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In Focus
USD 850 million in deals signed by Pakistani and Chinese companies at pharma conference
16 contracts and 80 MoUs signed between companies, covering healthcare, biotechnology and vaccine production
On 19 July, Dawn and The Express Tribune reported that Pakistan and China concluded the two-day Pakistan-China Pharmaceutical and Healthcare B2B Investment Conference by signing commercial agreements and memorandums of understanding worth approximately USD 850 million, aimed at expanding bilateral cooperation in healthcare, pharmaceuticals and biotechnology. Health Minister Mustafa Kamal said 16 contracts and 80 MoUs had been finalised, covering pharmaceutical manufacturing, medical devices, herbal medicines, clinical trials and vaccine production. More than 146 Chinese companies and 200 Pakistani firms participated in the conference, marking one of the largest bilateral business engagements in the sector.
The conference also focused on reducing Pakistan's dependence on imported medicines and vaccines by promoting local production of pharmaceutical raw materials, vaccines and medical equipment. Officials said Chinese investment would support technology transfer, create employment opportunities and strengthen Pakistan's pharmaceutical exports, while regulatory reforms - including digital licensing through the Drug Regulatory Authority of Pakistan (DRAP) - would facilitate faster investment. The government described the initiative as part of the broader CPEC 2.0 agenda to expand cooperation beyond infrastructure into advanced manufacturing and healthcare. (“Pakistan-China pharma conference ends with $850m agreements,” Dawn, 19 July 2026; “$1.5b deals, MoUs inked at pharma conference,” The Express Tribune, 19 July 2026)
In Brief
EXTERNAL
Finance Minister arrives in Washington for trade, tariff and investment talks ahead of 24 July tariff deadline
On 19 July, Dawn reported that Finance Minister Muhammad Aurangzeb arrived in Washington for a three-day visit, with Pakistan-US negotiations on a broader bilateral economic partnership resuming on Monday. Aurangzeb is scheduled to meet officials from the USTR, US Export-Import Bank, DFC, and the IMF to discuss tariffs, market access, investment, and infrastructure financing. The visit is particularly timely as the Section 122 temporary global tariff of 10 per cent is due to expire on 24 July, while Pakistan also faces a proposed additional 10 per cent tariff under Section 301 investigations into forced labour practices, on top of the reduced 19 per cent IEEPA tariff negotiated last year that was subsequently invalidated by a US Supreme Court ruling. ("Finance Minister Aurangzeb arrives in US on 3-day visit, expected to hold talks on trade, finance, investment," Dawn, 19 July 2026)
Foreign Minister calls Venezuelan FM, conveys condolences over deadly earthquakes and reaffirms bilateral ties
On 19 July, Dawn reported that Foreign Minister Ishaq Dar spoke with Venezuela's newly appointed Foreign Minister Felix Plasencia, conveying condolences over the 7.2 and 7.5 magnitude earthquakes that struck Venezuela last month, killing around 5,000 people with the final toll potentially nearly double that figure. Both sides reaffirmed the "considerable potential" for enhancing economic collaboration across trade, investment, agriculture, and IT, and emphasised the importance of sustained high-level engagement. Plasencia acknowledged Pakistan's constructive role in promoting dialogue and de-escalation in the US-Iran regional situation. ("Dar, Venezuelan FM emphasise 'considerable potential' for enhancing economic collaboration," Dawn, 19 July 2026)
ECONOMY
Pakistan shifts to daily fuel pricing regime as petrol hits PKR 316.15 and diesel PKR 354.35 amid renewed Gulf hostilities
On 18 July, Dawn reported that Petroleum Minister Ali Pervaiz Malik announced the introduction of daily petroleum price adjustments, replacing the weekly revision cycle, as part of a phased deregulation strategy to allow market forces to determine fuel prices and eliminate opportunities for windfall gains and market abuse. The reform, introduced on PM Shehbaz Sharif's directive and approved by the federal cabinet, will use a transparent formula-based system driven by market fundamentals, reducing political intervention. The Oil & Gas Regulatory Authority (OGRA) is upgrading its data systems to publish daily price information. The shift comes as renewed US-Iran hostilities have caused volatility in global oil prices, with the government having just raised petrol by PKR 5.44 to PKR 316.15 and diesel by PKR 31.05 to PKR 354.35 per litre for three days until 20 July. ("Daily fuel price adjustments to curb market abuse, ensure fair prices: petroleum minister," Dawn, 18 July 2026)
Gwadar Port handles Singapore-origin steel transhipment for UAE amid regional maritime tensions
On 19 July, Dawn reported that Bangladesh-flagged vessel M/V Jahan Brothers II berthed at Gwadar Port after sailing from Singapore, carrying 53,064 tonnes of steel billets destined for Al Hamriyah Port in the UAE via transhipment. Gwadar Port Authority Chairman Noor-ul-Haq Baloch said the continuation of commercial operations despite regional maritime tensions demonstrated Gwadar's growing role as a safe, reliable, and efficient alternative trade route for regional commerce. ("Gwadar becomes key trade gateway," Dawn, 19 July 2026)
Government may reactivate fuel austerity measures as reserves drop and Gulf hostilities intensify
On 20 July, Dawn reported that the government is considering reactivating fuel conservation and austerity measures as early as this week, as renewed US-Iran hostilities push oil prices higher and foreign exchange reserves dropped to around USD 22.67 billion on 10 July from USD 23.99 billion at the start of the month, slightly above three months of import cover. A senior official clarified that the newly announced "daily" fuel pricing regime is not deregulation, with prices to be revised only on working days and Friday rates held through the weekend, while the government retains full control over petroleum levy, customs duty, climate levy, dealer margins, and cargo movement, with total government taxes and margins standing at around PKR 110 per litre on petrol and PKR 96 on diesel. Austerity measures previously in place from March to late June, including a four-day working week, 50 per cent staff attendance cuts, curbs on official vehicles and foreign travel, and business hours restrictions, remain on the table pending cabinet approval. ("Govt weighs activating fuel saving plans," Dawn, 20 July 2026)
SECURITY
Bannu: One militant, eight others injured in joint operation
On 19 July, Dawn reported that security forces continued a joint intelligence-based operation (IBO) for a third consecutive day in Khyber Pakhtunkhwa's Bannu district, killing one suspected militant and detaining eight individuals for investigation. The operation, involving the police, Counter-Terrorism Department (CTD), Elite Force and the army, also recovered weapons and vehicles linked to a wanted militant. The raid follows an intensified counterterrorism campaign after a recent surge in attacks in Bannu, including an assault on Miryan Police Station that killed a police officer and injured security personnel and civilians. Earlier this week, the military said security forces had killed 24 militants in Bannu and surrounding areas as part of ongoing intelligence-led operations targeting militant networks. (“One terrorist killed, 8 others held as joint operation continues in Bannu, Dawn, 19 July 2026)
KP: Five militants killed in separate operations
On 19 July, Dawn reported that security forces and law enforcement agencies killed five suspected militants in separate intelligence-based operations (IBOs) across Khyber Pakhtunkhwa's Bannu, Lower South Waziristan and Dera Ismail Khan districts. Three militants were killed during an operation in Bannu's Bakakhel area as authorities intensified raids following the recent attack on Miryan Police Station, while police also detained 28 suspects during search operations. In Lower South Waziristan, forces foiled a planned suicide attack by destroying an explosives-laden vehicle and motorcycle, killing one militant and injuring five others. Separately, the Counter-Terrorism Department (CTD) killed a wanted militant in Dera Ismail Khan who was allegedly involved in the 2025 killing of a CTD constable and was linked to the banned Tehreek-i-Taliban Pakistan (TTP). (“Five terrorists killed in KP operations,” Dawn, 19 July 2026)
POLITICS & GOVERNANCE
JUI-F Chief refuses to apologise for controversial remarks against security personnel
On 20 July, Dawn reported that Jamiat Ulema-e-Islam-Fazl (JUI-F) chief Maulana Fazlur Rehman refused to apologise for his controversial remarks about security personnel. The JUI-F chief maintained that he did not intend to disrespect soldiers or the institution; rather, his criticism was aimed at those who were in charge of policymaking. Last week, in a political gathering in Kasur, he spoke about security and terrorism in Khyber Pakhtunkhwa and Balochistan, where he reportedly made certain comments about security personnel. The statement had drawn widespread condemnation from political circles, and several ruling party ministers and leaders called on him to apologise for his remarks and withdraw them. The veteran politician said he had only reminded the security institution of its responsibilities and that it should operate within its constitutional jurisdiction. (“Fazl refuses to apologise for controversial remarks,” Dawn, 20 July 2026)
PTI and PPP criticise government over increase in fuel prices
On 19 July, Dawn reported that the Pakistan Tehreek-e-Insaf (PTI) and Pakistan Peoples' Party (PPP) have criticised the latest government decision to increase petroleum prices. The PTI demanded that the government reduce its spending on luxuries instead of “penalising people”, while the PPP asked the authorities to review how much profit oil companies earned rather than burdening the masses. The PPP General Secretary urged the Federal Board of Revenue (FBR) to review the amount of profit oil companies earned and called on the government to improve tax collection from taxable segments. (“PTI PPP slam fuel price, hike demand cut in levy,” Dawn, 19 July 2026)
Government assures strict norms for Blue Passport issuance
On 19 July, Dawn reported that Minister of State for Interior Tallal Chaudhry clarified on the Members of Parliament Salaries and Allowances (Amendment) Bill, 2026. The bill, seeking the issuance of blue passports to dependent children under the age of 28 of ex-members of parliament, was approved by a Senate panel on 10 July. If the Members of Parliament Salaries and Allowances (Amendment) Bill, 2026 becomes law, the legislation would place former members of parliament on par with retired Grade-22 government officers, whose dependent children already enjoy the same entitlement. Blue passport holders get visa-free access to 55 countries, including 22 European countries. Minister of State for Interior Tallal Chaudhry has assured that measures would be taken to ensure that the travel document is used for “only official duties” abroad and issued for a limited time in most cases. He said that each application for a blue passport would be processed only after the interior ministry’s approval. He also acknowledged that Pakistan had a “large number of blue passport holders”, which he said was a “major impediment” in the signing of visa abolition agreements with other countries. (“After backlash over proposed law, state minister outlines more stringent measures for blue passport issuance,” Dawn, 19 July 2026)
Deputy PM reiterates government's commitment to addressing Balochistan issue
On 20 July, Dawn reported that Deputy Prime Minister Ishaq Dar reiterated the federal government’s resolve to address Balochistan’s economic and development-related concerns through the constitutional framework during a meeting with a parliamentary delegation of the National Party (NP) headed by its president. The National Party (NP) President stated that the insurgent groups active in the province do not enjoy public backing or legitimacy among the people of Balochistan. He also briefed Dar on the political and security situation following the recent tragic incidents in Hanna Urak and Ziarat, which claimed the lives of 32 civilians and police personnel. (“Dar reiterates commitment to addressing Balochistan challenges,” Dawn, 20 July 2026)
PROVINCES
Sindh: Jamaat-i-Islami urges faster completion of Karachi’s K-IV water project
On 20 July, Dawn reported that Jamaat-i-Islami (JI) urged the federal government to expedite Karachi’s long-delayed K-IV water supply project, warning that the city’s worsening water crisis requires urgent action. In a letter to Prime Minister Shehbaz Sharif, JI-Karachi chief Monem Zafar called for the immediate release of the remaining project funds and the Sindh government's prioritisation of the K-IV augmentation component. He criticised the federal allocation of PKR 8 billion against an estimated requirement of PKR 40 billion and noted that the project's first phase is now expected to be completed only by December 2029. Karachi, with a population of around 35 million, requires 1,200 million gallons of water daily but currently receives only about 550 million gallons, forcing many residents to rely on costly private water tankers. (“PM Shehbaz urged to release Rs40bn required for completion of Karachi's K-IV water supply project,” Dawn, 20 July 2026)
Sindh and Balochistan agree to boost canal water supply
On 20 July, The Express Tribune reported that Sindh and Balochistan reached an agreement to increase water supplies to address severe shortages affecting Balochistan's agricultural sector. During talks in Karachi, both provinces agreed to strengthen long-term cooperation, with Sindh committing to maintain around 9,000 cusecs of water through the Pat Feeder Canal in line with the 1991 Water Accord. The breakthrough follows weeks of protests by farmers in Balochistan, where inadequate irrigation has threatened standing crops and livelihoods. Earlier this month, Balochistan had considered legal action, alleging it was receiving 46 per cent less water than its allocated share, with officials reporting a shortfall of 0.310 million acre-feet (MAF) despite improved water availability reported by the Indus River System Authority (IRSA). (“Balochistan, Sindh reach water supply deal,” The Express Tribune, 20 July 2026)
AF-PAK
Afghan transit trade through Pakistan declines sharply to USD 367 million
On 19 July, Dawn reported that Afghanistan-Pakistan transit trade fell to 11,592 containers worth USD 367 million in FY26, down from nearly 89,000 containers valued at USD 5 billion before the Taliban returned to power in 2021. While Pakistan's closure of the Torkham border in October 2025 accelerated the decline, analysts say Kabul had already begun shifting trade towards Iran and Central Asia to reduce dependence on Pakistani ports. Reverse transit exports through Pakistan also collapsed from USD 454 million in FY25 to just USD seven million in FY26. According to the World Bank, Iran now accounts for nearly half of Afghanistan's import routes, but the diversion has increased transport costs, disrupted exports, raised consumer prices and reduced employment linked to cross-border trade on both sides of the border. (“Transit trade with Kabul hits historic low,” Dawn, 19 July 2026)
Pakistan responds to alleged cross-border firing in Kurram
On 20 July, Dawn reported that Pakistani security forces launched a large-scale retaliatory response after Afghan Taliban forces allegedly opened unprovoked fire on border posts in Kurram using heavy weapons and mortars. According to Dawn, Pakistani forces targeted Afghan border positions, mortar sites and defensive posts with artillery and other weapons, forcing Taliban personnel to abandon several positions. Authorities said Pakistani forces maintained control of the border and remain on high alert for further incursions. The incident follows a series of cross-border clashes since the launch of “Operation Ghazab lil-Haq” in February, with Islamabad continuing to accuse the Taliban administration of failing to dismantle militant sanctuaries in Afghanistan used to launch attacks inside Pakistan. (“Security forces counter unprovoked firing by Afghan Taliban targeting Kurram border posts,” Dawn, 20 July 2026)
POK
"AJK": PPP's Bilawal promises greater constitutional rights ahead of polls
On 19 July, The Express Tribune reported that Pakistan Peoples Party (PPP) Chairman Bilawal Bhutto Zardari promised greater constitutional rights for "Azad Jammu Kashmir" ("AJK") while addressing a public rally in Kotli ahead of the 27 July regional elections. Bilawal said the PPP would seek observer representation for "AJK" in key federal institutions, including the Council of Common Interests (CCI), the National Finance Commission (NFC), and the National Assembly. He renewed his call for a Truth and Reconciliation Commission to address the region's recent unrest and urged the federal government to immediately restore internet services, arguing that ordinary residents should not suffer because of the ongoing dispute. Bilawal also presented the PPP's election agenda, centred on the right to rule, resource ownership, and employment. He expressed confidence that the PPP would perform better in these polls than in the previous elections, citing more favourable political conditions. The "AJK" polls are scheduled for 27 July 2026. ("Bilawal promises greater constitutional rights, urges restoration of internet in AJK," The Express Tribune, 19 July 2026)
"Gilgit-Baltistan": Assembly passes resolution seeking federal climate fund for glaciers
On 19 July, Dawn reported that the "Gilgit-Baltistan" ("GB") Assembly unanimously passed a resolution calling on the federal government to establish a special green fund to protect the region's fast-melting glaciers and preserve its fragile ecosystem. The resolution demanded that the federal government provide compensation, water rights, and water royalties through development packages. It also called on the climate, water, and planning ministries to develop a comprehensive plan for glacier protection. "GB" recently established a Glaciers Protection Authority. Lawmakers noted that climate change posed a serious threat to the mountainous region and future generations. Deputy Speaker Malik Kifayatur Rehman said carbon emissions from neighbouring countries were contributing to the rapid melting of glaciers, while "GB" received nothing in return for supplying a major share of Pakistan's fresh water. "GB" Chief Minister Amjad Hussain admitted the regional government lacked sufficient funds for rehabilitation works and pledged to submit a damage assessment report to the federal government. The opposition called for an investigation into the alleged misuse of climate funds, with Opposition Leader Hafeezur Rehman claiming that billions of rupees set aside for climate initiatives had been wasted. ("GB Assembly seeks special climate fund from Centre," Dawn, 19 July 2026)
ON INDIA
Pakistan extends airspace ban on Indian aircraft until 23 August
On 18 July, Dawn reported that the Pakistan Airports Authority (PAA) extended its airspace ban on Indian civilian and military aircraft by another month, until 23 August 2026. The previous restriction had been due to expire on 24 July. A Notice to Airmen (NOTAM) issued by the PAA confirmed that the ban applied to both the Karachi and Lahore flight information regions (FIRs). The NOTAM stated that Pakistani airspace was not available for Indian-registered aircraft or those operated or leased by Indian airlines, including military flights. Pakistan and India closed their airspaces to each other's airlines in late April 2025, following a sharp escalation in bilateral tensions in the wake of a deadly attack on tourists in Pahalgam. Pakistan strongly denied any involvement and offered a neutral inquiry. The two countries subsequently engaged in their fiercest aerial confrontation in decades. Islamabad has since extended the ban several times, and it remains in force amid continued tensions between the two nuclear-armed states.
("PAA extends airspace ban on Indian aircraft until Aug 23," Dawn, 18 July 2026)
Editorials/Opinions
The Middle East
Muhammad Ali Ehsan, “Iran War: coercive diplomacy and brute force,” The Express Tribune, 19 July 2026
"For seven consecutive nights, the United States has maintained a sustained campaign of strikes against Iran which has responded with missile and drone attacks on American and regional targets. At this stage, I see this conflict as a continuation of coercive diplomacy and not war."
https://tribune.com.pk/story/2619005/iran-war-coercive-diplomacy-and-brute-force
Geopolitics
Maleeha Lodhi, “Three-front challenge,” Dawn, 20 July 2026
“Pakistan's ruling elites have long regarded the country’s geographical location as a strategic asset enabling it to project itself as a significant regional player and bolster its geopolitical position. But location cuts both ways. It has also been a liability."
https://www.dawn.com/news/2016898/three-front-challenge
Society
Umair Javed, “Poverty and inequality,” Dawn, 20 July 2026
“The release of the Household Integrated Economic Survey and Pakistan Social and Living Standards Measurement data presents a clearer picture of poverty and economic distress in Pakistan. This data has appeared after a gap of nearly six years, during which several important events and shocks took place."
https://www.dawn.com/news/2016897/poverty-and-inequality
Security
Imtiaz Gul, “Unrest: the cost of bad governance,” The Express Tribune, 19 July 2026
“The unprecedented levels of violence in Balochistan since July 6 should be deeply worrying. This violence is certainly not occurring in isolation from internal factors and external drivers. The string of coordinated attacks across the province - including the massacre of police officials in Ziarat, Bela-Winder, Chaghi, Khuzdar, Mastung, and elsewhere - points to a near full-fledged insurgency, reinforced by the TTP's appearance in some Pashtun areas."
https://tribune.com.pk/story/2618846/unrest-the-cost-of-bad-governance
Politics & governance
Fahd Husain, “Say it, show it, if you know it,” The Express Tribune, 19 July 2026
“No government has had more space to get work done than the present one. There are no judges who are throwing Suo Moto spears at it, or striking down any projects or policies as unconstitutional; there are no journalists who are exposing any scandals or running a campaign against the government (on their own or on someone's behalf), there is no opposition that is holding long marches or public rallies or even challenging the Treasury benches in the Parliament; there is no threat from the establishment; there are no external challenges (or threat of punitive actions) from superpowers, regional powers or financial institutions; there is no province that has the need or the capacity to undercut the functioning of the Centre; and there is more diplomatic goodwill available than has ever been in living memory. And yet, it is mumbling and fumbling."
https://tribune.com.pk/story/2619004/say-it-show-it-if-you-know-it
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