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In Brief
EXTERNAL
Pakistan, eight other countries warn against expanding Israeli settlements in West Bank
On 09 February, Dawn reported that eight Muslim countries, including Pakistan, warned against the “continued expansionist Israeli policies” in the occupied West Bank, in a joint statement on Monday. Pakistan, along with Egypt, Jordan, the United Arab Emirates (UAE), Indonesia, Turkey, Saudi Arabia and Qatar, said in a statement that they “condemned in the strongest terms the illegal Israeli decisions and measures aimed at imposing unlawful Israeli sovereignty, entrenching settlement activity, and enforcing a new legal and administrative reality in the occupied West Bank, thereby accelerating attempts at its illegal annexation and the displacement of the Palestinian people”. The statement comes following the Israeli security cabinet’s approval of a series of steps that would make it easier for settlers in the West Bank to buy land. It also follows the condemnation of repeated Israeli violations of the ceasefire in Gaza by the same eight nations. (“8 Muslim nations, including Pakistan, warn against ‘expansionist Israeli policies’ in occupied West Bank,” Dawn, 09 February 2026)
FM Dar emphasises importance of expanding trade with EU
On 09 February, Dawn reported that Deputy Prime Minister and Foreign Minister Mohammad Ishaq Dar underscored the importance of expanding trade and economic ties with the European Union (EU), highlighting that the bloc remains a vital economic partner for Pakistan, particularly under the Generalised Scheme of Preferences Plus (GSP-Plus) framework. He delivered these statements while chairing a high-level inter-ministerial meeting to review the current economic relationship with the EU. Dar reaffirmed Pakistan’s commitment to fully meeting its obligations under the framework and further expanding mutually beneficial trade between the two. (“FM Dar underscores importance of expanding trade, economic ties with the EU,” Dawn, 09 February 2026)
ECONOMY
Moody’s shifts Pakistan banking system outlook to stable, flags sovereign exposure risk
On 10 February, Dawn reported that Moody’s Ratings changed Pakistan’s banking system outlook to stable from positive, citing a gradual recovery in operating conditions and expectations that banks’ financial performance will remain steady over the next 12 to 18 months despite asset quality and profitability challenges. The report identified Moody’s as the main source, which explained that banking institutions face their most significant risk through their ownership of government securities because these securities make up half of their total assets, and their creditworthiness depends on the sovereign rating of Caa1 stable. The report from Moody's predicts real GDP will expand at 3.5% during 2026, while inflation rates will reach 7.5%, and lower interest rates will drive credit demand, which could lead to double-digit credit expansion. The report predicts credit growth will reach double digits because of lower interest rates, which will boost credit demand, while problem loan ratios will stay steady, and banks will maintain their profitability through increased loan issuance and additional non-interest revenue despite slight interest rate reductions. (“Banking outlook changed to ‘stable’,” Dawn, 10 February 2026)
SBP raises FY26 growth projection, sees inflation within target and reserves rising
On 10 February, Dawn reported that the State Bank of Pakistan revised up its FY26 real GDP growth projection by 0.5 percentage points in its bi-annual monetary policy report, placing expected growth at 3.75 to 4.75 per cent on the back of stronger economic activity and supportive high-frequency indicators. The central bank expects inflation to stay within its target range of five to seven per cent during FY26 and FY27, but short-term price increases from market factors will cause temporary inflation. The central bank projects that the current account deficit will remain between zero and one per cent of GDP during the upcoming two fiscal years because trade deficits will rise, but official funding, together with remittances, will maintain equilibrium. It added that SBP foreign exchange reserves are expected to rise to USD 18 billion by June 2026, and noted the recent cut in the cash reserve requirement from six per cent to five per cent to improve liquidity and private sector credit availability. (“SBP revises up GDP growth for FY26,” Dawn, 10 February 2026)
Climate minister warns Pakistan loses about one per cent of GDP annually to climate damage
On 10 February, Dawn reported that climate change minister Musadik Malik said Pakistan is losing close to one per cent of its gross domestic product each year to climate-related damage from floods, heatwaves and infrastructure destruction, despite contributing less than one per cent to global emissions. The report said Malik, speaking at the Overseas Investors Chamber of Commerce and Industry’s Pakistan climate conference, cited major human and economic costs from recent floods and argued climate impacts must be treated as an existential economic challenge rather than a CSR issue. The statement from Finance Minister Muhammad Aurangzeb demanded that organisations move their attention from policy development to execution through better management of multilateral funding, which would decrease official processing times and enhance institutional frameworks. The OICCI demonstrated two instances which demonstrated increasing climate resilience efforts through the World Bank's 10-year Country Partnership Framework and Pakistan's first-ever Green Panda Bond issuance. (“1pc of GDP lost to climate damage: Musadik,” Dawn, 10 February 2026)
POLITICS & GOVERNANCE
PTI plans march after Eid to press for Imran Khan’s release
On 09 February, Dawn reported that the Pakistan Tehreek-e-Insaf (PTI) is planning a long march two weeks after Eidul Fitr to push for the release of former prime minister Imran Khan. Preparations are underway, including a specially equipped container that will serve as the protest hub during the demonstration. The march will end at Adiala Jail, where protesters will stage a sit-in. “The protest will remain peaceful, and we will continue our democratic struggle. The party will announce the route, whether to Islamabad or directly to Adiala Jail, and workers will follow the instructions accordingly,” PTI Peshawar District President Irfan Saleem said. The announcement follows instructions to PTI organisational wings and district units to prepare for the protest. (“PTI plans long march after Eid to secure Imran Khan’s release,” Dawn, 09 February 2026)
Senate pushes for fair, time-bound investigation into Islamabad blast
On 10 February, Dawn reported that the Senate firmly condemned the recent suicide attack in Islamabad, calling for a transparent, thorough and time-bound probe to bring the perpetrators to justice. A resolution urging the strengthening of intelligence coordination and security arrangements was moved by PPP Senator Syed Waqar Mehdi and unanimously adopted by the Senate. The House also paid tribute to law-enforcement agencies, emergency responders and medical personnel for their quick response. Meanwhile, speaking on the floor of the National Assembly, Defence Minister Khawaja Asif stressed the need for a national identity and that religious hatred was being fanned in Pakistan under an international conspiracy. “At least on national issues — all of us sitting here, regardless of which party they belong to … this is one thing on which there needs to be consensus on, and that is Pakistan and its integrity as well as respect for those sacrificing their lives,” he said. (“Senate seeks fair, time-bound probe into capital blast,” Dawn, 10 February 2026; “Khawaja Asif stresses need for national identity as NA passes resolution condemning Islamabad suicide attack,” Dawn, 09 February 2026)
SECURITY
Death toll from the Islamabad Imambargah suicide attack rises to 38
On 9 February, Dawn reported that the death toll from the suicide attack at the Tarlai Imambargah in Islamabad had risen to 38, according to hospital data. Speaking in the National Assembly, Parliamentary Affairs Minister Tariq Fazal Chaudhry stated that 33 people had been killed and more than 150 injured. However, updates from hospital records showed a higher toll. A spokesperson for the Pakistan Institute of Medical Sciences (PIMS) confirmed that 29 deaths had been recorded at the hospital, with 40 injured individuals still under treatment, including seven in the ICU. The attack is the second major terrorist incident in the federal capital within three months, despite increased security measures by police and civil authorities. Interior Minister Mohsin Naqvi announced that four facilitators, including the alleged mastermind, had been arrested during overnight operations in Khyber Pakhtunkhwa. (“Death toll from suicide attack on imambargah in Islamabad reaches 38, hospital data shows,” Dawn, 9 February 2026)
JUDICIARY
IHC to decide on petitions against amendment to PECA digital regulation provisions
On 10 February, Dawn reported that an Islamabad High Court judge observed that the amendment to the Prevention of Electronic Crimes Act (PECA), 2016, is legislation and cannot be suspended through an injunction, adding that the court would decide the matter after hearing the case. The petitions were filed by journalistic bodies, including the Pakistan Federal Union of Journalists (PFUJ) and the Islamabad High Court Journalists Association (IHCJA), against the controversial amendment to the law. In 2025, the National Assembly passed a set of amendments to PECA under a supplementary agenda, significantly expanding the government’s authority to regulate online content and penalise digital offences. The PECA (Amendment) Act 2025 includes provisions for the formation of a Digital Rights Protection Authority (DRPA), empowered to remove online content, restrict access to prohibited material and impose penalties on those sharing such content. (“PECA amendment cannot be suspended by injunction, IHC observes,” Dawn, 10 February 2026)
AI
Pakistan to invest USD one billion in AI by 2030, says PM Sharif
On 09 February, Dawn reported that Prime Minister Shehbaz Sharif announced the government’s plan to invest USD one billion in artificial intelligence (AI) by 2030. PM Sharif spoke at the Indus AI Week 2026, where he said that Pakistan aims to keep pace with modern technologies and that an AI curriculum would be introduced in all schools. He also announced that the government would provide 1000 fully-funded PhD scholarships in AI by 2030 and launch a nationwide programme to train one million non-IT professionals in AI skills. “Pakistan is absolutely ready to accept the challenge and walk with our global partners, absolutely with great commitment and dedication,” he said. The government had approved the National AI Policy in July last year, but the policy’s implementation stalled for six months due to a government decision to amend the composition of the AI Council and a lack of response from provincial governments. (“Pakistan to invest $1bn in artificial intelligence by 2030, announces PM,” Dawn, 09 February 2026)
Editorials/Opinions
Gul Plaza fire
Naeem Sadiq, “Future fires,” Dawn, 09 February 2026
"Everything that could go wrong with Gul Plaza did go wrong, just as it had in the Baldia factory fire of 2012. Between these two tragic milestones, the city witnessed another 18,000 fire accidents which failed to garner the attention they deserved. No one speaks about the 12,000 fatalities that occur every year, due to industrial fires, boiler explosions, suffocation, hazardous materials and entry into gutters in Pakistan. Building collapses claimed over 150 lives in urban Karachi, while more than 500 coal miners died in mining accidents during the past five years. At least 180 persons lost their lives in train accidents in the last 10 years — as against four in the UK and none in Japan during the same period. The contrast is not just statistical. It is a stark indictment of missing safety systems, governance and accountability."
https://www.dawn.com/news/1971927/future-fires
Unemployment
Editorial, “Spectre of joblessness,” Dawn, 09 February 2026
"Pakistan's unemployment crisis is no longer just another demographic concern; it is already restricting growth. So when World Bank president Ajay Banga said that employment creation will remain a “binding constraint on growth” over the long term, he meant that, instead of being a problem to be dealt with later, the lack of jobs will limit how fast the economy can grow."
https://www.dawn.com/news/1971933/spectre-of-joblessness
AI and policy
Editorial, “Stalled rollout,” Dawn, 09 February 2026
"When the federal cabinet approved the National Artificial Intelligence Policy there was hope that the country was finally waking up to the strategic importance of AI. Yet six months down the line, implementation has stalled. Provincial governments have yet to respond meaningfully. The proposed AI Council, intended as the apex oversight body, remains in limbo amid concerns that its structure is overly bureaucratic. Meanwhile, several critical frameworks remain largely untouched. The policy was ambitious in scope. It laid out six interconnected pillars — awareness and readiness; an AI innovation ecosystem; a secure and responsible AI environment; sectoral transformation; infrastructure development; and international partnerships. So far, only the first has shown visible movement, largely through an upcoming awareness event. While such initiatives are welcome, they are no substitutes for clear rules and proper systems. Without these, Pakistan risks allowing market forces alone to shape its AI landscape, instead of guiding it responsibly."
https://www.dawn.com/news/1971932/stalled-rollout
Wealth inequality
Dr Muhammad Babar Chohan, “Deepening wealth gap,” The Express Tribune, 09 February 2026
"Recent data from the Pakistan Bureau of Statistics, compiled by a stock brokerage and financial company, reveals a widening inequality in incomes and assets between the rich and the poor of the country. The data shows economic prosperity is flowing upwards while financial strain is dissipating deep downwards, making the rich richer and the poor poorer. Based on the latest Household Integrated Economic Survey (HIES), it is observed that the real purchasing power for the common man has been declining between FY19 to FY25."
https://tribune.com.pk/story/2591455/deepening-wealth-gap
Province
Fahd Husain, “Time for offensive defence,” The Express Tribune, 08 February 2026
"Basant is the latest in a series of high-profile projects in Punjab that are being acknowledged and appreciated – sometimes grudgingly – by people inside and outside the province. Punjab has always been ahead of other provinces in most respects, and there are genuine concerns too that it gets favoured treatment from the Centre, but with Maryam Nawaz at the helm, things are moving even faster than usual. She has succeeded in generating an unmistakable buzz around her pro-active governance style."
https://tribune.com.pk/story/2591295/time-for-offensive-defence
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