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NIAS Area Studies
PAKISTAN READER
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In Focus
ECO Summit: Azerbaijan to invest USD two billion in Pakistan
On 4 July, at the Economic Cooperation Organization (ECO) summit which is taking place in Khankendi, Azerbaijan, PM Sharif urged for formulating “low-emission corridors” to enhance “climate finance” and increase “environmental cooperation” among countries of ECO. In his address at the summit, PM Sharif highlighted the threat of climate change and how it could impact the “food security” of thousands of people in the region. He appealed to the member countries of ECO to employ collective measures for combating the effects of climate change. He pointed out how Pakistan ranks among the most susceptible countries to the threats posed by “climate change.” He reminded the attendees of the summit about the devastating floods in 2022, which resulted in the displacement of more than three crore people across Pakistan. Further, he expressed gratitude to the member countries for choosing Lahore as “ECO Tourism Capital for 2027” and urged all the attendees to explore “Pakistan’s rich cultural heritage.” In addition to that, PM Sharif denounced Israel’s attacks against Iran and called it “unlawful, unjustified and uncalled for.” He also claimed India’s actions after the Pahalgam terrorist attack could have sabotaged peace and stability in the region. He expressed gratitude to the ECO member countries for backing Pakistan amidst India’s military strikes on it.
On the sidelines of the ECO summit, Azerbaijan agreed to invest USD two billion in Pakistan. The agreement was signed by Deputy PM and Foreign Minister Ishaq Dar and Economy Minister of Azerbaijan Mikayil Jabbarov. The “final and detailed agreement” would be inked when President of Azerbaijan Ilham Aliyev would be visiting Pakistan. As per, the inking of the agreement has upgraded “investment and trade relations” between Azerbaijan and Pakistan.
References:
“PM Shehbaz proposes carbon market, green corridors at ECO Summit,” The News International, 4 July 2025
“Azerbaijan signs landmark $2bn investment deal with Pakistan,” The News International, 5 July 2025
Russia’s recognition of Taliban government: Pakistan calls it a “matter between two sovereign states”
On 4 July, the Foreign Office called Russia’s recognition of the Taliban government in Afghanistan a “matter between two sovereign states.” Foreign Office spokesperson Shafqat Ali Khan noted the upswing in relations between Russia and Afghanistan. Further, he also said that “Russia is an important country in the region” and pointed out how Pakistan shares cordial ties with Russia. As per The Express Tribune, the Foreign Office’s response to Russia’s move was “cautious.” Islamabad is yet to send a “full-time ambassador” to Afghanistan. China, on the other hand, appreciated Russia for recognizing the Afghan Taliban. China has a “full time ambassador” in Afghanistan. The Afghan Taliban also has an envoy in China. Nevertheless, China is yet to give formal recognition status to the Afghan Taliban.
Response from the Print Media
On 5 July, an editorial in Dawn titled “Russian recognition,” discussed the possible approach Pakistan can adopt towards the Afghan Taliban after Russia’s formal recognition of the Taliban government. The editorial highlighted how Russia has given recognition to a group which was known for spearheading the fight against the Soviet Union’s presence in Afghanistan. The editorial mentioned that the erstwhile Taliban government in Afghanistan before 9/11 was formally recognized by Pakistan, Saudi Arabia, and the UAE. The editorial viewed Russia’s move as a “diplomatic victory for the Islamic Emirate.” As per the editorial, one of the major reasons behind Russia’s move is the growing threat of the Islamic State-Khorasan, which has orchestrated attacks in Russia and maintains a strong presence in Afghanistan. This move gives Russia a space to highlight its security “concerns.” The editorial suggested that Pakistan should also consider recognizing the Taliban government as the former faces security threats from groups like TTP, which are active in Afghanistan. Further, the editorial suggested that Pakistan, along with other countries, must push the Taliban government for “neutralizing” all the militant groups that are active in Afghanistan. Further, the editorial concluded that Pakistan, along with the world community, should pressurize the Taliban government not to breach “human rights,” especially “women’s freedom.”
On 5 July, an editorial in The Express Tribune titled “Russia-Taliban thaw,” highlighted how giving formal recognition to the Taliban government can push the Afghan Taliban to align its actions more with “international norms and obligations.” As per the editorial, isolating the Afghan Taliban on the international stage has not helped the common citizens of Afghanistan. Further, it has also not helped in moving the Afghan Taliban away from extremism. The editorial highlighted how Russia can assist the Taliban government to eradicate the presence of Islamic State-Khorasan, which also poses a threat to Russia.
References
Kamran Yousaf, “Pakistan reacts cautiously to Russia's Taliban recognition,” The Express Tribune, 5 July 2025
“Russian recognition,” Dawn, 5 July 2025
“Russia-Taliban thaw,” The Express Tribune, 5 July 2025
Microsoft closes its office in Pakistan
On 5 July, Dawn reported that Microsoft has made a decision to close its office in Pakistan and lay off five employees. Previously, Microsoft had an on-ground presence in Pakistan with a significantly downsized local workforce. However, most of its operations were managed from foreign offices and by partners in Pakistan. A Microsoft spokesperson said that “Wewe will serve our customers through both our strong and extensive partner organisation, and other closely located Microsoft offices. We follow this model successfully in a number of other countries around the world.” The IT and Telecommunications Ministry stated that global tech companies are moving from “on-premises software deployment to the Software-as-a-Service (SaaS) model.” SaaS permits a company to cater to a particular geographic location without any on-ground presence, as the software is stored in the cloud. Microsoft’s step is reflective of this transition. Further, the IT ministry stated that Microsoft’s decision could not be construed as an exit from Pakistan, but rather a shift to a “partner-led, cloud-based delivery model.” Habibullah Khan, a technological expert, highlighted that the company’s decision to close its office in Pakistan cannot be attributed to “Pakistan’s tech ecosystem or its economy.” (Abdul Moiz Malik, “Microsoft closes office in Pakistan, lays off staff,” Dawn, 5 July 2025)
In Brief
POLITICS
Election for vacant senate seats in Khyber Pakhtunkhwa on 21 July, says ECP
On 4 July, The News International reported that the Election Commission of Pakistan (ECP) has decided that elections on vacant Senate seats in Khyber Pakhtunkhwa (KP) to be held on 21 July. Elections will be held for “seven general seats, two seats reserved for women, and two seats for technocrats, including ulemas.” From 9 am to 4 pm, polling will be conducted at the provincial assembly building in Peshawar. Senate polls were held in other provinces and Islamabad on 2 April, 2024. However, the ECP formally postponed the Senate elections in KP until the oath-taking of the MPAs-elect on reserved seats. Election for one vacant seat, reserved for women, will be conducted on 31 July, following the resignation of Senator Dr Sania Nishtar. Additionally, two seats reserved for women are vacant in the National Assembly from Khyber Pakhtunkhwa “due to the exhaustion of the priority list previously submitted by the Pakistan Muslim League-Nawaz.” (Nausheen Yusuf, “ECP sets July 21 for Senate elections in KP,” The News International, 4 July 2025)
PML-N petitions PHC against allocation of reserved seats in K-P
On 5 July, The Express Tribune reported that the Pakistan Muslim League-Nawaz (PML-N) has filed a writ petition in the Peshawar High Court (PHC) against the allocation of reserved seats in the Khyber-Pakhtunkhwa Assembly. PML-N has requested the High Court to restrain oath-taking for newly selected members on reserved seats until the final ruling. The Election Commission of Pakistan (ECP) has been named as a respondent in the petition. PML-N has also filed a petition over what it terms an “unfair distribution of reserved seats.” PML-N's petition argues that the party holds seven seats in the K-P Assembly and alleges that the ECP has arbitrarily allocated ten reserved seats to Jamiat Ulema-e-Islam (F) on the basis of seven general seats, whereas PML-N was only given eight reserved seats for the same number of general seats. Further, they have urged the court to declare the ECP's notification regarding the distribution of reserved seats as invalid and direct the ECP to change its allocation for reserved seats. (“PML-N challenges reserved seats in K-P,” The Express Tribune, 5 July 2025)
ECONOMY
Sensitive Price Index increases to 0.73 per cent due to a surge in food and fuel prices
On 5 July, The Express Tribune reported that the Sensitive Price Index (SPI) for the week ending 3 July posted a week-on-week (WoW) increase of 0.73 per cent , driven largely by a surge in food and fuel prices. According to the Pakistan Bureau of Statistics (PBS) and Arif Habib Limited (AHL), significant weekly increases were observed in the prices of chicken, onions, tomatoes, garlic, diesel, potatoes, petrol, and sugar as follows: 13.05 per cent, 11.62 per cent, 11.09 per cent, 5.40 per cent, 3.94 per cent, 3.58 per cent, 3.22 per cent, and 1.27 per cent, respectively. Comparatively, a smaller increase was also noted in the prices of cooked daal, gur, curd, and powdered milk. All income groups experienced weekly inflation according to the group-wise SPI breakdown. The second quintile (Q2) saw the highest WoW increase of 0.80 per cent, and the highest income group (Q5) experienced a 0.70 per cent increase. However, SPI experienced a decline of 2.06 per cent on a year-on-year (YoY) basis, demonstrating a “mixed” trend of inflation across essential consumer goods. (Usman Hanif, “SPI rises 0.73% on food, fuel surge,” The Express Tribune, 5 July 2025)
ENERGY,ENVIRONMENT & WATER
PPP affiliated landlords accused of misappropriating canal cleaning funds
On 5 July, The Express Tribune reported that Awami Tehreek (AT) leaders have accused influential landlords affiliated with the Pakistan Peoples Party (PPP) of embezzling funds allocated for the “desilting and maintenance of canals and distributaries across Sindh,” despite clear forecasts of heavy monsoon rains and flooding. AT’s central president, Advocate Vasand Thari, General Secretary, Advocate Sajid Hussain Mahesar, and other leaders condemned what they termed “criminal negligence” by the PPP-led Sindh government. The leaders cautioned that “funds have been left dangerously weak, increasing the risk of breaches,” highlighting that embankment repairs were plagued by immense corruption. The leaders also criticized the National Disaster Management Authority (NDMA) and the Provincial Disaster Management Authority (PDMA), accusing them of conspiring to misappropriate relief funds meant to be disbursed to flood victims. Further, they termed the institution as “failed” and “dysfunctional” because it is staffed by part-time workers and its recruitment of personnel is conducted from unrelated departments. They asserted that no preventive measures were taken by the government to protect vulnerable areas from seasonal disasters, arguing that both federal and provincial governments lacked a coherent disaster preparedness strategy. The leaders also called NDMA a “hub of corruption,” demanding swift accountability and structural reforms. (“PPP accused of embezzling canal cleaning funds,” The Express Tribune, 5 July 2025)
Water flow downstream to increase levels in Tarbela Dam
The Express Tribune reported that on 4 July, continuous rainfall in the upper regions and rising water levels in the Tarbela Dam prompted authorities to open the spillways e to control the inflow. The operation was scheduled for 12 pm. Authorities have issued a warning for citizens residing along the spillway routes to remain cautious, stating that the spillway release can potentially result in flood-like conditions in the Indus River. According to a spokesperson for the National Disaster Management Authority (NDMA), “the opening of the spillways may cause the flow of water to increase significantly, ranging between 260,000 to 270,000 cusecs.” Considering the projected increase in the flow of water, NDMA has advised residents in adjacent regions to stay clear of riverbanks and water channels. (“Water flow downstream Tarbela to rise,” The Express Tribune, 5 July 2025)
PMD predicts Glacial Lake Outburst Flood (GLOF) risk in northern Pakistan
On 5 July, The Express Tribune reported that the Pakistan Meteorological Department (PMD) has issued a Glacial Lake Outburst Flood (GLOF) alert for northern Pakistan, warning of a “heightened risk of flooding in glaciated regions of Gilgit-Baltistan and Khyber-Pakhtunkhwa” because of increasing temperatures and an approaching weather system. As per the PMD's Research and Development Division, high temperatures are accelerating the melting of snow and glaciers, increasing the potential of GLOF and flash flood incidents in “vulnerable valleys and surrounding areas” over the next two weeks. (“GLOF risk in northern Pakistan: PMD,” The Express Tribune, 5 July 2025)
SECURITY
Security forces neutralize 33 militants in Khyber Pakhtunkhwa in two days
On 4 July, security forces neutralized close to 30 militants who were allegedly supported by India in North Waziristan, KP. As per the Inter-Services Public Relations (ISPR), the militants were attempting to trespass Pakistan-Afghanistan border. Further, ISPR informed that a huge “quantity of weapons, ammunition and explosives” were also retrieved from the neutralized militants. President Zardari and PM Sharif applauded the security forces for neutralizing the militants.
On 5 July, the Counter-Terrorism Department (CTD) of KP neutralized three Tehreek-e-Taliban Pakistan militants in Lakki Marwat, KP. Security forces retrieved “four hand grenades, Kalashnikov rifles, and ammunition” from the killed militants. The CTD operation was preceded by a bomb blast which resulted in the killing of an Assistant Commissioner and four tehsildars in Bajaur, KP,
On 5 July, an editorial in The Nation titled “Securing Pakistan,” appreciated the efforts by the security forces in combating the threat of militancy. The editorial warned that the threat posed by the militant groups continues, despite successful operations carried out by the security forces. The editorial highlighted how, over the years, terrorism has resulted in the killing of thousands of innocent civilians, impacted “economic progress,” and created an atmosphere of “fear” in the country. As per the editorial, militants have been receiving backing from foreign actors. Thereby, as per the editorial, it is an issue of “national security and sovereignty.” The editorial demanded “financial pipelines” through which militants receive assistance be clamped down.(“Security forces kill 30 terrorists infiltrating Pak-Afghan border,” The Nation, 5 July 2025; “KP's CTD eliminates three TTP militants in Lakki Marwat action,” The News International, 5 July 2025; “Securing Pakistan,” The Nation, 5 July 2025)
EXTERNAL
Foreign Office rejects speculations of an alternative grouping to SAARC
On 4 July, Foreign Office Spokesman Shafqat Ali Khan rejected speculations regarding the formulation of an alternative grouping to the South Asia Association for Regional Cooperation (SAARC). He claimed that, except for India, all the member countries want to meet for the “next summit” of SAARC. He also expressed Pakistan’s willingness to host the next summit of SAARC. Further, he clarified that Pakistan is not planning to join any “military alliance.” He claimed that the government wants to engage in dialogue with friendly countries but does not wish to join “military pacts.” He also voiced distress over India enhancing its “military buildup,” claiming the new arms could be used against Pakistan. (“No plans for multi-country military alliance: Pakistan,” The Nation, 5 July 2025)
ON INDIA
Bilawal Bhutto advocates for dialogue with India for anti-terror action
On 4 July, The News International reported that the Pakistan Peoples Party (PPP) Chairman, Bilawal Bhutto Zardari, stated that India cannot expect substantial action against terrorism without engaging in dialogue with Pakistan. Bilawal accused India of trying to establish a “new normal” in South Asia, which he argued was not in Pakistan's or India’s interest. He criticised India for not sharing evidence of terrorist attacks with its people, Pakistan, or the international community, highlighting that India has faced fewer terrorism incidents compared to Pakistan. Bhutto stressed that Pakistan has actively fought terrorism and reiterated that India must talk to Pakistan if it wants to find a solution against terrorists. Additionally, he alleged India's involvement in acts of terrorism targeting Pakistan. Further, Bhutto admitted Pakistani support to “certain groups during the 1980s concerning Afghanistan.” However, he clarified that Pakistan has never backed such groups in the context of Kashmir, stating that “Pakistan supports the Kashmiris’ right to self-determination under UN resolutions, which is not terrorism.” (“India must talk to Pakistan for anti-terror action: Bilawal,” The News International, 4 July 2025)
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