NIAS Area Studies
PAKISTAN READER
In Focus
PTI protests marking two years of Imran Khan’s arrest to begin today
On 5 August, Dawn reported that the Pakistan Tehreek-e-Insaf (PTI) is set to launch a nationwide protest on 5 August to mark two years since party founder Imran Khan was imprisoned in a corruption case. PTI leader Asad Qaiser clarified that this is not a “final call” but the beginning of a sustained movement to oust what the party calls a “fake government.” Rallies are planned across provinces, with major demonstrations in Lahore and outside Adiala Jail. The party alleged that hundreds of workers have been arrested during police raids in Punjab and Pakistan-Occupied Kashmir (POK), where Section 144 has been imposed. Senator Ali Zafar said that Khan had previously permitted dialogue under two conditions, which the government rejected, causing negotiations to collapse. Zafar further stated that the government’s four main cases against Imran Khan, including Toshakhana, the cipher, and Iddat cases were swiftly overturned by the high court. Only the Al-Qadir Trust case remains, which he claimed is being deliberately delayed from a hearing. Zafar emphasized Khan’s readiness to spend ten years in jail for the “rule of law” and alleged severe rights violations against him. Meanwhile, Punjab Minister Azma Bokhari accused PTI of inciting chaos and undermining national institutions. (Ikram Junaidi & Mansoor Malik, “PTI to kick off ‘free Imran’ movement today,” Dawn, 5 August 2025)
75 years on, PFUJ warns of rising censorship in Pakistan
On 5 August, Dawn reported that marking its 75th year of advocating for press freedom, the Pakistan Federal Union of Journalists (PFUJ) concluded a three-day executive council meeting on 3 August with a strong condemnation of what it termed an “escalating crackdown” on freedom of expression. Chaired by PFUJ President Afzal Butt, the meeting called for the immediate withdrawal of the proposed PECA 2025 amendments and the Punjab Defamation Bill 2024, labelling them “unjustified” and “anti-media.” The PFUJ expressed serious concerns over arbitrary detentions, harassment, and censorship, warning that such actions undermine fundamental rights and damage Pakistan’s global reputation. It urged the government to halt repressive media policies and demanded protection of citizens’ digital rights. PFUJ also called for the reinstatement of media workers, the enforcement of the Eighth Wage Board Award, a clear career structure, fair pay for journalists, especially in digital media, and improved safety measures for all media personnel. ( “PFUJ slams ‘crackdown’ on freedom of expression,” Dawn, 5 August 2025)
Foreign mercenaries, including Pakistanis, fighting in Ukraine's northeast, claims Zelensky
On 5 August, Dawn reported that President Volodymyr Zelensky has alleged that Ukrainian forces in northeast Ukraine were battling foreign “mercenaries” from countries such as China, Pakistan, and various African nations. After visiting the frontline areas in the Kharkhiv region, Zelensky stated on X, “Our warriors in this sector are reporting the participation of mercenaries from China, Tajikistan, Uzbekistan, Pakistan, and African countries in the war. We will respond.” In 2023, several media outlets, including a BBC investigation, claimed that Pakistan had supposedly signed a USD 364 million arms deal with two US private companies, with the weapons allegedly destined for Ukraine. These claims were refuted on multiple occasions by Pakistan’s Foreign Office, former caretaker Prime Minister Anwaarul Haq Kakar, and Russia’s ambassador to Pakistan, Albert P. Khorev. ( “Pakistani ‘merceanaries’ fighting for Russia claims Zelensky,” Dawn, 5 August 2025)
In Brief
ECONOMY
Pakistan's FY25 deficit falls to 5.4 per cent, borrowing remains high
On 5 August, The News International reported that in fiscal year 2025,Pakistan recorded a budget deficit of PKR 6.16 trillion, equivalent to 5.4 percent of its GDP. This is an improvement from 6.8 per cent in the previous financial year. As per the Ministry of Finance’s fiscal operations report, the government collected PKR 16.8 trillion in gross revenue, of which PKR 6.85 trillion was transferred to the provinces, leaving PKR 9.94 trillion in net revenue for the federal government. However, debt servicing alone consumed PKR8.88 trillion, leaving just PKR1.1 trillion in federal funds. Defence spending surpassed this figure at PKR2.19 trillion, prompting the government to borrow heavily. An additional PKR 4 trillion in loans funded pensions, subsidies, and provincial grants, while PKR 1.048 trillion for development projects was also debt-financed. Overall, expenditures totaled PKR 24.16 trillion, with current expenses accounting for PKR 21.52 trillion. The primary balance showed a PKR 2.7 trillion surplus, or 2.4 per cent of GDP thus indicating a modest fiscal improvement. ( Mehtab Haider, “Budget deficit drops to 5.4pc in FY25 from 6.8pc in previous fiscal,” The News International, 5 August 2025 )
EXTERNAL
Dar-Rubio call highlights Pakistan’s mediation role between US and Iran
On 5 August, The News International reported that on 4 August, Foreign Minister Ishaq Dar and US Secretary of State Marco Rubio held their second phone conversation within a week, focusing on bilateral ties and regional and global developments. According to the Foreign Office, both sides “agreed to remain in contact and continue cooperation on areas of mutual interest.” The exchange came shortly after Iranian President Masoud Pezeshkian’s two-day state visit to Pakistan, during which Dar met him separately. Following his meeting with Rubio in Washington, Dar had a detailed call with Iranian Foreign Minister Abbas Araghchi, sparking speculation that US-Iranian communication was on the agenda. Rubio later revealed Pakistan’s involvement, expressing gratitude for its “continued willingness to play a constructive role in mediating conversations with Iran.” While Pakistan has not publicly disclosed its role, the Foreign Office confirmed, “Iran is our close friend and a brotherly neighboring country, we remain committed to making a positive contribution to bring the tensions down.” ( Mariana Baabar, “A day after Iran president’s visit: Dar discusses ‘regional issues’ with Rubio,” The News International, 5 August 2025; “Dar, Rubio discuss bilateral, regional issues,” Dawn, 5 August 2025)
ON JAMMU & KASHMIR
Dar-Rubio call highlights Pakistan’s mediation role between US and Iran
On 5 August, The News International reported that on 4 August, Foreign Minister Ishaq Dar and US Secretary of State Marco Rubio held their second phone conversation within a week, focusing on bilateral ties and regional and global developments. According to the Foreign Office, both sides “agreed to remain in contact and continue cooperation on areas of mutual interest.” The exchange came shortly after Iranian President Masoud Pezeshkian’s two-day state visit to Pakistan, during which Dar met him separately. Following his meeting with Rubio in Washington, Dar had a detailed call with Iranian Foreign Minister Abbas Araghchi, sparking speculation that US-Iranian communication was on the agenda. Rubio later revealed Pakistan’s involvement, expressing gratitude for its “continued willingness to play a constructive role in mediating conversations with Iran.” While Pakistan has not publicly disclosed its role, the Foreign Office confirmed, “Iran is our close friend and a brotherly neighboring country, we remain committed to making a positive contribution to bring the tensions down.” ( Mariana Baabar, “A day after Iran president’s visit: Dar discusses ‘regional issues’ with Rubio,” The News International, 5 August 2025; “ Dar, Rubio discuss bilateral, regional issues,” Dawn, 5 August 2025)
CHINA &CPEC
On railways : the railways’ sustainable turnaround will depend on the complete modernisation of the infrastructure as envisaged under the ML-I plan and privatisation,” argues an editorial in Dawn
On 5 August,an editorial titled “On the right track” in Dawn noted that, with the multibillion-dollar ML-I project under the China Pakistan Economic Corridor (CPEC) showing little progress, the Pakistani government appears to be taking steps to revive the deteriorating railway infrastructure through its funding. According to a Pakistan Railways official, PKR12 billion will be allocated in FY26 to rehabilitate tracks and enhance signalling and communication systems, while PKR 10 billion will go towards repairing rolling stock. The editorial stated that federal and internal revenue funds have already been used to upgrade tracks, especially in the Sukkur Division, which is an area that is prone to derailments. While these efforts have led to a decrease in accidents and a rise in railway revenues, the editorial noted that these investments remain insufficient for long-term reform. It argued that meaningful improvement requires full modernisation under the ML-I plan and structural reform, including privatisation and separation of services. The editorial concluded that short-term initiatives, such as the Business Express, are inadequate, and deeper reforms are essential to ensure safety, efficiency, and financial stability. ( “ On the right track ,” Dawn, 5 August 2025)
Editorials/Opinions from Pakistan
On Pakistan's relations with Iran
2025 Editorial, "Mature diplomacy," The News, 5 August 2025
"The two-day visit of Iranian President Masoud Pezeshkian – along with the agreements and MoUs signed – is a signal towards deepening bilateral cooperation between two key neighbours in the region, an intent to move beyond symbolism and focus on substantive collaboration. Particularly following the recent Israeli aggression against Iran, the visit was both symbolic and strategic. President Pezeshkian’s expression of gratitude to Pakistan for its unwavering support during that crisis is also a testament to how, despite occasional disagreements, Iran and Pakistan have never fully turned away from each other. It is also becoming obvious that Iran increasingly views Pakistan as a trusted regional partner, especially when others have either remained silent or aligned with powers bent on isolating Tehran."
https://www.thenews.com.pk/print/1333255-mature-diplomacy
Editorial, "Pezeshkian’s visit," Dawn, 5 August 2025
"Perhaps the biggest casualty of foreign sanctions has been the Iran-Pakistan gas pipeline; Tehran has completed the project at its end, while Pakistan is wary of finalising the scheme lest it attract Washington’s wrath. Prime Minister Shehbaz Sharif promised an “early resolution” to the pipeline issue when he was in Iran in May, but the issue did not come up during the Iranian leader’s visit, at least not publicly. It appears that Pakistan is willing to import petroleum from the US in order to satisfy the Trump administration, and is not willing to import Iranian gas for fear of annoying the US. Unless the pipeline imbroglio is settled amicably, without fear of foreign pressure, Pakistan may have to fight an ugly arbitration battle, which will harm ties with Iran."
https://www.dawn.com/news/1928852/pezeshkians-visit
Editorial, "Fortifying ties," The Express Tribune, 5 August 2025
"The focus of the visit, however, was economy in essence and that came as a great opportunity to bolster political and security parameters too. The eagerness on both sides to raise the bilateral trade volume from $3 billion to $10 billion needs to be backed up with institutional support and an unflinching political resolve. It is a challenging task owing to an uneasy peace at the 900 km long porous borders infected with insurgency."
https://tribune.com.pk/story/2559433/fortifying-ties
On Pakistan's economy
Asad Ejaz Butt, "How Pakistan can build lasting surplus," The News, 5 August 2025
"According to data released by the State Bank of Pakistan, the country recorded a current account surplus of $2.1 billion in FY2024-25, equivalent to 0.5 per cent of GDP, compared to a $2.2 billion surplus in the previous fiscal year. The SBP attributes this turnaround to record-high remittance inflows of over $38 billion and a narrow trade deficit resulting from import moderation policies and rising export figures."
https://www.thenews.com.pk/print/1333260-how-pakistan-can-build-lasting-surplus
On the verdict against the PTI leadership
Arifa Noor, "A question of timing," The News, 5 August 2025
"It is not as if the government or its allies needed more seats in parliament for stability or legislation. It is already sitting pretty and the numbers, whenever needed, are easy to complete, as the 26th Amendment showed. It could be to weaken the PTI; many say this when asked. But in recent times, the party has revealed quite comprehensively that it is incapable of functioning coherently or strategically; its internal rifts have rendered it incapable of action, before or after Aug 5, and the limited access to Imran Khan adds to the confusion."
https://www.dawn.com/news/1928848/a-question-of-timing