 million can opt to pay a one per cent tax on gross turnover instead of filing returns under the normal tax regime, subject to a minimum annual tax payment of PKR 25,000. Participants will also be exempt from routine audits, withholding tax obligations, and mandatory digital invoicing. The scheme excludes tier-I retailers, jewellers, professionals, owners of multiple shops, and businesses with turnover exceeding PKR 200 million in any of the previous three years. (“FBR notifies new tax regime for small shopkeepers,” Dawn, 29 July 2026)
PM Shehbaz orders elimination of unnecessary government posts
On 28 July, Dawn reported that Prime Minister Shehbaz Sharif directed authorities to accelerate the federal government's right-sizing programme by eliminating unnecessary posts and improving the efficiency of public institutions. Chairing a review meeting, he ordered a third-party audit of abolished positions and institutions and instructed the Right-Sizing Committee to submit its remaining recommendations within one month. Officials said the Utility Stores Corporation, Pakistan Public Works Department, and Pakistan Agricultural Storage and Services Corporation had already been closed. At the same time, vacant posts across ministries had been abolished, reducing federal civilian expenditure relative to GDP. The government is also preparing restructuring plans for state-owned enterprises and autonomous bodies while advancing further privatisation efforts. (“PM Shehbaz directs elimination of unnecessary positions to improve govt performance,” Dawn, 28 July 2026)
Business community divided over State Bank’s interest rate decision
On 28 July, Dawn reported that Pakistan’s business community gave mixed reactions after the State Bank of Pakistan kept its benchmark policy rate unchanged at 11.5 per cent. The Overseas Investors Chamber of Commerce and Industry (OICCI) welcomed the decision as a prudent response to persistent inflation, which stood at 11.1 per cent in June, and ongoing external risks, including Middle East tensions and volatile commodity prices. However, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and other business groups criticised the move as contractionary, arguing that high borrowing costs, rising energy prices and expensive financing would discourage investment, weaken exports and delay industrial recovery. (“Policy rate pause splits stakeholders,” Dawn, 28 July 2026)
Economic Coordination Committee approves PKR 255 billion export support package
On 28 July, Dawn reported that the Economic Coordination Committee (ECC) approved more than PKR 255 billion in subsidies under three incentive schemes aimed at boosting Pakistan’s exports, which have remained around USD 30 billion annually despite rising imports. The package includes an enhanced Export Finance Scheme offering six-month working capital loans at 8.5 per cent interest with a PKR 58 billion government subsidy, a new Long-Term Export Growth Financing Facility providing loans at 2 per cent for the first two years and 5 per cent thereafter, and a performance-based rebate of up to 2 per cent on incremental exports. The ECC also approved a reduced domestic gas tariff of PKR 2,000 per mmBtu for RLNG-based power plants and authorised a PKR 4 billion supplementary grant for international arbitration expenses involving power producers. (“ECC okays Rs255bn for export-boosting schemes,” Dawn, 28 July 2026)
Power Division blames Finance Ministry as circular debt rises to PKR 1.67 trillion
On 29 July, Dawn reported that Pakistan’s Power Division attributed a PKR 61 billion increase in the power sector’s circular debt to budget cuts imposed by the Ministry of Finance. Circular debt rose to PKR 1.675 trillion by 30 June from PKR 1.614 trillion a year earlier after the power sector’s allocated funding was reduced by PKR 98 billion, according to the ministry. The Power Division said the debt would have fallen to PKR 1.577 trillion had the full allocation been released. It also highlighted progress in sector reforms, noting that distribution company losses declined from PKR 397 billion to PKR 326 billion during FY26 and insisted that the increase in circular debt reflected temporary funding constraints rather than operational setbacks. (“Power division pins blame for circular debt on ‘Q Block’,” Dawn, 29 July 2026)
SECURITY
Karachi: Police constable killed in shootout as two robbery suspects shot dead
On 28 July, Dawn reported that a police constable was killed and two robbery suspects were shot dead during a chance encounter in Karachi's Orangi Town. Four officers on routine motorcycle patrol near Liaquat Chowk were fired upon by armed suspects, who were killed in the retaliatory exchange of fire. Constable Hassan Ali, 26, died of gunshot wounds despite medical treatment, having been hit from the side despite wearing body armour. One of the deceased suspects was found to have killed an assistant sub-inspector in 2021 and had at least 13 criminal cases registered against him. ("Police constable martyred, 2 suspected robbers killed in shootout in Karachi's Orangi Town: police," Dawn, 28 July 2026)
HEALTH
Pakistan ranks fifth globally for hepatitis burden, finds Medical Association
On 28 July, Dawn reported that the Pakistan Medical Association (PMA) warned on World Hepatitis Day that Pakistan ranked fifth globally for total viral hepatitis burden, with an estimated 10 million chronic Hepatitis C Virus (HCV) cases and 3.8 million living with Hepatitis B (HBV). The World Health Organization (WHO) data cited by the PMA showed Pakistan accounted for nearly 44 per cent of all new global HCV infections caused by unsafe medical injections, with around 110,000 new infections recorded annually. Complications including liver cirrhosis and liver cancer claim over 37,000 Pakistani lives every year. The primary drivers are the reuse of non-sterile syringes, unscreened blood transfusions, and unsanitary practices in barbershops and medical facilities. ("Pakistan ranks fifth for total viral hepatitis burden, says PMA," Dawn, 28 July 2026)
PROVINCES
Punjab: Lahore police launches pilot programme to rehabilitate beggars
On 28 July, Dawn reported that the Lahore Traffic Police launched a pilot initiative to rehabilitate individuals engaged in begging through vocational training, soft loans, and education as part of efforts to create a "zero-begging Punjab." Under the programme, 10 beneficiaries will initially receive soft loans of up to PKR 500,000 each through the Punjab Small Industries Corporation to start small businesses, while women, children, and transgender persons will be offered employable skills training. Authorities also plan to establish "Jhuggi Schools" in informal settlements and crack down on organised begging networks and human trafficking. Lahore Traffic Police said it had taken enforcement action against more than 3,500 beggars so far this year. (“Zero-beggary Punjab initiative: Traffic police launch pilot project to rehabilitate beggars,” Dawn, 28 July 2026)
POK
Human Rights Commission seeks probe into “AJK” protest deaths
On 28 July, The Express Tribune reported that the Human Rights Commission of Pakistan (HRCP) called for an independent and impartial investigation into reports of deaths and injuries during clashes between law enforcement personnel and protesters in Rawalakot following the first phase of the “Azad Jammu and Kashmir (AJK)” legislative elections. The HRCP urged authorities to exercise restraint, protect the rights to life and peaceful assembly, and hold anyone responsible for unlawful use of force accountable. Opposition parties, including the Tehreek-e-Tahaffuz-e-Ayeen Pakistan (TTAP), Pakistan Tehreek-e-Insaf (PTI), and Jamiat Ulema-e-Islam-Fazl (JUI-F), also condemned the violence, demanded transparent investigations, and called for justice for those killed and injured. (“HRCP calls for impartial, independent probe into reports of deaths in Rawalakot clashes,” The Express Tribune, 28 July 2026)
PML-N secures 9 of 13 seats in first phase of “AJK” elections, preliminary results show
On 28 July, Dawn reported that the Pakistan Muslim League-Nawaz (PML-N) secured nine of the 13 constituencies contested in the first phase of the “Azad Jammu and Kashmir (AJK)” Legislative Assembly elections, while the Pakistan Peoples’ Party (PPP) won the remaining four seats, according to preliminary Election Commission results. The PML-N won constituencies across Mirpur, Bhimber, and Kotli divisions, while the PPP retained Mirpur city and three other seats. The elections were held amid allegations of rigging and election-related violence, including clashes in Kotli. The remaining phases of polling are scheduled for 02 August and 10 August, covering Muzaffarabad, refugee constituencies, and Poonch division. (“AJK elections: PML-N grabs 9 out of 13 seats across Mirpur division, unofficial results show,” Dawn, 28 July 2026)
Editorials/Opinions
Security
Raashid Wali Janjua, “The Baloch question,” The Express Tribune, 29 July 2026
"It is a moot point now whether it is the unameliorated socio-economic conditions or the unassuaged psycho-social grievances that are the cause of the present unrest in Balochistan. The aetiology of the sixth uprising in Balochistan features longstanding grievance narrative and a persistent governance deficit in the restive province. The diurnal attacks by the BLA terrorists and their ilk cause national headlines despite the valiant pushback by the LEAs. What ails the province and what sustains this implacable wave of terrorism needs an honest introspection on the part of the state as well as the scholars."
https://tribune.com.pk/story/2620805/the-baloch-question
Pakistan-occupied Kashmir
Editorial, “AJK elections,” Dawn, 29 July 2026
“Considering the political unrest that has rocked Azad Jammu and Kashmir in the recent past, free and fair general elections are essential to finding a democratic solution to AJK’s issues. Which is why the current three-phase exercise, which began on Monday with votes being cast in Mirpur division, should be conducted with absolute integrity — and without any phase of the electoral process influencing the outcome of the next."
https://www.dawn.com/news/2018921/water-policy
External
Editorial, “A water security policy,” The Express Tribune, 29 July 2026
“Pakistan is trapped in an abusive relationship with the monsoon season, as the same rains that are crucial for farmers are death-bringers for people in flood-sensitive areas. The numbers are staggering: the 2022 floods submerged one-third of the country, affected 33 million people and caused over $30 billion in damages. The 2025 floods claimed 1,039 lives, displaced more than four million people and inflicted billions more in economic losses. We have also seen crippling floods this year, though fortunately not on the same scale. Still, many of these disasters could have been mitigated, or even largely avoided, if we had a comprehensive national water security policy."
https://tribune.com.pk/story/2620801/a-water-security-policy
Society
Dur e Sameen Akhund, “Invisible women,” Dawn, 29 July 2026
“Pakistan's export economy runs on women’s work. Walk through a stitching unit in Faisalabad or a cotton field in southern Punjab and this is obvious. Yet open the audit reports, supplier scorecards and compliance files that govern access to our largest export markets and the women largely disappear: present in the aggregate headcount, absent from the wage data, the grievance logs, the risk assessments. For decades this invisibility was commercially convenient. It is now becoming a commercial liability."
https://www.dawn.com/news/2019175/invisible-women
Society
Zafar Masud, “Beyond arithmetic,” Dawn, 29 July 2026
“The fiscal year that just ended has brought real GDP growth of 3.7 per cent — the fastest in four years. Yet ask the median household and the answer will not match the national accounts. Both are telling the truth. The distance between them is the most consequential number in Pakistani economic policy — and we do not officially measure it."
https://www.dawn.com/news/2019177/beyond-arithmetic
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