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In Brief
EXTERNAL
Pakistan & Kuwait in talks for expanded defence pact
On 18 July, Dawn reported that Pakistan and Kuwait are holding early-stage negotiations on expanding their defence cooperation alongside discussions on energy security and investment. According to officials familiar with the talks, Kuwait is seeking a broader security arrangement modelled on Pakistan's long-standing defence partnership with Saudi Arabia, including military training, air defence cooperation and other defence capabilities. However, Pakistani officials indicated that deploying combat troops is not under consideration. The discussions also include energy cooperation as Islamabad seeks to strengthen its strategic oil and fuel reserves. While both countries already maintain a limited defence agreement covering training and joint exercises, officials cautioned that negotiations remain preliminary and could be affected by heightened regional tensions linked to the US-Iran conflict. ("Pakistan and Kuwait ‘mulling defence pact’," Dawn, 18 July 2026)
Pakistan & China expand immigration and border security cooperation
On 18 July, Dawn reported that Pakistan and China agreed to strengthen cooperation on immigration, border management and cross-border security during talks between Interior Minister Mohsin Naqvi and a delegation from China's National Immigration Administration. The two sides pledged to enhance joint operations against illegal immigration, arms smuggling and other cross-border crimes, while agreeing to establish a joint working group on border management and security and expedite a bilateral immigration agreement. Pakistani officials also announced plans to establish a Gilgit-Baltistan Scouts check post at the Khunjerab Pass to bolster border security. China reaffirmed its support for Pakistan's institutional capacity building, invited Pakistani officials to a public security forum and announced that Pakistani police officers would receive training in China later this month. ("Pakistan, China to enhance cooperation on immigration and border management," Dawn, 18 July 2026)
Pakistan chairs 12th Shanghai Cooperation Organisation meeting in Islamabad
On 18 July, Dawn reported that Pakistan hosted and chaired the 12th Meeting of the Heads of Border Services of the Shanghai Cooperation Organisation (SCO), bringing together border security officials from all 10 member states, along with representatives of the SCO Regional Anti-Terrorist Structure (RATS). Participants reviewed border security trends, exchanged assessments of regional challenges and approved the results of the joint border operation Solidarity-2025. They also endorsed plans for Solidarity-2026 and supported Tajikistan's proposal to host the 2027 exercise. On the sidelines, Iran called for expanded cooperation on border security, intelligence sharing, counterterrorism, drug trafficking and organised crime. The meeting comes ahead of Pakistan assuming the SCO Council of Heads of State chairmanship in September and hosting the bloc's summit next year. ("Pakistan chairs 12th SCO meeting of heads of border services: FO," Dawn, 18 July 2026)
Pakistan & China jointly call on US and Iran to resume negotiations
On 17 July, Dawn reported that Pakistan and China jointly called on the United States and Iran to immediately halt hostilities and resume negotiations following a meeting between Deputy Prime Minister and Foreign Minister Ishaq Dar and Chinese Foreign Minister Wang Yi in Shanghai. The two sides described the June ceasefire framework as a hard-won achievement and warned against further escalation amid renewed fighting around the Strait of Hormuz. They also reviewed bilateral ties, reaffirming their commitment to deepen the Pakistan-China strategic partnership, advance CPEC 2.0, and expand cooperation in trade, investment, science, technology, the digital economy and artificial intelligence. Both countries pledged continued coordination on regional and global issues through multilateral forums while reiterating support for diplomatic efforts to restore stability in the Middle East. ("China and Pakistan call on US, Iran to resume talks, cease hostilities," Dawn, 17 July 2026)
Finance Minister to visit US for trade & tariff talks
On 17 July, Dawn reported that Finance Minister Muhammad Aurangzeb is expected to visit Washington for three days of talks with US officials aimed at advancing a broader bilateral economic partnership. He is scheduled to meet representatives from the US Trade Representative (USTR), US Export-Import Bank, US International Development Finance Corporation (DFC) and the International Monetary Fund (IMF). Discussions will focus on a potential trade agreement covering tariffs, market access, investment and economic cooperation, alongside financing opportunities for infrastructure and energy projects. The visit comes as Pakistan and the US continue negotiations over trade tariffs, including Section 301 investigations, while Islamabad seeks to expand bilateral trade and attract greater foreign investment. ("Finance minister to visit Washington for trade, tariff talks with US," Dawn, 17 July 2026)
Decision to deport Rochdale gang ringleader to Pakistan internal matter for UK, says Foreign Office
On 17 July, Dawn reported that Pakistan's Foreign Office (FO) said any decision on the proposed deportation of Shabir Ahmed, the ringleader of the Rochdale grooming gang, is solely an internal matter for the United Kingdom. Responding to calls in Britain for Ahmed's removal following his release from prison, FO spokesperson Tahir Andrabi stressed that Ahmed is a British national who committed his crimes in the UK, where he was tried and convicted. He said Pakistan had "no connection whatsoever" with the case and could not be associated with decisions regarding Ahmed's legal status or treatment under British law. The statement came as the UK government considers legal changes to facilitate the deportation of foreign nationals convicted of serious crimes. ("‘Rochdale ringleader’s deportation has nothing to do with Pakistan’," Dawn, 17 July 2026)
PM Shehbaz assures security for Chinese nationals after investment in pharmaceuticals and healthcare
On 17 July, Dawn reported that Prime Minister Shehbaz Sharif addressed the Pakistan-China Pharmaceutical and Healthcare B2B Investment Conference in Islamabad. In his address, he asserted that the security of Chinese in Pakistan was “paramount for us”. Chinese citizens and projects have also come under attack multiple times in Pakistan in the past. According to data shared by the National Counter Terrorism Authority in December 2024, as many as 20 Chinese citizens had been killed and 34 injured in terror attacks in the country from 2021 until then. The conference also saw the signing of multiple agreements between Pakistani and Chinese companies in the areas of healthcare, biotechnology and pharmaceuticals, cumulatively valued at almost USD 440 million. (“Security of Chinese in Pakistan 'paramount for us', says PM Shehbaz,” Dawn, 17 July 2026)
ECONOMY
Government increases petrol price by PKR 5.44, diesel by PKR 31.05 per litre
On 17 July, Dawn reported that Pakistan increased petrol and high-speed diesel prices by PKR 5.44 and PKR 31.05 per litre, respectively, with immediate effect until 20 July, citing higher import premiums and rising global oil prices driven by renewed regional tensions. Petrol now costs PKR 316.15 per litre, while diesel has risen to PKR 354.35 per litre. The government also announced that fuel prices will now be revised daily instead of weekly, with the Oil and Gas Regulatory Authority (Ogra) tasked with setting prices based on international market trends and publishing the factors behind each adjustment. The move was criticised by the All Pakistan Dealers Association, which said it would consider protest action against the new pricing mechanism. ("Govt increases petrol price by Rs5.44, diesel by Rs31.05 per litre for next 3 days," Dawn, 17 July 2026)
Pakistan ends FY26 with current account deficit of USD 139 million
On 18 July, Dawn reported that Pakistan ended FY2025-26 with a current account deficit of USD 139 million, reversing the USD 1.84 billion surplus recorded the previous fiscal year, as higher imports and disruptions linked to the Gulf conflict outweighed export growth. Strong workers' remittances, which reached a record USD 41.6 billion, helped keep the deficit limited despite a widening trade gap and a USD 649 million current account deficit in June. Goods exports declined while services exports increased modestly, leaving overall export growth largely stagnant. The State Bank of Pakistan also reported that foreign direct investment fell 34 per cent year-on-year to USD 1.64 billion, with lower inflows from China and the Middle East, raising concerns over Pakistan's external outlook amid higher oil prices and continued regional instability. ("Current account slips into $139m deficit in FY26," Dawn, 18 July 2026)
Short-term inflation rises to 13 per cent
On 18 July, Dawn reported that Pakistan's short-term inflation, measured by the Sensitive Price Index (SPI), rose 13.08 per cent year-on-year for the week ending 16 July, driven primarily by higher fuel prices following the government's shift to daily petroleum pricing. The SPI also increased 1.40 per cent from the previous week, reflecting broad-based cost pressures. Major annual increases were recorded in electricity charges (49.14 per cent), gas (29.85 per cent), wheat flour (71.81 per cent) and liquefied petroleum gas (42.5 per cent), while food prices remained elevated, particularly for tomatoes, onions, beef and mutton. The Pakistan Bureau of Statistics noted that the SPI has now risen for 66 consecutive weeks, highlighting persistent cost-push inflation and continued pressure on household budgets despite price declines in items such as potatoes, sugar and chicken. ("Short-term inflation surges over 13pc," Dawn, 18 July 2026)
IT exports hit record USD 4.6 billion in FY26
On 18 July, Dawn reported that Pakistan's information technology exports reached a record USD 4.6 billion in FY26, marking a 21 per cent increase from USD 3.8 billion in the previous fiscal year and surpassing the government's USD 4.5 billion target. Monthly IT exports stood at USD 416 million in June, up 23 per cent year-on-year and 12 per cent month-on-month, driven by the expansion of Pakistani IT firms into the Middle East, North Africa and European markets. Under the government's Uraan Pakistan economic plan, IT exports are targeted to reach USD 10 billion by FY29. Separately, local mobile phone assembly fell to 1.93 million units in June, while domestic manufacturers supplied 75 per cent of Pakistan's mobile phone demand during the month. ("IT exports hit record $4.6bn," Dawn, 18 July 2026)
Capital Development Authority proposes increases in water charges amid shortage
On 17 July, Dawn reported that Pakistan's Capital Development Authority (CDA) is preparing to increase water and sewerage charges in Islamabad, arguing that current tariffs recover only about 20 per cent of the actual cost of providing the services. The proposal, which follows a public hearing and was previously approved in principle by the CDA Board, is expected to be sent to the federal cabinet for approval. Officials said existing water charges are heavily subsidised and significantly lower than those of other water utilities in Pakistan. The planned revision comes as Islamabad faces worsening water shortages, with supply capacity of 70 million gallons per day falling far short of the city's estimated demand of more than 220 million gallons, prompting renewed promises to develop new dams and alternative water sources. ("Capital Development Authority proposes increase in water charges amid mounting scarcity," Dawn, 17 July 2026)
SECURITY
KP: Security forces kill 24 terrorists in Bannu
On 17 July, Dawn reported that security forces killed 24 terrorists in Khyber Pakhtunkhwa’s Bannu district and its adjoining areas. Weapons and ammunition were found in the possession of the slain terrorists, “who remained actively involved in numerous terrorist activities and the killing of innocent civilians”. President Asif Ali Zardari lauded the security forces for the successful operations. Meanwhile, the Counter-Terrorism Department (CTD) and local police personnel killed five terrorists during a jointly conducted operation in Bannu. Terrorist attacks in Bannu, including attacks on police and jirga members, have prompted targeted operations by police and security forces in various localities to disrupt terror networks. (“Security forces kill 24 terrorists in KP's Bannu, adjoining areas: ISPR,” Dawn, 17 July 2026)
POLITICS & GOVERNANCE
Anti-terrorism court initiates proclamation proceedings against KP CM and PTI leaders
On 17 July, Dawn reported that an anti-terrorism court (ATC) initiated proclamation proceedings against Khyber Pakhtunkhwa Chief Minister Sohail Afridi, PTI leader Junaid Akbar, and Abdul Ghani Afridi, over their continued failure to appear before the court despite the issuance of non-bailable arrest warrants in a case related to the 26 November protest. The police informed the court that, in view of the continued non-compliance with the warrants, proclamation proceedings had been initiated against the accused in accordance with the law. It added that once the proclamation process was completed, preparation of the challan under Section 173 (Report of police officer) of the Code of Criminal Procedure (CrPC) would enter its final stage. The court subsequently adjourned further proceedings in the case until 9 September, directing that the matter be taken up after completion of the remaining legal process and submission of the challan. (“Islamabad ATC initiates proclamation proceedings against KP CM Afridi, others for failing to appear in court,” Dawn, 17 July 2026)
Balochistan: Home Minister reaches agreement with slain cops' families to end Quetta sit-in
On 18 July, Dawn reported that the Balochistan government and representatives of a multi-party alliance claimed to have reached an agreement with the families of policemen martyred in a deadly attack in Ziarat. During the day, a shutter-down strike was observed across Balochistan, with shops and markets closed and all business activities remaining suspended, in solidarity with the families of the policemen, who had been holding a sit-in at Quetta’s Koyila Phatak for nine straight days, along with the martyrs’ bodies. The late-night agreement between the government and the demonstrators represented by a multi-party alliance was signed by Home Minister Ziaullah Langove, while Pashtunkhwa Milli Awami Party (PkMAP) Secretary-General Abdul Rahim Ziaratwal signed on behalf of the protesting families. However, the families of policemen martyred in the attack near Mangi Dam had continued their protest. (“Martyred cops' families agree to end Quetta sit-in,” Dawn, 18 July 2026)
Editorials/Opinions
The Middle East
Inam Ul Haque, “Middle East's new security paradigm,” The Express Tribune, 16 July 2026
"The US-Israeli war on Iran has redefined the regional security architecture profoundly. That architecture in the Middle East was traditionally pegged to the 'purchased security framework' led by the US. The emerging, yet to be instituted and new security architecture is transitioning away from this historic and traditional US-led bilateral and multilateral alliances mode, and is gravitating towards a multipolar, regionally owned framework, wherein the main players are increasingly hedging with global powers, seeking advantage wherever they find it."
https://tribune.com.pk/story/2618449/middle-easts-new-security-paradigm
Climate change
Ali Tauqeer Sheikh, “Pakistan’s Ground Zero,” Dawn, 17 July 2026
“Gilgit-Baltistan has emerged as Pakistan’s climate ground zero. For decades, the country’s climate emergency was narrated from its floodplains: Sindh’s submerged villages, Punjab’s swollen tributaries, the 2010 and 2022 disasters. These were the consequences of a deeper story. The origin has abruptly moved upstream. GB is no longer the water tower that occasionally leaks. It is where the Indus system’s first disasters now begin, not where they arrive."
https://www.dawn.com/news/2015802/pakistans-ground-zero
Economy
Editorial, “Barren reforms,” Dawn, 17 July 2026
“Prime Minister Shehbaz Sharif’s assertion that agriculture and livestock hold the key to Pakistan’s quick economic revival is spot-on. The sector contributes almost a quarter of GDP, employs well over a third of the labour force and remains the largest source of livelihoods. Livestock alone accounts for more than 60pc of agriculture’s value addition, while Pakistan ranks among the world’s largest milk producers, and possesses considerable untapped potential in both milk and meat exports."
https://www.dawn.com/news/2016094/barren-reforms
Editorial, “Taxing retailers,” The Express Tribune, 16 July 2026
“The government's endeavour to bring in retailers with a favourable tax slab is appreciated. The intention is not only to ease complex accounting processes - as around three million retailers countrywide are currently untaxed - but also to bolster the exchequer with a decent turnover. The recent proposal introduces a voluntary income tax regime for small shopkeepers, offering them exemptions from audits, withholding taxes, and mandatory digital invoicing."
https://tribune.com.pk/story/2618445/taxing-retailers-2
PoK
Editorial, “AJK violence,” Dawn, 16 July 2026
“Since early June, Azad Kashmir has been on tenterhooks, with routine life severely disturbed, as the regional administration seeks to quell the protests of the now proscribed Joint Awami Action Committee, a coalition of political and civil society groups."
https://www.dawn.com/news/2015795/ajk-violence
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