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In Brief
PAK-AFG
Pakistan and Afghanistan agree to form a joint committee to restore trade
On 06 January, The Express Tribune reported that Pakistan and Afghanistan agreed to form a 13-member Joint Committee aimed at easing tensions and restoring trade. The committee will hold negotiations at the Torkham border and will consist of six members from Pakistan and seven members from Afghanistan. Due to recent heightened tensions, the trade crossings between the two nations have remained closed since 12 October 2025. The main objective of the committee will be to reopen trade routes immediately to stop further losses to traders on both sides. (“Pakistan, Afghanistan set up joint committee for talks at Torkham border”, The Express Tribune, 06 January 2026)
EXTERNAL
UNSC: Pakistan urges restraint amid “profound concern” over situation in Venezuela
On 05 January, as reported by Dawn, Pakistan’s Acting Permanent Representative Ambassador Usman Jadoon expressed “profound concern” over the developments in Venezuela during an emergency meeting of the United Nations Security Council (UNSC). He said that at a time when the world was already facing multiple crises, instability in the region “does not augur well for regional and international peace and security.” Pakistan urged all parties to exercise maximum restraint, de-escalate tensions and engage in dialogue. Jadoon also reaffirmed Pakistan’s commitment to contributing to the UNSC’s primary responsibility of addressing threats to international peace and security. He added that unilateral military action went against the principles of international law as well as the doctrine of sovereign immunity, warning that such actions set dangerous precedents. He also expressed hope that Latin America and the Caribbean would remain free from conflict and confrontation. “Peace and stability of Venezuela and the welfare and prosperity of its people, with full ownership, must be the overriding objective of all efforts,” he said. (“Pakistan expresses ‘profound concern’, urges restraint and dialogue on Venezuela at UNSC,” Dawn, 05 January 2026)
POLITICS & GOVERNANCE
A slowdown in political discussions due to government inaction, reports The Express Tribune
On 06 January, as reported by The Express Tribune, Prime Minister Shehbaz Sharif’s efforts to conduct a political dialogue remained at an impasse ten days after the statement was released, due to the federal government's delayed efforts towards due diligence with the opposition party. The TTP formally accepted the offer without any preconditions on 24 December, as officially stated by the party’s Vice Chairman, Khokhar, who proceeded to show the party’s wholehearted cooperation with the government, but at the same time criticising them for the delay in the formal proceedings, which he transcribed as the government bluffing. He later questions the legitimacy of the intentions of the government due to the recent obstacles created for the opposition parties in both houses of the parliament. Several months after the election, Ayaz Sadiq has not notified Mahmood Khan Achakzai as Leader of the Opposition in the National Assembly, nor has Allama Raja Abbas Nasir been notified in the Senate. This has led TTAP to decline participation in the National Dialogue Committee's (NDC) conference, which aims to propose a roadmap for political dialogue. (“Political dialogue stalls as government fails to follow up on PM's offer,” The Express Tribune, 06 January 2026)
The new local government assigns three mayors in Islamabad
On 06 January, as reported by The Express Tribune, the federal cabinet officially approved a new local government system for Islamabad, adding three town corporations, each led by a mayor and two deputy mayors serving for four-year terms. These officials will be elected by the chairmen of union councils. The system aims to grant administrative and financial autonomy to the town corporations, transferring powers from the CDA. The elections conducted by the Election Commission are scheduled after the presidential approval, after a delay of four years. (“Islamabad to get three mayors under new local govt system,” The Express Tribune, 06 January 2026)
KP government opposes military operations in province
On 06 January, as reported by Dawn, the KP CM Sohail Afridi stated his strong opposition to military operations in the province, emphasising the need for political, social, and consultative processes to resolve issues. This stance aligns with unanimous decisions by a grand peace jirga, questioning the viability of military operations as a solution. Afridi also emphasises the importance of transparency in the policy-making process, stressing that sustainable peace requires an inclusive policy involving all stakeholders. The KP government reiterated its commitment to safeguarding the rights and properties of overseas Pakistanis. The cabinet also addressed governance reforms, social welfare, health, education, youth development, and environmental concerns, approving measures such as establishing special courts for overseas Pakistanis' property disputes, a "Shuhada Package" for excise staff, transportation for special education initiatives, winter provisions for the homeless and tourists, desilting campaigns, youth conventions, and upgrades for educational institutions. (“KP govt opposed to military operations, says Afridi,” Dawn, 06 January 2026)
Protests in Balochistan over Kech Kidnappings
On 06 January, as reported by Dawn, a protest organised by All Parties Kech in collaboration with traders, the Doctors association, accompanied by various leaders, workers and civilians, rallied in Turbat town on Monday against weakening law and order and the recent rise in kidnappings for ransom incidents in Kech districts. The protesters also demanded the recovery of recently abducted youths and demanded that state institutions enhance security in the province, whilst showing resistance to any forces that would lead to instability in the province. The Kech Bar Association displayed solidarity by boycotting the court proceedings. The kidnappings are severely disrupting the daily lives and business activities and affecting the entire Markran region. (“Balochistan protesters demand action on Kech kidnappings,” Dawn, 06 January, 2026)
ECONOMY
Sindh accounts for over 70 per cent of PPP contingent liabilities
On 06 January, Dawn reported that Pakistan’s total contingent liabilities arising from public-private partnership (PPP) projects exceeded PKR 472 billion by the end of December 2025, with Sindh accounting for more than 71 per cent of the exposure, according to a new Ministry of Finance report. The Fiscal Risk Monitoring Framework, prepared under commitments to the IMF, put cumulative PPP-related liabilities at PKR 472.3 billion across the federal and provincial governments. Sindh alone accounts for PKR 335.6 billion, reflecting its large PPP portfolio of 17 projects, nearly half of the national total. The framework aims to improve transparency and monitoring of PPP-related fiscal risks nationwide. (“Sindh leads Centre, counterparts in PPP liabilities,” Dawn, 06 January 2026)
Service exports rise 17 per cent in July-November
On 06 January, Dawn reported that Pakistan’s exports of services grew 16.77 per cent during the first five months of the financial year 2025-26, driven largely by an increase in information technology exports. According to the Pakistan Bureau of Statistics, services exports rose by 18.27 per cent year-on-year in July to 22.26 per cent in November. The growth in export of services is mainly led by telecommunication, computer and information services. At the same time, the import of services surged by 12.78 per cent, attributed to the transport sector, with its value rising 6.35 per cent to USD 2.093 billion, followed by travel services, which surged 54.27 per cent to USD 1.487 billion. (“Services exports rise 17pc in July-November,” Dawn, 06 January 2026)
SOCIETY
More markets, shops sealed across Karachi as drive against ‘encroachments’ continues
On 06 January, Dawn reported that authorities in Karachi have expanded their anti-encroachment drive, sealing more markets and shops across the city, including the auto spare-parts market near Tibet Centre and the motorcycle market on Akbar Road. On Monday, 86 shops off M.A. Jinnah Road were sealed after officials said vehicles parked for roadside repairs were obstructing traffic, while the Akbar Road motorcycle market remained shut for a third consecutive day, affecting at least 115 shops. Officials said traders had been warned multiple times to clear encroachments from footpaths and roads. Under new measures, shopkeepers must submit affidavits pledging compliance with standard operating procedures before their businesses are reopened in phases. Authorities warned that future violations could lead to arrests and FIRs. Over the past three days, nearly 200 eateries have also been sealed citywide. (“More markets, shops sealed across Karachi as drive against ‘encroachments’ continues,” Dawn, 06 January 2026)
Editorials/Opinions
PIA
Muhammad Raiyd Qazi, “Pakistan's PIA dilemma”, The Express Tribune, 06 January 2025
"The privatisation of PIA illustrates a fundamental dynamic in which public resources are transferred to private ownership under the guise of reform and efficiency. While the government portrays the sale as a decisive break from decades of losses and inefficiency, a closer examination reveals that the transaction primarily shifts the burden of risk to the public while concentrating potential benefits in the hands of a few private actors."
https://tribune.com.pk/story/2585629/pakistans-pia-dilemma
Dr Niaz Murtaza, “Privatisation peril,” Dawn, 06 January 2026
“One hopes our first major privatisation undertaking in years helps PIA’s rebound. The process had problems that must be avoided in future. PIA’s massive past losses made it critical to fix the airline. But then, it showed a profit of Rs26 billion in 2024 (after losing Rs100bn in 2023) due mainly to the removal of much of its debt from its books and a one-time tax deferral. So, we had time to adopt a strong process."
https://www.dawn.com/news/1965422/privatisation-peril
Pak-China
Editorial, “A unanimous way ahead,” The Express Tribune, 06 January 2026
“The 7th Pakistan-China Foreign Ministers' Strategic Dialogue in Beijing was apt in choreographing priorities for development, peace and security. The parleys went a step ahead as both countries agreed to look from the same prism on Afghanistan, and called for more "visible and verifiable" actions to dismantle the terror nexus in the southwest Asian state. This unanimity was highly desired as Kabul was behaving in an unforthcoming manner, and had annoyed other regional states too by boycotting a conference held recently in Tehran to discuss prospects of tranquillity and nation-building in Afghanistan. The deliberations have come at a time when peace is on a shaky note in Southwest Asia, the simmering Venezuelan episode is threatening global security, and rumours are rife of renewed meddling in the Middle East by Washington. Thus, the all-weather understanding between China and Pakistan will go on to insulate outside manoeuvrings by detailing attention to cultural and people-to-people exchanges, as well as proactive engagement in industry, agriculture and mining."
https://tribune.com.pk/story/2585626/a-unanimous-way-ahead
Economy
Editorial, “Export decline,” Dawn, 05 January 2026
“THE trend is unmistakable. The sharp fall of 20.4pc in Pakistan’s export shipments last month underscores that the slump stems from structural factors and should no longer be dismissed as a temporary setback. Trade data shows that December marks the fifth consecutive monthly export decline — and the sharpest one — in the first half of the present fiscal. The sustained export contraction heightens the risks to the nation’s external sector recovery as growing imports threaten to erode the gains achieved through demand compression over the past two years. Imports crossing the $6bn mark last month for the first time during the current fiscal year signal that a policy shift towards trade normalisation and liberalisation have revived import demand faster than anticipated. If anything, the latest trade numbers expose a disconnect between stabilisation and sustainability. The economy has moved from crisis management, but has yet to transition to an export-led growth path. Without energy, industrial and trade reforms to improve export competitiveness, the current economic recovery will remain fragile and growth subdued."
https://www.dawn.com/news/1965224/export-decline
National agenda for 2026
Maleeha Lodhi, “A national agenda for 2026,” Dawn, 05 January 2026
“The start of the new year is an apt time to look ahead at the overlapping challenges the country faces, identify the core ones and consider what should be done. Needed is a national agenda on which to build a political consensus to help position the country on a sustainable path to durable political and economic stability."
https://www.dawn.com/news/1965222/a-national-agenda-for-2026
Security
Editorial, “Ongoing threat,” Dawn, 05 January 2026
“Violence feels routine in Pakistan. The security situation deteriorated sharply in 2025, marking the fifth consecutive year of rising terrorism. According to the Pakistan Security Report 2025 by PIPS, the country recorded 699 terrorist attacks, a 34pc increase over 2024. These attacks killed 1,034 people and injured 1,366, reflecting a 21pc rise in fatalities. Overall conflict-related violence — including terrorist attacks, counterterrorism operations, border clashes, and abductions — rose to 1,124 incidents, up 43pc from 2024. These incidents can no longer be viewed as setbacks. They point to a crisis that is expanding in scale and becoming harder to control."
https://www.dawn.com/news/1965225/ongoing-threat
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