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In Focus
Pakistan intensifies cross-border operations amid Urumqi talks
Islamabad denies targeting Afghan civilians; questions UN experts on Taliban-TTP links
On 05 April, Dawn and The Express Tribune reported that Pakistan’s security forces intensified operations under Operation Ghazab lil-Haq, repelling an attempted assault on a border post in Khyber Pakhtunkhwa’s Ghulam Khan sector, where 37 attackers were killed, and over 80 were injured. Information Minister Attaullah Tarar said the attack was “comprehensively foiled”, adding that militants “suffered heavy casualties”. He reported that 796 operatives had been killed so far, with over 1000 injured, stressing that the operation would continue “until its objectives are achieved” following renewed hostilities.
Meanwhile, parallel diplomatic efforts were underway in Urumqi, where Pakistan conveyed key demands to the Afghan Taliban, including formally designating the Tehreek-e-Taliban Pakistan as a terrorist organisation and dismantling its infrastructure. While talks facilitated by China aim to build a ceasefire framework, Islamabad maintained there was “no material change” in its security policy. The three main demands made by Pakistan include:
1. Kabul formally designates the TTP as a terrorist organisation
2. TTP infrastructure is destroyed
3. Verifiable proof of these actions is provided.
It also rejected Afghan claims of civilian casualties, calling them “a set of lies” and asserting that operations involved “precise targeting” of militant infrastructure. Officials reiterated that Pakistan’s actions were directed against armed groups, not civilians.
Separately, Pakistan questioned statements by United Nations experts regarding the lack of evidence linking TTP attacks to Afghan soil, pointing to multiple international reports documenting militant safe havens. Balochistan Interior Minister Mir Ziaullah Langove even cited the arrest of an Afghan Taliban-linked suspect involved in the killing of Federal Constabulary personnel, with officials saying such incidents showed Afghanistan was being used to “destabilise Pakistan”. Reaffirming its position, the government stressed it had “no hostility towards Afghanistan”. Still, it warned that any aggression would be met with a “strong response”, underscoring its demand for decisive action against militant networks. (“Operation Ghazab lil-Haq: Security forces foil attack on border post in KP, kill 37 militants,” Dawn, 05 April 2026; “Pakistan presents three key demands in Urumqi talks,” The Express Tribune, 06 April 2026; “Info ministry dismisses Afghan govt's claims of civilian killings as ‘set of lies’,” The Express Tribune, 05 April 2026; “Pak questions experts over TTP presence in Afghanistan,” The Express Tribune, 06 April 2026; “Afghan Taliban terrorist involved in FC personnel killings arrested in Balochistan, home minister says,” The Express Tribune, 05 April 2026)
US-Iran War update
Iran denies refusing Islamabad talks with US?
Pakistan intensifies regional outreach to sustain diplomacy as momentum for talks stalls
On 05 April, The Express Tribune and Dawn reported that Iranian Foreign Minister Abbas Araghchi rejected reports that Tehran had declined to travel to Islamabad for potential talks with the United States, stating that Iran’s position depended on the terms of negotiations rather than location. In a post on X, he expressed appreciation for Pakistan’s diplomatic facilitation and criticised what he called misrepresentation by US media, following a Wall Street Journal report suggesting stalled efforts. Deputy Prime Minister Ishaq Dar welcomed the clarification, as officials said Islamabad continued backchannel engagement with Washington and Tehran, alongside outreach to regional partners, to maintain momentum for dialogue despite slowing progress and unresolved differences over negotiation conditions.
Meanwhile, Mr Dar held a telephonic conversation with Saudi Foreign Minister Prince Faisal bin Farhan Al Saud, with both sides underscoring the urgent need for de-escalation and regional stability. The exchange comes amid heightened tensions following US and Israeli strikes on Iran on 28 February and Tehran’s subsequent retaliation targeting Israel and US bases in Arab states, including Saudi Arabia. Pakistan has stepped up diplomatic engagement in recent days, positioning itself as a mediator while coordinating with key regional actors to contain the crisis and encourage dialogue, as officials warn that continued escalation could further destabilise the region. (“Dar, Saudi FM stress de-escalation,” The Express Tribune, 06 April 2026; “Tehran says Islamabad talks depend on terms,” Dawn, 05 April 2026)
ECONOMY
IMF presses Pakistan to remove petroleum pricing distortions despite accepting subsidy cap
On 06 April, Dawn reported that the International Monetary Fund (IMF) had asked Pakistan to eliminate distortions in petroleum pricing at the earliest, even as it tacitly accepted a PKR 152 billion federal petroleum subsidy introduced with the Fund's prior knowledge amid the historic price surge following the US-Israeli attacks on Iran and closure of the Strait of Hormuz. The IMF's staff-level agreement of 29 March remains intact, but the Fund continues to oppose across-the-board subsidies. A key distortion flagged by the IMF concerns diesel pricing, where the petroleum development levy (PDL) has been reduced to zero against a budgeted PKR 80 per litre, with the gap being offset by higher levies on petrol - a cushion that has narrowed further after the prime minister's PKR 80 per litre petrol price reduction on Friday. Finance Minister Muhammad Aurangzeb is expected to brief IMF management on provincial subsidy contributions during next week's spring meetings. Officials noted that Pakistan currently holds approximately 26 days of petrol stock and 20 days of diesel, with additional cargoes in transit, though the balance of payments remains a growing concern. ("IMF asks Pakistan to remove fuel price distortions amid subsidy pressures," Dawn, 6 April 2026)
Balochistan and KP announce market closure timings as part of energy conservation drive
On 05 April, Dawn reported that the governments of Balochistan and Khyber Pakhtunkhwa (KP) announced a set of energy conservation measures, prescribing closure timings for markets, restaurants, and wedding halls. Under the Balochistan Home Department's notification, all markets and shopping centres are required to close by 8 pm, with exemptions for pharmacies, tandoors, and bakeries; restaurants and wedding halls must conclude operations by 10 pm, with district administration and law enforcement agencies directed to ensure strict compliance. In KP, a public notice issued by the Chief Secretary's office set closure timings of 9 pm for markets and commercial establishments in divisional headquarters and 8 pm in other districts, while restaurants and event halls must close by 10 pm, with home delivery and takeaway services permitted beyond these hours. A broad range of exemptions was provided in KP, covering agriculture, construction, emergency health services, industrial and manufacturing units, and public transport terminals, subject to conditions; pharmacies were also exempted but only for their primary licensed activity, with mixed-use outlets explicitly excluded. The KP notice also prohibited decorative and non-essential lighting on buildings and commercial premises after closure hours, and restricted generator use for non-essential commercial activity. Both sets of measures are framed as temporary and are to take effect from 06 April. Separately, the KP government announced a fuel subsidy programme for motorcycle owners, under which registered owners are to receive PKR 2,000 per month as fuel support. The measures drew immediate opposition from traders in Balochistan, with Central Anjuman-i-Tajiran Balochistan President Abdul Rahim Kakar calling them "anti-trader" and warning of protests, arguing that businesses were already under strain due to inflation, border closures, and rising utility costs. ("Balochistan, KP set closure timings for markets, eateries, wedding halls to conserve energy," Dawn, 05 April 2026)
Fuel price surge raises alarm over Pakistan's tourism sector, says industry body
On 06 April, Dawn reported that the Pakistan Association of Tour Operators (PATO) warned that a sharp increase in fuel prices posed a serious threat to the country's tourism industry. PATO Chairman Capt Niaz Ahmed said petrol and diesel prices had surged by over 40 to 50 per cent amid rising global oil prices linked to geopolitical tensions in the Middle East, significantly raising transportation costs and making travel less affordable for both domestic and international tourists. The association noted that Pakistan's tourism sector is heavily dependent on road travel, particularly for northern destinations, and cautioned that higher fuel costs were feeding into inflation, driving up accommodation and hospitality costs as well. PATO urged the government to introduce targeted subsidies for tourism transport and tax relief for tour operators, warning that failure to act could result in reduced tourist inflows, business closures, and job losses across the tourism value chain. ("Fuel price hike threatens tourism industry: Pakistan Association of Tour Operators," Dawn, 06 April 2026)
Iran War triggers mass withdrawal of foreign investment from Pakistan's treasury bills
On 05 April, Dawn reported that the ongoing Gulf War had begun to affect Pakistan's economy, with State Bank of Pakistan (SBP) data showing that approximately 90 per cent of foreign investment in domestic bonds had been withdrawn. Total inflows in the first nine months of FY26 stood at USD 886.7 million, while outflows reached USD 794 million, leaving only USD 93 million invested; in March alone, USD 227 million was withdrawn in the first 27 days against inflows of just USD 19 million, with the largest outflows traced to the UK (USD 281 million), UAE (USD 209 million), and Bahrain (USD 170 million). Analysts noted that while outflows from domestic bonds would have a limited direct impact, the potential non-renewal of deposits held by friendly countries in the SBP posed a more serious risk to foreign exchange reserves, with reports indicating that the UAE government was hesitant to roll over USD two billion maturing this month. Exports to the Middle East have also declined, and importers are reporting difficulties in accessing dollars, while analysts warned of a spiral effect from rising petroleum prices on both the poor and industry. ("Gulf war erodes 90pc investment in T-bills," Dawn, 5 April 2026)
Traders warn of nationwide protest over petroleum price hike and crackdown on bakers
On 05 April, Dawn reported that traders warned the government of a countrywide protest if recent increases in petroleum prices were not withdrawn and an ongoing crackdown on naanbais (bakers) was not halted. Speaking at a press conference at the National Press Club in Islamabad, All Pakistan Anjuman-i-Tajran President Ajmal Baloch said the business community could not be labelled as "thieves and robbers," demanded the immediate release of all arrested traders, and called for negotiations to determine fair naan and roti prices. Capital Naanbai Association President Sajjad Ali Abbasi noted that naanbais work from early morning until midnight but have been pushed into debt over the past three to four years, citing a surge in flour bag prices from PKR 8,000 to PKR 12,000 and LPG cylinder costs rising from PKR 8,000-10,000 to over PKR 21,000, while warning of a sit-in outside the deputy commissioner's office if the administration did not revise its approach. Barrister Umar Ijaz Gilani added that arrests made in defiance of a judicial stay order constituted contempt of court and that legal action against the responsible authorities remained an option. ("Traders warn of protest if petroleum prices hike not withdrawn," Dawn, 5 April 2026)
EXTERNAL
Pakistan and Türkiye to sign judicial cooperation agreement during constitutional court visit
On 05 April, Dawn reported that Turkiye's Constitutional Court will send a high-level delegation to Pakistan from 06 to 09 April, during which the two countries' apex courts are set to sign a memorandum of understanding (MoU) on judicial cooperation. The delegation, led by Constitutional Court President Kadir Ozkaya, will witness the signing at the Supreme Court of Pakistan on April 6 alongside judges from both courts, chief justices of the high courts, and Law Minister Azam Nazeer Tarar. The MoU is expected to establish a framework for judicial exchange, capacity building, and sharing of best practices, with a particular focus on the professional development of district-level judiciary through joint training programmes and academic exchanges. The agreement also envisages the integration of modern technologies in judicial processes and the formation of a joint working group to oversee implementation. ("Pakistan, Turkiye to sign MoU on judicial cooperation," Dawn, 05 April 2026)
ENVIRONMENT
Pakistan records extreme March temperatures
On 06 April, Dawn reported that Pakistan Meteorological Department data showed Pakistan experienced significant temperature anomalies in March, highlighting growing climate concerns despite its low global emissions share. The country recorded its second-highest average nighttime temperature at 14.7°C, while the overall mean temperature ranked fifth-highest at 21.6°C, both well above historical averages. Daytime temperatures were also elevated, with a national average of 28.5°C. Sindh’s Mithi and Shaheed Benazirabad saw the highest temperature of 40.5°C, while Skardu recorded the lowest at -2°C. Above-average rainfall, 24% higher than normal, was also observed, with heavy precipitation in Khyber Pakhtunkhwa. The report noted neutral global climate conditions, with neither El Niño nor La Niña active. (“Pakistan breaching temperature thresholds set for 2030,” Dawn, 06 April 2026)
POLITICS & GOVERNANCE
Supreme Court to resume Imran review hearing in PKR 10 billion defamation case
On 06 April, Dawn reported that the Supreme Court will resume the hearing of a review petition filed by PTI founder Imran Khan on 07 April, challenging the closure of his right to defence in the PKR 10 billion defamation case brought by Prime Minister Shehbaz Sharif. A three-judge bench headed by Justice Ayesha A. Malik will take up the matter, with proceedings in a Lahore trial court already stayed pending the outcome. The case, ongoing since 2017, centres on Khan’s failure to respond to interrogatories, leading courts to strike out his defence - a decision upheld by the Lahore High Court and later endorsed by the Supreme Court in 2023. While the majority judgment termed his conduct “wilfully contumacious,” Justice Malik dissented, emphasising fair trial concerns and arguing that exceptional circumstances, including his injury during a political rally, warranted a more balanced approach. (“Supreme Court to resume Imran’s review plea hearing in Rs10bn libel case tomorrow,” Dawn, 06 April 2026)
PM Shehbaz urges provinces to release funds for fuel subsidy programme
On 05 April, Dawn reported that Prime Minister Shehbaz Sharif called on provinces to promptly release their financial shares for a targeted fuel subsidy scheme aimed at supporting motorcyclists and public and goods transport amid the ongoing energy crisis. The federal government has replaced blanket subsidies with a targeted programme, with provinces contributing around PKR 200 billion over three months under the NFC formula. Sharif praised Balochistan CM Sarfaraz Bugti for early disbursement and urged others to follow. Subsidies are being distributed via digital wallets, with monthly allocations including PKR 100,000 for buses and up to PKR 80,000 for freight vehicles. Officials noted adequate fuel reserves, while the government highlighted broader relief measures, including reduced petroleum levy and transport subsidies, to ease inflationary pressures and maintain fare stability. (“PM Shehbaz urges provinces to release funds for fuel subsidies,” Dawn, 05 April 2026)
PTI protesters clash with police near Karachi Press Club, 23 detained
On 05 April, Dawn reported that police detained 23 workers and leaders of the Pakistan Tehreek-e-Insaf (PTI), including two former lawmakers, after clashes erupted during a protest near the Karachi Press Club. The demonstration, organised against rising fuel prices and inflation, turned violent as authorities attempted to enforce Section 144 restrictions in the area. Police officials stated that protesters pelted stones, prompting a baton charge and shelling, while PTI alleged excessive force, including the mistreatment of women participants. A case was registered under multiple charges, including rioting and obstructing officials. Roads around the press club were sealed for security, drawing criticism from journalists and rights advocates who termed the move a restriction on press access and democratic expression. Traffic was later restored after the situation subsided. (“23 PTI leaders, workers arrested as police scuttle protest near Karachi Press Club,” Dawn, 05 April 2026)
Editorials/Opinions
Iran war
Maleeha Lodhi, “No easy way out,” Dawn, 06 April 2026
"The US increasingly seems to be mired in a no-win war against Iran. With the conflict in its second month, not only has Iran shown the resilience to resist and conduct effective asymmetric warfare but its chokehold over the Strait of Hormuz has given it extraordinary leverage over global energy markets and the global economy."
https://www.dawn.com/news/1988931/no-easy-way-out
Kamran Yousaf, “Pakistan's tight diplomatic rope,” The Express Tribune, 06 April 2026
"In an increasingly polarised environment, Pakistan has emerged as a key intermediary between Iran and the US. Its role, though understated, has not gone unnoticed. Islamabad was instrumental in delivering a 15-point framework from Washington to Tehran, an effort that, at least partially, underscores its diplomatic relevance. The US has publicly acknowledged Pakistan's role, while Iran too has appreciated the effort. Pakistan today represents one of the few remaining windows through which diplomacy can still be pursued."
https://tribune.com.pk/story/2601223/pakistans-tight-diplomatic-rope
Economy
Naeem Sadiq, “Austerity delusion,” Dawn, 06 April 2026
"On March 20, 2026, Pakistan’s prime minister delivered a somewhat unwarranted and empty address to the nation — merely to announce that he had declined one among a dozen or so summaries placed before him each day. The announcement of not consenting to an additional hike in oil prices at the time, came in the wake of previously announced, lukewarm austerity measures. While burdening the poor, such ‘plasters on a bullet wound’ measures provide neither long-term financial reforms nor alter the fundamental societal inequality. The outrageous purchases of a Rs11 billion Gulfstream jet, a Rs90 million luxury vehicle for the Senate chairman and seven luxury cars for judges not simply betray but completely shatter the government’s much-trumpeted commitment to austerity."
https://www.dawn.com/news/1988928/austerity-delusion
Environment
Editorial, “The carbon test,” The Express Tribune, 06 April 2026
"Pakistan's first carbon market agreement with Norway has rightly been described as a milestone. For a country that contributes little to global emissions yet faces some of the harshest climate impacts, any new source of climate finance is welcome, especially with climate risks intensifying each year. At its simplest, the deal allows Pakistan to earn money by reducing emissions, whether through cleaner energy, better waste management or climate-smart farming and sell those reductions to a partner such as Norway. If done well, this could bring in investment, create jobs and accelerate the shift to a greener economy. There is, therefore, reason for cautious optimism."
https://www.dawn.com/news/1988933/the-carbon-test
AI
Asad Baig, “The age of AI empires,” Dawn, 06 April 2026
"“AI HAS long ceased to be just technology; it is now infrastructure,” I said in a recent talk. “If it’s so important, why isn’t it making money?” somebody asked. Fair question. On paper, the investment in AI looks irrational. Billions are going in, with no clear profits coming out. Even Meta’s Reality Labs lost nearly $20bn last year alone."
https://www.dawn.com/news/1988930/the-age-of-ai-empires
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