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In Focus
Pakistan and China have signed deals worth USD 13 billion over the last two years
More than 300 MoUs and 36 joint venture agreements signed; KCCI and China’s IBI to sign separate MoU on digital trade and technology transfer
On 12 May, Dawn and The Express Tribune reported that Pakistan’s Ambassador to China, Khalil Hashmi, said Islamabad and Beijing had signed more than 300 memorandums of understanding (MoUs) and over 36 joint venture agreements worth more than USD 13 billion over the past two years. Speaking during a meeting with a 70-member delegation from China’s IBI Group at the Karachi Chamber of Commerce and Industry (KCCI), Hashmi said Pakistan had developed a mechanism to improve the implementation of agreements, with nearly 30 per cent of MoUs now converting into formal contracts. He also said Pakistan was in talks with CATL, one of the world’s largest battery producers, regarding potential investment and cooperation projects, particularly in sodium-based battery technologies, which he said aligned with Pakistan’s raw material potential.
During the visit, KCCI and IBI Group signed a separate MoU aimed at promoting digital trade, industrial cooperation and technology transfer between businesses in both countries. IBI Group representatives said Karachi had the potential to emerge as a regional hub for digital trade and smart industrial transformation because of its strategic maritime position and industrial base. Pakistani officials also announced plans to hold an export promotion exhibition in China featuring more than 18 sectors of the Pakistani economy to strengthen trade and investment ties under broader Pakistan-China economic cooperation efforts. (“Pak-China sign $13b in MoUs, JVs in 2 years,” The Express Tribune, 12 May 2026; “Pakistan, China ink $13bn deals,” Dawn, 12 May 2026)
In Brief
AF-PAK
Pakistan issues formal protest to Afghanistan after Bannu attack
On 12 May, Dawn reported that Pakistan summoned the Afghan chargé d’affaires and issued a formal protest after a suicide attack in Bannu killed 15 police personnel. Pakistan’s Foreign Office said early investigations and technical evidence showed that the attack was planned by militants based in Afghanistan. The attack involved an explosives-filled vehicle followed by an armed assault on a police post in Khyber Pakhtunkhwa. Pakistan said it had repeatedly expressed concerns about militant groups using Afghan territory to carry out attacks inside Pakistan. The Foreign Office also warned that Pakistan had the right to respond against those responsible for the attack. In the past, Afghan Taliban authorities have rejected such accusations and said Pakistan’s security problems are internal matters. This incident comes during a situation where there are continuing tensions between Pakistan and Afghanistan over cross-border militancy and border security issues. (“Afghanistan issued demarche after 15 police personnel martyred in Bannu suicide attack,” Dawn, 12 May 2026)
ECONOMY
Govt extends austerity measures until 13 June amid escalating West Asia crisis
On 12 May, Dawn reported that the prime minister extended the countrywide austerity drive until 13 June as the West Asian crisis continues. The measures extended include a 50 per cent reduction in fuel allowances for official vehicles, grounding 60 per cent of official vehicles, and a complete ban on foreign visits by ministers and government officials; the working week for all government offices was reduced to four days, among others. Prime Minister Shehbaz Sharif also met President Asif Ali Zardari amid rumours of a 28th constitutional amendment. It is believed that this 28th Amendment will roll back the 18th Amendment, which was introduced by the PPP-led government in 2010. With this amendment, subjects such as health, population, education, and mines and minerals will be taken over by the centre from the provinces, leading to the reintroduction of the concurrent list. However, an official readout issued by the presidency did not make any mention of this proposed legislative package. (“PM extends conservation, austerity steps till June 13,” Dawn, 12 May 2026)
Pakistan revisits stalled refinery policy amid oil disruption fears
On 19 May, Dawn reported that the Pakistani government was revisiting its long-delayed petroleum refining policy amid disruptions linked to the ongoing United States-Iran conflict and rising concerns over energy security. Finance Minister Muhammad Aurangzeb reportedly assured refinery representatives that corrective measures would be introduced in the upcoming 2026-27 budget to revive nearly USD six billion in stalled refinery upgrade and expansion investments. Officials said Pakistan was losing up to USD two billion annually in foreign exchange because of reliance on imported petroleum products instead of refining crude oil domestically, while current oil import costs had surged by around USD one billion per month during the regional conflict. Petroleum Minister Ali Pervaiz Malik said the US-Iran war had highlighted the need to reduce dependence on external fuel supply chains and improve domestic refining capacity. Refinery operators, however, linked fresh investment to guarantees including policy stability, relief on sales tax distortions, and protection for upgrade projects under both the greenfield and brownfield refinery policies introduced in 2023 but later undermined by IMF-linked fiscal measures in the 2024-25 budget. (“Govt dusts off oil refining policy as Hormuz disruptions bite,” Dawn, 12 May 2026)
Pakistan records rapid growth in domestic internet connections
On 11 May, Dawn reported that during the review meeting of the Ministry of Information Technology and Communication, the premier was told that the number of domestic internet connections had increased from 1.9 million in 2024 to 5.1 million in 2026. He was also told that Pakistan’s information technology exports were expected to reach USD 4.5 billion to USD 4.6 billion. He was further informed that the recent 5G spectrum auction had generated USD 509 million in revenue. In his remarks, the prime minister said that cooperation from provincial and district-level governments should be sought to reduce the digital gap between urban and rural areas in the IT sector. He directed that work on establishing Asaan Khidmat Centres in “Gilgit-Baltistan” and Pakistan-Occupied Kashmir be expedited. (“IT exports expected to reach $4bn during current fiscal year, PM told,” Dawn, 11 May 2026)
SBP records 11.4 per cent growth in remittances in April despite regional instability
On 12 May, Dawn reported that remittance inflows rose by 8.5 per cent during the first ten months of FY26. As per State Bank of Pakistan (SBP) data, remittances rose by USD 10 billion within two years, from USD 23.85 billion in the first ten months of FY24 to USD 33.86 billion in FY26. Workers’ remittances stood at USD 3.5 billion in April, an increase of 11.4 per cent year-on-year but a decline of 7.6 per cent month-on-month. The highest remittance inflows were received from Saudi Arabia, rising 4.2 per cent to USD 7.928 billion in the first ten months of FY 26. The second-highest inflows, amounting to USD 7.008 billion, came from the UAE. Inflows from non-GCC countries increased by 5.6 per cent to USD 3.217 billion. However, remittances from the US declined by 4.7 per cent to USD 2.978 billion. Higher remittance inflows helped the country repay external loans and enabled the SBP to strengthen foreign exchange reserves. SBP had been purchasing dollars from the interbank market on a large scale, pushing reserves to around USD 16 billion. SBP purchased USD 27 billion from the interbank market during the last three and a half years. (“Remittances increase to $33.8bn despite war,” Dawn, 12 May 2026)
Balochistan: Traders demand end to smart lockdown ahead of Eidul Azha
On 12 May, Dawn reported that the Central Association of Traders, Balochistan, demanded an immediate end to a month-long “smart lockdown” ahead of the Eidul Azha holiday. It set a 14 May deadline for the government to act and warned the government of widespread protests across the state if the government does not lift the restrictions. With Eid al-Azha approaching, traders have invested millions in inventory, and small business owners rely on the peak holiday season for their annual livelihood. (“Traders demand end to ‘smart lockdown’ in Balochistan,” Dawn, 12 May 2026)
EXTERNAL
Iranian Chabahar delegation visits Gwadar to explore trade, logistics and investment cooperation
On 11 May, The Express Tribune reported that a high-level delegation from Iran's Chabahar Free Zone Organisation, led by Chairman Muhammad Saeed Arbabi, arrived in Gwadar through the Gabd-Rimzan border crossing to explore investment and logistics cooperation opportunities. The delegation, which includes Iranian investors and logistics experts, was invited by the Gwadar Chamber of Commerce and will tour the Gwadar Free Zone, port facilities, and ongoing development projects. Significant progress is expected on establishing a joint logistics network and transit trade arrangements between Gwadar and Chabahar, two strategically important regional ports. The delegation will subsequently travel to Karachi and Islamabad for meetings with federal and provincial officials and business leaders. The Gwadar Chamber described the visit as the beginning of a new chapter in Pakistan-Iran economic cooperation and said it would pave the way for larger delegations from Europe, Central Asia, and Gulf countries. ("Iranian delegation visits Gwadar for trade, investment," The Express Tribune, 11 May 2026)
Foreign Minister Dar thanks US for seafarer repatriations, discusses maritime security with Saudi FM and meets UN envoy
On 11 May, The Express Tribune reported that FM Ishaq Dar met US Chargé d'Affaires Natalie Baker in Islamabad, expressing appreciation for US assistance in the repatriation of 11 Pakistani and 20 Iranian seafarers aboard vessels seized by US authorities near Singaporean waters, and highlighting Pakistan's role in facilitating communication between Washington and Tehran. Dar separately spoke with Saudi FM Prince Faisal bin Farhan Al Saud, with both sides exchanging views on safeguarding maritime security, including in the Strait of Hormuz, and the Saudi minister reiterating support for Pakistan's regional peace efforts. Dar also met Jean Arnault, the UN Secretary-General's Personal Envoy for the Middle East Conflict, who conveyed the UN chief's deep appreciation for Pakistan's diplomatic efforts and expressed continued UN support. The meetings follow Pakistan's facilitation last week of the transfer of 22 Iranian crew members from the seized container ship MV Touska. ("FM Dar praises US assistance in repatriation of Pakistani, Iranian seafarers in meeting with CdA Baker," The Express Tribune, 11 May 2026)
POLITICS & GOVERNANCE
Peshawar court acquits 74 PTI activists in May 2023 violence case, citing lack of evidence
On 12 May, Dawn reported that an additional sessions court in Peshawar acquitted 74 PTI activists in a case arising from violence on 10 May 2023, in which two people died, ruling that the prosecution's case rested on "bald and unsubstantiated allegations" unsupported by any direct, circumstantial, or legally admissible evidence. Judge Faraz Ahmad found that none of the accused had been named in the original FIR, no eyewitness had identified them, no test identification parade was conducted, and no incriminating material was recovered from their possession. The legal heirs of one of the deceased also testified they had no objection to the acquittals. The case was one of multiple registered across Pakistan between 9 and 11 May 2023 against PTI leaders and workers following protests over Imran Khan's arrest. The court noted that the prosecution and complainant SHO had shown disinterest in the proceedings and ruled that continuing the trial would amount to unnecessary harassment and abuse of the court process. ("Peshawar court acquits 74 PTI activists in May 2023 violence case," Dawn, 12 May 2026)
Imran's sister challenges IHC ruling at Supreme Court, seeks order for hospitalisation and medical access
On 12 May, Dawn reported that Dr Uzma Khan, sister of Imran Khan and a doctor by qualification, filed a petition before the Supreme Court challenging the IHC's refusal to order Imran's transfer to Shifa International Hospital, allow access to his personal physicians, and provide medical details to his family. Filed through counsel Uzair Karamat Bhandari, the petition argued that Uzma, as Imran's closest relative in Pakistan, had locus standi to challenge the IHC ruling, and that its continuation directly violated her fundamental right to family life under Article nine of the Constitution. The petition sought suspension of the IHC order and directions for an immediate medical examination by physicians of Imran's choice, including named doctors. It also noted that jail authorities had refused to obtain a vakalatnama signed by Imran in favour of his counsel, leaving him unable to file his own appeal against the IHC judgement. ("Imran's sister urges Supreme Court to order his hospitalisation," Dawn, 12 May 2026)
SECURITY
Attock: Shepherd killed while foiling suicide attack near security post
On 12 May, Dawn reported that a shepherd was killed while preventing a suspected suicide attack near the Mankor security post in Punjab’s Attock district, according to local authorities. District Police Officer Sardar Marwan Khan said the incident took place near a key security checkpoint in Jand tehsil along the Punjab-Khyber Pakhtunkhwa border. The shepherd, identified as Liaqat, reportedly became suspicious of a man’s behaviour while grazing goats in the area and confronted him, after which the suspect detonated a suicide vest, killing Liaqat instantly. Authorities said the explosion occurred close to a joint inter-provincial security post established to counter smuggling, drug trafficking and militant movement. Security officials, forensic teams and local administrators later cordoned off the area and launched an investigation to determine the identity of the attacker and any possible facilitators. (“Shepherd sacrifices life, averting suicide attack in Attock,” Dawn, 12 May 2026)
JUDICIARY
Justice Aurangzeb urges greater use of alternative dispute resolution methods in courts
On 11 May, Dawn reported that Supreme Court Justice Miangul Hassan Aurangzeb called for wider use of alternative dispute resolution (ADR) methods to reduce pressure on courts and improve access to justice. Speaking at an event in Islamabad, he said the Supreme Court was planning to establish a mediation centre with support from the United Nations Development Programme (UNDP). He said mediation can help settle disputes more quickly and reduce delays in the judicial system. He also added that the Supreme Court already has trained mediators and plans to train more people so that those who cannot afford mediation services can receive support free of cost. He also said mediation should be properly managed to prevent unnecessary delays in court cases. He pointed to countries like Turkey, where millions of disputes have reportedly been resolved through mediation and said Pakistan should also expand the use of such methods in its legal system. (“Justice Aurangzeb calls for encouraging alternative dispute resolution, says SC to establish mediation centre,” Dawn, 9 May 2026)
ON INDIA
Experts call for stronger deterrence to India’s policies
On 12 May, Dawn reported that security experts and former officials at a book launch organised by the Centre for International Strategic Studies (CISS) in Islamabad called for a stronger and more flexible deterrence strategy to deal with India’s allegedly hostile policies in the region. Speakers said the security situation in South Asia had become more unstable after the 2025 Pakistan-India conflict and stressed the need for better strategic planning and responsible decision-making. Retired Brigadier Dr Zahir Kazmi said deterrence depends not only on military strength but also on political resolve, communication and public support. The Executive Director of CISS, Ali Sarwar Naqvi, said India’s aggressive policies were increasing regional tensions and highlighted the importance of maintaining both deterrence and dialogue. Former senator Mushahid Hussain Sayed also called for a serious discussion on new security challenges in the region. The seminar reflected growing concerns in Pakistan about regional security and future relations with India. (“Adaptive deterrence urged to counter India’s hostile posture,” Dawn, 12 May 2026)
Pakistan and the US-Iran War
Pakistan continues diplomatic push despite stalled talks?
Sources say there is “no immediate danger” of return to war; Officials reject reports of Pakistan shielding Iranian military aircrafts from US strikes
On 12 May, Dawn and The Express Tribune reported that diplomatic efforts surrounding the ongoing United States-Iran war continued despite signs that negotiations had stalled after US President Donald Trump rejected Tehran’s latest response to a peace proposal as “totally unacceptable”. Trump said the ceasefire was on “massive life support” and indicated he was considering reviving a US naval escort mission in the Strait of Hormuz, though no final decision had been taken. Pakistani officials, however, maintained that there was “no immediate danger” of a return to full-scale war and said Islamabad would continue mediation efforts to break the deadlock. According to sources familiar with the process, Iran’s latest response focused primarily on ending hostilities and reopening the Strait of Hormuz in exchange for lifting US restrictions on Iranian ports, while proposing separate and broader talks on its nuclear programme. Tehran reportedly reiterated its willingness to halt uranium enrichment for five years, but rejected Washington’s demand for a 20-year moratorium and dismantling of underground nuclear facilities.
Amid the tensions, Pakistan remained diplomatically engaged with regional and international actors. The Foreign Office said Deputy Prime Minister and Foreign Minister Ishaq Dar held discussions with US Chargé d’Affaires Natalie Baker, Saudi Arabian Foreign Minister Faisal bin Farhan Al Saud and UN envoy Jean Arnault regarding regional stability and ongoing mediation efforts. Separately, Pakistani officials rejected reports that Iranian military aircraft parked at Nur Khan Airbase were being shielded from possible US strikes, calling the claims misleading and linked instead to logistical arrangements surrounding the Islamabad Talks between Tehran and Washington. Officials said both Iranian and American aircraft had temporarily used Pakistani facilities for diplomatic and administrative purposes as Islamabad continued to position itself as a neutral mediator seeking a negotiated settlement to the conflict. (“Pakistan pushes diplomatic track as US, Iran hit ‘stall’-mate,” Dawn, 12 May 2026; “Claims of Iranian aircraft shielded from US strikes at Nur Khan Airbase dismissed,” The Express Tribune, 12 May 2026; “Pakistan to continue peace mediation with 'no immediate danger' of renewed US-Iran war: sources,” The Express Tribune, 11 May 2026)
Editorials/Opinions
United Nations
Mir Adnan Aziz, "Collapse of the UN order," The News International, 12 May 2026
"The UN has transitioned from a promised arbiter of justice into a sophisticated record-keeper of global failure. The weak view it as the crowning irony of a global architecture that forfeits principle to power. Orders rooted in entrenched inequality do not endure; they splinter under the pressure of their own contradictions."
https://www.thenews.pk/print/1414984-collapse-of-the-un-order
National Financial Commission
Dr Syed Akhtar Ali Shah, "NFC: what K-P wants," The Express Tribune, 12 May 2026
"The National Finance Commission (NFC) is the fiscal spine of Pakistan's federation. It is through this constitutional mechanism that resources are distributed among the federating units, ensuring balance, equity and cohesion. Yet, for Khyber-Pakhtunkhwa, the NFC today represents not equilibrium, but a growing imbalance - one that raises fundamental questions about constitutional compliance."
https://tribune.com.pk/story/2607550/nfc-what-k-p-wants
Terrorism
Editorial, "Bannu attack," Dawn, 12 May 2026
"The attack was audacious and well-coordinated. On the night of May 9, terrorists struck a police outpost in KP’s Bannu district, martyring 15 officers and injuring three, according to official reports. An explosive-laden truck rammed into the post, followed by what seems to have been a coordinated assault from multiple directions involving heavy weaponry and drones."
https://www.dawn.com/news/1999598/bannu-attack
AI and sustainability
Naveed R Khan, "Can AI help green-leap the sustainability gap?" The Express Tribune, 12 May 2026
"The opportunity is clear. Pakistan does not need to replicate high-income models of sustainability transition. It can leapfrog by using AI to build smarter, more responsive and more transparent systems. But the lesson from global data and advanced countries' experience is equally clear: that technologies do not fix governance, it exposes it. If Pakistan gets governance right, AI can become the most significant instrument it has to achieve environmental sustainability and ESG transformation. If it does not, the country risks digitising its inefficiencies rather than solving them."
https://tribune.com.pk/story/2607549/can-ai-help-green-leap-the-sustainability-gap
Aurat March
Editorial, "Space for dissent," The Express Tribune, 12 May 2026
"At a time when societies around the world are becoming increasingly polarised, Pakistan must avoid reducing every civic movement into a binary contest of loyalty or opposition. Constructive engagement and open discussion ultimately strengthen democratic culture far more than restrictions do. The Aurat March need not command universal agreement to deserve space within the national discourse. A mature society is one that allows differing viewpoints to coexist peacefully under the protection of the law."
https://tribune.com.pk/story/2607546/space-for-dissent
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