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In Focus
President Zardari meets Kyrgyz President Japarov in Bishkek
Both leaders agree to expand cooperation in trade, investment and energy; emphasis given to greater use of Pakistani ports and Central Asian transit routes
On 07 July, Dawn and The Express Tribune reported that President Asif Ali Zardari and Kyrgyz President Sadyr Japarov reaffirmed their commitment to strengthening bilateral ties during talks in Bishkek, with both sides agreeing to expand cooperation in trade, investment, energy and regional connectivity. The two leaders expressed support for establishing a strategic partnership and directed relevant institutions to accelerate the implementation of agreements reached during Japarov's December 2025 visit to Pakistan. They also pledged closer collaboration through projects such as the CASA-1000 electricity transmission project, while exploring cooperation in mining, agriculture, pharmaceuticals, information technology, transport, logistics, tourism, healthcare and education. Both countries also agreed to strengthen coordination through the Shanghai Cooperation Organisation (SCO), Organisation of Islamic Cooperation (OIC) and United Nations.
Addressing the talks, President Zardari said Pakistan and Kyrgyzstan should build on their shared historical and cultural ties to deepen economic cooperation and improve regional connectivity, including greater use of Pakistani seaports and Central Asian transit routes. The joint statement also highlighted cooperation against terrorism, organised crime, cybercrime and drug trafficking, with both leaders condemning terrorist attacks in the region and reaffirming support for peaceful conflict resolution. Kyrgyzstan welcomed Pakistan's role in facilitating the Islamabad Memorandum of Understanding between the United States and Iran, while both sides expressed hope that the agreement would contribute to lasting regional peace and stability. (“Pakistan, Kyrgyzstan agree to strengthen bilateral ties, economic cooperation and regional connectivity,” The Express Tribune, 07 July 2026; “Pakistan, Kyrgyzstan reaffirm commitment to boosting bilateral ties, stress importance of deepening trade,” Dawn, 07 July 2026)
In Brief
EXTERNAL
Cargo plane disappears from radar over Arabian Sea during flight to Karachi
On 08 July, Dawn reported that a K2 Airways Boeing 737-400 cargo aircraft carrying five crew members disappeared from radar over the Arabian Sea while flying from Sharjah to Karachi. According to the Pakistan Airports Authority (PAA), the aircraft reported a navigation system problem before losing communication approximately 287 kilometres west of Karachi, with radar data showing a rapid descent and abrupt change in heading. Flight-tracking service Flightradar24 said the aircraft experienced GNSS interference shortly after departure and that its final transmitted position showed it at 1,100 feet with a reported descent rate of 22,400 feet per minute. A multi-agency search and rescue operation has been launched, while Pakistan's Bureau of Air Safety Investigation will investigate the incident. (“Cargo plane disappears from radar over Arabian Sea off Karachi,” Dawn, 08 July 2026)
Pakistan & Bulgaria hold sixth round of bilateral political consultations
On 08 July, The Express Tribune reported that Pakistan and Bulgaria held the sixth round of bilateral political consultations in Islamabad, reviewing the full spectrum of bilateral relations and discussing ways to strengthen cooperation in areas of mutual interest. The talks were led by Additional Secretary for Europe Ambassador Ayesha Ali on the Pakistani side and Director General for Bilateral Relations Ambassador Petko Doykov for Bulgaria, with both delegations focusing on enhancing political engagement, trade and broader economic cooperation. (“Pak, Bulgaria hold political consultations,” The Express Tribune, 08 July 2026)
ECONOMY
Government misses IMF deadline for gas tariff notification amid Ogra leadership dispute
On 07 July, Dawn reported that Pakistan missed its 01 July structural benchmark under the IMF's USD 7 billion Extended Fund Facility by failing to notify the biannual gas tariff, amid gas sector circular debt of PKR 3.44 trillion. Officials attributed the delay to legal challenges surrounding the appointment of Establishment Secretary Nabeel Ahmad Awan as acting Ogra chairman and to volatile global energy prices complicating tariff determination. A further complication arose when the acting chairman refused to sign off on opaque unaccounted-for-gas (UFG) reduction targets, insisting on custody transfer station-specific targets with documented strategies from both Sui Southern and Sui Northern, a request the gas companies needed a month to fulfil. Officials described the breach as "technical," saying the determination was ready and would be issued imminently, with revenue adjustments to cover the delay rather than waiting the full 40-day statutory period after Ogra's revenue requirement determination. ("Govt misses deadline for notifying gas tariff," Dawn, 07 July 2026)
PM Shehbaz directs comprehensive SME financing strategy in coordination with SBP and commercial banks
On 07 July, Dawn reported that Prime Minister Shehbaz Sharif chaired a Smeda review meeting and directed the authority to formulate a comprehensive strategy, in coordination with the State Bank of Pakistan and commercial banks, to improve access for small and medium-sized enterprises (SMEs) to financing and boost exports. He called for dedicated financial products tailored to SME needs, assistance with feasibility studies, and special support for young and women entrepreneurs. The meeting was informed that 700 enterprises had been facilitated to participate in 16 international events this year, and businesses in 35 cities had received training on financial regulations and business development. ("PM Shehbaz calls for comprehensive strategy to boost SMEs' access to financing," Dawn, 07 July 2026)
Food prices remain elevated despite fuel cost drop
On 08 July, Dawn reported that despite diesel prices falling around PKR 90 per litre from their May peak and LPG dropping 37 per cent to PKR 300 per kg, essential food prices in Karachi continued to climb. Tomatoes surged to PKR 300 to 400 per kg from PKR 80 to 100 a month earlier due to a seasonal supply gap, with only Balochistan crops arriving to meet national demand. Onions rose PKR 20 per kg to PKR 100 to 120, while wheat flour crept up to PKR 153 per kg and the 20 kg bag to PKR 2,750 to 2,900. Pulses remained unchanged at elevated levels and cooking oil and ghee prices edged higher from pre-war levels. Market participants cited transporter reluctance to pass on fuel savings, retailer markups, and Muharram-related supply disruptions as reasons fuel cost declines have not translated into food price relief. Vegetable exports during 11MFY26 fell sharply to 550,913 tonnes from 1.4 million tonnes in the same period last year, largely due to border closures with Afghanistan and Iran. ("Food bills rise despite falling fuel costs," Dawn, 8 July 2026)
SECURITY
Khyber Pakhtunkhwa: One killed, four injured in quadcopter attack in Bannu
On 07 July, Dawn reported that, according to Bannu’s District Police Officer Muhammad Furqan Bilal, terrorists dropped explosives from a quadcopter. This resulted in the death of one individual, who was killed on the spot, and the injury of four others. Bilal visited the injured in the hospital and expressed support for the victim’s families, and later remarked that the deployment of enhanced security measures had stopped numerous attacks on police stations, checkpoints and other sensitive locales. Bilal said that, following these failed attempts, terrorists had aimed to attack citizens instead, to spread fear and panic among the local populace. This incident comes after a previous incident on 05 July where a quadcopter attack occurred in South Waziristan. (“One killed, 4 injured in quadcopter attack in KP's Bannu: police,” Dawn, 07 July 2026)
Karachi: Counter-Terrorism Department foils terror plot by Baloch Liberation Army
On 07 July, Dawn reported that the Counter-Terrorism Department (CTD) had conducted an intelligence-based operation in which they arrested two Baloch Liberation Army (BLA) militants living in Karachi under their commander’s orders. “Bomb-making material” had been recovered from the duo: four kilograms of explosive material, a detonator, a prama card and a ball ring. The department said that a further investigation was underway that could potentially lead to more suspects, as Sindh struggles with an increase in terrorism in the province since June as compared to May. (“Major terrorist plot in Karachi thwarted as 2 BLA terrorists arrested: Sindh CTD,” Dawn, 07 July 2026)
Quetta: nine officers killed in terrorist attack on police outpost
On 07 July, Dawn reported that armed men had attacked a police outpost late at night, with police opening fire against the terrorists and a subsequent crossfire occurring. Despite this, terrorists were still able to enter the premises. Ziarat Deputy Commissioner Abdul Qudoos Achakzai said the location of five officers was still unknown, though he confirmed the number of casualties in the incident. Following the attack, it was stated that fifteen Fitna al Khawarij terrorists had been killed in an operation. President Asif Ali Zardari strongly condemned the attacks, saying that the state would continue its anti-terrorism operations at “full force.” Interior Minister Mohsin Naqvi further remarked that the nation was determined to thwart “every conspiracy by Indian-sponsored terrorists to sabotage peace.” Data from the Pakistan Institute for Conflict and Security Studies showed that Balochistan had witnessed a “significant decline” in terrorism in June, despite high-profile attacks. (“9 cops martyred in terrorist attack on police post in Ziarat,” Dawn, 07 July 2026)
JUDICIARY
Islamabad High Court grants Imran Khan final adjournment in GBP 190 million corruption case
On 07 July, Dawn reported on the Islamabad High Court (IHC) granting a final adjournment to the counsel for Pakistan Tehreek-e-Insaf (PTI) founder Imran Khan in the GBP 190 million Al-Qadir Trust corruption case, warning that no further delay would be tolerated. Senior counsel Sardar Latif Khosa gave an unequivocal undertaking that he would not seek another adjournment and would argue the appeal on its merits at the next hearing. The court said if arguments were not presented, the appeal would be decided based on the available record. Imran and his wife, Bushra Bibi, were sentenced to 14 and seven years in prison, respectively, by an accountability court in January 2025, and both subsequently challenged their convictions before the IHC. ("IHC grants final adjournment to Imran's counsel in £190m corruption case," Dawn, 07 July 2026)
AF-PAK
KP: Government to launch crackdown on undocumented Afghan nationals from 10 July
On 08 July, The Express Tribune reported on the Khyber Pakhtunkhwa (KP) government preparing to launch a major operation against undocumented Afghan nationals across the province from 10 July. The crackdown will begin in Peshawar's key commercial areas, including Namak Mandi, Qissa Khwani Bazaar and University Road, targeting both undocumented individuals and businesses operating in violation of the law. More than 14,000 Afghan families returned to Afghanistan between 01 and 06 July as part of the ongoing repatriation drive. The operation will be conducted jointly by the police and law enforcement agencies, with officials saying it targets only those residing illegally and those breaking the law. ("K-P plans crackdown on illegal immigrants," The Express Tribune, 08 July 2026)
PROVINCES
Punjab: Rawalpindi residents face prolonged water shortages as civic agencies fail to act
On 07 July, Dawn reported on several areas of Rawalpindi city and the cantonment facing an acute water shortage during peak summer heat, with civic bodies unable to resolve the issue. Areas including Misrial Road, Afshan Colony, Tench Bhatta and Baraf Khana Chowk in the cantonment, as well as localities along the old Airport Road, are among the worst affected. The Water and Sanitation Agency (WASA) said the shortage in city areas worsened after the Capital Development Authority (CDA) suspended supply from tube wells along the Islamabad Expressway. Residents said they had been forced to rely on private tankers, with no clear timeline for when the supply would be restored. ("Rawalpindi faces acute water shortage amid summer heat," Dawn, 07 July 2026)
KP: Lawmakers raise power cuts and NFC shortfall in provincial assembly session
On 07 July, Dawn reported that the Khyber Pakhtunkhwa (KP) government informed the provincial assembly that the province received over PKR 3.4 trillion under the National Finance Commission (NFC) Award between 2020 and 2025, against a due amount of PKR 3.647 trillion. Opposition lawmakers questioned the discrepancy in figures between the finance department and budget documents, with an annual shortfall of over PKR 60 billion flagged for five consecutive years. Treasury members also demonstrated in the hall against prolonged power outages, accusing the federal government of mistreating KP and pointing out that major electricity infrastructure under the China-Pakistan Economic Corridor (CPEC) was directed to Punjab cities rather than KP. ("KP received over Rs3.4tr under NFC Award in last five years, PA told," Dawn, 07 July 2026)
Editorials/Opinions
Politics & governance
Zahid Hussain, “Systemic failure,” Dawn, 08 July 2026
"The spectacle of a number of cabinet ministers at an investment conference in Istanbul last week offers an insight into the current government’s perception of how to fix Pakistan’s problems. Of course, the inseparable duo of the prime minister and deputy PM was there too. The two may well have secured a place in the Guinness World Records for the most world tours undertaken together. They were apparently there to project Pakistan’s potential for foreign investment. No one denies the significance of such conferences for attracting foreign investment critical for economic growth. But the ministers’ presence at every conference will not, on its own, draw investor interest. What matters more is fixing things at home to create the environment and capacity for both domestic and foreign investment. Chaotic governance and inconsistent policies have been a major impediment in the way of any investment coming to the country."
https://www.dawn.com/news/2013746/systemic-failure
Economy
Zafar Masud, “Making every rupee compound,” Dawn, 08 July 2026
“Pakistan's economic debate is trapped in a distracting quarrel — whether banks lend too much to government and too little to enterprise. Allocation matters, but it is not the binding constraint. On the State Bank’s consolidated estimates, with the share of development spending shrinking, a rupee of government spending now multiplies about 0.71 in output on average while a rupee of private investment returns 1.2 to 1.3. The private rupee works nearly twice as hard yet, strip out productivity — ie, the efficiency with which inputs become output — and even that collapses towards 1.0. Adjusted for our stalled productivity, no rupee in Pakistan truly compounds. We accumulate without amplifying."
https://www.dawn.com/news/2013745/making-every-rupee-compound
Jazib Mumtaz, “Economic stabilisation without social progress,” The Express Tribune, 08 July 2026
“The Economic Survey 2025-26 shows a considerable decline in Pakistan's socioeconomic situation between 2018-19 and 2024-25. Poverty rose from 21.9% to 28.9%, signifying a 32% increase in the poverty headcount, implying that a higher proportion of the population is unable to fulfil basic living standards. Income inequality also deteriorated, with the Gini coefficient rising from 28.4 to 32.7, representing a 15% increase and suggesting a more uneven distribution of income."
https://tribune.com.pk/story/2617016/economic-stabilisation-without-social-progress
Society
Rakhshinda Perveen, “Invest in people,” The Express Tribune, 08 July 2026
“Perhaps the most meaningful question to ask this World Population Day is not how many fewer babies will be born next year. It is whether, by the time the next World Population Day arrives, one more girl has completed school, one more boy has learnt that respect is part of manhood, one more young woman has found dignified work, one more couple has received honest contraceptive counselling before an unintended pregnancy rather than treatment afterwards, and one more government has chosen to invest in people instead of performances."
https://tribune.com.pk/story/2617021/invest-in-people
Terrorism
Editorial, “Terrorism threat,” Dawn, 08 July 2026
“The surge in terrorist violence in Balochistan highlights the renewed threat confronting Pakistan. The martyrdom of at least nine policemen in Ziarat and the arrest of two alleged BLA operatives in Karachi on Tuesday, preceded by deadly violence near Quetta a day earlier, indicate that terrorist groups retain both the capability and intent to challenge the state’s writ."
https://www.dawn.com/news/2013740/terrorism-threat
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