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In Brief
EXTERNAL
PM Shehbaz to visit Iran and Türkiye from Khamenei funeral and bilateral engagements
On 02 July, Dawn reported that PM Shehbaz Sharif will visit Iran and Türkiye from 03 to 05 July, accompanied by FM Ishaq Dar and senior officials. In Iran, he will attend the funeral of Supreme Leader Ayatollah Ali Khamenei, assassinated in the US-Israeli strikes of 28 February, and convey condolences on behalf of Pakistan. In Istanbul, at President Erdogan's invitation, he will hold bilateral talks with a focus on trade and investment, and address a business conference spotlighting Pakistan's potential in SEZs, energy, IT, and privatisation to an audience of Turkish business leaders. FO spokesperson Tahir Andrabi separately said positive progress was made at US-Iran talks in Doha on Tuesday under the Islamabad MoU framework, and that Pakistan would continue its mediatory role alongside Qatar. On the Indus Waters Treaty, Andrabi firmly rejected India's suspension of the treaty, describing it as "illegal, unilateral and without any basis" and warning that treating shared international waters as a strategic asset to be "controlled, withheld or diverted at will" was fundamentally incompatible with international law. He also addressed the partial demolition of a Punjab gurdwara, saying the ETPB had halted the tenants' unauthorised work on 24 June and that renovation rather than demolition was planned for the dilapidated, unused structure. ("FO says PM to visit Iran, Turkiye from July 3-5; to attend funeral of assassinated Iranian supreme leader," Dawn, 02 July 2026)
Pakistan and Qatar report "positive progress" at US-Iran Doha talks
On 02 July, Dawn reported that Pakistani and Qatari mediators concluded separate meetings with US and Iranian negotiators in Doha, with both foreign ministries confirming "positive progress" on issues related to the Islamabad MoU, building on the Burgenstock talks in Switzerland. Negotiators spent two days discussing maritime traffic in the Strait of Hormuz and the unfreezing of Iranian funds, with Iranian Deputy FM Kazem Gharibabadi confirming that a communication channel to record MoU violations would be established and that Tehran would use part of an initial USD 6 billion in frozen assets held in Qatar to purchase needed goods. The next round of talks is to be scheduled after the funeral of Ayatollah Ali Khamenei, set for 9 July. Trump told reporters that "denuclearisation of Iran is moving along well," though sources said nuclear issues did not come up in the technical Doha talks, with VP Vance acknowledging nuclear discussions were yet to begin. ("Mediators say 'positive progress' made in US-Iran talks in Doha," Dawn, 02 July 2026)
ECONOMY
State Bank reserves rise to USD 16.5 billion on multilateral inflows
On 03 July, The Express Tribune reported that the State Bank of Pakistan said its foreign exchange reserves increased by USD 611 million to USD 16.53 billion in the week ending 24 June, driven mainly by government inflows from multilateral institutions. Pakistan's total liquid foreign reserves rose to USD 22.1 billion, including USD 5.5 billion held by commercial banks, while the rupee remained broadly stable. Separately, domestic gold prices climbed sharply in line with international markets after weaker-than-expected US employment data fuelled expectations of a more accommodative Federal Reserve policy. ("SBP reserves climb $611m to $16.5b," The Express Tribune, 03 July 2026)
Pakistan & Chinese manufacturing firm discuss expanding investment in energy sector
On 03 July, The Express Tribune reported that Petroleum Minister Ali Pervaiz Malik met Hou Jianxin, chairman of China's Shandong Xinxu Group, to discuss expanding cooperation across Pakistan's energy sector. The company expressed interest in investing in upstream oil and gas production, refinery modernisation through the installation of a fluid catalytic cracking unit, offshore oil exploration, and establishing an energy equipment manufacturing facility in Pakistan. The discussions also covered potential collaboration on lead mining, sulphur processing and the development of integrated energy cities along Pakistan's coastline. ("Chinese firm eyes energy investments," The Express Tribune, 03 July 2026)
Senate panel seeks probes into alleged irregularities in foreign-funded power projects
On 03 July, Dawn reported that the Senate Standing Committee on Economic Affairs decided to seek investigations by the Federal Investigation Agency and National Accountability Bureau into alleged irregularities and corruption in foreign-funded power projects, while also forwarding its findings to the prime minister and the Public Accounts Committee. The committee criticised the Economic Affairs Division for declining to initiate inquiries into projects overseen by another ministry, with members arguing that procedural objections should not hinder parliamentary oversight. ("Senate panel calls for probe into foreign-funded power projects," Dawn, 03 July 2026)
Trade deficit widens as exports miss FY26 target by USD 4.9 billion
On 03 July, Dawn reported that Pakistan's merchandise exports fell 5.97 per cent year-on-year to USD 30.13 billion in FY2025-26, missing the government's USD 35 billion target by USD 4.87 billion, while imports rose 7.89 per cent to USD 69.59 billion. As a result, the trade deficit widened by 21.57 per cent to USD 39.47 billion, with exports declining in most months of the fiscal year amid higher shipping costs linked to disruptions in the Strait of Hormuz and the continued suspension of exports to Afghanistan. ("Exports miss FY26 target by $4.87bn," Dawn, 03 July 2026)
Economic Coordination Committee approves local wheat supply for army
On 03 July, Dawn reported that the Economic Coordination Committee (ECC) approved the supply of 175,000 tonnes of locally produced wheat to the Pakistan Army for the 2026-27 crop year, replacing the previous mix of imported and domestic wheat after complaints over the quality of imported grain. The ECC also approved incorporating the International Labour Organization (ILO) definition of "forced labour" into Pakistan's import policy to strengthen compliance with international labour standards, as well as a Rs4.19 billion severance package for the winding up of the Pakistan Agricultural Storage and Services Corporation and the auction of nearly 8,200 tonnes of flood-damaged wheat. ("Army to get local wheat," Dawn, 03 July 2026)
POLITICS & GOVERNANCE
PTI leaders insist release of Imran Khan remains "ultimate objective"
On 03 July, Dawn reported that PTI leaders rejected the claim that the party had faced ideological drift, remarking that freeing PTI founder Imran Khan remained the party’s “ultimate objective.” Speaking to the media, PTI secretary general Salman Akram Raja had stated that accusations of PTI being suppressed or silenced were false, and criticised detractors by commenting that they had a “hearing problem.” He further stated that the PTI had become the “largest social force” in Pakistan, and it would continue fighting against the “system of tyranny and oppression.” Moreover, he forewarned that tensions in the country had reached a “boiling point” and that “rulers will fall short of bullets” when people take to the streets. He once again reaffirmed that party leaders remained in ‘protest mode.’ Meanwhile, after talks with PTI office-bearers and senior Tehreek-i-Tahaffuz Ayeen-i-Pakistan members, Junaid Akbar Khan had emphasised Balochistan’s role as an important province in the country. He remarked that it was both resource-abundant and strategically located, though he also lamented that poor governance had deprived residents of necessities. Finally, he said that “power in Balochistan should rest with those who enjoyed the confidence of the people.” (“Leaders insist Imran’s release remains PTI’s ‘ultimate objective’,” Dawn, 03 July 2026)
PTI announces boycott of “AJK” elections saying it will stand by people amid social unrest
On 03 July, Dawn reported that PTI regional president Sardar Abdul Qayyum Niazi announced a boycott of the “Azad Jammu and Kashmir” elections. Niazi cited unrest across the territory, pointing out that food supply throttling from Punjab to “AJK” had caused severe economic distress. He stated that in current circumstances, it was important to find an immediate solution to the problems facing Kashmiris rather than “pushing (them)…towards further political instability.” He warned that the current administration’s threats to “AJK’s” identity blurred the distinction between “liberated and occupied” territories of “Jammu and Kashmir.” He stated the party would not return to the polls as long as grievances were not alleviated and normalcy had not been restored. (“PTI boycotts AJK elections, citing regional crisis,” Dawn, 03 July 2026)
Bajaur: Residents stage "peace rally" calling for authorities to address deteriorating law and order conditions
On 02 July, Dawn reported that Bajaur Aman Jirga organised a rally in which participants waved white flags and blocked roads, chanting slogans demanding peace in the region. Bajaur Aman Jirga chief Rashid, ANP district president Khan and PTI’s Rehman, Jan, and others remarked that the region had been facing unrest for two years. They argued that peace had not been achieved despite months of displacement, operations, as well as economic and social distress. PTI MPs and the MNA were criticised for not raising the issue in parliament, and senior VP of the local PTI chapter, Dr Rehman, said that the three MPAs from the party would be socially boycotted if they did not play a role in ensuring peace and stability in the region. It was also remarked that citizens should be safe during anti-terrorist operations and that compensation should be provided for those deceased, injured or targeted in the incidents. (“Peace rally calls for end to unrest, insecurity in Bajaur,” Dawn, 02 July 2026)
30 per cent of MNAs have perfect attendance in National Assembly budget sessions
On 02 July, Dawn reported that according to a Free and Fair Election Network (Fafen) report, 70 per cent of all 333 MNAs skipped at least one session of the National Assembly budget sessions, whereas 30 per cent attended all and 2 per cent attended none. PM Shehbaz attended six sittings, and Opposition leader Mehmood Khan Achakzai attended twelve. Six federal ministers and three ministers of state attended all sittings. 48 PML-N lawmakers were in full attendance out of 132, while 15 of 74 PPP leaders had full attendance. Out of 75 independents, 15 MNA’s attended all sittings. 53 MNAs from Punjab had perfect attendance, as did 25 in Khyber Pakhtunkhwa. Six Punjab lawmakers didn’t attend any sittings. Female Lawmakers had a proportionally higher attendance rate than their male counterparts. Of members of the preceding session of the National Assembly who missed a sitting, 38 per cent submitted formal leave while 62 per cent didn’t have one. (“30pc of MNAs record ‘perfect attendance’ in National Assembly budget session; 2pc skip all,” Dawn, 02 July 2026)
SECURITY
Mohmand: Two police officers killed in TTP attack
On 03 July, Dawn reported that two police officers, including an additional station house officer, were killed after suspected militants from the banned Tehreek-i-Taliban Pakistan (TTP) attacked a police patrol in Mohmand district, Khyber Pakhtunkhwa. Police said the patrol came under heavy gunfire near the Warsak Lift Canal in the Machni area, while another officer was seriously injured. According to Dawn, security personnel returned fire, reportedly killing several attackers and recovering weapons abandoned at the scene before the militants fled, after which a search operation was launched. ("2 cops martyred as police patrol comes under attack in KP's Mohmand," Dawn, 03 July 2026)
Balochistan: Section 144 imposed across Kech district amid security concerns
On 02 July, Dawn reported that the Balochistan government imposed Section 144 across Kech district in Makran division, prohibiting all gatherings, including meetings, rallies, processions and demonstrations. The Kech district administration said the measure was in line with steps being taken across the province to maintain peace and public order. District police urged citizens to comply with the law and cooperate with authorities, warning that strict legal action would be taken against violators. ("Section 144 imposed across Kech district," Dawn, 02 July 2026)
Bannu: Security forces foil bomb attack on girls' school and bridge
On 02 July, Dawn reported on security forces foiling two separate militant attempts to blow up civilian infrastructure in Khyber Pakhtunkhwa's Bannu district. Explosives planted at a government girls' school partially damaged the building, while a barrel containing around 50 kilograms of explosives placed under a bridge was successfully defused by a bomb disposal unit before it could cause further damage. Investigations have been launched, and search operations have been intensified in the area to apprehend those responsible. Bannu has seen repeated security incidents in recent months, including a suicide attack on a police post in May that killed 15 personnel. ("Security forces foil attempts to blow up girls' school, bridge in KP's Bannu," Dawn, 02 July 2026)
Bajaur: Drone attack kills three, including two children
On 02 July, Dawn reported on a suspected drone attack killing three people and injuring ten others in the War Mamund tehsil of Bajaur district, Khyber Pakhtunkhwa. Police sources said the attack occurred late on 01 July when a quadcopter drone dropped a bomb on a house near the Dama Dola area. Among those killed were a five-year-old girl and a 15-year-old boy, with all 13 victims from the same family. The bodies and the injured were taken to the District Headquarters Hospital in Khar. Multiple similar drone attacks have been reported in Bajaur in recent months, including one just days earlier that killed a child. ("3 killed, 10 injured in suspected drone attack in KP's Bajaur," Dawn, 02 July 2026)
AF-PAK
Peshawar High Court blocks deportation of 140 Afghan families for 60 days
On 02 July, Dawn reported that the Peshawar High Court (PHC) disposed of petitions filed by around 140 Afghan families and individuals fearing persecution upon return, directing the government to determine their refugee status within 60 days and barring authorities from arresting, detaining or deporting them in the interim. Most of the petitioners have approached the United Nations High Commissioner for Refugees (UNHCR) for international protection and third-country resettlement. Petitioners included former employees of the US-backed Afghan government, judges, lawyers, journalists, teachers and women who had worked in the private sector. The federal government opposed the pleas, arguing that Afghan nationals without valid visas were liable to be repatriated under the Illegal Foreigners' Repatriation Plan (IFRP). ("Govt stopped from deporting Afghan petitioners for 60 days," Dawn, 02 July 2026)
SPORT
Pakistan and Saudi Arabia sign agreement to build cricket stadium in Jeddah
On 02 July, Dawn reported that Pakistan Cricket Board Chairman Mohsin Naqvi and Saudi Arabian Cricket Federation chief Prince Saud bin Mishal bin Mohammad Al Saud signed an agreement for the construction of an ICC-standard cricket stadium in Jeddah, the first such strategic agreement between the two boards. The PCB will lead infrastructure development, technical expertise, stadium planning, and operational standards, with the project aimed at enabling Saudi Arabia to host international cricket matches and supporting the kingdom's Vision 2030. Naqvi also met Saudi Interior Minister Prince Abdulaziz bin Saud, with both sides signing an MoU on security cooperation and reaffirming bilateral strategic ties. ("Pakistan, Saudi Arabia sign agreement for construction of cricket stadium in Jeddah," Dawn, 02 July 2026)
ENVIRONMENT/CLIMATE CHANGE
Nine killed in two days as monsoon rains trigger floods across KP and Punjab
On 02 July, Dawn reported that rain-related incidents had killed at least nine people across Khyber Pakhtunkhwa (KP) and Punjab since 01 July, as a fresh monsoon spell caused flash floods, roof collapses and lightning strikes across multiple districts. In KP, deaths were recorded in Mansehra, Khyber, Buner, Haripur, Nowshera, Shangla and Upper Dir, with the Provincial Disaster Management Authority (PDMA) reporting 23 injured and 163 cattle killed. Flash floods struck Lower and Upper Chitral, Haripur and Shangla, damaging 41 houses. In Punjab, two people were killed, and nine were injured from wall and roof collapses in Attock, while lightning and wind caused further injuries in Khushab and Sargodha. ("2 killed in rain-related incidents in KP, taking two-day tally to 9: PDMA," Dawn, 02 July 2026)
SOCIETY
Pakistan's mobile ownership gender gap falls by 10 per cent, per GSMA report
On 02 July, Dawn reported that the GSMA Mobile Gender Gap Report 2026 identified Pakistan as the most improved country among all surveyed nations in narrowing the mobile ownership gender gap, which fell from 37 per cent in 2024 to 27 per cent in 2025. The mobile internet gender gap dropped even more sharply, from 25 per cent to just 8 per cent in a single year. The report noted that 94 per cent of women who own a smartphone use mobile internet daily, compared to 48 per cent among those relying on shared devices, underscoring the importance of personal device ownership. Pakistan ranked among the top performers across the 14 low- and middle-income countries (LMICs) surveyed. ("Pakistan leads global progress in ‘bridging mobile gender gap’," Dawn, 02 July 2026)
Editorials/Opinions
On the US
Inam Ul Haque, “Power and prerogative,” The Express Tribune, 02 July 2026
“Last week, commenting on the US military's apparent predicament in its war against Iran, we opined that General staff, as professional as USMIL, delivered a weak hand to its politicians in imposing its will on Iran, militarily speaking. Either the Generals said what Team Trump/Hegseth wanted to hear (less likely), or Team Trump ignored military's professional advice (more likely). In either case, the USMIL will continue to share the blame, as they do for similar costly errors of omission and commission in Vietnam, Afghanistan, Iraq, Iran (twice), etc. US military's track record in prosecuting wars, in mostly Asian and Muslim context, is not very bright."
https://tribune.com.pk/story/2615979/power-and-prerogative
Economy
Khurram Husain, “World Bank and NFC Award,” Dawn, 02 July 2026
“A rather damning indictment of the seventh NFC Award has just been published by the World Bank in a study titled Strengthening Fiscal Federalism in Pakistan. The study plugs a crucial gap in our understanding of the impact that the NFC Award has had on the state’s ability to function and deliver social services. The findings are not flattering for the performance of the provincial governments across Pakistan, since 2009."
https://www.dawn.com/news/2012354/world-bank-and-nfc-award
Politics & governance
Amna Hashmi, “Data policy,” The Express Tribune, 01 July 2026
“The draft ‘Data Governance Policy’, released by the IT ministry recently, is a welcome step towards modernising the state’s data management. However, the success of the policy will depend less on the principles it has ambitiously outlined and more on the legal, institutional and administrative reforms that must accompany it. As seen in the debate surrounding tax authorities’ bid to directly access and cross-match citizens’ banking information, data is becoming an increasingly important tool for the government as it attempts to improve service delivery, formulate better policies and regulate the digital economy. However, data-led decision-making is not possible without a coherent framework governing who can access public-sector data and under what conditions."
https://www.dawn.com/news/2012345/data-policy
Haroon Rashid Siddiqi, “An assault on property rights,” The Express Tribune, 02 July 2026
“The Pakistan Telecommunication Reorganisation (Amendment) Bill, 2026 was presented as a measure to accelerate fibre-optic expansion and facilitate the rollout of 5G services. Few would dispute the importance of modern telecommunications infrastructure. What raised alarm, however, was the extraordinary authority the proposed law sought to place in the hands of private telecom companies."
https://tribune.com.pk/story/2615802/an-assault-on-property-rights
Indus Water Treaty
Ali Tauqeer Sheikh, “Re-reading the water treaty,” Dawn, 02 July 2026
“Two senior officials, one each from Pakistan and India, have laid their arguments before an international readership. Dr. P.K. Saxena, former Indian Commissioner for Indus Waters, published a two-part indictment of the Indus Waters Treaty in May 2026, now circulating through Indian embassies worldwide. Syed Mehar Ali Shah, Pakistan’s serving commissioner, replied in Dawn on June 16. Both men know the IWT’s text better than most people today. Read together, their exchange is the most technically precise public debate on the Indus since the IWT was signed. It is also, ultimately, a debate between two officials who are both looking backwards. The rivers they are arguing over are not the rivers that existed in 1960."
https://www.dawn.com/news/2012355/re-reading-the-water-treaty
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