|
In Focus
PM Sharif and Field Marshal Munir meet President Trump
On 26 September, Dawn reported that Prime Minister Shehbaz Sharif met with President Trump at the Oval Office, marking the first formal bilateral interaction between the two leaders. Field Marshal Asim Munir, who had met the President earlier this year, also accompanied PM Sharif. On the US side, Vice President JD Vance and Secretary of State Marco Rubio were present. PM Sharif was among the officials from the eight Arab and Muslim countries who met with Trump on the sidelines of the UN General Assembly this week to discuss strategy on ending the Israel-Hamas war in Gaza. In a press address ahead of the meeting, President Trump referred to the Pakistani delegation as “great leaders,” and the Prime Minister was welcomed on the red carpet by a senior US Air Force official.
Separately, The Express Tribune reported that several issues, including counter-terrorism and economic and trade ties, were discussed. Pakistan and the US had announced a trade deal on 31 July, against the backdrop of Washington imposing a 19 per cent tariff on imports. The deal includes provisions for reducing tariffs and promoting joint ventures in key sectors such as energy and technology, to strengthen economic ties and create new investment opportunities. In September, Pakistan signed a USD 500 million agreement with US-based United States Strategic Metals to develop its mineral sector, focusing on resources such as antimony, copper, and rare earth elements. The initiative is designed to support clean energy and defence industries, with a refinery in Pakistan, to process these resources and supply to US markets. A senior US State Department official stated that “the president remains focused on advancing US interests in the region, that includes engaging with Pakistan and their government leaders.” (“Thumbs up for PM Shehbaz at his first Oval Office audience,” Dawn, 26 September 2025; “Trump hosts Shehbaz at White House,” The Express Tribune, 26 September 2025; “Trump hails PM Shehbaz, Field Marshal Munir as 'great leaders',” The Express Tribune, 26 September 2025)
Mistrust over HPV vaccines fuels assault on health workers in Punjab
On 26 September, Dawn reported that health departments in Punjab’s Chishtian and Mandi Bahauddin regions were attacked by residents during the nationwide immunisation drive, launched on 17 September. The attacks were motivated by misgivings among the people about the newly introduced Human Papilloma Vaccine (HPV). The HPV vaccine, first introduced in Pakistan in 2022, has now been rolled out nationwide under the routine immunisation programme to protect adolescent girls from cervical cancer. However, widespread propaganda on social media has emerged as a major obstacle to the campaign. The immunisation drive is scheduled to conclude on 27 September.
In Chishtian, a health department team administering the HPV vaccine to schoolgirls at the Government Elementary School, Hussain Colony, was accosted by a crowd of people; the majority of them were parents of the students scheduled for vaccination. Despite the joint efforts by the health department and the police, the residents remained unconvinced, and the team returned without vaccinating the students.
In Mandi Bahauddin, a lady health worker who was a part of a vaccination team was assaulted by 16 local women at Chak No 38, while vaccinating children at an elementary school. The Punjab Health Minister, Khawaja Imran Nazir, stated that violence against local health workers would not be tolerated, and announced that vaccination teams would be provided extra security. (“Vaccinators come under attack in Punjab,” Dawn, 26 September 2025)
Pakistan looks to the IMF for flexibility on budget targets following floods; IMF raises concerns over the Federal Board of Revenue shortfall despite the introduction of PKR 1.3 trillion in additional taxes
On 26 September, Dawn reported that the International Monetary Fund (IMF) began its review missions simultaneously in Karachi and Islamabad on 25 September. Two IMF teams, one dealing with monetary policy and the other with fiscal policy, will engage with the State Bank of Pakistan and federal government entities, and are urging the authorities to expedite implementation of end-December 2025 targets.
The government has already utilised one-third of the PKR 390 billion budgetary allocation for natural disasters and emergencies, settling PKR 130 billion in past dues owed to commercial banks for incentives and fees linked to remittances sent through formal channels. Additionally, no allocation has been made in the current budget for such incentives, though an estimated PKR 100 billion would be required, reports Dawn.
The payments from the emergency fund will have to be justified while simultaneously seeking relaxations from the IMF due to flood damage. The IMF mission also seeks clarity on the scale of recent flood damages during its stay, but the government has yet to finalise estimates. Authorities are hopeful that the IMF will allow flexibility in primary budget surplus and fiscal deficit targets, creating room for flood-related expenditure without resorting to new taxes or cuts in development spending.
Pakistan was successful in meeting nearly all quantitative performance criteria for end-June 2025, though it continues to lag on indicative targets and structural benchmarks. Since the USD seven billion Extended Fund Facility and the USD 1.4 billion climate-linked Resilience & Sustainability Facility are reviewed twice a year, Pakistan and the IMF will need to arrive at an agreement on past performances and future commitments. If concluded successfully, the review is expected to qualify Pakistan for the disbursement of approximately USD one billion, equivalent to USD 760 million IMF special drawing rights, by the end of next November.
Separately, The News International reported that the IMF raised concerns over why the Federal Board of Revenue (FBR) recorded a shortfall of PKR 1.2 trillion against its original revenue target of PKR 12.97 trillion for FY2024–25, despite the introduction of PKR 1.3 trillion in additional taxes. After two downward revisions, the FBR managed to collect PKR 11.74 trillion. Officials attributed part of the gap to unrealised recoveries worth PKR 250 billion tied up in pending court cases.
Simultaneously, Pakistan secured USD 1.377 billion in external loans during July and August of the current fiscal year (FY2025–26), against a full-year projection of USD 19.9 billion. Bilateral inflows amounted to USD 232 million, including USD 200 million from Saudi Arabia under an oil facility. Multilateral creditors, including the World Bank, Asian Development Bank, Asian Infrastructure Investment Bank, and Islamic Development Bank, disbursed USD 780 million, with the World Bank as the principal contributor. (“IMF mission begins review sans finance minister,” Dawn, 26 September 2025; “IMF questions FBR’s revenue shortfall as technical talks begin,” The News International, 26 September 2025)
In Brief
ENVIRONMENT
Floods damage over 3,000 schools in Punjab
On 26 September, Dawn reported on 3,000 schools in Punjab that had been damaged by floods. The School Education Department faced severe damage, with many schools submerged or destroyed. Three-shift classes were being held in functioning schools to accommodate displaced students, while the government planned to rent private buildings and set up tent classrooms to maintain continuity. Semester fees for flood-affected students were waived, and scholarships were offered. Rehabilitation of damaged schools was projected to take about three months. In Multan, Lodhran, and Bahawalpur, villages had been submerged after breaches at the Noraja Bhutta embankment on the Sutlej River, causing standing water, collapsed houses, and rising health risks. (Imran Gabol, “Over 3,000 Punjab schools damaged by floods,” Dawn, 26 September 2025)
ENERGY
Power regulator imposes PKR 975 million fine on utilities over safety lapses
On 26 September, The News International reported on the National Electric Power Regulatory Authority (Nepra) imposing PKR 975 million in fines on power utilities over recent years for fatal and non-fatal accidents. Islamabad Electric Supply Company (Iesco) was fined the most at PKR 310 million, followed by Hesco at PKR 117 million and K-Electric at PKR 95.5 million. Other utilities penalised included Lesco, Pesco, Mepco, Gepco, Sepco, Fesco, and Qesco. The National Transmission and Despatch Company (NTDC) was also fined PKR ten million. Of the total, PKR 635 million was linked to fatal accidents and PKR 330 million to non-fatal incidents. (Israr Khan, “Power regulator hits utilities with Rs975m in safety fines; Iesco, Hesco top list,” The News International, 26 September 2025)
Pakistan signs PKR 1.225 trillion plan to eliminate circular debt
On 26 September, The News International reported on Pakistan finalising a PKR 1.225 trillion Islamic financing deal to retire Power Holding Limited (PHL) debt and clear dues to Independent Power Producers (IPPs). The agreement, involving 18 commercial banks and structured around Bai’ Muajjal, Ijara, and Sukuk instruments, replaced ad hoc government bailouts with a market-based repayment mechanism. Once fully repaid between 2029 and 2031, the Debt Service Surcharge will be removed, giving consumers an estimated ten per cent reduction in electricity bills. The deal also avoided PKR 350-377 billion in potential late payment interest and stabilised power generation and distribution. By mid-2025, circular debt had reached PKR 2.4 trillion. The transaction required high-level coordination across civilian and military leadership, including Lt. Gen (retd.) Zafar Iqbal and Army Chief Field Marshal Syed Asim Munir. (Khalid Mustafa, “Power tariffs set for 10pc cut after Rs1.225tr debt repayment,” The News International, 26 September)
AF-PAK
The government closes the last Afghan refugee camp
On 26 September, Dawn reported on the government closing the final Afghan refugee camp in Mianwali, concluding operations at Kot Chandna following the repatriation of roughly 42,913 Afghan nationals since 1 April 2025. Officials said undocumented Afghans were identified and placed in holding centres across districts before being transported at state expense to the Torkham border. Punjab’s Home Secretary stated that no refugee camp remains open in the province. The move formed part of Pakistan’s Illegal Foreigner Repatriation Plan, targeting those lacking valid visas or overstaying for over a year. More than 3.5 million Afghans were estimated to be in the country, with about 700,000 arriving after the Taliban takeover in 2021, roughly half of whom lacked documentation. (Mansoor Malik, “Govt closes last Afghan refugee camp in Mianwali,” Dawn, 26 September 2025)
SECURITY
The rail connection to Quetta remains disconnected after the attack
On 26 September, Dawn reported on the train services between Quetta and the rest of Pakistan remaining suspended for ten days after militants bombed the railway track during the hijacking of the Jaffar Express. The blast derailed six coaches, damaged about 600 metres of track, and disrupted travel routes, with bus services also affected and air fares rising steeply. Authorities declared the surrounding areas of the Mashkaf Tunnel cleared, but repair work and security checks delayed restoration. (Saleem Shahid, “Quetta’s train link to rest of the country remains severed,” Dawn, 26 September 2025)
CHINA and CPEC
Pakistan and China launch Phase-II of CPEC for sustainable growth
On 26 September, The News International reported on Pakistan and China initiating Phase-II of the China-Pakistan Economic Corridor (CPEC), focusing on sustainable and inclusive development. The new phase aims to transform infrastructure into economic opportunities through five strategic corridors: Growth, Innovation, Green, Livelihood, and Regional Connectivity. This expansion aligns with Pakistan’s National Economic Transformation Plan, emphasising exports, digital infrastructure, energy, environmental sustainability, and social equity. The first phase of CPEC, initiated in 2013, already delivered significant infrastructure and energy projects, including 17 power plants with a combined capacity of 8,904 Megawatts and 888 kilometres of modern highways. The next decade will focus on industrialisation, job creation, and boosting exports to ensure shared prosperity. (“Corridors of shared prosperity,” The News International, 26 September)
|
