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In Focus
Decline in FDI amid rising trade deficit and export growth to Europe
On 18 November, Dawn reported that Pakistan had recorded a decline in Foreign Direct Investment (FDI) during the first four months of Fiscal Year 2026. According to official data, FDI fell by 26 per cent, dropping to USD 747.7 million from over USD one billion during the same period last year. The fall reflected reduced inflows from major partners, including a decline in investment from China, which decreased to USD 226 million from USD 544 million. Several multinational companies also completed their exit processes from Pakistan during this period.
In the external trade sector, Pakistan’s exports to Europe increased during the July-October Fiscal Year 2026. Shipments to the continent grew by 5.66 per cent, reaching USD 3.17 billion compared to USD three billion last year. The rise was mainly due to increased exports to southern, eastern, and northern Europe. However, exports to Western Europe remained largely unchanged, and exports to the United Kingdom showed a slight decline. The European Union continued to be a major destination for Pakistan’s textile and apparel shipments.
Pakistan’s external account also came under pressure. The country’s current account deficit (CAD) widened to USD 733 million in the July-October Fiscal Year 2026, marking an increase of 255 per cent from the USD 207 million deficit recorded in the corresponding period last year. The trade deficit expanded to USD 11.15 billion, driven by higher imports following the relaxation of restrictions earlier in the fiscal year. Exports remained at last year’s level, contributing to the widening trade gap. Remittances in October reached USD 3.4 billion, supporting the monthly inflow position. ("Foreign investment plunges 26pc," Dawn, 18 November 2025; Mubarak Zeb Khan, "Exports to Europe rise to $3.2bn," Dawn, 18 November; Shahid Iqbal, "Current account deficit surges by 255pc to $733m in July-Oct," Dawn, 18 November 2025)
TLP moves to overturn ban, citing contradictions in government’s actions
On 18 November, Dawn reported that the proscribed Tehreek-i-Labbaik Pakistan (TLP) filed a review petition challenging the federal government's 24 October 2025 notification, which reinstated their banned status under the Anti-Terrorism Act 1997. The federal cabinet approved Punjab's recommendation, which led to TLP becoming a First Schedule organization of banned groups.
The petition from TLP states that the notification failed to recognize the group's previous legal standing, which included its 2021 ban status and subsequent Election Commission of Pakistan restoration, list removal and government agreement. The application, which Advocates Burhan Moazzam Malik and Sajjad Akbar Abbasi submitted to the court, argues that the ministry violated its previous agreements and followed incorrect procedures.
The interior ministry will review the petition along with all submitted evidence to determine whether to keep the ban as is or make any changes. The organization will seek Supreme Court intervention after the petition is denied. (“TLP challenges ban notification,” Dawn, 18 November 2025)
In Brief
CHINA & PAKISTAN
Pakistan and China agree to deepen counterterrorism cooperation
On 18 November, Dawn reported that the Interior Minister Mohsin Naqvi met the Chinese Ambassador Jian Zedong to discuss security enhancement and counterterrorism cooperation in Islamabad. The two parties chose to enhance their intelligence sharing and operational collaboration after a suicide bombing attack took place near the Islamabad district courts. The Chinese Ambassador Jian Zedong sent condolences to Pakistan for the victims, while the Chinese Foreign Ministry released its own statement about the attack. The Interior Minister Mohsin Naqvi declared that Pakistan-China relations need trust, while he identified China as Pakistan's dependable ally during difficult circumstances. The ambassador confirmed that Beijing will maintain complete backing for Pakistan regarding security matters and all aspects of cooperation. (“Pakistan, China to boost anti-terror cooperation,” Dawn, 18 November 2025)
JUDICIARY
FCC becomes operational amid space constraints
On 18 November, The News International reported that two more judges were sworn in to serve the newly established Federal Constitutional Court under the recent 27th amendment to the constitution. The FCC will have equal provincial representation, with the President and Prime Minister playing key roles in judicial appointments. A crucial power of the Supreme Court, taking suo motu notices, has also been transferred to the FCC. With the addition of these two newly appointed judges, the FCC has seven judges, although the total sanctioned strength of the FCC, as per the 27th Amendment, is 13 judges. The hearings were initiated within the Islamabad High Court Premises due to a lack of infrastructure at the FCC. (“FCC becomes operational after two more judges take oath,” The News International, 18 November 2025)
PAKISTAN OCCUPIED KASHMIR
PoK elects its fourth and youngest prime minister
On 18 November, Dawn reported that the Pakistan Occupied Kashmir (PoK) Legislative Assembly removed Prime Minister Chaudhry Anwarul Haq through a no-confidence vote, with 36 members supporting the motion and two opposing it. Following this, Raja Faisal Mumtaz Rathore of the Pakistan Peoples Party (PPP) was elected as the 16th Prime Minister of PoK, becoming both the youngest leader to hold the office and the fourth prime minister in the past four years.
Faisal Rathore was born on 11 April 1978 in Rawalpindi. Rathore comes from a prominent political family deeply rooted in the PPP. His late father, Raja Mumtaz Hussain Rathore, had served as PoK prime minister and held other key positions in the region’s political landscape. Rathore began his political career in 2006, was first elected to the PoK Legislative Assembly in 2011, and has since served as Minister for Electricity, Minister for Local Government, and Secretary General of PPP PoK. He also played a role in leading the government’s negotiations with the Awami Action Committee and has maintained close ties with PPP leadership at the national level.
Known for his conciliatory, soft-spoken, and non-controversial approach, Rathore enjoys respect across political and military circles and among the public. In his first address as Prime Minister, he pledged administrative reforms, financial discipline, civil society engagement, and timely resolution of public issues within available resources. He emphasised strengthening PoK's relationship with Pakistan and vowed that the public would see change not only in leadership but also in the system. Rathore is set to take the oath at the President’s House. (Tariq Naqash, “AJK gets its fourth PM in as many years,” Dawn, 18 November 2025; Raja Iftikhar, “AJ’s youngest PM-a profile,” The News International, 18 November 2025; Arif Urfi, “Rathore new AJK PM as assembly ousts anwar,” The News International, 18 November 2025)
POLITICS
TTAP criticizes the government over the 27th amendment
On 18 November, The News International reported that Tehreek Tahaffuz Aiyeen-e-Pakistan (TTAP) leaders criticized the federal government for making the constitution controversial. TTAP is a political alliance, also known as the Movement for the Protection of the Constitution of Pakistan. Its leadership claimed that the recent amendment to the constitution has weakened the parliament and judiciary and made “usurpers” take control of key state institutions. Senator Nasir Abbas said that the 27th constitutional amendment was against the Quran and Sunnah. He alleged that granting lifetime immunity to any individual is against Islamic law. PTI leader Asad Qaiser alleged that the Pakistan People’s Party (PPP) leadership for compromising with the spirit of Bhutto’s constitution. Separately, hundreds of lawyers staged a rally protesting against the 27th Amendment to the Constitution. (“‘Usurpers’ undermined Constitution: TTAP,” The News International, 18 November 2025)
SOCIETY
DVIP Report highlights alarming disparities across provinces
On 18 November, The News International reported that the Population Council launched the District Vulnerability Index for Pakistan (DVIP) report titled “Harnessing Multisectoral Data to Inform Equitable Policy and Climate Action." The report found that among the 20 least vulnerable districts, 13 are in Punjab, four in Sindh, two in Khyber Pakhtunkhwa and none in Balochistan. In contrast, the Balochistan province hosted the 17 most vulnerable category districts. On every parameter, including Transport, communication, housing, etc, Balochistan and Khyber Pakhtunkhwa province conditions remain precarious. The report findings point to the urgent need for addressing the root causes of vulnerability with priorities focused on improving education, communication, health and transport services and ensuring equal economic opportunities for marginalized populations in different provinces. (“10m Pakistanis live in 20 most vulnerable districts: report,” The News international, 18 November 2025)
Editorials/Opinions
27TH AMENDMENT
Arifa Noor, "State and its pillars," Dawn, 18 November 2025
"The 27th Amendment has brought sweeping reforms to the structure of the armed forces as well. Among other things, the new legislation has discontinued the joint chief position and introduced a new CDF, a position which will be held by the chief of army staff, who now appears to be far more than the ‘first among equals’. At the same time, the tenure of all services chiefs has been increased from three to five years. The head — COAS/CDF — has also been given lifetime immunity, like the president."
https://www.dawn.com/news/1955789/state-and-its-pillars
Asad-ul-Mulk, "Grundnorm," Dawn, 18 November 2025
"The 27th Amendment strikes at the heart of the Constitution, the separation of powers and the rule of law. It strips the Supreme Court of its supreme status, all but in name, and assigns power to hear constitutional cases to a newly created Federal Constitutional Court by placing it at the helm. It endows the executive with the power to immediately pack the FCC. It undermines the security of judicial tenure and provides for transfer as a means to punish non-compliant high court judges. It introduces a mechanism for compulsory retirement of judges, and allows the executive to circuitously brandish this power with great nuisance."
https://www.dawn.com/news/1955786/grundnorm
Khuzair Raheem, "Wrong court, real crisis," The News, 18 October 2025
"Under the 27th Amendment, the FCC is designed to exercise original constitutional jurisdiction – including federal–provincial disputes and many fundamental-rights questions while hearing constitutional appeals from the high courts. The existing Supreme Court is recast as largely an appellate tribunal for other work. Ironically, even if one assumes, very generously, that a full one-third of current Supreme Court pendency is ‘constitutional’, we are dealing with perhaps twenty thousand such cases in a system of more than 2.3 million. On that assumption, the FCC’s core field of operation covers well under one per cent of the pending caseload in Pakistan."
https://www.thenews.com.pk/latest/1358613-wrong-court-real-crisis
Syed Asad Ali Shah, "Economic fallout," The News, 18 November 2025
"The amendment restructures the judicial framework by creating a new Federal Constitutional Court with strong executive influence over judicial appointments, authorises transfer of judges without their consent, reduces the Supreme Court’s jurisdiction in key constitutional matters and grants expanded constitutional standing, lifetime privileges and immunity to senior military leadership. Regardless of stated intentions, the outcome is a rebalancing of power away from independent judicial review and toward the executive–establishment axis. This shift is occurring precisely when Pakistan is attempting to convince the IMF, multilaterals and investors that it is strengthening rule of law, not diluting it. The fact is that judicial independence is not a matter of political ideology. It is a core economic variable. It underpins contract enforceability, commercial dispute resolution, regulatory accountability and the credibility of reform commitments across political cycles."
https://www.thenews.com.pk/latest/1358614-economic-fallout
M Alam Brohi, "Pakistan’s Controversial Amendments Push The Constitution Into Crisis," The Friday Times, 18 November 2025
"The last nail in the coffin of democracy was hammered by giving constitutional immunity to the President and the Chiefs of the Armed Forces from accountability and prosecution. This is a unique amendment and could hardly be found in the annals of the constitutional evolution of modern states. No such immunity exists in natural law, any religion or any moral philosophy the human being has ever known."
https://www.thefridaytimes.com/18-Nov-2025/pakistan-s-controversial-amendments-push-constitution-crisis
INTERNET IN PAKISTAN
Editorial, "Internet in chains?," The News, 18 November 2025
"Pakistan’s internet landscape has long been murky. Social media platforms have been exploited by militant outfits, traffickers and criminal networks to lure vulnerable users. Political actors have also weaponised these spaces to spread disinformation and deepen instability. In that sense, the state’s desire for greater oversight is understandable. But complex threats require thoughtful, targeted responses – not abrupt shutdowns that punish millions. The internet today is not merely a socialising tool; it is the backbone of the modern economy."
https://e.thenews.com.pk/detail?id=446022
PAKISTAN OCCUPIED KASHMIR
Editorial, "Change of guard in AJK," The Express Tribune, 18 November 2025
"The change of guard in AJK has raised many questions and is unlikely to be of any help in addressing the simmering woes of the state. The people in the state had recently rallied for their socio-economic demands, including royalty for hydel-power projects in the territory, scrapping of perks for ruling elites and abolition of 12 assembly seats reserved for Kashmiri migrants from IIOJK. That apolitical charter of demands is quite unlikely to be honoured by a compromised in-coming cabinet, and may lead to more political chaos and instability."
https://tribune.com.pk/story/2577919/change-of-guard-in-ajk
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