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In Focus
Trump extends ceasefire by a day as Islamabad prepares for talks?
Iran criticises “contradictory signals” from US; PM Shehbaz speaks to European Council President as security beefed up in Islamabad
On 21 April, Dawn, The Express Tribune and The News International reported that a US delegation led by Vice President JD Vance was expected in Islamabad for a second round of talks with Iran, as a fragile ceasefire neared expiry. Donald Trump said the truce would now last until “Wednesday evening Washington time” but warned it was highly unlikely to be extended further. Iranian President Masoud Pezeshkian criticised “unconstructive and contradictory signals” from Washington, stressing that “honouring commitments is the basis of meaningful dialogue”. Meanwhile, tensions escalated after a US seizure of an Iranian vessel and continued blockade around the Strait of Hormuz, complicating already fragile diplomatic efforts.
At the core of negotiations lies the nuclear dispute, with Washington pushing for a 20-year halt to uranium enrichment and Tehran countering with a shorter three-to-five-year pause. Talks are centred on Iran’s stockpile of around 440kg of highly enriched uranium, a key proliferation concern. While the US has demanded zero enrichment, Iran insists its programme is for civilian use and rejects what it views as coercive demands. Diplomats suggest a potential “skeletal agreement” combining nuclear limits with economic relief, but warn the nuclear file remains “by far the most contentious” issue, reflecting deep-rooted mistrust intensified by recent hostilities.
Pakistan has intensified its mediation, positioning itself as an “honest broker” amid mounting global pressure. Deputy Prime Minister and Foreign Minister Ishaq Dar stressed the need for “continued dialogue and engagement at the earliest” during a call with Iranian Foreign Minister Abbas Araghchi, while Interior Minister Mohsin Naqvi assured “foolproof security arrangements” for delegations during separate conversations with the Iranian and US envoys. European Council President Antonio Costa said the “world is watching with great expectation” and hoped talks would lead to reopening the Strait of Hormuz. With over 20,000 security personnel deployed in Islamabad and international actors, including China, Russia, and the EU, urging restraint, expectations remain cautious as both sides weigh diplomacy against escalating risks. (“US, ISRAEL STRIKE IRAN,” The News International, 21 April 2026; “Diplomatic flurry as US-Iran truce deadline nears,” Dawn, 21 April 2026; “'World watching with great expectation': EU council chief hopes for US-Iran deal in call with PM Shehbaz,” The Express Tribune, 20 April 2026; “FM Dar emphasises continued dialogue and engagement to Araghchi as US-Iran talks hang in balance,” The Express Tribune, 20 April 2026; “Naqvi meets Iran, US envoys to discuss preparations for 2nd round of Islamabad Talks,” Dawn, 20 April 2026)
In Brief
EXTERNAL
Pakistan and Egypt conclude joint counter-terrorism exercise Thunder-II in Cherat
On 20 April, Dawn reported that Pakistan and Egypt concluded a two-week joint military exercise, Thunder-II, at the Special Operations School in Cherat, Khyber Pakhtunkhwa, according to the Inter-Services Public Relations (ISPR). The exercise involved combat teams from Pakistan Army's Special Services Group (SSG) and Egyptian Special Forces, and was designed to enhance interoperability through joint training in counter-terrorism drills and techniques. The closing ceremony was attended by the General Officer Commanding SSG and Egyptian Paratroopers Commander Major General Mohamed Saad Abdel Razik. ISPR noted that the exercise further strengthened longstanding military-to-military relations between the two countries. ("Pakistan, Egypt conclude 2-week long counter-terrorism exercise: ISPR," Dawn, 20 April 2026)
Pakistan and Ethiopia explore multi-country business forum and direct trade links across Africa
On 21 April, The Express Tribune reported that Commerce Minister Jam Kamal Khan met Ethiopian Ambassador Dr Oumer Hussein Oba to explore bilateral trade and industrial collaboration, with a focus on expanding engagement across African markets. Kamal proposed organising a multi-country business forum in Islamabad, inviting East African nations, and highlighted cooperation potential in agriculture, engineering industries, tractors, and cosmetics. On logistics, he proposed enhancing direct maritime links through feeder vessels to African ports to reduce transit time from over 10 to 12 days to just two to three days, reducing reliance on third-country hubs such as Jebel Ali Port. The ambassador noted that a single-country Ethiopia exhibition is planned for Islamabad by end of year, and that Ethiopian Airlines is considering direct flights to Lahore. ("Pakistan, Ethiopia agree to expand engagement," The Express Tribune, 21 April 2026)
ECONOMY
IMF adds 11 more conditions to USD seven billion package
On 20 April 2026, The Express Tribune reported that the International Monetary Fund (IMF) loaded the USD seven billion bailout package with 11 more conditions. It includes approval of the new budget by the National Assembly in line with the fund’s agreement and amending laws governing the special economic and technology zones. With the addition of 11 new conditions during the third review of the USD seven billion programme, the total number of conditions that the IMF has so far imposed during the past two years has touched 75. Pakistan had accepted the IMF condition that by June 2027, it would enact amendments to the Special Economic Zones (SEZ) Act and Special Technology Zones Authority Act (STZA) to phase out existing fiscal incentives and shift from profit- based to cost-based incentives. Also, industries located in export zones are often accused of selling a significant chunk of their production in the local market to evade taxes. Therefore, as part of the conditions, the Pakistan government would also prohibit the Export Processing Zones from selling their goods in the domestic market. The government has also accepted the IMF condition to increase the Benazir Income Support Programme beneficiaries' compensation from PKR 14,500 to PKR 19,500, beginning in January 2027. (“IMF loads $7 billion package with 11 new conditions for govt,” The Express Tribune, 20 April 2026)
Power and finance sectors lead rise in outflow of profits and dividends
On 21 April, Dawn reported that Pakistan has recorded an increase in outflow of profits and dividends. During July-March FY26, outflows of profits and dividends increased to USD 1.828 billion compared to USD 1.718 billion in the same period last year. The sectors that paid high dividends were the financial sector (banks) and the power sector. The outflow of profits from the power sector was the highest, at USD 427.5 million during the nine months, compared to USD 328 million last year. The financial sector earns mainly by lending to the government, and the size of lending has reached a record high. Profit outflows for this sector during this period were USD 405 million, compared to the previous year’s USD 214 million. However, the decline in foreign direct investment remains concerning, as FDI fell by 27 per cent during the first nine months of FY26. (“Govt foresee economic slowdown during current, next fiscal years due to Middle East war,” Dawn, 21 April 2026)
Govt anticipates low economic growth amid cuts in development funds
On 20 April, Dawn reported that the government highlighted low economic growth in the current and next fiscal year, due to a recent 20 per cent cut in the development budget for fuel subsidies amid the fuel crisis. Global supply chain disruptions stemming from the West Asia conflict are expected to exert inflationary pressure, potentially constraining the targeted economic growth rate. The Planning Minister stated that the Public Sector Development Programme (PSDP) for the current year had been slashed by PKR 173 billion to PKR 837 billion from the PKR 1.01 trillion target set in the budget. He also mentioned the rise in inflation, as average inflation had risen to 5.7 per cent in the first nine months compared to 3.5 per cent in the same period last year. (“Profit outflows rise to $1.83bn,” Dawn, 20 April 2026)
Govt increases Eurobond to USD 750 million
On 20 April, Dawn reported that Pakistan has increased its Eurobond to USD 750 million from USD 500 million by exercising the green-shoe option. This decision was taken as the country’s foreign exchange needs grow due to a higher oil import bill amid the West Asia conflict. The three-year Eurobond, which was initially placed at USD 500 million, attracted significant global interest, enabling the government to broaden investor participation. The decision to upsize the Eurobond enhances Pakistan’s presence in global capital markets. (“Pakistan increases eurobond from $500m to $750m,” Dawn, 20 April 2026)
SECURITY
Tirah Valley: Four construction workers abducted at gunpoint
On 20 April, Dawn reported that four road construction workers, including two excavator operators and two labourers, were abducted by armed men in the Peer Mela area of Tirah valley, Khyber district, while working on a link road project. Three of the abducted men were from Balochistan. Security forces launched a search operation in the area, while local elders demanded improved security for construction workers, warning that such incidents risked jeopardising ongoing development projects. Separately, a peace council of the Akkakhel tribe held in Bara tehsil expressed deep concern over the deteriorating security situation in Khyber district and demanded practical steps from law enforcement to protect lives and property, as well as a relief package for displaced Akkakhel families. ("4 construction workers abducted by armed men in KP's Tirah valley," Dawn, 20 April 2026)
KP: Four militants killed in two separate operations; one police officer martyred
On 20 April, The Express Tribune reported that four militants were killed and one police officer martyred in two separate intelligence-based operations in Khyber Pakhtunkhwa. In the first operation in Bannu, the ISPR confirmed the killing of two Tehrik-i-Taliban Pakistan (TTP) militants, including the ring leader Waheedullah alias Muktiar, described as one of the most wanted terrorists and identified as the main handler of the suicide bomber responsible for the martyrdom of Lieutenant Colonel Gul Faraz in February 2026. A suicide jacket, weapons, and ammunition were recovered. In a separate CTD operation in the Akhundan forest area near the Bannu border in Lakki Marwat, two militants were killed, including highly wanted commander Amir Sohail alias Aqabi, wanted in multiple cases of targeted killings and attacks on security forces. Frontier Reserve Police Constable Atiqur Rehman was martyred during the operation. President Asif Ali Zardari and PM Shehbaz Sharif commended the security forces, with Zardari noting that Pakistan's enemies sought to undermine its peace efforts through terrorism. ("Four terrorists killed, one police officer martyred in separate IBOs in K-P," The Express Tribune, 20 April 2026)
SOCIETY
Amnesty International flags sustained erosion of civil liberties in Pakistan in annual report
On 21 April, Dawn reported that Amnesty International's annual report, The State of the World's Human Rights 2026, featured Pakistan prominently, documenting a sustained pattern of restrictions on freedom of expression, peaceful assembly, and political participation. The report flagged amendments to cybercrime and anti-terrorism laws as tools of suppression, cited arbitrary content shutdowns by the Pakistan Telecommunication Authority, and noted that authorities selectively withdrew advertising from critical newspapers. The 27th Amendment was flagged for undermining judicial independence and granting broad immunity to the heads of the armed forces and the president. On enforced disappearances, the report noted that three Baloch protesters were killed by law enforcement during a 21 March demonstration. Over 100 PTI leaders and activists were convicted by anti-terrorism courts in cases related to the May 2023 protests, with PTI founder Imran Khan described as being held in solitary confinement on "politically motivated charges" and denied access to legal counsel. The report also cited a 25 per cent rise in reported cases of violence against women over 11 months. It named journalists Asad Toor and Sohrab Barkat as being barred from leaving the country. ("Amnesty highlights erosion of civil liberties in Pakistan," Dawn, 21 April 2026)
CLIMATE CHANGE
Punjab: UNDP and Japan partner to strengthen climate resilience in flood-affected areas
On 21 April, Dawn reported that the United Nations Development Programme (UNDP) and Japan have launched a USD 400,000 project to strengthen community resilience and disaster preparedness in Pakistan. This initiative will be implemented as part of UNDP’s broader resilience and recovery support in collaboration with national and provincial partners. The 12-month project will focus on improving community-based disaster preparedness in the flood-affected areas of southern Punjab. This is expected to directly benefit around 3,000 people, particularly women and youth, by enhancing their ability to anticipate, prepare for, and respond to climate-related risks. Key activities under the project include training community members in early-warning dissemination, preparedness planning, and first-response coordination. This initiative comes as Pakistan continues to face increasing risks from climate-induced disasters, including recurrent flooding, which has caused significant damage to livelihoods and infrastructure. These risks have caused significant damage to livelihoods and infrastructure, further intensifying vulnerabilities among communities facing socio-economic challenges. (“UNDP, Japan partner to boost climate resilience,” Dawn, 21 April 2026)
Editorials/Opinions
US-Iran War
David Hoffman, "Iran and the bomb," The News International, 21 April 2026
"The debate over Iran’s nuclear future will not be settled in opinion pages or think-tank panels. It will be decided by leaders calculating risks in Tehran, Tel Aviv and Washington – and by whether the international system continues to accept a world of nuclear haves and have-nots enforced at gunpoint. For those from South Asia who have lived through their own nuclear reckoning, one lesson stands out: deterrence does not erase conflicts, but it can keep them from consuming entire nations. In a Middle East haunted by Iraq, Syria, Gaza and decades of covert war, that may be the closest thing to stability on offer."
https://www.thenews.pk/print/1411172-iran-and-the-bomb
Jawed Naqvi, "Suppose Iran didn’t exist," Dawn, 21 April 2026
"‘Assuming and not conceding’. That phrase underpinned the masterly court craft of Perry Mason, the popular detective-lawyer of Erle Stanley Gardner’s riveting creations. Let’s assume Benjamin Netanyahu’s dream of destroying Iran as an Amalek of the Torah or Donald Trump’s threat to bomb the country into extinction somehow got pre-empted and Iran never existed. Let’s assume and not get needlessly reasonable to question the absurd assumption."
https://www.dawn.com/news/1993666/suppose-iran-didnt-exist
Economy
Editorial, "Food dependency," Dawn, 21 April 2026
"The surge to over $7bn in food imports within nine months of the present fiscal year is difficult to digest for a country endowed with vast arable land, diverse climate and a large workforce. That this increase is driven by items such as sugar, edible oil and pulses makes it even more troubling. These are staples that Pakistan should, with the right policies, be producing in sufficient quantities domestically. This growing reliance is, in many ways, self-inflicted. For decades, Pakistan’s agricultural strategy has revolved narrowly around major crops, including wheat, cotton, sugarcane and maize. While these crops are important, the policy bias in their favour through subsidies, support prices and water allocation has pushed farmers away from other critical areas such as oilseeds, pulses and high-value crops."
https://www.dawn.com/news/1993660/food-dependency
Badar Ul Islam, "Women in industry," The News International, 21 April 2026
"The next industrial era will not be defined only by machines, automation or green technologies. It will be defined by who is able to shape them. If women remain peripheral to Pakistan’s industrial strategy, the country will continue to underperform its potential. If they are placed at its centre, Pakistan gains not just growth, but resilience, legitimacy and global competitiveness."
https://www.thenews.pk/print/1411174-women-in-industry
Politics & governance
Arifa Noor, "No time for allies," Dawn, 21 April 2026
"There is a war in the neighbourhood and Pakistan is playing the role of the mediator, trying to convince two old foes to smoke the peace pipe and let bygones be bygones. Old habits die hard, however, and the negotiations between distrustful enemies are fraught with tension. This makes it more difficult for those holding the pipe, i.e., the inhabitants of Rawalpindi and Islamabad."
https://www.dawn.com/news/1993667/no-time-for-allies
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