Photo : The Express Tribune
NIAS Area Studies
PAKISTAN READER
Photo : The Express Tribune
In Focus
Pakistan marks 78th Independence Day with grand ceremony
On 14 August, The Express Tribune reported that Prime Minister Shehbaz Sharif celebrated Pakistan’s 78th Independence Day and the “Marka-e-Haq” victory at a grand ceremony in Islamabad’s Jinnah Sports Stadium, attended by senior civil and military leaders, foreign envoys, and the public. He called on political parties, stakeholders, and civil society to join the Misaq-i-Istehkam-i-Pakistan (Charter for Stability). PM Sharif stated that the proposed charter was more than just an economic recovery plan, describing it as the basis for a comprehensive national agenda, urging unity above political rifts. He cautioned that Pakistan would not tolerate any new “fitna” (mischief) after decades of sacrifices in the war against terrorism. The prime minister also honoured the founding fathers for their struggle that “changed history and geography.” Announcing the formation of the Army Rocket Force, Shehbaz praised the armed forces’ recent performance against India and credited coordinated political and military efforts for stabilising the economy, highlighting a surging stock market, reduced interest rates, and record remittances of USD 38.3billion. He acknowledged the chief justice’s role in recovering PKR 100 billion and lauded overseas Pakistanis as “the nation’s great ambassadors.” The celebration featured military parades, participation from foreign contingents including those from Turkey and Azerbaijan, aerial displays, and tributes to national heroes. (“PM Shehbaz waves olive branch with 'charter for stability',” The Express Tribune, 14 August 2025)
Amendment in the Anti-Terrorism Act to allow detention based on suspicion
On 13 August, the National Assembly gave its assent to an amendment in the Anti-Terrorism Act (ATA), 1997. The amendment has authorized the law enforcement agencies and armed forces to hold up “suspicious individuals” for a maximum period of three months. In 2014, an amendment was brought to the ATA that gave power to civil armed forces and the army to detain people based on suspicion. Nevertheless, the amendment was valid for only two years and expired in 2016. As per the Associated Press of Pakistan, 125 members in the National Assembly voted in favour of the bill, whereas 59 members opposed it. Law Minister Azam Nazeer Tarar informed the Assembly that the power to detain individuals based on suspicion will be used “only in specific situations.” PTI leader Asad Qaiser criticized the bill, highlighting how the same could be “misused” for silencing the government dissenters. JUI-F chief Maulana Fazlur Rehman denounced the bill and claimed that the law would authorize the law enforcement agencies to detain individuals, after which they would get a chance to prove their innocence. (Abdullah Momand, “NA passes ATA amendments allowing 3-month ‘preventive detention’ of terror suspects,” Dawn, 13 August 2025)
Moody’s upgrades Pakistan’s credit rating to Caa1, citing economic stabilization
On 14 August, The Express Tribune reported that Moody's, a global credit rating agency, has upgraded Pakistan’s credit rating from Caa2 to the speculative grade of Caa1 with a “stable” outlook, the first upward revision in a year signaling progress away from default risk. The agency attributed the move to an “improving external position” and fiscal progress under the IMF programme, while cautioning that reserves remain “fragile” given USD 50 billion in external debt repayments over the next two years. With external financing needs of USD 24–25 billion annually, the finance ministry remains under constant strain. The agency recognized the government’s efforts over the past 18 months to stabilize the economy. However, Pakistan remains at least one step below the minimum “investment grade required to issue international sovereign bonds at favourable rates.” Due to its high-risk credit profile, the government is still unable to float such bonds without facing very high interest costs due to the risky credit rating. Moody’s said Pakistan’s debt affordability has “improved, but remains one of the weakest among rated sovereigns.” (Shahbaz Rana, “Moody's moves Pakistan out of default danger,” The Express Tribune, 14 August 2025)
In Brief
ECONOMY
Pakistan will phase down auto sector tariffs to accelerate vehicle exports
On 14 August, The News International reported that Pakistan will phase down tariffs on the auto sector over five years to boost exports from tractors and motorcycles to cars. While addressing industry representatives, Commerce Minister Jam Kamal Khan stated that a committee of the Commerce Ministry, FBR, and Industries Ministry will tackle sector challenges and urged automakers to join the upcoming industrial policy. Linking opportunities to a US trade deal lowering tariffs on Pakistani goods to 19 per cent, he stressed quality standards for imported used cars. Industry leaders cited rising production costs from new technologies and used car imports as pressures on local manufacturers. The sector, contributing 7–16 per cent of manufacturing GDP, provides jobs to millions and is dominated by major players such as Toyota, Honda, Suzuki, Hyundai, and Kia. The auto sector saw its July sales drop 49 per cent. The 2025–26 budget introduced a 1–3 per cent Green Tax on combustion vehicles and maintained GST gaps for hybrids and EVs. This sparked concerns that high taxes alongside uncertain policy changes could hurt demand and investment in the automobile sector. (“Pakistan to slash auto tariffs over five years to spur car exports,” The News International, 14 August 2025)
Punjab secures USD 150 million Chinese investment for largest textile facility
On 14 August, The News International reported that Punjab province has attracted a swift USD 150 million investment from China to boost its textile industry. On 13 August, Chief Minister Maryam Nawaz met with Chinese Consul-General Zhao Shiren and Challenge Group Chairman Wego Hong. Their discussions centred on advancing the textile sector and attracting greater investment to the province. Hong commended Punjab’s pro-investment policies. A Memorandum of Understanding was signed between the Bank of Punjab and Challenge Fashion Pvt Ltd, which will involve the creation of a modern special economic zone spanning 100 acres. The venture is expected to generate 18,000 jobs within eight months and 25,000 in the next five years. The project will establish Pakistan’s biggest and most sophisticated textile facility in Punjab, with its garments destined for leading American brands. The group will procure raw materials locally, with yearly exports projected to surpass USD100 million (“Maryam inks $150m textile deal with Chinese group,” The News International, 14 August 2025)
ENERGY&ENVIRONMENT
GLOFs cause widespread damage in Gilgit-Baltistan
On 14 August, Dawn reported that in Gilgit-Baltistan's Gulmit, Gojal, Hunza, a Glacial Lake Outburst Flood caused by rapid glacier melt swept away sections of the Karakoram Highway (KKH), severing access to China via Khunjerab Pass. The flood destroyed a women-run restaurant, tourist facilities, orchards, farmland, and vital infrastructure, including electricity and internet lines. Homes in Hunza and Shigar were also damaged. Repair work is hindered by high river flows, erosion, and landslides. In another development, flash floods hit the Shigar district, destroying homes and property in Dogoro village of Basha, while a glacial lake outburst in the Horchas nullah ruined crops and obstructed the route to K2. Faizullah Faraq, spokesperson for the Gilgit-Baltistan government, stated that rehabilitation efforts are ongoing in all affected areas but cautioned that climate change-driven disasters “have changed the map of Gilgit-Baltistan.”In Punjab’s Kasur district, the Provincial Disaster Management Authority (PDMA) has ordered immediate evacuations along the Sutlej River ahead of the season’s strongest monsoon spell from 13–21 August. Officials warn of major flooding, possible urban inundation in Lahore, Faisalabad, Gujranwala, and Sialkot, and landslides in Murree and Galliyat. (Jamil Nagri, “Another flood severs KKH; Sutlej banks being evacuated,” Dawn 14 August 2025)
SECURITY
KP: Militants attack gas pipeline in Lakki Marwat, supply to Punjab disrupted
On 13 August, militants in Lakki Marwat, Khyber Pakhtunkhwa, blew up a gas pipeline. According to the police, this led to a disruption in the supply of gas to Punjab. The spokesman from the police informed that they have launched a “search operation” to hunt down those responsible for the blast. Previously, in July, militants had targeted a gas pipeline near Wanda Amir, which had also resulted in a temporary disruption in the supply of gas to Punjab. Similar attacks also took place in June. Lakki Marwat has witnessed several militant attacks since 2000. Though the operations initiated by the security forces did bring some peace in the region, terrorist attacks in the past few years have increased substantially. (Umar Bacha, “Terrorists blow up a gas pipeline in Lakki Marwat: police,” Dawn, 13 August 2025)
EXTERNAL
Pakistan can use CPEC to expand “regional influence” in Iran and Afghanistan, says Chinese envoy to Pakistan
On 13 August, China’s envoy to Pakistan, Jiang Zaidong, in his address at the “CPEC in My Eyes” forum, stated that Pakistan could expand the China-Pakistan Economic Corridor (CPEC) to Afghanistan, Iran, and various other countries. According to him, this would enhance Pakistan’s “regional influence,” marking a change from “geopolitics to geo-economics.” Further, he stated that CPEC remains an important component in the country's geo-economic transformation. He highlighted how CPEC is a testimony to Pakistan-China's strong historic bilateral ties. He pointed out how CPEC led to USD 25.4 billion worth of direct investment, the construction of 510 km of motorways, and contributed 8000 MW to the electricity system. Dismissing the critics who have denounced the CPEC because of its slow progress, the ambassador claimed that the criticism came from people who had hidden agendas. (Jamila Achakzai, “Pakistan can extend CPEC to Afghanistan, Iran and beyond: China,” The News International, 14 August 2025)
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