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In Brief
PAK-AFG
KP traders warn prolonged border closure is costing billions
On 12 January, Dawn reported that business leaders in Khyber Pakhtunkhwa said the Pakistan-Afghanistan border closure for over three months has caused losses worth billions of rupees, hitting exports, transport businesses and government revenue. Pakistan-Afghanistan Joint Chamber senior vice-president Ziaul Haq Sarhadi and Sarhad Chamber representative Manzoor Ellahi said KP is disproportionately affected because over 90 per cent of Pakistan’s exports to Afghanistan pass through KP customs stations, mainly via Torkham. They estimated KP’s export losses at around PKR 2.5 billion and revenue losses at nearly PKR 2.5 billion in the first five months of FY2025-26, warning of spoilage of perishable goods and expiry of medicines and raw materials. They also cited a report saying bilateral trade fell 53 per cent year-on-year to USD 594 million in the first half of FY2025-26 from USD 1.26 billion, largely due to border closures. (“KP business community raises alarm over prolonged border closure,” Dawn, 12 January 2026)
ECONOMY
Pakistan to exit IMF programme in 2026
On 12 January, The Express Tribune reported that Rana Mashhood Ahmad Khan, Chairman of the Prime Minister's Youth Programme (PMYP), announced that Pakistan would exit the International Monetary Fund (IMF) programme by June. Addressing a diaspora gathering in London, Mashhood said the country’s recent economic direction had restored investor and overseas Pakistani confidence, pointing to a sharp rise in workers’ remittances in 2025 as evidence of renewed trust in the economy. He argued that IMF-linked policies adopted after 2018 had constrained growth, while the current government’s emphasis on fiscal discipline, structural reforms, exports, productivity, and youth-led entrepreneurship was helping rebuild foreign exchange reserves and reduce dependence on external bailouts. (“Pakistan to exit IMF programme this year,” The Express Tribune, 11 January 2026)
Pakistan panel urges urgent reforms to avoid IMF return
On 12 January, Dawn reported that a high-level committee, constituted by Prime Minister Shehbaz Sharif and led by Planning Minister Ahsan Iqbal, has called for urgent reforms to ease the cost of doing business and rationalise energy and trade tariffs, aiming to more than double Pakistan’s exports to over USD 60 billion within three years. Formed to chart a path beyond the current USD 8.4 billion IMF programme ending in 2027, the panel identified high and volatile energy prices, distortionary taxation, policy unpredictability, weak trade facilitation, limited access to finance, and regulatory fragmentation as key constraints across 20 priority export sectors. The committee warned that without structural reforms, Pakistan’s economy cannot sustain growth for its population of 250 million. Iqbal said export-led growth was essential for economic sovereignty, adding that the findings would inform a sector-specific roadmap under the Uraan Pakistan plan, subject to IMF. (“Urgent reforms proposed to avert another IMF loan,” Dawn, 12 January 2026)
ADB warns Carec Tranche-III loan may lapse amid delays
On 12 January, Dawn reported that the Asian Development Bank (ADB) warned the economic affairs division that, based on current progress, there was a significant risk the approved USD 360 million under the Multi-tranche Financing Facility (MFF) would not be fully utilised by the expiration date of 31 December 2027. The project, involving the widening of sections of the N-55 Highway, has been stalled for eight months due to controversies in the bidding process examined by multiple parliamentary committees and the Public Procurement Regulatory Authority. Although the Islamabad High Court ordered immediate award of contracts to avoid cancellation and reputational damage, implementation remains slow. The ADB has cleared the lowest evaluated bidder for four project lots and urged swift action by the National Highway Authority to ensure full utilisation of the loan. (“ADB warns $360m loan for highway project risks lapsing,” Dawn, 12 January 2026)
POLITICS & GOVERNANCE
KP CM Afridi and ex-ministers identified as suspects in 09 May Radio Pakistan attack case
On 12 January, as reported by the Dawn, KP Chief Minister Sohail Afridi became one of the suspects in the 09 May Radio Pakistan attack case, according to a forensic report submitted by the prosecution to the anti-terrorism court. Video clips and pictures of CM Afridi were submitted by the Punjab Forensic Science Agency, who further questioned the legitimacy of the evidence submitted and the persons whose profile pictures had been shared appeared in the clips. Alongside Afridi, four more people were seen in the video, but the connection to the attack is still unclear. As stated by PTI leader, Taimur Jhagra, “the posts with screenshots are very interesting because they have nothing to do with Radio Pakistan. I believe the Punjab lab is simply commenting on whether it thinks the videos are genuine or not." (“Afridi, ex-ministers identified in Radio Pakistan attack clips,” Dawn, 12 January, 2026)
Opposition leaders to be appointed as National Assembly sessions summoned
On 12 January, as reported by Dawn, President Asif Ali Zardari has summoned the National Assembly to initiate the process of appointing the leader of the opposition. The issue resurfaced after PTI’s Omar Ayub withdrew his petitions from the Supreme Court and high courts filed against his removal. Additionally the opposition for a long time has been criticizing the government for delaying the appointment process and nominated Pashtunkhwa Milli Awami Party (PkMAP) chief Mehmood Achakzai as the opposition leader. This is backed by Rule 39 of the “Rules of Procedure and Conduct of Business in the National Assembly 2007”, titled “Declaration of Leader of the Opposition,” which states that after each general election - and at any time thereafter - the National Assembly speaker must declare the opposition leader as soon as possible following the election of the prime minister. (“Opposition leader’s appointment awaited as National Assembly session summoned,” Dawn, 12 January, 2026)
SECURITY
CTD kill six terrorists in targeted operations in KP
On 12 January, Dawn reported that Khyber-Pakhtunkhwa (KP) CTD has carried out two successful intelligence-based operations in Peshawar and Khyber, which resulted in the killing of six “highly wanted” terrorists linked to Fitna al-Khawarij, while several of their accomplices managed to escape by taking advantage of nearby residential areas. The first operation conducted on the outskirts of Peshawar, CTD ambush team engaged and killed three terrorists on the spot. The second operation was carried out in Jamrud, where terrorists were reportedly preparing a coordinated attack on police. (“CTD kills six terrorists in targeted operations in K-P,” Dawn, 12 January 2026)
Editorials/Opinions
Pakistan in 2026
Shahid Javed Burki, “What Pakistan can expect in 2026 and beyond”, The Express Tribune, 12 January 2026
"The question posed in the title of this essay can only be answered speculatively. In doing so I will speculate about the world Pakistan will find at the beginning of 2026. The change in the global order Pakistan will face is the result of natural events as well as changes that are the result of what policymakers working from the world's major capitals have done in the year that is now a part of history. As I have written before, three of Pakistan's four immediate neighbours have adopted religion as the main force of governance. Afghanistan, China, India and Iran are the four neighbours. Of these, only China has remained secular."
https://tribune.com.pk/story/2586604/what-pakistan-can-expect-in-2026-and-beyond
Politics & governance
Fahd Husain, “Dialogue, anyone?” Dawn, 11 January 2026
“Everyone is talking about talks, but no one wants to talk. The glaring contradiction measures the difference between optics and hard reality. Within the optics domain, everyone desires to look and sound reasonable. The hard reality, on the other hand, is based on a cold and calculated assessment of the situation and the advantage that accrues in a zero-sum conflict."
https://tribune.com.pk/story/2586461/dialogue-anyone
Economy
Editorial, “Bleeding SOEs,” The Express Tribune, 11 January 2026
“Few indicators capture the depth of Pakistan's fiscal malaise as starkly as the performance of its state-owned enterprises. The latest figures released by the Ministry of Finance make for grim reading: in the first full fiscal year of the current government, net losses of SOEs ballooned by 300%, while taxpayer-funded fiscal support surged to Rs2.1 trillion. This is a horrific structural failure that continues to drain public resources and undermine economic stability."
https://tribune.com.pk/story/2586457/bleeding-soes-1
ICG report
Editorial, “ICG report,” The Express Tribune, 12 January 2026
“The refusal of Kabul to take action against terrorist outfits operating from Afghanistan and behave like a responsible member of the comity of nations has had its worst toll on Pakistan. Since the Taliban's takeover of Afghanistan in August 2021, incidents of terrorism in Pakistan have escalated. At a press conference last week, the spokesperson for Pakistan Army said that 5,397 terror incidents took place in Pakistan in the past year, of which 3,811, or 71%, were reported from Khyber-Pakhtunkhwa and 1,557, or 29%, from Balochistan — the two provinces bordering Afghanistan."
https://tribune.com.pk/story/2586601/icg-report
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