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In Focus
Pakistan seeks USD 10 billion in US support, reports Dawn
Finance Minister looks to boost reserves during Washington visit; Honeywell Technologies proposes refinery modernisation plan
On 22 July, Dawn and The Express Tribune reported that Pakistan requested a USD 10 billion Exchange Stabilisation Support Facility from the United States during Finance Minister Muhammad Aurangzeb’s meeting with US Treasury Secretary Scott Bessent in Washington. The proposed five-year facility would help strengthen Pakistan’s foreign exchange reserves, stabilise the rupee and reduce reliance on financing from the International Monetary Fund (IMF), Dawn reported. The request comes as Islamabad seeks to deepen economic ties with Washington following its role in regional diplomacy and ongoing negotiations on trade, tariffs and investment.
Aurangzeb also met executives from Honeywell Technologies to discuss modernising Pakistan’s refinery sector. The proposal includes upgrading domestic refining capacity with potential financing from the US Export-Import Bank, the US International Development Finance Corporation (DFC) and international lenders. Pakistani officials said the project would enhance energy security, reduce dependence on imported petroleum products and support long-term industrial and economic growth. (“Aurangzeb seeks $10bn support facility from US,” Dawn, 22 July 2026; “Pakistan seeks $10 billion in US backstop facility to boost reserves, source says,” The Express Tribune, 22 July 2026; “US technology firm proposes refinery modernisation plan for Pakistan in meeting with finance minister,” Dawn, 21 July 2026)
In Brief
EXTERNAL
Pakistan and China sign EV charging MoU as government prepares battery storage policy
On 22 July, The Express Tribune reported that Pakistan and China signed an MoU between StarCharge, StarCharge Energy Pakistan, and Bahum Global Ltd to strengthen the electric vehicle ecosystem through local manufacturing and technology transfer, witnessed by SAPM on Industries Haroon Akhtar Khan. The government is also preparing a Battery Energy Storage System Policy to encourage local EV battery manufacturing, attract foreign investment, and reduce dependence on imported petroleum products. Khan said strategic partnerships with Chinese companies would facilitate technology transfer, strengthen domestic industrial capabilities, and create employment opportunities. ("Pakistan, China ink EV charging pact," The Express Tribune, 22 July 2026)
ECONOMY
Government borrowed PKR 5.9 trillion from banks in FY26 as debt servicing
On 21 July, Dawn reported that government borrowing from banks averaged PKR 500 billion per month or PKR 16.4 billion per day in FY26, with total borrowing rising to PKR 5.9 trillion from PKR 5.4 trillion in FY25. The swelling domestic debt means debt servicing will consume PKR 8 trillion, or 50 per cent of total budget outlay, in FY27, against a federal PSDP allocation of just PKR 1 trillion for a population of 250 million. Corporate sector investment in government papers accounts for a further 25 per cent of total investment in government securities, with banks continuing to earn large risk-free returns rather than channelling credit to the private sector. ("Govt borrows Rs5.9tr from banks in FY26," Dawn, 21 July 2026)
Regional trade deficit widens 30 per cent to USD 15.9 billion in FY26 as Chinese imports surge and Afghan trade collapses
On 22 July, Dawn reported that Pakistan's trade deficit with nine neighbouring countries widened 30 per cent to USD 15.933 billion in FY26 from USD 12.256 billion the previous year, driven by a 19.1 per cent rise in regional imports to USD 19.886 billion against an 11 per cent decline in exports to USD 3.953 billion. China dominated both sides, accounting for 98 per cent of regional imports at USD 19.538 billion (up 19.8 per cent) and 68 per cent of regional exports at USD 2.684 billion (up 8.4 per cent). Exports to Afghanistan collapsed 68.9 per cent to USD 243.693 million following the suspension of border trade since October 2025, while exports to Bangladesh fell 9.3 per cent and to Sri Lanka 22.8 per cent. Exports to India grew 104 per cent but remained negligible in dollar terms at USD 2.926 million. ("Regional trade deficit widens to $16bn," Dawn, 22 July 2026)
SECURITY
Bannu: Six IEDs containing 120kg of explosives defused as 14 suspects arrested
On 21 July, Dawn reported that a joint operation by police, Elite Force, Quick Response Force, bomb disposal unit, and CTD in Bannu's Miryan tehsil defused six IEDs containing 120 kilogrammes of explosives in the Mambati Barakzai and Khanikhel areas, and arrested 14 suspects. Two Kalashnikovs, four rifles, a repeater shotgun, ammunition, and eight motorcycles were seized. Major roads, including Bannu Police Lines Road and Miranshah Road, remained closed; internet and mobile services were suspended; and around 600 stranded families were awaiting ration packages to be distributed once security conditions improved. ("6 IEDs defused, 14 arrested in Bannu," Dawn, 21 July 2026)
POLITICS & GOVERNANCE
Petrol pump owners association announce nationwide strike over daily pricing
On 21 July, Dawn reported that the All Pakistan Petrol Pumps Owners Association (APPPOA) announced an indefinite nationwide strike from Wednesday midnight after talks with the government over a new daily fuel pricing mechanism failed. The association said around 15,000 petrol pumps across Pakistan would close, arguing that daily price revisions would hurt dealers operating on thin margins and favour oil marketing companies. The APPPOA also demanded that fuel prices be fixed monthly and that dealer commissions, unchanged for three years, be increased. Meanwhile, the Pakistan Petroleum Dealers Association (PPDA) said it would decide on strike action after further consultations, despite the Petroleum Division claiming its discussions with the association had been successful and that dealers supported the new pricing mechanism. (“Petrol pump owners announce nationwide strike after talks with govt over daily pricing fail,” Dawn, 21 July 2026)
Senate panel questions use of flood rehabilitation funds in KP
On 22 July, Dawn reported that Pakistan’s Senate Standing Committee on Economic Affairs questioned the use of foreign-funded loans and grants for flood rehabilitation in Khyber Pakhtunkhwa, alleging that projects had been diverted from severely affected districts to less-affected areas for political reasons. Lawmakers highlighted disparities in road reconstruction, noting that districts such as Mardan and Peshawar received more projects than heavily flood-hit areas including Upper Dir, Lower Dir and Chitral. The committee also criticised alleged interference by World Bank officials in Sindh’s water and agriculture projects, stressing that while donors could finance projects, implementation decisions should remain with Pakistani authorities. The panel recommended stronger oversight to ensure foreign funds are used solely for their intended purposes. (“Senate panel concerned over diversion of flood rehabilitation funds in KP,” Dawn, 22 July 2026)
ENVIRONMENT
KP: 12 people killed across three days in heavy monsoon rains as nationwide flood warning issued
On 21 July, Dawn reported that torrential monsoon rains in Pakistan’s Khyber Pakhtunkhwa province killed 12 people and injured 18 others over three days, according to the Provincial Disaster Management Authority. Half of the fatalities occurred in Khyber district after flash floods swept away a vehicle carrying Afghan families, while homes and livestock were also damaged. The National Disaster Management Authority (NDMA) simultaneously issued a nationwide alert warning of flash floods, urban flooding and landslides between 21 and 24 July, with Khyber Pakhtunkhwa, “Gilgit-Baltistan”, “Azad Jammu and Kashmir”, Punjab and northeastern Balochistan identified as high-risk areas. Heavy rain also disrupted electricity supply to 148 feeders across several districts, hampering restoration efforts. (“Monsoon rains kill 12 in KP in past 3 days; nationwide flood warning issued,” Dawn, 21 July 2026)
POK
"AJK" elections to be held in three phases starting 27 July
On 21 July, Dawn reported on the "Azad Jammu and Kashmir" ("AJK") Election Commission announcing that the general elections would be held in three phases rather than a single day, citing the need to ensure adequate army deployment for security duties across all divisions amid ongoing unrest in parts of the region. Chief Election Commissioner Justice (retd) Ghulam Mustafa Mughal said polling would be held in 13 Mirpur division constituencies on 27 July, nine Muzaffarabad constituencies and all 12 refugee constituencies on 02 August, and 11 Poonch division constituencies on 10 August. The elections are widely seen as a contest between the Pakistan Peoples Party (PPP) and the Pakistan Muslim League-Nawaz (PML-N). ("AJK election commissioner says polls to be held in three phases beginning July 27," Dawn, 21 July 2026)
Pakistan and the US-Iran War
Iran's Interior Minister Momeni visits Pakistan to reaffirm peace push
FM Araghchi identifies peace as key goal; Iran and Pakistan eye USD 10 billion bilateral trade target
On 22 July, Dawn and The Express Tribune reported that Iranian Interior Minister Eskandar Momeni arrived in Islamabad on an official visit, meeting Prime Minister Shehbaz Sharif and Chief of Defence Forces and Chief of Army Staff Field Marshal Syed Asim Munir separately. PM Shehbaz reaffirmed Pakistan's commitment to playing the role of a mediator, expressed deep concern over the latest round of hostilities between the United States and Iran, and urged all sides to exercise restraint. Momeni expressed deep appreciation for the mediation efforts of PM Shehbaz, Deputy Prime Minister and Foreign Minister Ishaq Dar and Field Marshal Munir that had led to the Islamabad Memorandum of Understanding (MoU). Iranian Foreign Minister Abbas Araghchi separately identified peace and security as the central goals of Iran's relationship with Pakistan.
The visit also covered bilateral economic cooperation, with Momeni saying both sides aimed to triple annual trade from USD three billion to USD 10 billion, which would require around 2,000 truck crossings per day, roughly five times current capacity. The engagement comes as US strikes on Iran entered their 11th consecutive day, with Iran targeting US radar and air defence installations in the Gulf in retaliation, and Yemen's Houthi rebels simultaneously imposing a maritime embargo on Saudi Arabia. Despite the renewed hostilities, Iranian Foreign Ministry spokesperson Esmaeil Baqaei said diplomatic exchanges with the US via mediators remained ongoing. ("Iranian interior minister meets PM Shehbaz, CDF Munir in Islamabad," Dawn, 21 July 2026; "PM reaffirms Pakistan's mediation role to Iran,” The Express Tribune, 22 July 2026; "Araghchi identifies peace, security as key goals in relations with Islamabad," Dawn, 21 July 2026)
Editorials/Opinions
The Middle East
Touqir Hussain, “New hope, old risks,” Dawn, 22 July 2026
"The Islamabad MOU may have lost its meaning but Pakistan remains relevant. Sooner or later, peace will return to the Gulf and Pakistan will have a place in it. The exceptional quality of Pakistan’s diplomacy, statesmanship and peacemaking efforts, evident from its mediation efforts and earlier impressive military performance in the 2025 conflict against India, have left a mark on the Middle East."
https://www.dawn.com/news/2017452/new-hope-old-risks
Geopolitics
Muhammad Siddique Ali Pirzada, “Geopolitics of energy arbitration,” The Express Tribune, 21 July 2026
“International energy arbitration is no longer governed by contract law alone. It is increasingly shaped by geopolitics. Wars now determine far more than energy prices. They influence whether long-term supply contracts remain performable, whether arbitral proceedings can continue, and whether the awards they produce can ultimately be enforced."
https://tribune.com.pk/story/2619335/geopolitics-of-energy-arbitration
Politics & governance
Editorial, “Grand dialogue a must,” The Express Tribune, 22 July 2026
“PTI's offer of a national grand dialogue is worth appreciating and must pave the way for addressing the lingering political instability. The onus, however, is on the coalition government to take the extra few steps towards extending an olive branch to the opposition. That, of course, entails providing them with their due political space, letting the law take its course without any coercion in deciding the pending litigations, and subsequently releasing political prisoners including Imran Khan. That is neither an impossible task to attain nor an ill-advised route to undertake if reconciliation is to be ensured in the larger national interest."
https://tribune.com.pk/story/2619516/grand-dialogue-a-must
Security
Zahid Hussain, “The Balochistan tragedy,” Dawn, 22 July 2026
“The rising death toll from the reported clashes between security forces and outlawed terrorist groups tells less than half the story of Balochistan. The strategically important province has been suffering for decades, and the crisis continues to worsen. Blocking the news cannot alter the reality on the ground. The situation points to a fractured state that is losing both public trust and effective control."
https://tribune.com.pk/story/2618846/unrest-the-cost-of-bad-governance
Provinces
Editorial, “Frozen Award,” Dawn, 22 July 2026
“KP’s petition before the Federal Constitutional Court, seeking Rs964bn as the province’s claimed share of tax revenues since the Fata merger in 2018, may well be a political move by the PTI-led government. Still, it raises larger constitutional and fiscal questions about Pakistan’s federal structure, a dysfunctional National Finance Commission and distribution of fiscal resources among the provinces."
https://www.dawn.com/news/2017458/frozen-award
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