Photo : ISPR
NIAS Area Studies
PAKISTAN READER
Photo : ISPR
In Focus
China-Pakistan agree to intensify strategic partnership and increase cooperation at multilateral forums
On 21 August, Foreign Minister of China, Wang Yi, held a discussion with the Chief of Army Staff, Field Marshall Asim Munir, in Islamabad. The two sides deliberated on “security and counter-terrorism” in the region. Both China and Pakistan reiterated their commitment towards intensifying “strategic partnership” and increasing cooperation at multilateral platforms.
On the same day, Wang Yi had taken part in the sixth Pakistan-China Strategic Dialogue. He had held a meeting with PM Sharif, in which he reiterated Beijing’s resolve to cooperate with Pakistan for enhancing “peace, development and stability” in the region. In a press conference where foreign ministers of both countries were present, the Chinese foreign minister called his visit to Islamabad “the most important one.” The Chinese foreign minister’s visit comes amidst the recent improvement in Pakistan-US bilateral relations. Further, as per The Express Tribune, New Delhi is witnessing a rise in tensions in its relationship with the US, which is why there has been an improvement in India-China bilateral ties. There were speculations that the recent improvement in India-China relations was connected to Islamabad's improving its relations with the US. Nevertheless, foreign ministers of Pakistan and China have rejected the speculations and announced that bilateral ties had “stood the test of time” and remained independent of “external factors.” As per a communique from the foreign ministry of China, Beijing would continue to give preference to Pakistan in the region, and provide steady backing for it to preserve its “national independence, sovereignty, and territorial integrity.”(“China’s Foreign Minister Wang, COAS Munir discuss regional security and counter-terrorism,” Dawn, 22 August 2025; Kamran Yousaf, “'New realignments won't dent Sino-Pak partnership,'” The Express Tribune, 22 August 2025)
PTI hopeful of Khan’s release after SC grants bail in eight 9 May cases
On 22 August, Dawn reported that the recent decision from the Supreme Court regarding cases related to Imran Khan received praise from the PTI. On 21 August, the Supreme Court provided Imran Khan bail in eight cases pertaining to the 9 May 2023 riots. PTI called the Supreme Court’s orders a “ray of hope” and saw it as a testament to Khan not being guilty. The General Secretary of PTI, Salman Akram Raja, asserted that after the Supreme Court’s recent decision, Khan is left with just one case, which is the Al-Qadir Trust corruption case. Raja expressed hope that Khan would receive bail in the Al-Qadir case, after which he would be released from jail. Reaffirming his party’s position, Raja claimed that the accusations against Khan related to the 9 May 2023 riots were “fabricated.” He is also positive that other PTI leaders such as Omar Ayub, Shibli Faraz, and Malik Aahmad Bhachar would be acquitted. (Ikram Junaidi, “PTI terms SC decision ‘a ray of hope,’” Dawn, 22 August 2025)
Kabul trilateral meeting: Islamabad and Beijing express concern over terrorism emanating from Afghanistan
On 20 August, the foreign ministers of Afghanistan, Pakistan, and China convened for the sixth trilateral dialogue in Kabul. This was the first time that the trilateral dialogue took place in Afghanistan since the Taliban takeover in 2021. Islamabad and Beijing urged the Taliban government to initiate steps to combat the menace posed by militant groups. They reaffirmed their commitment to expand the China-Pakistan Economic Corridor (CPEC) in Afghanistan. As per Dawn, militant groups such as Islamic State Khorasan, Tehreek-i-Taliban Pakistan (TTP), East Turkestan Islamic Movement (ETIM), and AlQaeda have expanded their presence in Afghanistan after 2021. Foreign Minister Ishaq Dar spoke with his Afghan counterpart Amir Khan Muttaqi and highlighted how “counter-terrorism commitments” are not being adhered to by Afghanistan. FM Dar acknowledged that the two countries did witness substantial advancement in “political and commercial ties.” Nevertheless, according to FM Dar, cooperation in combating terrorism remains unsatisfactory. He urged the Taliban government to take “concrete and verifiable measures” to combat the threat posed by TTP and Balochistan Liberation Army. Foreign Minister Wang Yi held a separate meeting with PM of Afghanistan, Mullah Hassan Akhund. Wang Yi stressed the presence of ETIM militants in Afghanistan. He said, “Effective security cooperation between the two countries will establish a foundation for Afghanistan’s development.” (Baqir Sajjad Syed, “Pakistan, China urge Kabul to rein in terror outfits,” Dawn, 21 August 2025)
POLITICS
Imran Khan nominates Achakzai and Swati as opposition Leaders
On 21 August, Dawn reported that Pakistan Tehreek-e-Insaf founder Imran Khan instructed his lawyer that Ali Bukhari that Mahmood Khan Achakzai, chief of the Pakhtunkhwa Milli Awami Party (PkMAP), be named opposition leader in the National Assembly, while senior PTI figure Azam Swati be nominated for the Senate. This would mark Achakzai’s first time heading the National Assembly opposition, a role that assumes significance given his long record of challenging the establishment. Swati, who was jailed over remarks against former army chief Bajwa and has faced controversy in the past, is also set to regain political visibility. For the Punjab Assembly, Khan has asked the party to propose five candidates before he finalizes a choice. These decisions come after the Election Commission disqualified Omar Ayub, Shibli Faraz, and Malik Ahmad Bhachar due to their “9 May convictions.” Amid complaints of harsh detention conditions, Khan also urged the party to decide on its participation in the upcoming by-elections. Analysts caution that leaving opposition posts vacant would allow the government sweeping control over parliament and key constitutional appointments. (Ikram Junaidi, “PTI taps Achakzai and Swati for opposition leaders slot,” Dawn, 21 August 2025)
ECONOMY
ADB backs Pakistan’s Reko Diq mine with USD 410million financing package
On 22 August, Dawn reported that the Asian Development Bank (ADB) is set to offer a USD 410 million financing package for Pakistan’s Reko Diq copper-gold mine, one of the world’s largest untapped reserves, to be operated by Barrick Gold, Reko Diq is slated to begin copper and gold production in 2028, with projected lifetime free cash flow of around USD 70 billion. The package includes USD 300 million in loans for Barrick and a USD 110 million financing guarantee for the Government of Pakistan. The USD 6.6 billion Balochistan project is split evenly, with Barrick holding 50 percent ownership and the remaining half shared between Pakistan’s federal and provincial governments. The project seeks to generate over USD 2 billion and has already secured a USD 700 million financing deal with the International Finance Corporation, the World Bank’s private investment arm. The developers are also engaging with potential lenders such as the US Export-Import Bank, Export Development Canada, and Japan’s JBIC. Pakistan expects the project to act as a catalyst for attracting greater foreign investment in its mineral sector, especially in the development of rare earth reserves. (“ADB to give $410 million for Barrick- run Reko Diq,” Dawn, 22 August 2025)
SBP foreign reserves rise, rupee gains against US Dollar
On 22 August, The Express Tribune reported that Pakistan’s foreign exchange reserves saw a slight uptick in the week ending 15 August 2025, with the State Bank of Pakistan’s (SBP) reserves rising by USD 13 million to reach USD 14.256 billion. Overall liquid reserves stood at USD 19.571 billion, of which USD 5.315 billion were held by commercial banks, providing an import cover of 2.32 months. The Pakistani rupee strengthened, closing at PKR 281.92 against the US dollar. This was primarily due to measures against illegal currency trading and smuggling. On a year-to-date basis, the rupee has weakened by 1.20 per cent, but has gained 0.65 per cent since the start of the fiscal year. (Usman Hanif, “SBP's forex reserves rise $13m to $14.3b,” The Express Tribune, 22 August 2025)
IMF calls for PSDP reforms and budget discipline
On 21 August, The Express Tribune reported that in its upcoming “Governance and Corruption Diagnosis Assessment report” the International Monetary Fund (IMF) pressed Pakistan to channel parliamentarians’ development projects through the Public Sector Development Programme (PSDP) and end their special approval route, insisting all schemes undergo standard scrutiny. The IMF also recommended avoiding mid-year budget changes without Parliament’s consent and publishing the “Budget Strategy Paper” six months before the budget with clear macroeconomic and fiscal data. It urged rationalizing the PSDP by prioritizing essential projects, capping new initiatives at “10 per cent “ of allocations, and curbing politically driven spending that dilutes resources. 70 PKR 70 billion earmarked this year for the lawmaker’s schemes has sparked concerns over misuse and inefficiency. To limit reliance on supplementary grants, the IMF advised creating a contingency pool for emergencies. It further suggested amending procurement laws to end preferential treatment for state-run entities and charitable organizations, aiming to strengthen transparency, accountability, and efficiency in public spending. (Shahbaz Rana, “IMF pushes for oversight of MPs' schemes,” The Express Tribune, 21 August 2025)
Pakistan to explore panda bonds and debt swaps to manage external debt
On 21 August, The News International reported that Pakistan’s external debt and liabilities, estimated at USD 130 billion, are concentrated in five major currencies, with the “US dollar holding the largest share at 57.8 per cent,” followed by Special Drawing Rights (29.9per cent ), Chinese Yuan (5.2 per cent), Japanese Yen (3.9 per cent ), and Euro (2.6 per cent ), according to the government’s Debt Management Strategy (2026-28). The Finance Ministry plans to rely mainly on concessional multilateral and bilateral financing but aims to diversify through instruments like “Panda Bonds, Sustainable Bonds, and Eurobonds,” contingent on global and domestic conditions. A USD 1 billion Panda Bond programme is underway, with the first tranche of USD 200-250 million expected in FY2026, alongside plans for sustainable bonds under a new framework. While Eurobond access remains limited, Panda Bonds are being explored as a cost-effective alternative that strengthens ties with Chinese markets. The government also plans to use “hedging tools” to explore “debt-for-nature swaps” to meet its external liabilities and rely primarily on domestic borrowing as a financing source. (Mehtab Haider, “Dollar makes up 58% of Pakistan's external debt,” The News International, 21 August 2025)
ENERGY, ENVIRONMENT & WATER
Discos seek Nepra approval for PKR 1.69/unit refund on September bills
On 22 August, The News International reported that the state-run power distribution companies (Discos) sought approval from the National Electric Power Regulatory Authority (Nepra) for a refund of PKR 1.691 per unit in September bills, citing lower fuel costs in July. The Central Power Purchasing Agency (CPPA), on behalf of Discos, filed the petition under the monthly Fuel Charges Adjustment (FCA) mechanism, with a public hearing scheduled for 28 August. In July, power generation stood at 14,123 GWh at an average cost of PKR 7.78/unit, totaling PKR 109.89 billion. After accounting for transmission losses, 13,666 GWh were delivered to the Discos at PKR 8.18/unit. Hydropower led the energy mix, followed by RLNG, local coal, nuclear, imported coal, and natural gas. No generation came from diesel or bagasse. The Ministry of Energy has directed Nepra to ensure uniform FCA rates nationwide, with any shortfall for K-Electric to be covered through subsidies or cross-subsidies. (Israr Khan, “Power consumers set for Rs1.69 per unit relief in Sept bills,” The News International, 22 August 2025)
PM calls floods ‘doomsday of sorts’ as death toll crosses 700
On 20 August, Prime Minister Shehbaz Sharif, during a visit to flood-hit Buner, KP, blamed “unregulated construction in hazardous areas” for worsening flood destruction and directed federal and provincial authorities to ban building in flood-prone areas. PM Shehbaz said “lessons from the 2022 floods had not been learned,” describing the latest disaster caused by heavy rains and landslides as “a doomsday of sorts.” He highlighted the scale of devastation, informing that over 700 deaths have taken place countrywide, with 385 in KP. The PM ordered urgent relief, including electricity restoration, aid for victims, and strict action against deforestation.
Meanwhile, severe flooding has destroyed homes, crops, and infrastructure in Punjab districts such as Layyah, Taunsa, D.G. Khan, Rajanpur, and Muzaffargarh, displacing thousands. Locals criticised authorities for failing to prevent breaches in “protective bunds.” The Provincial Disaster Management Authority (PDMA) issued a red alert across Punjab as the Indus and Sutlej rivers rose at dangerous levels, with Tarbela Dam near capacity. Heavy rains are forecast until 24 August, raising flood risks in Punjab and Sindh, including urban flooding in Karachi, Hyderabad, and Sukkur. The National Disaster Management Authority urged residents to stay alert, relocate valuables and livestock, and follow safety advisories amid warnings of power and telecom disruptions. (Fazal Khaliq, “Premier regrets ‘lessons not learned’ from 2022 floods,” Dawn, 21 August 2025; “Omnious rain forecast for Karachi, parts of Sindh” Dawn, 21 August 2025; Imran Gabol, “Displacement, crop devastation as Indus floods ravage South Punjab, Dawn, 21 August 2025)
SOCIETY
Polio eradication efforts under strain due to security threats and funding crunch
On 21 August, Dawn reported that Pakistan’s polio eradication campaign continues to face major setbacks due to persistent security threats, leaving “nearly 800,000 children” without vaccinations. To address donor concerns, officials have now set a target to cut this number by half during the countrywide drive beginning on the first of September. A Rotary International delegation visiting Islamabad met Prime Minister Shehbaz Sharif, senior military leadership, and health authorities, stressing that financial support is becoming harder to sustain due to a lack of progress. Delegate Francesco Arezzo noted that while “less than one per cent of children are left out of polio campaigns,” efforts must intensify, also adding that “768 workers” have been killed over the past decade over immunisation efforts. Fellow delegate Holger Knaack disclosed that funding has risen sharply to USD 500 million this year as compared to the usual USD 150 million; this increase is in an effort to speed up eradication. Rotary’s Pakistan chair, Aziz Memon, reaffirmed the 50 per cent reduction goal, citing security as the main challenge. Memon also noted that Pakistan was close to eliminating polio in 2019, having gone 14 months without a positive environmental sample, before incidents in Bajaur triggered the virus’s return. Brigadier (retd) Abul Hasan, overseeing program security, said families of slain polio workers and security staff receive PKR one million in compensation, while the injured are given up to PKR 500,000. (Ikram Junaidi, “Donors push for polio eradication as funding becomes scarce,” Dawn, 21 August 2025)
SECURITY
IED blast kills 30 TTP militants in Bajaur, KP
On 21 August, around 30 militants were killed while they were putting together an Improvised Explosive Device (IED) in a mosque in Bajaur, Khyber Pakhtunkhwa. As per The Express Tribune, the militants belonged to the proscribed Tehreek-e-Taliban Pakistan. The TTP militants were planning to use the IED to assault the security forces. As per officers in the region, inquiries into the incident are being carried out. Separately, on 20 August, close to 15 alleged militants were neutralized in an intelligence-based operation in South Waziristan. (“30 terrorists killed as Bajaur terror plot backfires,” The Express Tribune, 22 August 2025)
EXTERNAL
Pakistan looks towards enhancing industrial collaboration with Bangladesh
On 21 August, the Federal Minister for Commerce, Jam Kamal Khan, embarked on a “four-day official visit” to Bangladesh. The objective of Minister Kamal Khan’s visit is to enhance trade relations with Bangladesh and increase economic collaboration. The minister convened a meeting with Bangladesh’s adviser for industries, Adilur Rahman Khan, to look into more areas where the industries of the two countries can collaborate. The two sides highlighted the significance of utilizing their “economic and industrial base” for the benefit of both countries. Minister Kamal Khan underscored Islamabad’s deep interest in formulating “joint ventures and mutual investment” with the industries of Bangladesh. He particularly stressed “value-added industries” for generating earnings and socio-economic uplift. Further, he praised Bangladesh’s advancement in areas like “pharmaceuticals, textiles, and IT.” (“Pakistan, Bangladesh eye value-added goods trade,” The Express Tribune, 22 August 2025)
Senate Chairman highlights enduring bond with UAE at envoy’s farewell
On 21 August, the UAE’s Ambassador to Pakistan, Hamad Obaid Ibrahim Al-Zaabi, had a farewell meeting with Senate Chairman Syed Yousuf Raza Gilani. Gilani commended the envoy’s contribution to the strengthening of Pakistan-UAE ties, which he stated gained new momentum under Al-Zaabi’s tenure. He paid tribute to the late Sheikh Zayed bin Sultan Al Nahyan for transforming the UAE into a hub of trade, tourism, and technology, and noted that Pakistan deeply values its half-century-long bond with the UAE. Gilani welcomed the continuity of high-level exchanges between the countries. Stressing Pakistan’s priority to build a strategic economic partnership, he emphasized cooperation in tackling poverty, food security, and climate change, while also underlining shared political stances in international forums and prospects for expanded trade and investment. (“Gilani lauds UAE envoy’s role in strengthening bilateral ties,” The News International, 22 August 2025)
Three individuals involved in terrorist attack plan targeting the trilateral meeting in Kabul detained
On 21 August, The Express Tribune reported that Afghanistan’s General Directorate of Intelligence (GDI) has detained three individuals who were allegedly working with the Tehreek-e-Taliban Pakistan and other militant organizations. As per The Express Tribune, GDI had initiated operations in Paktika and Khost and had managed to apprehend the commander of Mullah Sangin, Hayatullah, and two other individuals who were working with him. The officers of GDA had reportedly disassembled the militant group’s office. As per the sources of The Express Tribune, the three arrested individuals are being kept in Pul-e-Charkhi jail in Kabul. Reportedly, the arrested individuals were also planning a terrorist attack to hamper the trilateral meeting between the foreign ministers of Afghanistan, Pakistan, and China at Kabul. (Shahabullah Yousafzai, “Afghan intelligence nabs 'TTP recruiters,'” The Express Tribune, 21 August 2025)
US to increase collaboration with Pakistan in energy domain, says US Charge d’Affaires to Pakistan
On 20 August, the Minister for Petroleum, Ali Pervaiz Malik, held a meeting with the Charge d’Afaires of the US, Natalie A Baker, in Islamabad. The two leaders deliberated on the steps to enhance bilateral collaboration in the “energy sector,” especially in “oil, gas, and minerals.” Baker acknowledged the presence of opportunities for the US firms to invest in the energy sector of Pakistan. She highlighted “there is a strong and growing interest from US companies in Pakistan’s oil, gas, and mineral sector in line with the vision of President Trump.” Further, she reaffirmed that the US Embassy would work towards enhancing connections between US and Pakistani firms for increasing cooperation in the energy sector. Minister Malik asserted that the country has substantial quantities of unexplored shale and gas and that the federal government would look to utilize these resources. (“Pakistan, US discuss enhanced cooperation in energy sector,” The Nation, 21 August 2025)
PML-N leader Abdul Qayyum acknowledges slow rate of progress in CPEC-II
On 21 August, Dawn reported on the recent interview given by PML-N’s retd Lt General Abdul Qayyum in the Huashang Weekly. During the interview, he acknowledged the slow rate of progress in the “second phase of China-Pakistan Economic Corridor,” which, according to him, remains an issue of distress. He said, “The pace of CPEC Phase-II is slower than it should be, and that is a cause for concern.” He highlighted the importance of CPEC-II, as the second phase would be stressing on “industrial cooperation, Special Economic Zones, agriculture modernization, IT, and energy diversification.” Further, he pointed out how the “delays” caused in the ML-1 project have added to the distress of investors. He also highlighted the significance of PM Sharif’s meeting with President Xi, which will take place on the sidelines of the SCO meeting. He expressed hope that the two leaders would look into problems related to “bureaucracy, political, and financial.” (Iftikhar A. Khan, “Slow pace of work on CPEC cause for concern: PML-N leader,” Dawn, 21 August 2025)
Iran-Pakistan look to increase bilateral trade to USD 10 billion
On 19 August, Minister for National Food Security and Research Rana Tanveer Hussain held a discussion with the Vice President of Iran, Mohammad Reza Aref, in Tehran. The Iranian Vice President reiterated Tehran’s resolve to enhance bilateral relations with Pakistan and increase bilateral trade volume to USD 10 billion. Vice President Aref pledged to work towards strengthening bilateral economic collaboration and expressed hope for finding new areas of collaboration during the joint economic committee, which would be taking place in Iran. Minister Hussain expressed Islamabad’s interest in enhancing the “export of rice, corn, bananas, meat, and livestock” to Iran. He also stressed how enhancing collaboration in “agriculture and food security” could speed up the process of “economic integration” of Iran and Pakistan. (“Tehran aiming for $10bn trade with Pakistan: Iran’s first vice president,” Dawn, 20 August 2025)
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