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In Focus
Pakistan seeks ADB support
Financial aid needed to address deepening power sector debt
On 18 December, as reported by Dawn and The Express Tribune, Pakistan officially sought the assistance of the Asian Development Bank (ADB) to provide substantial financial aid in managing the already growing circular debt in the power sector, which has risen to approximately PKR 17 trillion. This request was asked for in the talks that took place between the Pakistani authorities and the representatives of the ADB when the government emphasised that even after recent tariff increases and reforms, there is still a substantial amount of the circular debt that has not been covered. The suggested assistance is supposed to assist in handling the old liabilities in the electricity market, enhance the liquidity position of the power generators, and avoid the further build-up of arrears, which has been a burden on the national economy.
The plight of Pakistan is caused by structural deficiencies of its power sector since the power sector experienced poor bill collection, extensive transmission losses, slowness of payments to the independent power producers, and dependence on costly imported fuel. Inflation, depreciation of currencies, and a small fiscal space have worsened these problems since the government finds it hard to finance its power sector losses without foreign capital. This has been caused by persistent efforts to contain the circular debt by raising tariffs, which have caused political and popular backlash, subsidies and inefficiencies that remain strains on the budget. Consequently, this has seen Pakistan increasingly depend on multilateral lenders to forestall systemic meltdown in the energy sector.
Pakistan has also been pursuing external loans in 2025 to stabilise the economy, such as the continuing International Monetary Fund (IMF) programme loans, as well as other multilateral financial organisations, such as ADB. The ADB request by the government particularly focuses on the debt management of the power sector and is not related to IMF conditional lending, and is a general strategy of Islamabad to fill its gaps with regard to fiscal deficits through the use of development partners. Officials began by stating that ADB funding may entail the policy-based loans and technical aid associated with energy sector reforms, along with other outside financing, which was acquired this year to maintain economic stability. (“Pakistan seeks massive ADB loan to tackle remaining Rs1.7tr circular debt,” Dawn, 18 December 2025; “Government asks ADB for power debt support,” The Express Tribune, 18 December 2025)
In Brief
POLITICS & GOVERNANCE
Builders allege intimidation by foreign gangs amid surge in extortion cases in Karachi
On 18 December, Dawn had reported that the Karachi builders and developers have complained that the foreign-linked criminal gangs have drastically upped their extortion and intimidation as their projects move along, according to business leaders. The grievances were brought to the fore during the All Karachi Property Dealers Association meeting, during which members reported several incidents of threats, phone and monetary requests, reported in large housing and commercial developments. The association officials encouraged law enforcement agencies to intensify efforts to crack down on the gangs and warned that further extortion would not help attract investment to the city or boost construction activity. Karachi police have admitted the issue, and they said they are investigating, and special teams have been constituted to monitor the extortion networks and apprehend them, which is expected in the near future. Developers indicated that they are worried that the trend would destroy economic confidence unless it is dealt with promptly. (“Builders allege intimidation by ‘foreign gangs’ amid surge in extortion cases in Karachi,” Dawn, 18 December 2025)
Politicians, lawyers express outrage over the removal of IHC’s Justice Jahangiri
On 18 December, Dawn had reported that there was a move to oust Justice Aftab Ahmed Jahangiri as the Islamabad High Court (IHC) was met with a lot of criticism by politicians and other members of the legal community, who described the move as an attack on judicial independence and due process. The move by the government led to demonstrations by the opposition leaders who questioned the ruling government on the fact that it was weakening the judiciary and meddling in the law. The attempt was also criticised by bar associations and other senior lawyers who argued that it would undermine faith in the rule of law and could be a bad precedent. The Justice Jahangiri supporters stated that this unjust dismissal was sudden and was not transparent, whereas the government officials argued that due process was observed in the constitution. The scandalous situation has given rise to a lot of controversy concerning the separation of powers and independence of the judicial system within the Pakistani democracy. (“Politicians, lawyers express outrage over removal of IHG’s Justice Jahangiri,” Dawn, 18 December 2025)
Imran’s sisters and others booked on terror charges
On 18 December, the Pakistan police filed terror charges against the sisters of former prime minister Imran Khan, and several other people over the violence that rocked outside the Adiala Jail after Imran was sentenced some time earlier this month. The police claim that the suspect instigated and facilitated the criminal activities, such as stone-pelting and assault on law-enforcement officers, which were captured on camera and spread on social media. The cases were prosecuted in accordance with different sections of the Anti-Terrorism Act, and the content of the FIR provided the information about the alleged crimes, such as conspiracy, rioting, and directed violence against the state functionaries. According to police, investigations were underway, and additional arrests might occur when evidence is examined. The progress has escalated the politics between Pakistan Tehreek-e-Insaf, led by Imran, and the ruling government, before the upcoming elections. (Imran’s sisters, others booked on terror charges,” Dawn, 18 December 2025)
ECONOMY
Auto financing continues to grow for 12 straight months
On 18 December, Dawn had reported that according to the data shown by the State Bank of Pakistan (SBP), the auto loans had reached PKR 318 billion in November from PKR 315.4 billion in October, which marked the 12th consecutive month of growth. The primary driver of this rise is the reduction of the policy rate, which had reduced from 22 per cent in June 2024 to 11 per cent in May. Despite this improvement, there are several challenges. The PKR three-million cap limit financing options. ("Auto financing grows for 12th straight month," Dawn, 18 December 2025)
SECURITY
ISKP spokesperson arrested by authorities, says the UN
On 18 December, Dawn reported that according to a recent report submitted to the United Nations Security Council (UNSC), Sultan Aziz Azzam, a spokesperson for Islamic State-Khorasan (IS-K), was arrested by Pakistani authorities this year. The report noted that IS-K's ability to operate in the region had been degraded as a result of high-profile arrests by Pakistan. Azzam was arrested by intelligence agencies during an operation near the Pakistan-Afghanistan border. (“Islamic State Khorasan Province spokesperson arrested by Pakistani authorities: UN,” Dawn, 18 December 2025)
EXTERNAL
CDF Field Marshall Munir reaffirms commitment to strengthening defence ties with Libya
On 18 December, Dawn reported that according to the military’s media wing, the chief of defence forces (CDF) and Chief of Army Staff Asim Munir have reaffirmed Pakistan’s commitment to strengthening defence ties with Libya. Munir is on an official visit to Libya, where he called on the Libyan Armed Forces’ commander in chief, Field Marshal Khalifa Haftar, and deputy commander in chief, Lieutenant General Saddam Haftar. During the meeting, they discussed matters of mutual interest, regional security dynamics, and avenues for enhancing bilateral defence and military-to-military cooperation. (“CDF Field Marshal Munir reaffirms commitment to strengthening defence ties with Libya,” Dawn, 18 December 2025)
SOCIETY
Gender gap among voters shrinks to 7.1 per cent from 11.8 per cent
On 18 December, Dawn reported that according to the Election Commission of Pakistan’s (ECP) Secretary Omar Hamid Khan, the gender gap among Pakistan’s voters reduced from 11.8 per cent in 2018 to 7.1 per cent in 2025. According to Human Rights Watch for the 8 February 2024 elections, there were 10 million more male voters than female voters, which showed a large gender gap, as the percentage of women in the population is 49 per cent. Women's voter registration has outpaced men’s over the past five years, with a 27 per cent increase in female compared to 17 per cent for males. The United Nations Development Programme (UNDP) will launch activities in 15 districts to support the fifth phase of the women-led voter registration campaign, which will start from January 2026, through which 25,000 women will be facilitated to get their national identity cards, which will enrol them as voters. (“Gender gap among voters shrinks to 7.1pc from 11.8pc in 2018,” Dawn, 18 December 2025)
Editorials/Opinions
AF-PAK
Inam Ul Haque, “Afghan Taliban predicament and way out,” The Express Tribune, 18 December 2025
“Pakistan's October 15, 2025, retaliatory precision strikes in Kabul and Kandahar against TTP leadership on Afghan soil created a 'deterrence'. It caused unease bordering on panic among the Afghan Taliban. Therefore, after the November 11 suicide attack outside the Islamabad judicial complex, the Taliban quietly reached out to Pakistan, assuring non-involvement, and requested to de-escalate. The second attack on FC HQ in Peshawar on November 24 was owned by Jammat-ul-Ahraar, a TTP splinter group. So, on Qatar's request, Pakistan postponed the planned retaliatory strikes inside Afghanistan. Many Afghanologists are of the view that Kabul is buying time and is not serious and able to resolve the sticking TTP issue. These analysts cite that Afghanistan and TTP believe they have an upper hand. Buoyed by their Pakistan-enabled defeat of the Soviet Union and the US-NATO Combine, they erroneously think that Pakistan can be browbeaten and destabilised. That TTA considers it their religious obligation to support TTP tooth and nail, and earn domestic political brownie points as well as 'a place in heaven'. Standing up to Pakistan makes a powerful domestic political pitch with Afghans of all political affiliations. That TTA prefers domestic peace over relations with Pakistan. Therefore, prolonging conflict with Pakistan, bleeding it through 'a thousand cuts' and enjoying unbridled power makes sense. Allah will take care of the rest.”
https://tribune.com.pk/story/2582682/afghan-taliban-predicament-and-way-out
Education
Dr Shuja Ahmed Mahesar, “Reforming classroom learning,” The Express Tribune, 18 December 2025
“Education in Pakistan has become an outdated tool for career development and social mobility. It is delivered through public institutions, autonomous bodies and private schools, yet remains fragmented across multiple curricula and learning pathways. This disconnected structure perpetuates segregation and discrimination. A class-based education system is deepening social divides, shaping not only access but also attitudes and worldviews. Today's classroom has become uninspiring for both students and teachers. It fails to provide updated knowledge or practical learning. This widens the gap between student expectations and teacher delivery. Young learners no longer believe that classrooms can help them gain expertise or prepare them for real-world challenges. Unless classrooms evolve into training spaces, education will remain passive and disconnected from life.”
https://tribune.com.pk/story/2582683/reforming-classroom-learning
Imran Khan
Editorial, “On the ropes, but standing,” The Express Tribune, 18 December 2025
“Nothing seems to be working for PTI. The party's founder, Imran Khan, remains in jail – isolated, with no contact with the outside world for weeks and weeks. Protest after protest by party members, led by Khan's sisters outside Adiala Jail, to compel the government to obey the jail manual and the court order and allow meetings with Khan, has been met with high-handed security machinery. A couple of recent political rallies in K-P have only been successful to the extent of conveying the anger that is building up among Khan's supporters. But the momentum that is necessary to make things move is still missing.”
https://tribune.com.pk/story/2582679/on-the-ropes-but-standing
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