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In Focus
Government vows to remove investor hurdles after Chinese firm announces closure
Planning Minister convenes meeting on Monday to review situation; Firm withdraws announcement after government intervention
On 04 May, Dawn reported that Pakistan’s Planning Minister Ahsan Iqbal convened an urgent meeting after a Chinese firm, Han Geng Group, announced last Friday that it would shut down operations linked to Gwadar Port, citing administrative and policy hurdles. The company had complained of persistent difficulties in securing export approvals despite meeting international standards, leading to mounting financial losses. The development raised concerns over investor confidence in projects under the China-Pakistan Economic Corridor (CPEC), a flagship economic partnership between Pakistan and China.
Following swift intervention, including directives from Prime Minister Shehbaz Sharif, authorities assured the company that bureaucratic obstacles would be resolved on a priority basis. In response, the Han Geng Group withdrew its decision to suspend operations and agreed to continue business activities. The episode underscores both the operational challenges faced by foreign investors and the government’s reliance on rapid policy responses to stabilise confidence in strategic economic projects. The company expressed concern that it faced “challenges beyond the capacity of any private enterprise,” despite being involved in major projects such as Gwadar and CPEC. The company statement identified “administrative uncertainty and hurdles in policy implementation” as the primary reasons behind the closure. (“Minister vows to remove hurdles faced by investors,” Dawn, 04 May 2026)
Pakistan-China catch-up
Pakistan and China deepen economic ties with series of MoUs?
President Zardari oversees signing of agreements; Collaboration aims to deepen cooperation in machinery, vaccine and medical technology sectors
On 01 May, The Express Tribune and Dawn reported that President Asif Ali Zardari oversaw the signing of multiple agreements with China in Sanya, including two Memorandums of Understanding (MoUs) and a joint venture covering construction machinery, animal vaccines and medical technology. The agreements aim to expand industrial cooperation between Pakistan and China, with a focus on supporting projects linked to the China-Pakistan Economic Corridor (CPEC). Key collaborations include machinery supply chains, livestock sector modernisation and the introduction of AI-based medical technologies. The signings followed earlier agreements in Changsha, which covered water desalination and agricultural technology.
The five-day visit reflected a strategic effort to recalibrate Pakistan-China ties toward investment, technology transfer and industrial growth. Rather than focusing solely on large-scale infrastructure, both sides emphasised sector-specific partnerships, including agriculture, manufacturing and the maritime economy. Notably, the engagements highlighted growing provincial-level collaboration, signalling a shift toward “sub-national diplomacy” where regional governments drive trade and investment initiatives. The visit also included defence cooperation elements, underscoring the multidimensional nature of bilateral ties as both countries marked 75 years of diplomatic relations.
Analysts view the developments as part of a broader transition to CPEC 2.0, prioritising sustainable economic integration over headline infrastructure projects. However, challenges remain, including security concerns, policy bottlenecks and regional instability - particularly in Afghanistan - which continue to affect investor confidence. Despite these constraints, the renewed engagement suggests both Islamabad and Beijing are seeking to align economic cooperation with evolving geopolitical dynamics, while expanding collaboration into emerging sectors on the Pakistan side, such as clean energy, artificial intelligence and advanced manufacturing. (“President Zardari wraps up China visit with new agreements,” Dawn, 02 May 2026; “Pakistan, China sign MoUs on machinery, vaccines, medical technology,” The Express Tribune, 01 May 2026; “Pak-China expand ties across sectors,” Dawn, 04 May 2026)
In Brief
SECURITY
Punjab officers sent to “hard areas” spark concern
On 04 May, Dawn reported that Pakistan’s Establishment Division has transferred 10 Punjab police officers to “hard areas” in Khyber Pakhtunkhwa and Balochistan for a mandatory one-year posting, despite concerns over their age, health, and proximity to retirement. The move, described as a temporary arrangement, involves BS-18 officers recently encadred into the Police Service of Pakistan, rather than younger officers typically assigned under earlier policy expectations. Officials said such postings are intended to expose officers to challenging conditions, though affected personnel argued the decision contradicts prior commitments to deploy newer recruits.
The decision has triggered unease within the police, with several officers raising concerns about medical conditions and ongoing training commitments, while Punjab’s police chief confirmed the issue is being taken up with the Establishment Division. Authorities maintained the transfers are not linked to the 2020 rotation policy, which has been suspended, and emphasised that federal service officers can be posted anywhere as required. However, critics within the department described the move as impractical, arguing it places undue burden on “seasoned” officers nearing the end of their careers. (“Punjab cops in a bind over transfer to ‘hard areas’,” Dawn, 04 May 2026)
Bajaur: Two, including a social activist, killed in separate attacks
On 03 May, Dawn reported that two people, including social activist Malik Ziaur Rehman, were killed in separate attacks in Khyber Pakhtunkhwa’s Bajaur district, highlighting ongoing security concerns in the region. Rehman, 37, was shot by unidentified assailants near his residence in the Kohi area of Salarzai tehsil and later succumbed to his injuries at the district headquarters hospital in Khar, while police launched a search operation to apprehend the attackers who fled the scene. In a separate incident, a man identified as Sayed Door Khan was critically injured in an improvised explosive device (IED) blast in the Asil Targaoo area and later died in hospital, with authorities initiating an investigation to determine responsibility and motive. Officials said both incidents were under active investigation, as residents pointed to a pattern of violence in the area, noting that Rehman’s father had also been killed in a similar attack in previous years, underscoring persistent insecurity. (“2 men, including social activist, killed in separate attacks in KP's Bajaur,” Dawn, 03 May 2026)
Gwadar: Four militants and two soldiers killed in Pasni operation
On 03 May, Dawn reported that four militants and two security personnel were killed during a counterterrorism operation in Pasni, in Balochistan’s Gwadar district, after security forces launched a raid based on intelligence about the presence of armed suspects in the area. Officials said forces cordoned off the militants’ hideout, triggering a heavy exchange of fire lasting around two hours, during which the attackers used automatic weapons before being neutralised, while a clearance operation continued to secure the area. In a separate incident in Duki district, two security personnel were seriously injured when a landmine planted by unidentified individuals exploded after being struck by a motorcycle in the Taleo area. Authorities said the injured, who were part of a private security company, were shifted for treatment, as investigations were launched into the blast, highlighting the persistent threat posed by militant activity and improvised explosive devices in Balochistan. (“Four terrorists killed in Gwadar operation,” Dawn, 03 May 2026)
EXTERNAL
US transfers 22 crew members of seized Iranian vessel to Pakistan for repatriation
On 04 May, Dawn reported that the 22 crew members of the Iranian container ship MV Touska, seized by US forces on 19 April 2026 in the Gulf of Oman after it allegedly failed to comply with the US naval blockade of Iranian ports, have been transferred to Pakistan for repatriation. Six other passengers, identified by Iranian state media as family members of crew, had already been transferred to a regional country the previous week. Custody of the Touska itself is being returned to its original ownership. Iran had condemned the original seizure as unlawful and a violation of international law. Separately, US President Donald Trump announced "Operation Freedom" on Sunday, pledging to deploy 15,000 military personnel, over 100 aircraft, warships, and drones to escort commercial vessels stranded in the Strait of Hormuz, where hundreds of ships and as many as 20,000 seafarers have been unable to transit since the conflict began on 28 February 2026. Iran warned that any US interference in the strait's "new maritime regime" would be considered a ceasefire violation. ("Iranian ship, crew seized by US transferred to Pakistan: report," Dawn, 04 May 2026)
Pakistan-Bangladesh bilateral trade reaches USD 1 billion after 20 per cent growth
On 04 May, The Express Tribune reported that Bangladesh Deputy High Commissioner to Pakistan Saqib Sadaqat announced that bilateral trade between the two countries had grown by 20 per cent to reach USD 1 billion, attributing the increase to improved air and sea connectivity. Speaking at a Karachi Council on Foreign Relations session in honour of a 12-member Bangladeshi civil servants' delegation, he said direct flights and shipping links had significantly enhanced commercial prospects, and that further growth remained possible. ("Pakistan-Bangladesh trade hits $1b mark," The Express Tribune, 04 May 2026)
Pakistan rejects British diplomat's remarks on Pak-Afghan border as "one-sided"
On 02 May, Dawn reported that the Foreign Office pushed back against a social media post by British Special Representative for Afghanistan Richard Lindsay, who had expressed concern over violence along the Afghanistan-Pakistan border, including strikes in Kunar province. FO Spokesperson Tahir Andrabi described the remarks as "devoid of a deeper understanding of the situation," stating that cross-border aggression and terrorist infiltration from the Afghan side had continued unabated despite Pakistan's temporary pause in Operation Ghazab lil-Haq announced in March 2026. Andrabi said that since the pause, cross-border attacks and TTP activities had resulted in the martyrdom of 52 civilians and 84 injuries, and rejected Afghan claims of civilian casualties from Pakistan's responses as lacking evidential credibility. Information Minister Attaullah Tarar separately described Afghan Taliban attacks targeting civilians in KP's border districts as "unacceptable and barbaric," pointing to specific incidents, including a quadcopter attack that injured three civilians playing cricket in Bajaur. ("Pakistan slams 'one-sided' remarks by British diplomat on Pak-Afghan border situation," Dawn, 02 May 2026)
ECONOMY
Pakistan Strategy report flags double-digit inflation amid West Asia crisis
On 03 May, Dawn reported that Pakistan’s inflation is likely to remain in double digits amid the West Asia Crisis as per the “Pakistan Strategy” report released by Topline Securities Ltd. It analysed the impact of soaring oil prices amid regional tensions and their implications for Pakistan’s economy and stock market. The report projected that if current conditions persist, Pakistan’s inflation over the next 12 months could average 9-10 per cent, with fourth-quarter FY26 inflation surpassing 11 per cent. These forecasts are based on an oil price of USD 100 per barrel, with every USD 10 increase adding roughly 50 basis points to inflation estimates. At USD120 per barrel, average annual inflation could reach 10-11 per cent. Topline Securities lowered its GDP forecast for FY27 to 2.5-3.0 per cent, down from an earlier 4.0 per cent, reflecting a 100-120bps impact. FY26 growth is maintained at 3.5-4.0 per cent, in line with the central bank’s revised guidelines. (“Oil spike threatens Pakistan's economic growth,” Dawn, 03 May 2026)
Foreign investors exit T- bills despite Central Bank’s 83 bps spike
On 03 May, Dawn reported that foreign investors have almost left the domestic bonds, which had been their preferred choice, as returns were highest in the region and very high compared with most other countries, as per State Bank of Pakistan data. The central bank's decision to increase the yields on Treasury Bills by up to 83 basis points to almost 12 per cent did not yield any results. By 17 April, over 94 per cent of foreign investment in T-bills had left the country. From 1 July to 17 April 2025-26, inflows into T-bills were USD 975 million, while outflows were USD 917 million, indicating a net investment of USD 58 million. The SBP data showed that the highest outflows from the T-bills were USD 291million to the UK, followed by USD 271 million to the UAE. Other significant outflows were USD 218 million to Bahrain and USD 77 million to Singapore. An outflow of USD 32 million was to the USA. (“Foreign investors exit T-bills,” Dawn, 03 May 2026)
Ministries directed to return unutilised funds early
On 04 May, Dawn reported that the Ministry of Finance has directed all ministries, divisions, departments, and autonomous bodies to surrender all savings and unspent allocations that are not expected to be utilised during the current fiscal year. The instructions have been issued to ensure that revised estimates for FY2025-26 are finalised. The MoF directed all principal accounting officers (PAOs) to “surrender anticipated savings” under all four major expenditure heads to the Finance Division by 10 May. Under Section 12 of the PFM Act, 2019, all ministries and divisions are required to surrender savings to the Finance Division by 31 May each year. However, the deadline had been advanced by nearly a month on the directives of Parliament’s Public Accounts Committee (PAC) to improve fiscal prudence, as the PSDP has already been cut by PKR 173 billion (about 20 per cent of the budgeted allocation) to transfer funds to the Prime Minister’s fund for fuel subsidies following rising petroleum prices in the wake of the West Asia crisis. (“Ministries told to surrender unspent funds,” Dawn, 04 May 2026)
POLITICS & GOVERNANCE
PPP calls for review of Prevention of Electronic Crimes Act to guarantee freedoms
On 03 May, Dawn reported that the Pakistan Peoples Party (PPP) Human Rights Cell called for a comprehensive review of the Prevention of Electronic Crimes Act (PECA), arguing that it has been increasingly “weaponised” against journalists and rights defenders. Speaking on World Press Freedom Day, President of the Human Rights Cell, Farhatullah Babar, urged reforms to align the law with constitutional guarantees and international human rights standards, while condemning the use of legal processes - such as prolonged detentions and delayed hearings - as tools of intimidation. The group also called for legislation to protect human rights defenders and raised concerns over recent cases involving journalists. Meanwhile, Sardar Ayaz Sadiq reaffirmed the importance of press freedom, stressing that responsible journalism is essential for democracy, transparency and accountability, and pledged continued parliamentary efforts to safeguard media rights. (“PPP Human Rights Cell urges review of Peca to align it with constitutional freedoms,” Dawn, 03 May 2026)
Opposition slams govt over inflation, media curbs
On 03 May, Dawn reported that opposition parties led by Pakistan Tehreek-e-Insaf (PTI) launched a broad attack on the government, accusing it of failing to curb inflation, suppressing media freedoms, and enabling undue interference by intelligence agencies in politics. PTI leader Sheikh Waqas Akram said rising fuel and commodity prices had pushed citizens into severe economic hardship, rejecting the government’s attribution of the crisis to global factors, while also citing concerns raised by Reporters Without Borders about declining press freedom. The party further criticised what it called the selective enforcement of policies and governance failures in sectors such as healthcare. Separately, opposition leader Mahmood Khan Achakzai warned intelligence agencies against political interference, urging them to remain within constitutional limits, and alleged efforts to sideline Imran Khan from politics. Echoing these concerns, PTI Secretary General Salman Akram Raja reaffirmed the party’s commitment to securing Khan’s release, linking his incarceration to broader political and economic instability in the country. (“Opposition steps up criticism of govt over economy, press freedom,” Dawn, 03 May 2026)
SOCIETY
Media bodies warn of rising curbs on press freedom in Pakistan
On 04 May, Dawn reported that media organisations and civil society groups raised alarm over growing restrictions on press freedom and increasing risks to journalists in Pakistan on World Press Freedom Day, with a joint statement by bodies including the Pakistan Broadcasters Association (PBA), All Pakistan Newspapers Society (APNS), and Pakistan Federal Union of Journalists (PFUJ) highlighting harassment, arrests, violence, censorship, and editorial interference. The statement, which was also endorsed by the Council of Pakistan Newspaper Editors (CPNE) and the Association of Electronic Media Editors and News Directors (AMEND), noted that media outlets faced both direct and indirect pressure, including the use of government advertisements to influence editorial policy, restrictions on information flow, and removal of dissenting voices from broadcast platforms, while also drawing attention to risks faced by journalists in conflict zones globally.
Separately, civil society groups in a letter to Prime Minister Shehbaz Sharif warned that legal tools such as the Prevention of Electronic Crimes Act (PECA) were increasingly used to intimidate journalists, citing at least 58 cases filed over the past year, alongside economic pressures, layoffs, and informal censorship practices that have fostered self-censorship. While PM Shehaz and President Asif Ali Zardari reaffirmed their commitment to press freedom and responsible journalism, rights groups stressed that stronger legal protections and institutional reforms were urgently needed. (“Media bodies, civil society raise alarm over press curbs,” Dawn, 04 May 2026)
Editorials/Opinions
Iran War
Maleeha Lodhi, "A long war?" Dawn, 04 May 2026
"It is becoming increasingly uncertain how long the Iran war, now in its third month, will last. Until recently, it seemed American and Iranian interests aligned in wanting to avoid a protracted conflict, although Israel’s didn’t. That impression gained strength when they held their first, and so far only, face-to-face talks in Islamabad last month."
https://www.dawn.com/news/1997326/a-long-war
Kamran Yousaf, "US-Iran war: three scenarios," The Express Tribune, 04 May 2026
"The US-Iran war is reaching an inflection point. Two months after the US and Israel started bombing Iran, there are still no clear winners. The temporary ceasefire is holding, but the specter of another phase of hostilities looms large. There is no war, but no peace either at the moment. Iran, on Thursday, via Pakistan, delivered a new set of proposals to the US in a move that rekindled the dwindling hopes for ending the catastrophic war. But President Trump has dampened those hopes by saying that the new plan proposed by Iran is not enough to make a deal. Iran submitted the revised plan after initial proposals were rejected by the US. Details, however, were never made public. It is believed that the initial plan focused only on addressing the Strait of Hormuz issue before tackling more pressing ones such as Iran's nuclear programme. In simple terms, the US wants an "all-in-one deal" while Tehran is keener on a step-by-step process."
https://tribune.com.pk/story/2606190/us-iran-war-three-scenarios
AI
Hassan Aslam Shad, "Pakistan’s AI reckoning," Dawn, 04 May 2026
"Pakistan is beginning to confront a question it can no longer defer: how to AI-proof its future. Artificial intelligence is no longer a distant ambition. It is an immediate necessity. In recent months, Pakistan has announced a nationwide AI training programme, committed $1 billion in investment by 2030, and outlined plans to train a large segment of its workforce in AI-related skills."
https://www.dawn.com/news/1997325/pakistans-ai-reckoning
Climate change
Editorial, "Climate readiness" Dawn, 04 May 2026
"As policymakers gather for the Breathe Pakistan conference this week, the urgency is hard to miss. Each year, such forums bring new ideas. Yet the country’s climate risks keep growing. The question is no longer what we know, but what we are willing to do. The latest Jinnah Institute report on climate resilience offers a clear answer. Pakistan remains stuck in a cycle of reacting to disasters instead of preparing for them. The 2025 floods displaced millions and destroyed livelihoods, exposing not only natural vulnerability but also structural failure — weak early warning systems, fragmented governance, and the steady loss of natural buffers. This year’s outlook gives little comfort. Heatwaves have arrived early, and changing weather patterns raise the risk of both drought and heavy rains. Water stress is worsening: rivers are polluted, groundwater is falling, and many cities struggle to provide safe drinking water. These pressures are building at the same time, placing added strain on already stretched systems."
https://www.dawn.com/news/1997328/climate-readiness
Education
Editorial, "Student suicides," The Express Tribune, 04 May 2026
"The Pakistan Medical and Dental Council (PMDC) has finally responded to the nationwide protests in the wake of a medical student committing suicide, allegedly due to the disciplinary excess of the teachers of the private university she was studying in. Alleged persistent harassment by teachers caused the 22-year-old female student to go from being a top-performer to her own killer. PMDC, in recognition of her struggle, has now mandated all medical and dental institutions to implement mental health screening protocols as a preventative measure."
https://tribune.com.pk/story/2606193/student-suicides
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