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In Focus
PM Shehbaz and Turkish President Erdoğan commit to increasing trade to USD 5 billion
Bilateral talks covered investment, defence and SEZs; FM Dar urged business leaders to increase investment in energy and manufacturing sectors
On 06 July, Dawn and The Express Tribune reported that Prime Minister Shehbaz Sharif and Turkish President Recep Tayyip Erdoğan reaffirmed their commitment to strengthening Pakistan-Türkiye relations, with a focus on expanding trade, investment, energy, defence cooperation and regional security. Speaking after bilateral talks in Istanbul, both leaders reiterated their target of increasing annual bilateral trade to USD 5 billion. They discussed cooperation in sectors including petroleum exploration, information technology, mining and special economic zones. President Erdoğan also praised Pakistan's mediation efforts that led to the Islamabad Memorandum of Understanding ending the US-Iran conflict. At the same time, PM Shehbaz described the two countries as "two hearts with one soul" and said their economic partnership was entering a new phase.
The two leaders also exchanged views on regional developments, reaffirming mutual support on each other's core national issues. PM Shehbaz thanked Türkiye for its continued backing of Pakistan's position on Pakistan-occupied Kashmir (PoK), while reiterating Islamabad's support for the Turkish Republic of Northern Cyprus. Erdoğan called for resolving regional disputes through diplomacy, criticised Israel's actions in Gaza and warned against attempts to undermine the Iran-US peace agreement, stressing that countries within the region must lead lasting regional stability.
Separately, PM Shehbaz and Deputy Prime Minister and Foreign Minister Ishaq Dar met senior Turkish business leaders and urged greater investment in Pakistan's energy, infrastructure, mining, manufacturing, logistics, telecommunications and technology sectors. Turkish firms expressed interest in expanding their presence in Pakistan, while both governments highlighted ongoing efforts to strengthen business-to-business ties, advance joint investment projects and deepen economic cooperation ahead of the next session of the High-Level Strategic Cooperation Council later this year. (“'Two hearts with one soul': PM Shehbaz says Pak-Turkiye economic partnership 'entering a new phase',” Dawn, 04 July 2026; “Pakistan, Turkiye vow stronger economic ties, reaffirm $5b trade target,” The Express Tribune, 04 July 2026; “Dar seeks investment from Turkiye,” The Express Tribune, 06 July 2026)
In Brief
EXTERNAL
Iranian interior minister to visit Islamabad as Pakistan eyes hosting next US-Iran talks on 11 July
On 06 July, The Express Tribune reported that Iranian Interior Minister Eskandar Momeni is expected to lead a high-level delegation to Islamabad after the burial of Ayatollah Ali Khamenei on 9 July, covering trade, connectivity, and people-to-people exchanges. Diplomatic sources said the visit carries significant political weight, with Pakistan increasingly viewed as Tehran's preferred venue for the next round of indirect Iran-US negotiations, potentially later this month, given its close ties with both sides and its role in facilitating the Islamabad MoU. Foreign Office spokesperson Tahir Andrabi declined to rule out Islamabad hosting future talks, though no formal decision has been taken. Dawn had earlier reported that Islamabad is emerging as the leading venue for the next round of technical negotiations between the US and Iran, expected around 11 July, with Switzerland's Burgenstock resort as the alternative, though no final announcement has been made. ("Islamabad in spotlight as Iran plans key visit," The Express Tribune, 06 July 2026; "Islamabad frontrunner to host US-Iran talks," Dawn, 05 July 2026)
ECONOMY
SBP discontinues remittance incentive schemes as banks warn of profitability hit
On 05 July, Dawn reported that the State Bank of Pakistan discontinued the Sohni Dharti Remittance Programme and the Telegraphic Transfer Charges Incentive Scheme (TTCIS) from 01 July 2026, following IMF criticism of the scale of incentive payments to banks. While the SBP directed banks to continue implementing the TTCIS at their own expense, preserving its key features including free-of-cost remittance transactions for senders and beneficiaries, the Pakistan Banks Association said banks would now have to absorb costs previously borne by the government. Bank Alfalah CEO Atif Bajwa warned the decision would dent profitability, though banking experts noted that banks, which earned PKR 640 billion in profits in calendar year 2025, would continue receiving incentives under the Pakistan Remittance Initiative at one to two per cent of transaction volumes. SBP Governor Jameel Ahmad said remittance inflows would continue to rise in FY27 despite the changes, with remittances expected to reach PKR 41 to 42 billion in FY26 following PKR 40 billion in FY25. ("Banks upset as SBP ends remittance incentives," Dawn, 05 July 2026)
Service exports rise 17.38 per cent to USD 9.09 billion in 11 months of FY26, driven by IT
On 05 July, Dawn reported that Pakistan's services exports grew 17.38 per cent to USD 9.09 billion during July-May FY26 from USD 7.75 billion in the same period last year, with IT and telecommunications exports rising 20.41 per cent to USD 4.184 billion and other business services up 24.25 per cent to USD 1.937 billion, while transport services contracted 8.55 per cent to USD 855 million. Monthly growth remained positive throughout the period, ranging from 8.27 per cent in July to 31.12 per cent in January. The government projects total IT export earnings of between USD 4.5 billion and USD 4.6 billion for FY26. Domestic internet connections expanded from 1.9 million in 2024 to 5.1 million in 2026, expected to support further IT export growth. ("Services exports jump 17.38pc," Dawn, 5 July 2026)
Oil & Gas regulator notifies 15 per cent RLNG price hike for June as Hormuz disruptions force costly spot purchases
On 06 July, Dawn reported that the Oil & Gas Regulatory Authority (Ogra) notified a 15 per cent increase in Regasified Liquefied Natural Gas prices for June at the distribution stage, placing RLNG 56 per cent above March levels and 73 per cent above February levels, driven by emergency spot market purchases at short notice following supply disruptions caused by the US-Iran war. The SNGPL distribution-stage price rose 14.94 per cent to USD 19.5228 per mmBtu, and SSGCL's rose 16.17 per cent to USD 18.64 per mmBtu. The sharp increase fed directly into power generation costs, with RLNG-based electricity fuel costs rising to PKR 31 per unit in May from PKR 13.72 per unit in April. PSO's long-term Qatari contract covers up to 11 cargoes per month, but Qatar was unable to supply its usual seven to eight cargoes due to Strait of Hormuz closure and field suspension, prompting the government to reactivate Pakistan LNG Limited, which has been importing one spot cargo per month at 48 to 72 hours' notice, most recently at USD 19.134 per mmBtu. Supply chain cost additions including retainage margins and distribution losses add a further USD 3.3 to 4.2 per mmBtu above the delivered ex-ship price for end-users. ("Ogra notifies 15pc increase in Regasified Liquefied Natural Gas price for June," Dawn, 6 July 2026)
SECURITY
Suspect who killed Pakistan Air Force officer arrested “within nine hours”, says Islamabad police
On 05 July, Dawn reported that, during a press conference, Islamabad Inspector General Ali Nasir Rizvi had stated that a suspect who shot and killed PAF Group Captain Asin Tariq was arrested “within nine hours.” Tariq aimed to “save” a woman from an argument between her and the suspect, who was attempting to “forcefully take the woman away with him.” Subsequently, the suspect opened fire and shot Tariq dead. It was reported that the suspect, Saad Abbasi, wanted to take the woman, Nimrah, to a park or other location as opposed to the store at which they both worked. She was under the impression that they would go to the store, as they had done twice repeatedly, and thus resisted, with an argument occurring between the two. The Group Captain, on his way to Rawalpindi for an assignment, was shot and killed by the suspect after pulling over and telling him to stay away from the woman. Tracking Abbasi proved difficult due to the fact that Nimrah was unaware of his residence, and that Abbasi had switched off his phone, worn a new shirt, and fled through the bus service. After observations of cameras and call detail records, the suspect was identified, and it was determined that the suspect had done the same before with another woman. (“Suspect who shot PAF officer dead arrested within 9 hours: Islamabad IG,” Dawn, 05 July 2026)
South Waziristan: Three girls killed, four others injured in suspected quadcopter attack
On 05 July, Dawn reported that it was suspected that a quadcopter drone had dropped munitions on the house. The incident allegedly occurred at a Dinor subtribe residence, with three girls aged between 6 and 15 killed, as well as one woman, and three boys injured. Local sources allege that similar incidents have previously been reported in several areas in the region. Locals have expressed fear and concern over such incidents, and have pointed out that security conditions in South Waziristan have declined significantly, calling upon authorities to investigate the situation as well as the general increase in violence. (“3 girls killed, 4 injured in suspected quadcopter attack in Lower South Waziristan,” Dawn, 05 July 2026)
Balochistan: One girl and eight tribal members killed in separate incidents
On 05 July, Dawn reported that a group of armed men opened fire on their opponents, in the process killing four tribesmen and a young girl. The four tribesmen died instantly, though the girl died during transit for treatment. Before fleeing the area, it was noted that the men fired “hundreds” of bullets in the air. One of the attackers stated that they had “taken revenge” that day, with the police confirming that the incident stemmed from an old enmity. In another incident, rival Bugti clan factions attacked one another due to a marriage proposal, with four killed on both sides and another injured. (“3 girls killed, 4 injured in suspected quadcopter attack in Lower South Waziristan,” Dawn, 05 July, 2026)
POLITICS & GOVERNANCE
IT Minister Fatima Khawaja continues to push for controversial telecom bill
On 05 July, Dawn reported that IT Minister Khawaja, in a press conference about the controversial Pakistan Telecommunication (Re-organisation) (Amendment) Bill, noted that the original Pakistan Telecommunication (Re-organisation) Act of 1996 did not adequately address modern advancements in technology, and emphasised the need for change, citing increased data consumption and spectrum availability. The minister remarked that the proposed bill was aimed at allowing for greater investment in Pakistan’s digital infrastructure, which hadn’t received the proper funding due to existing frameworks’ issues attracting investment. She also hinted at potential legal action being a possibility, should investigations into her financial integrity prove incriminating. The Law Minister claimed that the allegations of financial benefit made under the pretext of the bill were unfounded, and emphasised that citizens who did not wish to have telecom infrastructure on private property had a right to refuse, as stipulated in the proposed law. (“IT minister stresses proposed telecom bill needed as existing laws insufficient for 5G, other modern tech,” Dawn, 05 July 2026)
Owner’s consent made mandatory in telecommunications bill
On 05 July, The Express Tribune reported that, after strong criticism from both government allies and opposition, P.M Sharif constituted the committee that demanded a thorough review of the telecommunications bill. Law Minister Azam Nazeer Tarar, in a committee, affirmed that needing consent of property owners before installing telecommunications infrastructure on private land had been made mandatory. He also remarked that the amended draft included clearer definitions and stipulations, and that the draft now emphasised the mandatory nature of consent in the bill as opposed to previously, where it had only stated that negotiations would take place. He also emphasised that disagreements would be dealt with under the law, and that parties could decide at a later date to back out. However, a willing owner, he clarified, could not disrupt the agreement during the contract period. The committee unanimously solved the issue, and submitted the report to the PM. (“Owners' consent made mandatory in telecom bill after committee review, says law minister,” The Express Tribune, 05 July 2026)
ENVIRONMENT
Punjab groundwater levels falling by up to one metre a year
On 06 July, The Express Tribune reported that Punjab's worsening groundwater crisis, with experts warning that falling water tables are dropping by up to one metre annually in parts of Lahore, is outpacing government conservation efforts. Areas including Gulberg, Shadman and Muslim Town have been declared high-risk zones by the Water and Sanitation Agency (WASA). The Punjab government has approved 358 underground storage tanks across the province and plans to install 1,000 groundwater recharge wells in Lahore alone, though only three are currently operational. Experts cautioned that recharge wells alone were insufficient and called for stricter controls on extraction and environmentally sustainable urban planning. ("Groundwater crisis prompts urgent action," The Express Tribune, 06 July 2026)
June was warmer and drier than normal, finds Pakistan Meteorological Department
On 06 July, The Express Tribune reported that the Pakistan Meteorological Department (PMD) released its monthly climate assessment for June 2026, finding that rainfall across the country was 19 per cent below normal while average temperatures remained above seasonal norms. The national mean temperature stood at 32.0°C, 0.3°C above normal, while average nighttime temperatures were 0.6°C above the seasonal average. The hottest recorded temperature of 51°C was logged in Shaheed Benazirabad and Dadu, with Sibi in Balochistan recording the highest monthly average maximum of 46.7°C. The PMD also noted that El Niño conditions persisted in the Pacific, with sea surface temperatures running approximately 1.02°C above normal. ("June warmer, drier than normal nationwide," The Express Tribune, 06 July 2026)
POK
Clashes break out as JAAC holds demonstrations across "AJK"
On 05 July, Dawn reported that clashes took place between protesters and law enforcement personnel in several parts of "Azad Jammu and Kashmir" as the banned Joint Awami Action Committee (JAAC) held a territory-wide shutter-down strike and demonstrations. The worst violence was in Dadyal in Mirpur district, where at least four people were injured, two critically. In Muzaffarabad, police used tear gas to disperse protesters at Airport Chowk, detaining four men and three women. Internet services across "AJK" entered their 30th consecutive day of suspension. A JAAC leader gave the government a final deadline of 08 July to implement its charter of demands, warning of further action on 09 July. ("Clashes reported from AJK as JAAC holds demonstrations," Dawn, 05 July 2026)
Editorials/Opinions
Politics & governance
Maleeha Lodhi, “Now for the country, please,” Dawn, 06 July 2026
“The prime minister has twice declared an education emergency but then done nothing. Literacy is stagnant with 37pc of our population still illiterate. No country can predicate economic progress on an illiterate base. The level of poverty at 30pc remains troubling. As do economic disparities, with real incomes of the bottom 70pc of people in steady decline since 2018. Pakistan’s future hinges on fixing these economic and social issues. As well as its politics. The domestic agenda must take priority. The country’s destiny will be determined by choices made at home, not external factors or praise from abroad."
https://www.dawn.com/news/2013282/now-for-the-country-please
Economy
Bolormaa Amgaabazar, “Fiscal federalism,” Dawn, 06 July 2026
“Pakistan has recently constituted its 11th National Finance Commission (NFC) to develop a new Award for the sharing of divisible resources between the centre and the provinces. Fiscal federalism arrangements were last significantly reformed over 15 years ago and are overdue for an update."
https://www.dawn.com/news/2013277/fiscal-federalism
Politics & governance
Editorial, “Iran’s resilience,” Dawn, 05 July 2026
“The funeral ceremonies for Iran’s assassinated supreme leader Ayatollah Ali Khamenei and his family members, which began in Tehran on Friday, are evidence that the joint US-Israeli endeavour to break the Islamic Republic has failed. If anything, their aggression has rallied Iranians, who appear prepared to defend their country from hostile external forces."
https://www.dawn.com/news/2013083/irans-resilience
Muhammad Ali Ehsan, “War in Ukraine: battle of perspectives,” The Express Tribune, 05 July 2026
“The war in Ukraine is no longer merely a territorial conflict between Russia and Ukraine. It has become a battle of competing geopolitical narratives. While the West views the war as resistance against aggression, Russia sees it as the latest phase of a centuries-long struggle over the global distribution of power and strategic resources. Understanding these competing perspectives is essential to understanding why the war continues to escalate. The recent Russian military strikes have been devastating, and it seems there will hardly be any let-up in the Russian response in the coming days. How Russia interprets this war is a critical question, and I wish to answer that in light of a Russian author's assessment."
https://tribune.com.pk/story/2616576/war-in-ukraine-battle-of-perspectives
Society
Editorial, “Umpteenth polio drive,” The Express Tribune, 05 July 2026
“Karachi is once again mobilising its army of 26,000 polio workers and thousands of police escorts - this time with an aim to vaccinate over 2.5 million children within six days. The resolve to launch this Herculean feat is impressive, and also quite familiar. For over three decades, in some form, Pakistan has run this machine yet still hasn't crossed the finish line that Nigeria and India reached years ago."
https://tribune.com.pk/story/2616573/umpteenth-polio-drive
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