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In Focus
Iranian envoy arrives in Islamabad for ceasefire talks?
Tehran outlines strict preconditions ahead of negotiations; sets two-week window for deal
On 11 April, Dawn reported that high-level talks between Iran and the United States were set to begin in Islamabad, marking a rare direct engagement after decades of hostility. Prime Minister Shehbaz Sharif described the moment as a “make-or-break situation” and a “critical opportunity” to move towards peace. Iranian delegates led by Mohammad Bagher Ghalibaf and Abbas Araghchi arrived ahead of the talks, while US Vice President JD Vance was expected to follow. Pakistan reiterated its role as a facilitator, expressing hope that parties would “engage constructively” and work towards a “lasting and durable solution” despite deep mistrust.
The talks were nearly derailed after Iran conditioned its participation on a halt to Israeli strikes in Lebanon, insisting that any ceasefire must extend across all fronts. Following intense backchannel diplomacy, a pause in attacks in Beirut and Dahieh appeared to meet a key Iranian demand, though strikes continued in southern Lebanon. Tehran warned that talks would be off if Israel “crosses it again” and cautioned of “devastating attacks” if negotiations collapse. Iranian officials also stressed that proceeding under continued violence would be “unreasonable”, signalling that the fragile ceasefire could unravel quickly.
Negotiations are expected to centre on Iran’s 10-point proposal, which Washington has accepted as a “workable basis” for talks, though major differences persist. Ahead of his departure, JD Vance said the US was “looking forward to the negotiation” and that it could be positive, but warned Washington would not be receptive to any attempt to “play us”. The US is expected to push for limits on Iran’s nuclear programme, while Tehran seeks sanctions relief and recognition of its nuclear rights. With only a two-week truce in place, officials say the initial round may merely set the stage for further dialogue rather than deliver immediate breakthroughs. (“Islamabad keyed up for ‘make-or-break’ talks,” Dawn, 11 April 2026; “US, ISRAEL STRIKE IRAN,” The News International, 11 April 2026; “JD Vance hopeful of 'positive' outcome as he departs for US-Iran talks in Islamabad,” The Express Tribune, 10 April 2026)
In Brief
ECONOMY
ADB raises Pakistan's growth forecast, flags inflationary pressures
On 10 April, Dawn reported that the Asian Development Bank (ADB) upgraded Pakistan’s economic growth rate to 3.5 per cent for the current fiscal year. Pakistan is expected to sustain its economic performance in the medium term, with a real gross domestic product forecast at 4.5 per cent in FY2027. However, it also raised concerns that Pakistan’s economic outlook faces significant downside risks from global economic uncertainty, leading to elevated inflationary, fiscal, and external account pressures. The report highlighted that average inflation is projected to rise to 6.4 per cent in FY26 and 6.5 per cent in FY27 due to surging oil prices and disrupted trade routes amid the Iran conflict, as oil and gas constitute a large share of Pakistan’s imports. (“Asian development bank upgrades Pakistan's economic growth rate to 3.5pc,” Dawn, 10 April 2026)
Govt slashes petrol and diesel prices following stable global prices
On 11 April, Dawn reported that Prime Minister Shehbaz Sharif announced a PKR 135 per litre cut in diesel and PKR 12 per litre in petrol prices to pass on the impact of ease in global prices following a two-week ceasefire between the United States and Iran. The ex-depot price of high-speed diesel (HSD) has now been fixed at PKR 385.54 per litre against PKR 520.35, showing a 26 per cent. HSD is considered the most inflationary item, given its use in freight transportation. The price of kerosene has also been reduced by PKR 17.33 per litre to PKR 450.15, and that of light diesel oil by PKR 25.31 per litre to PKR 369.72. The Prime Minister, in his statement, emphasised that a cut in diesel price was also important to ensure that farmers did not face losses while the wheat harvest had already begun, and this would also add to food inflation for the common people. He also mentioned that the targeted subsidy announced by the government for two-wheelers, public transport and agriculture would continue. (“Diesel price cut by Rs 135; petrol sees drop of Rs 12,” Dawn, 11 April 2026)
Short-term inflation rises by 12.15 per cent following higher fuel costs
On 11 April, Dawn reported that as per the Sensitive Price Index, short-term inflation rose by 12.15 per cent on a year-on-year basis. The short-term inflation is mainly driven by higher retail prices for petroleum products in the domestic market. The index, comprising 51 items collected from 50 markets in 17 cities, is computed weekly to assess the prices of essential commodities and services at shorter intervals. The increase in fuel prices twice in a month pushed up transport costs, feeding into the prices of both perishable and non-perishable items and raising overall production costs for manufacturers. On an annual basis, the items whose prices increased the most were diesel with 101.02 per cent, LPG with 65.86 per cent, petrol with 48.70 per cent, wheat flour with 30.10 per cent, and gas charges for Q1 with 29.85 per cent. (“Short-term inflation surges by 12.15pc,” Dawn, 11 April 2026)
EXTERNAL
PM Shehbaz meets Saudi finance minister, reaffirms commitment to expanding bilateral ties
On 11 April, Dawn reported that Saudi Finance Minister Mohammed bin Abdullah al Jadaan called on PM Shehbaz Sharif at the PM House during a one-day visit to Islamabad, with Deputy PM Ishaq Dar and Field Marshal Asim Munir also present. The prime minister conveyed regards to King Salman and Crown Prince Mohammed bin Salman, expressed appreciation for Saudi Arabia's longstanding economic and financial support to Pakistan, and reaffirmed Pakistan's commitment to expanding cooperation in trade, investment, and economic development. Jadaan, in turn, reaffirmed the kingdom's resolve to strengthen bilateral ties as envisioned by the crown prince. ("In meeting with Saudi finance minister, PM emphasises 'strong commitment' to expanding cooperation in all spheres," Dawn, 11 April 2026)
PM Shehbaz and UK's Starmer call for lasting peace ahead of Islamabad talks
On 11 April, The Express Tribune reported that PM Shehbaz Sharif and UK Prime Minister Keir Starmer spoke by phone ahead of the US-Iran talks in Islamabad, with both leaders stressing the importance of keeping the ceasefire in place as a foundation for lasting peace and stability. Starmer praised Pakistan's diplomatic efforts in securing the ceasefire, which took effect on Wednesday after 39 days of conflict. The Islamabad talks, set to begin Saturday, would be the most significant direct engagement between Washington and Tehran since 1979. More than 3,000 Iranians and at least 13 US servicemen were killed during the fighting. ("PM Shehbaz, Starmer seek 'lasting peace' as US, Iran set for Islamabad talks," The Express Tribune, 11 April 2026)
Foreign Ministers of Pakistan and France voice concern over Lebanon ceasefire violations, reaffirm bilateral ties
On 10 April, The Express Tribune reported that Foreign Minister Ishaq Dar spoke with French Foreign Minister Jean-Noël Barrot, who congratulated Pakistan on its role in securing the initial ceasefire and expressed support for Islamabad's continued diplomatic efforts. Both sides voiced concern over serious ceasefire violations in Lebanon and stressed the importance of full implementation of the agreement. They also reaffirmed their commitment to strengthening bilateral economic and trade ties. The call came as Israel continued to intensify strikes across Lebanon despite the ceasefire, with Lebanese authorities reporting hundreds killed and over a thousand injured. Washington maintained that Israel's actions fell outside the scope of the US-Iran truce, while Tehran insisted the continued strikes violated the agreement and risked rendering the upcoming Islamabad talks meaningless. ("Dar, French FM discuss Lebanon violations, reaffirm bilateral cooperation," The Express Tribune, 10 April 2026)
SECURITY
Pakistan Navy rescues 18 crew members of merchant vessel in Arabian Sea
On 10 April, Dawn reported that the Pakistan Navy rescued 18 crew members of merchant vessel MV Gold Autumn, including nationals of China, Bangladesh, Myanmar, Vietnam, and Indonesia, following a distress call from approximately 200 nautical miles off Pakistan's coast in the North Arabian Sea. PNS Hunain was dispatched after the Pakistan Maritime Security Agency activated its Maritime Rescue Coordination Centre, with the naval team providing medical assistance, supporting firefighting efforts, and conducting damage assessment before evacuating the crew to Karachi for medical care and repatriation. PM Shehbaz Sharif commended the Navy for its swift response and professionalism. ("Pakistan Navy rescues 18 crew members, including foreign nationals, of merchant vessel in Arabian Sea operation," Dawn, 10 April 2026)
POLITICS & GOVERNANCE
PTI welcomes Pakistan's diplomatic role but urges government to align domestic conduct with international posture
On 11 April, Dawn reported that PTI welcomed Pakistan's role in facilitating US-Iran dialogue, with Central Information Secretary Sheikh Waqas Akram saying the Islamabad talks had earned the country a positive global image. The party framed the diplomatic effort as consistent with PTI founder Imran Khan's long-held philosophy of resolving disputes through dialogue rather than force. Akram strongly condemned Israeli strikes on Lebanon, calling them a grave violation of international law that risked derailing the fragile peace process, and urged the government to press Washington to rein in Israel. He also drew a pointed contrast between Pakistan's international posture and its domestic conduct, calling for Imran's transfer to Shifa International Hospital given severe vision loss in one eye, and demanding that restrictions on his access to family, legal counsel, books, and medical care of his choice be lifted immediately. He credited Imran with voluntarily postponing the Liaquat Bagh rally to avoid being distracted from the sensitive diplomatic engagement, calling it an act of statesmanship. ("PTI hails Pakistan's role in bringing Iran, US to negotiating table," Dawn, 11 April 2026)
Editorials/Opinions
Iran war
Dr Raza Muhammad, "Future scenario and security architecture in Middle East," The Express Tribune, 11 April 2026
"The 40-day US-Israel war on Iran, punctuated by a Pakistan-brokered ceasefire, neither had a just cause nor a crystallised war aim. The fluctuating war objectives included: elimination of Iranian leadership to engender a regime change; halt of Iran's nuclear programme that was claimed to have been obliterated in June 2026; destruction of its missile and drone programmes; total capitulation; capture of Kharg Island; control of Strait of Hormuz; etc."
https://tribune.com.pk/story/2601909/future-scenario-and-security-architecture-in-middle-east
Pakistan-Afghanistan
Durdana Najam, "Urumqi talks and the hard truth about Afghanistan," The Express Tribune, 11 April 2026
"Pakistan, once burdened by persistent allegations of complicity in terrorism, is now actively positioning itself on the other side of that divide - supporting ceasefire efforts in the Middle East, opening channels of dialogue and presenting itself as a country invested in de-escalation. Alongside that, China continues to expand its role as a stabilising force, using diplomacy and economic leverage to prevent fault lines from turning into crises."
https://tribune.com.pk/story/2602084/urumqi-talks-and-the-hard-truth-about-afghanistan
Economy
Editorial, "Narrative of large tax gap," Dawn, 11 April 2026
"Pakistan's fiscal debate has settled into a familiar rhythm. The World Bank, IMF, tax consultants and commentators frequently assert that the country suffers from a ‘tax gap’ of seven to nine per cent of GDP — a shortfall between what is collected and what the law, ideally enforced, would yield. The metric implies that this shortfall is a result of cheating taxpayers. It is a powerful narrative that favours the tax collector and policymaker to deflect their mistakes or venality to focus on increased coercion to ensure compliance."
https://www.dawn.com/news/1990684/narrative-of-large-tax-gap
Balochistan
Imtiaz Gul, "Caught in paradox and conflict," The Express Tribune, 11 April 2026
"What explains Balochistan's present socio-political paradox - born of vested interests and incompetence? Two recent events offer a telling lens: the April 5 decision by Chief Minister Mir Sarfraz Bugti to fix the price of Iranian smuggled petrol at Rs280 per litre, and the awarding of a National Assembly ticket to Shafiq Mengal."
https://tribune.com.pk/story/2602090/caught-in-paradox-and-conflict
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