Photo : The News International
NIAS Area Studies
PAKISTAN READER
Photo : The News International
In Focus
Federal Cabinet approves creation of Pakistan Virtual Assets Regulatory Authority
On 7 July, the federal cabinet gave a go-ahead for the establishment of the Pakistan Virtual Assets Regulatory Authority (PVARA). The move aims to establish and bolster a robust “legal and institutional framework for overseeing the country’s digital assets ecosystem.” PVARA will be an independent regulatory body responsible for “licencing, monitoring, and supervising virtual asset service providers (VASPs).” It will also ensure compliance with the Financial Action Task Force (FATF), the IMF, and the World Bank guidelines and best practices recognized globally. This development follows a flurry of decisions taken by the government to improve and boost the country’s virtual assets landscape. For instance, the launch of the Pakistan Crypto Council (PCC) in March, the formation of Pakistan’s first Strategic Bitcoin Reserve announced in May, allocation of 2,000 megawatts of surplus electricity for Bitcoin mining and artificial intelligence (AI) data centers, etc. (“Cabinet okays setting up of virtual assets regulatory authority,” The News International, 8 July 2025)
Auditor General’s annual report highlights serious financial discrepancies across ministries
On 8 July, The News International reported that in its audit report for the financial year 2023–24, the Auditor General of Pakistan (AGP) has highlighted serious financial discrepancies, including “financial mismanagement, irregularities, and violations of public finance rules.” These violations have been recorded“across several federal ministries and divisions.” According to the report, the financial irregularities with other losses amounted to around a whopping PKR 1100 billion. This indicates serious “fiscal discipline” and a lack of internal checks and balances and accountability. The News pointed out that the most damning example is the procurement of 3.59 million tons of wheat from abroad despite the existence of domestic surplus causing a loss to the tune of PKR 300 billion. Further, the report has flagged several such decisions that display fiscal mismanagement: “overpayments to Karachi Port Trust employees who received excessive allowances, unauthorized payments in Civil Armed Forces, misuse of public funds in regulatory authorities, irregularities in Pakistan Cricket Board (PCB), encroachment on public land.” The AGP report also documented a total of five cases “of embezzlement and fictitious payments” amounting to PKR 1.69 billion. (Ansar Abbasi, “Fiscal year 2023-24: AGP uncovers over Rs1,100bn irregularities across federal institutions,” The News International, 8 July 2025)
Pakistan flags terror threat at the first session of new Af-Pak mechanism
On 7 July, the first additional secretary-level mechanism between the foreign ministries of Pakistan and Afghanistan took place in Islamabad. According to the Foreign Office (FO), this mechanism was set up following a meeting on 19 April between Pakistan’s deputy prime minister and the foreign minister's visit to Kabul. Both parties reiterated terrorism as a “grave threat to regional peace and security.”Deliberations spanned key areas of “bilateral interest” including cooperation on trade and transit. Other issues discussed included: regional connectivity and the repatriation of Afghan nationals. The Pakistani side was led by Additional Secretary (Afghanistan & West Asia) Ambassador Syed Ali Asad Gillani and highlighted the urgency of dealing with terror groups and threats emanating from Afghanistan. The Afghan side was headed by Mufti Noor Ahmad Noor, Director General of the First Political Division at Afghanistan's Ministry of Foreign Affairs. (Kamran Yousaf, “Pakistan urges decisive Afghan action on terror,” The Express Tribune, 8 July 2025; “First round of Pak-Afghan talks concludes, focusing on trade, security,” The Express Tribune, 8 July 2025)
In Brief
POLITICS
KP government to try to keep out new reserved seats members from the upcoming Senate election
On 8 July, The News International quoted “highly reliable sources” that the Khyber Pakhtunkhwa (KP) government is considering obstructing the oath-taking of new members elected on reserved seats in order to keep them from voting in the upcoming Senate elections scheduled for 21 July. In this regard, the opposition members are mulling over approaching for “legal advice” and have decided to approach the Peshawar High Court (PHC). There are also fears that in the absence of the oath-taking ceremony, the Senate elections may be further deferred. The News also cautioned that not following the court’s directives can lead the KP government to deal with “both constitutional and political challenges.” Leaders of the opposition have pointed out that non-administration of oaths in light of “clear” court directives is “a violation of both the constitution and democratic principles.”(Arshad Aziz Malik, “Ahead of Senate polls: PTI moves to block oath-taking of reserved seat members,” The News International, 8 July 2025)
Senator Irfan Siddiqui dismisses speculations around proposal to replace President Zardari
On 8 July, The News International reported that Parliamentary Leader of the Pakistan Muslim League-Nawaz (PMLN) in the Senate and Chairman of the Senate Standing Committee on Foreign Affairs, Senator Irfan Siddiqui, has categorically dismissed speculations about any proposal to replace incumbent President Asif Ali Zardari. He cleared the air during a talk show of a private TV channel, stating that “no such suggestion is under consideration at any level” and that due to a lack of “meaningful content,” the media was engaging in “sensationalism and gossip-mongering.” He also asserted that the President was dispensing his “constitutional role effectively.” Siddiqui also rubbished rumors of Former Prime Minister Nawaz Sharif meeting PTI Founder Imran Khan in jail, terming them “completely baseless and fabricated.” On the question of Imran Khan’s “political strategy,” Siddiqui pointed out the existence of intra-party divisions as a challenge to Khan’s leadership and said “He should first reconcile with his own party before expecting dialogue with others.” (“No proposal to replace president: Senator Irfan,” The News International, 8 July 2025; “No proposal to replace President Zardari: Irfan Siddiqui,” The Express Tribune, 8 July 2025)
ECONOMY
Textile exports surge despite decline in overall exports this fiscal
On 8 July, The News International reported that despite an overall decline in total exports this fiscal, the country has witnessed an increase in textile exports. While the total exports decreased by 7.36 per cent when compared to exports of USD 19.3 billion in 2022, textile exports increased by 7.22 per cent to USD 17.88 billion in FY25 as compared to USD 16.68 billion in FY24. The textile exports saw a surge in June by 7.22 per cent and a decline in July by 3.05 per cent when compared to the same months of the previous fiscal. (Khalid Mustafa, “Textile exports up 7.22% to $17.88bn in FY25,” The News International, 8 July 2025)
ENVIRONMENT
PM directs preparedness in the wake of flood risk
On 7 July, The Express Tribune reported that Prime Minister Shehbaz Sharif has directed the National Disaster Management Authority (NDMA), and other relevant national and provincial bodies to fast-track preparedness in the wake of flood risk. This follows massive rains that have increased the risk of flooding across the country in the past few weeks. In this regard the prime minister said that “The NDMA is to coordinate closely with Provincial Disaster Management Authorities (PDMAs) to ensure a prompt and coordinated response.” He also highlighted the importance of “public awareness” in massively reducing “casualties and damage.” For this, he directed the Pakistan Telecommunication Authority (PTA) to facilitate the dissemination of timely and correct information. (“PM directs NDMA to stay alert as flood risk increases,” The Express Tribune, 7 July 2025)
SECURITY
IED blast in Balochistan leaves three highway officials wounded
On 7 July, three officials of the highway police were wounded in an improvised explosive device blast in Balochistan’s Nasirabad district. The blast occurred near a patrol unit, in which their vehicle was also partially damaged. The identity of the individuals who planted the device remains unknown. An investigation has been launched with search operations underway to nab the perpetrators. The Express Tribune highlighted that there has been a surge in terror attacks in the province in the past few days, highlighting how the security officials have thwarted several attacks and eliminated terrorists allegedly backed by India. (“Three highway police officials injured in IED blast in Balochistan,” The Express Tribune, 8 July 2025)
EXTERNAL
BRICS statement denouncing Pahalgam attack did not mention Pakistan, reports The News
On 8 July, The News International highlighted that at the recently concluded BRICS summit, the statement denouncing the Pahalgam attack did not mention Pakistan. The report also noted that while condemning terrorism overall, the BRICS statement has avoided naming any country, a move that The News attributed to earlier precedents set by international bodies like the United Nations Security Council, the Shanghai Cooperation Organisation (SCO), and the Quad.
On the same day, an editorial in The News International titled “Brics speaks” discussed the statement released by BRICS, which condemned the Pahalgam attack without naming Pakistan, denounced attacks against Iran, and Israel’s violation of international law. The editorial termed this development as indicative of recognition of Pakistan’s stance on these developments. The editorial also pointed out that the statement did not reiterate “India’s false claims of Pakistan being responsible for the attack” despite India being a full-time member. It lauded the body for not following in the footsteps of the “US-dominated Western order” which allows powerful countries to do their bidding. (Zebunnisa Burki, “No mention of Pakistan as Brics condemns Pahalgam attack,” The News International, 8 July 2025; “Brics speaks,” The News International, 8 July 2025)