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In Focus
Pakistan and China sign multiple agreements following Shehbaz-Xi meeting
President Xi calls Pakistan friendship “unbreakable” as Beijing and Islamabad expand strategic and economic cooperation
On 26 May, Dawn and The Express Tribune reported that Chinese President Xi Jinping described Beijing’s relationship with Pakistan as an “unbreakable” friendship during high-level meetings with Prime Minister Shehbaz Sharif in Beijing. Xi said China would continue to prioritise relations with Pakistan in its neighbourhood diplomacy and pledged closer cooperation in strategic, security and economic areas. He also praised Pakistan’s recent mediation efforts to support dialogue between the United States and Iran.
PM Shehbaz called Pakistan and China “iron brothers”, describing bilateral relations as “next to none” and reaffirming support for the One-China principle. During separate talks with Chinese Premier Li Qiang, the Prime Minister stressed the need for Islamabad and Beijing to work together on regional stability, particularly amid ongoing tensions in the Middle East. He highlighted Pakistan’s diplomatic role and noted that CDF Field Marshal Asim Munir had recently been involved in engagement with Iranian and American leadership.
The visit also produced significant economic outcomes, with both sides signing 15 agreements and MoUs covering trade, agriculture, climate cooperation, education, science and technology, media and counterterrorism cooperation. Pakistani and Chinese officials further emphasised accelerating the next phase of the China-Pakistan Economic Corridor (CPEC) and increasing collaboration in emerging sectors such as artificial intelligence, clean energy and space technology. The meetings took place as both countries marked the 75th anniversary of diplomatic relations and sought to broaden cooperation beyond traditional infrastructure projects. (“Pakistan, China sign agreements spanning agriculture, education, media and trade,” The Express Tribune, 25 May 2026; “Xi hails 'unbreakable' Pakistan friendship,” The Express Tribune, 26 May 2026; “China's Xi hails 'unbreakable' ties, praises Pakistan's role in Iran peace efforts as he meets PM Shehbaz,” Dawn, 25 May 2026)
In Brief
EXTERNAL
Pakistan & UK discuss economic cooperation
On 26 May, The Express Tribune reported that Pakistan’s Finance Minister Muhammad Aurangzeb met with British High Commissioner Jane Marriott to discuss Pakistan-United Kingdom bilateral cooperation, economic reforms and regional developments. During the meeting, Aurangzeb highlighted Pakistan’s efforts to maintain macroeconomic stability amid geopolitical uncertainty and energy market volatility, pointing to improvements in external accounts, remittance inflows and investor confidence. Both sides also discussed the economic and humanitarian implications of regional developments, while the British side reaffirmed support for Pakistan’s reform agenda and development priorities. (“FinMin, British envoy discuss economic ties, reforms,” The Express Tribune, 26 May 2026)
Foreign Minister Dar to attend UN meetings in New York in push to expand bilateral and multilateral cooperation
On 25 May, Dawn reported that Deputy Prime Minister and Foreign Minister Ishaq Dar would travel from Beijing to New York to participate in high-level United Nations meetings, including a United Nations Security Council debate on maintaining international peace and security and strengthening the UN-centred international system. The debate will be chaired by Wang Yi and is scheduled for 26-28 May. Dar is also scheduled to attend a meeting of the Group of Friends on Global Governance and hold bilateral engagements with foreign counterparts and senior UN officials, as Pakistan reiterated its support for multilateralism and collective global cooperation. (“Deputy PM Dar to visit New York from May 26-28 for UN meetings,” Dawn, 25 May 2026)
Deportations from the Middle East raise concerns among Shia community
On 26 May, The News International reported that concerns were growing over the deportation of Pakistani Shia Muslims from a country in the Middle East during the recent Iran war, with more than 100 returnees from Chakwal reporting that they arrived back without jobs, luggage or access to savings accumulated abroad. A database compiled by Majlis Wahdat-e-Muslimeen listed around 7,500 Pakistani deportees since February 28, although the group said the actual number could be higher. Meanwhile, Human Rights Watch (HRW) said it was investigating the allegations, while Pakistan’s Interior Ministry maintained that no deportations had occurred on a sectarian basis and stated that removals were linked to violations of local regulations. (“HRW probes Pakistanis’ deportation from Gulf,” The News International, 26 May 2026)
ECONOMY
Surge in foreign borrowings puts pressure on Pakistan’s fragile economy
On 26 May, The Express Tribune reported that Pakistan secured nearly USD 11 billion in external loans during the first 10 months of the current fiscal year 2025-26, according to official data released by the Economic Affairs Division (EAD). It marked an increase of 83 per cent compared to the same period of the previous fiscal year. In local currency terms, the government has secured PKR 3.103 trillion in external financing during the first ten months of the current fiscal year. In April alone, Pakistan received USD 4.5 billion, reflecting a sharp rise in external inflows. The government has projected total external financing of USD 19.39 billion for the current fiscal year, with additional borrowing expected during May and June. Of the total borrowing during the ten months, non-project aid amounted to USD 8.31 billion, while project-related financing stood at USD 2.756 billion. ("Foreign borrowing jumps 83% in 10 months of FY 26,” The Express Tribune, 26 May 2026)
Pakistan Chamber of Commerce releases ‘shadow policy’ studies, advocates private sector-led growth
On 26 May, Dawn reported that the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has released a set of four independent ‘shadow’ policy studies proposing an alternative economic framework to accelerate growth, broaden the tax base, and reduce fiscal imbalances. The documents include Tax Policy and Administration Reforms, Shadow Federal Budget 2026-27, Shadow Economic Survey of Pakistan 2026, and Shadow Five-Year Development Plan 2026-31. These documents collectively set out a reform agenda centred on private-sector-led growth, fiscal consolidation, and institutional restructuring. The documents stated that the tax system places an excessive burden on corporate entities and salaried individuals, while extensive exemptions disproportionately benefit higher-income groups. It also noted that public debt has increased exponentially from approximately PKR 19 trillion in FY16 to PKR 80 trillion in FY26, ranging from 65 per cent to 75 per cent of GDP, driven mainly by persistent fiscal deficits, currency devaluations, high SBP policy rates, and higher interest payments. The Shadow Federal Budget 2026-27 sets out an alternative fiscal framework to achieve a zero fiscal deficit within three years through expenditure rationalisation, privatisation of state-owned enterprises, and pension and subsidy reforms. (“Shadow budget eyes zero deficit,” Dawn, 26 May 2026)
Revenue Board continues negotiations with IMF on tax rates ahead of federal budget 2026-27
On 26 May, Dawn reported that the National Assembly Standing Committee had been informed by the Federal Board of Revenue (FBR) of its negotiations with the IMF to reduce tax rates on the sale and purchase of property in the upcoming budget. FBR is negotiating continuously with the IMF to convince them to reduce tax rates under 236C and 236K of the income tax. FBR also informed the Standing Committee that the valuation rates for properties in different cities had been reduced. Also, an independent economist from the PRIME Institute informed the NA panel that the circular debt in the gas and electricity sectors surged to PKR 5.1 trillion, including PKR 3.3 trillion in the gas sector and PKR 1.8 trillion in the power sector. The country’s external debt has reached PKR 137.56 billion. The committee was told that despite signs of gradual economic recovery, Pakistan was still moving on a path of “fragile stabilisation”, with major risks continuing to threaten the economy ahead of the 2026-27 federal budget. (“FBR in tough talks with IMF to cut tax on property transactions,” Dawn, 26 May 2026)
SECURITY
KP: Militants destroy school and health unit in Tank district
On 25 May, Dawn reported that certain unidentified militants had blown up a government school and a basic health care unit in the Chesan Kech area of the Tank district in Khyber Pakhtunkhwa. No casualties were reported because the buildings were empty at the time of the explosions. Local sources said the attackers used explosive material to target these buildings late at night, causing severe damage to both. Police and security personnel later reached the area and started an investigation while collecting evidence from the sites. Authorities said efforts are continuing to identify those responsible for the attack. This incident came during a time when there had been a rise in militant violence in Khyber Pakhtunkhwa, with the militants targeting schools and other public infrastructure in different parts of the province. Earlier this year, similar attacks damaged schools in Bannu and South Waziristan, while bridges in North Waziristan were also destroyed using explosives. (“Militants blow up govt school basic health unit in KP’s Tank,” Dawn, 25 May 2026)
Mianwali: Security forces on alert after drone attack attempt near border
On 26 May, The Express Tribune reported that the security forces had increased alert levels after suspected militants attempted a drone attack near the Darra Tang border check post in Mianwali district. Police officials said that the drones dropped several grenades near the border area close to Khyber Pakhtunkhwa. However, the explosives did not cause any damage, and no casualties were reported. Reports said one grenade was dropped near a police checkpoint late at night. A few minutes later, more drone activity was seen, and additional explosives were dropped near border posts in nearby areas. Security personnel remained safe during the incident. After the attack attempt, senior police officials visited the area and reviewed security arrangements. Authorities instructed police and rangers personnel to strengthen surveillance and remain alert along the border regions. This incident has raised concerns over the increasing use of drones in militant attacks in Pakistan’s border areas. (“Border security alert after failed drone strike in Mianwali,” The Express Tribune, 26 May 2026)
POLITICS & GOVERNANCE
NA finance committee slams government over budget law breach and stalled reforms
On 26 May, Dawn reported that the National Assembly Standing Committee on Finance and Revenue, chaired by former finance minister Syed Naveed Qamar, accused the government of violating the Public Finance Management Act by failing to circulate the Budget Strategy Paper by the legally required 10 May deadline, and criticised the slow pace of structural reforms. Consultants with the United Nations Development Programme briefed the committee that Pakistan remained on a "fragile stabilisation path," with inflation reaching 10.9 per cent year-on-year in April 2026 and projected to exceed 12 per cent, driven by sharp price increases in energy and essential food items. The tax shortfall recorded by the Federal Board of Revenue (FBR) exceeded PKR 680 billion in the first ten months of the fiscal year, with total taxes stagnant at seven per cent of GDP, while circular debt crossed PKR 5.1 trillion by February 2026. Gross public debt stood at PKR 83.28 trillion and external debt at USD 137.56 billion, with foreign exchange reserves at USD 22.58 billion providing around 2.58 months of import cover. Qamar warned that continued reliance on indirect taxes and the petroleum levy instead of broadening the tax base was unsustainable, and the committee called for the FY27 budget to prioritise structural reform, fiscal transparency, and inclusive growth. ("NA panel takes govt to task over budget preparation, reforms," Dawn, 26 May 2026)
Achakzai warns opposition may quit assemblies if government's treatment of Imran Khan does not change
On 25 May, Dawn reported that National Assembly Opposition Leader Mehmood Khan Achakzai warned that the opposition alliance could withdraw from the assemblies if the government's treatment of jailed PTI founder Imran Khan did not change, saying, "I don't fear it, I can see it coming." He questioned threats of a 50-year prison sentence and military court trial, and said withdrawal would be implemented if PTI's central committee recommended pulling out of Punjab, Sindh, and federal assemblies while retaining government in KP. The warning follows his threat last week of a complete budget session boycott unless Imran received medical treatment at a hospital of his choice and unrestricted visitation rights. ("Opposition may quit assemblies if govt does not change its attitude towards Imran: Achakzai," Dawn, 25 May 2026)
Special committee formed to assess damages from Chaman Phatak blast that killed 14 people
On 25 May, The Express Tribune reported that the Quetta district administration constituted a special committee to evaluate financial and structural damages caused by the explosion near Chaman Phatak, which killed 14 people, including three FC personnel and injured several others. Headed by the Quetta assistant commissioner (city) and including officials from the CTD, Communications and Works Department, Metropolitan Corporation Quetta, and Agricultural Engineering Department, the committee was directed to survey damaged homes, shops, vehicles, and commercial establishments and submit findings to determine compensation packages for affected families. ("Special committee formed to assess losses in deadly Chaman Phatak blast," The Express Tribune, 25 May 2026)
Secret meeting between Naqvi, Gohar, and KP CM focused on Imran's jail access and political de-escalation
On 26 May, The News International reported that a meeting held on 14 May at PTI Chairman Barrister Gohar Ali Khan's residence in Islamabad between Gohar, KP Chief Minister Sohail Afridi, and Interior Minister Mohsin Naqvi went beyond security and terrorism matters to include political discussions, particularly around improving access for Imran Khan's family and party leaders to meet him in jail. Sources described the meeting as part of an ongoing backchannel engagement aimed at reducing political tensions, with PTI representatives conveying that continued restrictions on jail visits were aggravating the political atmosphere, while the other side shared the establishment's reservations regarding PTI's political conduct. Sources stressed neither side was coerced into the talks, describing the purpose as building understanding and lowering political temperatures. However, sources said that Aleema Khanum's subsequent social media statement on the matter had "seriously jeopardised" the possibility of allowing Imran's sisters to meet him, damaging the backchannel reconciliation effort. ("Naqvi-Gohar-Sohail secret meeting focused on Imran access, political de-escalation," The News International, 26 May 2026)
SOCIETY
Key Islamabad education bodies running on ad hoc arrangements despite national education emergency
On 25 May, Dawn reported that both the Federal Directorate of Education (FDE), which regulates over 430 schools and colleges in Islamabad, and the Private Educational Institutions Regulatory Authority (PEIRA) are functioning without regular heads, raising questions over the efficiency of the Ministry of Federal Education and Professional Training. The FDE director general post has been vacant for nearly three years, with a joint secretary acting in charge since July 2023, while Peira has been without a regular chairperson since January 2026. In March, the Federal Public Service Commission recommended appointing Javed Iqbal Mirza as DG FDE following a merit-based process. Still, the government has not acted on the recommendation, prompting Mirza to file a petition in the Islamabad High Court. A summary carrying three shortlisted candidates for the PEIRA chairperson post has been sent to the PM office, with the ministry saying the process was near completion. ("FDE, Peira still under ad hoc arrangements amid education emergency," Dawn, 25 May 2026)
PAKISTAN AND THE US-IRAN WAR
Trump asks Pakistan and five other countries to join Abraham Accords as part of wider diplomacy regarding Iran
On 26 May, The News International reported that US President Donald Trump asked Pakistan, Saudi Arabia, Qatar, Turkey, Egypt, and Jordan to join the Abraham Accords as part of wider diplomatic efforts linked to ending the conflict with Iran. Trump said he discussed the issue with leaders from these countries, along with the United Arab Emirates (UAE) and Bahrain, which had already signed the Accords. He said that the move could help create a broader regional settlement if an agreement with Iran is reached. Saudi Arabia, however, repeated that normalising relations with Israel would depend on an irreversible process towards Palestinian statehood. Pakistani sources also rejected any direct link between an Iran deal and joining the Accords. The discussions come amid continuing negotiations between Washington and Tehran over a possible ceasefire and nuclear agreement. The issue highlights ongoing diplomatic efforts in the Middle East alongside continuing disagreements over regional security and the Palestinian question. (“Trump demands Pakistan, Saudi Arabia, Qatar, Turkiye, Egypt and Jordan sign Abraham Accords as part of Iran peace deal: Saudi Arabia links normalising ties with Israel to Palestinian statehood,” The News International, 26 May 2026)
Editorials/Opinions
Terrorism
Editorial, "Balochistan tragedy," Dawn, 26 May 2026
"A pall has descended on Eid festivities. The Sunday suicide bombing in Quetta has left many grieving their loved ones at a time when others will be celebrating the bonds of faith and family. According to the official count, more than a dozen lives were snuffed out, and at least 20 people were left injured; later reports put the toll much higher."
https://www.dawn.com/news/2003149/balochistan-tragedy
Indus Water Treaty
Hassan Abbas, "With or without IWT," Dawn, 26 May 2026
"IFI loans are an opiate. Water managers will pursue any mega project if financing is available — especially when repayment comes from taxpayers and not project performance. The failed Neelum-Jhelum project is the latest example. As India violates the Indus Waters Treaty, questionable ‘benchmarks’ surface — Pakistan’s storage is “below recommended levels” and more dams must be built in response. New storage would unlock IFI loans. But would it offset the loss of the treaty? The basic question is: what did Pakistan actually gain from the IWT — and what remains to be lost?"
https://www.dawn.com/news/2003150/with-or-without-iwt
Education
Dr Asghar Zaidi, "Education without character cannot build a nation," The Express Tribune, 26 May 2026
"Pakistan's crises are often described in economic, political or institutional terms. Yet beneath these visible failures lies a deeper erosion: the weakening of truth, trust and integrity in public life. Societies do not decline only when economies falter; they decline when promises lose meaning, institutions cease to inspire confidence, and education produces credentialled graduates without character."
https://tribune.com.pk/story/2610043/education-without-character-cannot-build-a-nation
Judiciary
Dr Niaz Murtaza, "Last nail?" Dawn, 26 May 2026
"The hybrid set-up may be evasive, but pro-regime gurus say a constitutional amendment is on the cards. Before the last two controversial amendments were passed, they had given out similar information. So, we must review the dubious ideas presented as panaceas, because this set-up has again preferred covert feelers over open debate and may pass the amendment in a non-transparent way, as it has done earlier. Most of our past 27 amendments benefited elites and were enacted under similar set-ups."
https://www.dawn.com/news/2003151/last-nail
Cyber
Editorial, "Data security," The Express Tribune, 26 May 2026
"Pakistan's digital transformation has accelerated rapidly over the past decade. But while the country has embraced technology, it continues to treat data protection with an alarming degree of complacency. A case in point are the recent revelations surrounding a network of individuals involved in stealing sensitive information of Pakistani citizens and selling it onward."
https://tribune.com.pk/story/2610039/data-security
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