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In Focus
Officials from Pakistan and Afghanistan hold talks in China
Islamabad denies removing border fencing as 705 Afghan nationals repatriated via Torkham
On 01 April, Dawn and The News International reported that officials from Pakistan, Afghanistan and China met in Urumqi under a trilateral mechanism, marking renewed engagement after weeks of tensions. The talks focused on security concerns and economic cooperation, with China encouraging confidence-building measures such as reopening trade routes. A Pakistani official described the meeting as “exploratory”, aimed at gauging Kabul’s seriousness, while another noted it was “an effort to manage tensions while leveraging opportunities for economic cooperation”.
Pakistan reiterated concerns over militant sanctuaries, while Afghan representatives signalled willingness to discuss a “verifiable mechanism” to address these issues, indicating cautious progress despite lingering disagreements. Chinese officials stressed that “the top priority is to start peace talks as soon as possible,” while sources described the process as the beginning of a broader peace effort. Separately, Pakistan’s Information Ministry dismissed claims about the removal of border fencing along the Afghan border as “fabricated and devoid of facts”, asserting that the border fence was “fully intact”. Authorities warned that misinformation could undermine stability, as both sides attempt to manage tensions and restore dialogue following weeks of conflict.
Meanwhile, the Torkham border crossing partially reopened after negotiations, allowing the phased repatriation of Afghan nationals following nearly a month of closure. Officials said the process would continue “in a phased and organised manner” to ensure security and order, with over 705 people from 223 families already returned. The reopening reflects tentative de-escalation after recent clashes and military operations that strained ties and disrupted trade. However, commercial activity remains suspended pending further negotiations. Authorities emphasised that future engagement would determine progress on trade restoration, border management and long-term stability between the two neighbouring countries. (“Pakistan, Afghanistan officials hold meeting in China’s Urumqi under trilateral mechanism,” Dawn, 01 April 2026; “Pakistan, Afghan Taliban officials meet in China for ceasefire talks,” The News International, 02 April 2026; “‘Devoid of facts’: Info ministry rubbishes claims of barbed wire being removed along Pak-Afghan border,” Dawn, 01 April 2026; “Return of Afghan nationals via Torkham resumes after nearly a month,” The Express Tribune, 01 April 2026)
ECONOMY
Consumer inflation surges to 7.3 per cent following hike in energy prices
On 02 April, Dawn reported that consumer inflation rose to 7.3 per cent in March, largely driven by a hike in energy prices. The surge in fuel prices is going to raise transport costs, feeding into higher prices of essential food items, particularly perishable items. The State Bank kept its policy rate unchanged at 10.50 per cent in response to rising inflation, warning that inflation could remain above its 5-7 per cent medium-term target range for a few months. (“Energy costs push March inflation to 7.3pc,” Dawn, 02 April 2026)
International Finance Corporation's portfolio crosses USD 27 billion
On 02 April, The Express Tribune reported that the International Finance Corporation’s (IFC) portfolio in Pakistan has grown to over USD 2 billion annually. In a meeting with the Finance Ministry, IFC highlighted financial sector support through risk-sharing and guarantee facilities aimed at promoting trade and small and medium enterprise financing. It also outlined expansion in local currency financing to reduce foreign exchange risks, along with upcoming initiatives, including a diversified payment rights facility and a green bond issuance with a local bank. (“International Finance Corporation's portfolio in Pakistan crosses $27 billion,” The Express Tribune, 02 April 2026)
Govt raises PKR 753 billion via T-bills amid high inflation risks
On 02 April, Dawn reported that the government raised PKR 659 billion through auctions, and PKR 94 billion through non-competitive bids, for a total of PKR 753 billion. The government also cut the returns on one-month papers by 29 basis points to 11.18 per cent and raised PKR 124 billion. If the West Asia crisis continues for the upcoming weeks, a decline in the interest rate in the next SBP’s Monetary Policy Committee meeting scheduled for April 27 is expected, as the inflation has gone up to 7.3 per cent and could further increase in the coming months. (“Govt raises Rs 753bn on mixed T-bill yields,” Dawn, 02 April 2026)
Gwadar Development Authority accelerates plans to launch CBD project
On 02 April, Dawn reported that Gwadar’s flagship Central Business District (CBD) project is expected to be launched soon, as per a statement from the Gwadar Development Authority (GDA). In total, 2,585 acres of land have been acquired by the provincial government for the project. It will consist of corporate offices, hotels, apartments, shopping centers and conference facilities. Cultural attractions of the project include a museum, theatre, library, and expo centre, Gwadar Tower, Marina Park, and seaside resorts. (“'Gwadar's flagship project to be launched soon': Gwadar Development Authority," Dawn, 02 April 2026)
PM Shehbaz highlights institutional coordination in managing economic situation
On 02 April, Dawn reported that the Prime Minister remarked that Pakistan has successfully addressed the balance between demand and supply of essential commodities. PM Shehbaz commended the effective and timely measures taken by different institutions through mutual coordination to prevent any emergency regarding the demand and supply of essential goods across the country. Daily, relevant ministries and institutions were reviewing the economic impacts of the regional situation and dealing with them efficiently. (“PM Shehbaz says Pakistan successfully addressed demand supply of essential goods amid regional conflict,” Dawn, 02 April 2026)
EXTERNAL
Pakistan and Norway sign first carbon market deal under Paris Climate Agreement
On 01 April, Dawn reported that Pakistan and Norway signed the country’s first bilateral carbon market agreement under Article 6.2 of the Paris Agreement, marking a major step in climate diplomacy. The memorandum of understanding, signed in Islamabad, enables Pakistan to generate carbon credits through projects in clean energy, agriculture, transport and waste management, which can be sold to Norway. Climate Change Minister Musadik Malik termed the accord a “historic milestone”, saying it would shift Pakistan from policy preparation to implementation while attracting investment, technology and jobs. Norway’s Ambassador Per Albert Ilsaas said the partnership would support measurable emission reductions and development gains, noting Oslo’s aim to achieve climate neutrality beyond its formal targets. Backed by Norway’s USD 1.5 billion global initiative, the deal is expected to expand Pakistan’s access to climate finance and support its transition towards low-carbon growth. (“‘Historic milestone’: Pakistan, Norway sign carbon market deal under Paris Agreement,” Dawn, 01 April 2026)
Pakistan condemns killing of UN peacekeepers in Lebanon
On 02 April, The News International reported that Pakistan strongly condemned the killing of three Indonesian peacekeepers serving with the United Nations Interim Force in Lebanon (UNIFIL), calling the attacks a “grave violation of international law”. Speaking at a UN Security Council emergency meeting, Pakistan’s Permanent Representative Ambassador Asim Iftikhar Ahmad said recent artillery, airstrike and drone attacks targeting peacekeepers were “deeply disturbing” and could constitute war crimes. He stressed that UN personnel are impartial agents of peace and their targeting undermines international humanitarian law. Highlighting the broader context, he noted that ongoing Israeli military operations in southern Lebanon have caused significant civilian casualties, displacement and infrastructure damage, worsening risks for both civilians and peacekeepers. Pakistan called for a prompt, transparent investigation and accountability for those responsible, urging all parties to respect ceasefire obligations while reaffirming solidarity with Indonesia and Lebanon. (“Pakistan condemns killing of UN peacekeepers in Lebanon as ‘war crimes’,” The News International, 02 April 2026)
China backs Pakistan’s mediation role amid Middle East tensions
On 01 April, Dawn reported that China praised Pakistan’s “active diplomatic role” in efforts to de-escalate the Middle East conflict, as Foreign Minister Wang Yi met Deputy Prime Minister Ishaq Dar in Beijing. According to a statement from the Foreign Office (FO), both sides discussed regional developments and issued a five-point initiative calling for an immediate ceasefire and the resumption of dialogue. Dar highlighted Pakistan’s recent diplomatic outreach, including a quadrilateral meeting with Saudi Arabia, Turkiye and Egypt, while both countries expressed concern over the conflict’s economic impact on developing nations. Marking the 75th anniversary of bilateral relations, the ministers also reaffirmed commitments to strengthening bilateral ties under CPEC 2.0 and enhancing cooperation on regional stability, including Afghanistan. “Both sides undertook to remain in regular contact,” the FO statement added. China endorsed Pakistan’s mediation efforts, with both sides agreeing to remain in close coordination on peace initiatives. (“China’s FM Wang Yi appreciates Pakistan’s active diplomatic efforts in promoting Middle East peace: FO,” Dawn, 01 April 2026)
SECURITY
Combat-related fatalities drop by 35 per cent in March amid cross-border operations
On 02 April, Dawn reported that Pakistan witnessed a 35 per cent decline in combat-related fatalities in March, according to data released by the Pakistan Institute for Conflict and Security Studies (PICSS), coinciding with ongoing military actions under Operation Ghazab lil-Haq. Total deaths fell to 331 from 506 in February, with civilian fatalities dropping sharply by 70 per cent, while security forces and militant deaths also declined. The report linked the reduction to cross-border strikes targeting militant positions, which may have disrupted their operational capacity despite an increase in overall attacks. Suicide attacks fell significantly, and injuries also decreased by 37 per cent, particularly among civilians. However, militant activity intensified, with groups such as the Tehreek-i-Taliban Pakistan (TTP) escalating attacks. Regionally, Balochistan and Khyber Pakhtunkhwa saw notable declines in fatalities, while Punjab and Sindh reported no major attacks. The report noted that terrorism-related deaths have continued to rise over recent years despite short-term improvements. (“March sees 35pc drop in combat-related fatalities amid cross-border operation: PICSS,” Dawn, 02 April 2026)
13 militants killed in separate operations in KP
On 01 April, The Express Tribune reported that security forces killed 13 militants in two intelligence-based operations in Khyber Pakhtunkhwa on March 30, according to the Inter-Services Public Relations (ISPR). The operations were conducted in Khyber and Bannu districts following reports of militant presence linked to the banned Tehreek-i-Taliban Pakistan (TTP). In Khyber, troops killed 10 militants after an intense exchange of fire, while three others were killed in a separate operation in Bannu. The military said sanitisation efforts were ongoing to clear the areas of remaining militants. It added that the broader counter-terrorism campaign under Operation Azm-e-Istehkam would continue to eliminate militancy nationwide. President Asif Ali Zardari and Prime Minister Shehbaz Sharif praised the security forces’ actions, reaffirming the state’s resolve to eradicate terrorism and ensure national security through sustained operations. (“13 terrorists killed in two K-P IBOs,” The Express Tribune, 01 April 2026)
Six killed in KP firing incident, key suspect shot dead in encounter
On 01 April, Dawn reported that at least six people were killed and two others injured in a firing incident in Mangal village of Prova tehsil in Khyber Pakhtunkhwa, with a key suspect later killed in a police encounter. According to the police, unidentified armed men opened fire on individuals who had gone to the area in search of three motorcycles allegedly snatched a day earlier, suggesting the attack stemmed from a local dispute. The injured were shifted to Tehsil Headquarters Hospital in Prova for treatment. Station House Officer Samar Abbas said the main suspect, identified as Zulfikar Marwat, was killed during a subsequent police encounter, while efforts were ongoing to apprehend other suspects. Police also launched a search operation in the area. Officials noted the incident follows recent violence in the region, including separate shootings in Paharpur tehsil last month that left two dead and a woman injured. (“Six killed in Dera Ismail Khan firing; key suspect shot dead in police encounter,” Dawn, 01 April 2026)
Nine injured in IED blast targeting police in Lakki Marwat
On 01 April, Dawn reported that nine people, including four police personnel, were injured in an improvised explosive device (IED) blast in Serai Naurang town of Lakki Marwat district, Khyber Pakhtunkhwa. Police said the explosion occurred on the Bannu-DI Khan Road near a busy fruit and vegetable market, targeting a police patrol from the Shaheed Asmatullah Khan Khattak station. The IED, reportedly attached to a motorcycle, damaged the police vehicle and nearby shops, vehicles and a power line. Among the injured were Head Constable Waheedullah and Constables Syed Anwar, Hadiullah and Ikramullah, along with several civilians, including minors. Regional Police Officer Sajjad Khan visited the injured and vowed that such attacks would not weaken law enforcement's resolve. The incident follows a recent deadly attack in the district in which several policemen were killed in a similar roadside bombing targeting a patrol. (“4 cops among 9 injured in IED blast in KP’s Lakki Marwat,” Dawn, 01 April 2026)
POLITICS & GOVERNANCE
FCC seeks KP CM’s reply over "release force" petition
On 01 April, Dawn reported that the Federal Constitutional Court (FCC) directed Khyber Pakhtunkhwa Chief Minister Sohail Afridi to submit a response within 10 days to a petition challenging the proposed mobilisation of a “release force” for jailed PTI founder Imran Khan. Headed by Chief Justice Aminuddin Khan, the three-judge bench also issued notices to the KP government, PTI, federal government and Election Commission of Pakistan. The petition, filed in public interest, argued that forming any private force would violate constitutional provisions, including Article 256 prohibiting militias. During proceedings, the court questioned whether the provincial cabinet had approved the move, with counsel confirming it had not. The proposal, announced after failed protests seeking access to Imran Khan, has sparked internal debate within PTI. The court emphasised that authorities must ensure adherence to the law and safeguard public order. (“FCC seeks response from KP CM Afridi over plans to form ‘Imran Khan release force’,” Dawn, 01 April 2026)
SOCIETY
Pakistan may surpass Indonesia in population growth, warns health minister
On 02 April, Dawn reported that Health Minister Syed Mustafa Kamal warned Pakistan could surpass Indonesia in population within the next five years if current growth trends persist. Chairing a meeting on population challenges, he said the country’s population was increasing by approximately 6.2 million annually, placing severe pressure on healthcare, education, infrastructure and employment. He cautioned that unchecked growth was undermining national planning and sustainable development, stressing the need to reduce the fertility rate from 3.6 to 2.0. Citing examples such as Bangladesh, Indonesia and Iran, the minister highlighted that effective population management policies could improve public service delivery. He emphasised coordinated efforts among stakeholders and greater public awareness to address the issue. Adviser to the Finance Minister Adnan Pasha Siddiqui assured policy and financial support, underscoring the need for institutional coordination to tackle the growing demographic challenge. (“Pakistan may become ‘fourth most populated nation’ in five years,” Dawn, 02 April 2026)
Editorials/Opinions
Iran war
Inam Ul Haque, “Iran - boots on the ground,” The Express Tribune, 02 April 2026
"In a jumbled effort to obtain an off-ramp, the US is claiming to have changed the regime in Iran through sustained assassinations of Tehran's top political and military leadership. However, the 'regime change' as a stated war objective, as 'claimed', is not enough to inject behavioural change in Tehran, given Iran's tenacity, tit-for-tat military responses and its holding of the international economy hostage by Hormuz blockage, in this unjust war, imposed on it. The other war objectives (stated and implied) i.e. Iran's de-nuclearisation, de-missilefication, military surrender, opening Hormuz and re-instilling the Arab confidence in the US-led security architecture, are not possible without boots on the ground."
https://tribune.com.pk/story/2600570/iran-boots-on-the-ground
Education
Editorial, “Education interrupted,” Dawn, 02 April 2026
"The war in the Middle East has had several unanticipated consequences, among them one which requires a little more concern from the authorities than has been shown. Anticipating fuel shortages from the jolts to the global energy supply chain, Pakistan had moved to suspend regular schooling, announced extended holidays and enforced online classes till the end of March. As education is a provincial subject, each of the provinces went about implementing these measures in its own way. Meanwhile, the war continues to rage, and there’s no saying when global energy supply lines will be restored to normal, and there is a risk of more disruptions in the days ahead. It must be asked, therefore, if the initial decision to suspend regular classes was taken in haste, or if the resumption has come earlier than it perhaps should have."
https://www.dawn.com/news/1987682/education-interrupted
Pakistan and China
Editorial, “Five-point plan,” Dawn, 02 April 2026
"Foreign Minister Ishaq Dar’s brief visit to Beijing on Tuesday has yielded a five-point plan endorsed by China that is being described as a “structured diplomatic template” to end the brutal US-Israeli war on Iran. If any peace plan is to work, it requires an immediate cessation of hostilities. The mixed messages coming from the US have only muddied the waters further, and the Iranians remain very sceptical — with good reason — of American claims that the US wants a deal."
https://www.dawn.com/news/1987683/five-point-plan
Economy
Khurram Husain, “Oil price shock incoming,” Dawn, 02 April 2026
"It's starting to happen. The real impact from the closure of the Strait of Hormuz was always going to take some time to land. But a month into the war and the physical shortages of fuel are now beginning to appear across Asia, which gets almost all of its fuel from the Persian Gulf. The volatility we have seen so far is driven mostly by skyrocketing freight and insurance. The actual, physical shortages of fuel have not yet hit. Those are now beginning. Perhaps this is one reason why Donald Trump is blowing hot one day and cold the next."
https://www.dawn.com/news/1987693/oil-price-shock-incoming
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