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In Focus
“AJK” elections: First phase of polling marred by violence and rigging claims
Political worker killed as PPP and PML-N trade allegations; Clashes erupt between JAAC and police in Rawalakot after polling
On 28 July, Dawn and The Express Tribune reported that the first phase of the "Azad Jammu and Kashmir (AJK)" Legislative Assembly elections concluded across Mirpur Division amid violence, allegations of rigging and disruptions at several polling stations. A Pakistan Peoples' Party (PPP) worker was killed in Kotli's Nakyal constituency during election-related violence. At the same time, the PPP and Pakistan Muslim League-Nawaz (PML-N) accused each other of influencing the vote. Polling was suspended at several stations following clashes, ballot-box snatching and arson, prompting arrests and legal action against election officials over alleged pre-poll irregularities. Preliminary results showed the PML-N leading in several constituencies, with the PPP ahead in others.
PPP Chairman Bilawal Bhutto Zardari called for transparent elections, arguing that only a legitimate mandate could restore stability in "AJK", while also criticising alleged misuse of government resources during the campaign. The PML-N, meanwhile, accused the PPP of pre-poll rigging in Kotli, with the Election Commission suspending presiding officers after reports of electoral irregularities and ordering legal proceedings against them.
Separate from the polling process, clashes erupted in Rawalakot between the proscribed Joint Awami Action Committee (JAAC) and "AJK" Police after protesters attempted to enter the city. Police said two officers were injured after armed protesters opened fire, while the JAAC alleged security forces used lethal force and claimed multiple protesters were killed and injured. The unrest underscored continuing tensions over governance reforms and refugee assembly seats, with authorities accusing the JAAC of anti-state activities, allegations the group rejects. (“Polling concludes in Mirpur division as scuffles, rigging allegations mar first phase of AJK elections,” Dawn, 27 July 2026; “Casualties reported after JAAC, police clash in AJK's Rawalakot,” The Express Tribune, 28 July 2026)
In Brief
EXTERNAL
Foreign Minister and IAEA chief stress dialogue and diplomacy for regional peace
On 27 July, The Express Tribune reported that Deputy Prime Minister and Foreign Minister Ishaq Dar held a telephone call with the International Atomic Energy Agency (IAEA) Director General, Rafael Mariano Grossi, to discuss the latest regional developments. Both sides underscored the importance of diplomacy, dialogue and sustained engagement in promoting regional and global peace and stability. Grossi expressed hope that the parties would continue negotiations and maintain communication following the signing of the Islamabad Memorandum of Understanding (MoU). ("Dar, IAEA chief stress dialogue for regional peace," The Express Tribune, 27 July 2026)
PM Shehbaz reaffirms Pakistan-China ties in meeting with Chinese Ambassador
On 28 July, The Express Tribune reported that Chinese Ambassador Jiang Zaidong called on Prime Minister Shehbaz Sharif at the Prime Minister House to discuss bilateral relations and regional developments. Prime Minister Shehbaz conveyed his warm regards to President Xi Jinping and Premier Li Qiang, reaffirming the Pakistan-China All Weather Strategic Cooperative Partnership and recalling his visit to China in May. The two sides also discussed the situation in the Middle East, Afghanistan and South Asia. Ambassador Jiang described China as Pakistan's iron brother and pledged full support for Pakistan's sovereignty, territorial integrity and socio-economic development. ("PM, Chinese envoy discuss regional developments," The Express Tribune, 28 July 2026)
Iraqi consul general calls for strategic economic partnership with Pakistan
On 28 July, The Express Tribune reported that Iraqi Consul General in Karachi, Dr Maher Mjhid Jejan, called for transforming Pakistan-Iraq relations into a comprehensive strategic economic partnership by expanding bilateral trade, investment, and technology collaboration, and cooperation in artificial intelligence (AI). Speaking at the Karachi Chamber of Commerce and Industry (KCCI), he urged Pakistani business leaders to visit Iraq and explore opportunities, noting that exports from Karachi to Iraq, including rice, seafood, fruits, and pharmaceuticals, have been growing since the reopening of Iraq's diplomatic presence in Karachi. ("Iraq proposes strategic economic ties," The Express Tribune, 28 July 2026)
Pakistan condemns drone strikes on Saudi Arabia as threat to regional peace
On 27 July, The Express Tribune reported that Pakistan condemned drone attacks on Saudi Arabia's oil facilities, describing them as a grave threat to regional peace and stability. Saudi Arabia said its air defences intercepted and destroyed several drones launched from Iraqi territory, attributed to Iran-backed militias, which targeted petroleum facilities in the Eastern Province and the Riyadh region. The Foreign Office (FO) reaffirmed Pakistan's solidarity with Saudi Arabia and its support for the kingdom's sovereignty, territorial integrity and prosperity. ("Pakistan slams drone attacks against Saudi Arabia as 'grave threat' to regional peace,” The Express Tribune, 27 July 2026)
Kuwaiti Foreign Minister to visit Pakistan between 28-29 July
On 27 July, Dawn reported that Kuwaiti Foreign Minister Sheikh Jarrah Jaber Al-Ahmad Al-Sabah is undertaking an official two-day visit to Pakistan at the invitation of Deputy Prime Minister and Foreign Minister Ishaq Dar. During the visit, the two foreign ministers are expected to review the entire spectrum of bilateral relations and exchange views on regional and international developments. The visit reflects the shared resolve of both countries to strengthen their bilateral partnership. Kuwait has previously appreciated Pakistan's constructive mediation efforts aimed at promoting regional stability. ("Kuwaiti foreign minister to visit Pakistan from July 28 to 29," Dawn, 27 July 2026)
Interior Minister visits Doha to review Pakistan-Qatar security cooperation
On 27 July, The Express Tribune reported that Interior Minister Mohsin Naqvi met Qatar's Minister of Interior and Commander of the Internal Security Force (Lekhwiya) Sheikh Khalifa bin Hamad in Doha to review bilateral security cooperation and explore new areas of collaboration. The visit came as Pakistan and Qatar jointly proposed a de-escalation formula calling on the United States and Iran to return to pre-09 July positions as a first step to resuming stalled talks. Pakistan and Qatar have been intensifying the exchange of messages between Washington and Tehran following a fresh round of US strikes on Iran. ("Pakistan, Qatar review security cooperation, explore new areas of collaboration as Naqvi visits Doha," The Express Tribune, 27 July 2026)
US congressmen acknowledge Pakistan's role in regional stability in meeting with CDF Munir, reports Dawn
On 27 July, Dawn reported on two members of the United States House of Representatives, Ryan Keith Zinke and Michael James, meeting Chief of Defence Forces (CDF) and Chief of Army Staff Field Marshal Syed Asim Munir at General Headquarters (GHQ) in Rawalpindi. The two congressmen acknowledged Pakistan's critical role in regional stability and its economic resilience. Discussions covered regional security, bilateral defence cooperation and economic collaboration, with Field Marshal Munir emphasising Pakistan's economic potential and ongoing structural reforms aimed at attracting foreign investment. Both congressmen also praised Pakistan's mediation efforts between the US and Iran during their wider visit to Islamabad and Lahore. ("In meeting with CDF Munir, US congressmen acknowledge Pakistan's 'critical role' in regional stability: ISPR," Dawn, 27 July 2026)
ECONOMY
Petroleum Minister stresses pricing framework, establishes committee to address inflation
On 27 July, Dawn reported that the Petroleum Minister hinted at a decline in petrol and diesel prices following the clearance of Pakistan’s oil cargoes stuck at the Bab-al-Mandeb chokepoint due to Houthi attacks. He also highlighted that the government had put in place a transparent pricing formula that would hopefully lead to an improvement in prices. The formula is based on the weekly average of the international market and is being operated by the Oil and Gas Regulatory Authority (OGRA). He also mentioned that tanker owners and operators had some issues with OGRA regarding the allocation of quotas for road transport of petroleum products and transportation charges, which had remained unchanged since 2023. He said freight charges were mostly linked to diesel prices, besides a fixed charge. A committee had been constituted to look into the inflation-related aspect of fixed charges so that a fair adjustment could be allowed for tanker operators in line with the Constitution, which guaranteed legitimate returns to all citizens. The quota allocation for road transport of petroleum products would also be examined by the committee to correct any favouritism or discrimination. (“Petroleum minister hints at fuel price relief after Pakistan's oil cargoes clear Bab-al-mandeb,” Dawn, 27 July 2026)
National Coordination and Management Council starts work on building strategic oil reserves
On 28 July, The Express Tribune reported that the National Coordination and Management Council (NCMC) has given the directive to expedite work on building strategic crude oil reserves by inviting oil-producing countries to meet consumption needs for 60 days and address Pakistan's energy-security concerns. Earlier, the government had planned to build 60-day strategic oil reserves in 2006, but the plan could not materialise due to changes in political administrations and a lack of seriousness. Moreover, the strategic oil reserves framework also features plans to keep 30 days' worth of stocks of petroleum products. NCMC directed National Logistics Corporation to draw up a uniform policy by evaluating and combining the policies prepared by it and the Petroleum Division. At present, oil marketing companies (OMCs) and refineries keep 50 per cent of oil stocks. However, these are not strategic reserves but are for commercial purposes. OMCs are bound to maintain stocks for 20 days. The United Arab Emirates (UAE) has built strategic oil reserves in India. Pakistan had also allocated a piece of land to the UAE for establishing an oil city in Gwadar, but several years have passed, and no progress could be made. The government had formulated the 2023 policy for strategic reserves, but it failed to attract foreign oil suppliers to set up bonded storage due to policy issues. Petroleum Division framework envisages the development of reserves equivalent to 60 days of crude oil and 30 days of petroleum product consumption. Moreover, the Petroleum Division highlighted the progress on draft policies including bonded storage and refinery upgrades. (“60-day oil stocks planned to avert crisis,” The Express Tribune, 27 July 2026)
Cotton industry associations warn of irregularities in cotton imports from China
On 27 July, Dawn reported that the cotton industry is facing mounting pressure amid allegations that large quantities of fabric imported from China under the Export Facilitation Scheme (EFS) are being diverted to the open market after under-invoicing. Meanwhile, widespread rains and looming floods threaten to inflict fresh damage on the standing cotton crop. Cotton Ginners Forum Chairman warned that the industry, already grappling with declining cotton production, soaring energy costs, heavy taxation and expensive bank financing, could face further deterioration if alleged loopholes in the EFS were not addressed. He urged the federal government to carry out a strict audit of all imports made under the EFS to prevent further damage to the domestic textile and cotton sectors. Earlier, the All Pakistan Textile Mills Association (Aptma) had provided the Federal Board of Revenue (FBR) with data regarding millions of kilograms of yarn allegedly imported through under-invoicing under the scheme. The Cotton Ginners Forum chief also warned that the continuation of high sales tax on the ginning industry could encourage undocumented cotton trading this season. He called upon the government to substantially reduce the sales tax burden on the ginning sector to discourage undocumented transactions and support the formal economy. ("Under-invoiced Chinese fabric flooding open market: ginners,” Dawn, 27 July 2026)
Inflation and fiscal pressures hampering economic recovery, finds think tank report
On 27 July, Dawn reported that Policy Research Institute of Market Economy (PRIME), a private think tank, released its report for July 2026 on Pakistan's economy. It reported that Pakistan’s nascent macroeconomic recovery, which began in 2025, is stalling due to the geopolitical situation, leading to rising inflation and reducing the monetary freedom of individuals and firms in an economy where around 80 per cent of the labour force operates in the informal sector. CPI inflation re-entered double digits at 10.9-11.7 per cent between April and June, with the SPI climbing to 12.8 per cent by June, reducing the monetary freedom of individuals and firms. It stated debt servicing and defence consumed 94 per cent of net federal revenue, while in recent years defence spending had increased further, leaving just six per cent of revenue for health, education, infrastructure, social protection and all other essential government functions. The report suggested that the policy response must shift from the reactive stabilisation required under the IMF programme to a resilience-driven framework that ensures economic freedom, defined as the fundamental ability of every individual to exercise control over their property and labour. Using the Heritage Foundation’s Index of Economic Freedom, Prime said Pakistan scored 48.9, placing it in the “Repressed” category. The index evaluates 12 quantitative and qualitative indicators across four pillars: Rule of Law, Government Size, Regulatory Efficiency and Open Markets. The report also recommended lowering tax rates by broadening the effective tax base, reducing GST to 15 per cent, cutting the corporate tax rate to 25 per cent and abolishing the super tax. (“Rebounding inflation, fiscal pressures threaten recovery,” Dawn, 27 July 2026)
State Bank keeps interest rate at 11.5 per cent, raising inflation concerns
On 27 July, Dawn reported that the State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) kept the interest rate unchanged at 11.5 per cent. The SBP governor also highlighted that from July to February, average inflation was 5.5 per cent, which was within the government’s target range of 5-7 per cent. However, due to the West Asia crisis, Inflation was at 11.1 per cent in June, and in May, it stood at 11.7 per cent. He also said that food-related inflation, such as the recent surge in wheat prices, had contributed to overall inflation. He also announced that the SBP aim to have USD 20.2 billion in foreign exchange reserves by December 2026. In the Roshan Digital account, inflows have increased in the past four to five months, with average inflows of USD 300 million. He further added that the country’s external debt servicing level had been set at USD 21.5 billion. Additionally, Monetary Policy Committee in its statement outlined a few key developments, including SBP’s FX reserves surpassing its USD 18 billion target, upgradation of Pakistan’s long-term sovereign credit rating to ‘B’ by S&P Global Ratings, easing inflation expectations, the Federal Board of Revenue (FBR) meeting its tax revenue target for FY26, and the International Monetary Fund (IMF) increasing its global inflation forecast. (“Central bank keeps policy rate unchanged at 11.5pc,” Dawn, 27 July 2026)
SECURITY
Balochistan: Five oil tankers torched on Quetta-Taftan Highway; two bodies found in Mashkay
On 27 July, Dawn reported that armed men blocked the N-40 highway at Nokcha in Chagai district and set fire to five empty oil tankers that were returning to Taftan to collect Iranian oil, with the motorcycle-riding attackers fleeing before security forces arrived and no casualties reported; separately, police recovered the bodies of two unidentified men, one identified as Imran of Khuzdar, from the Mashkay area, with the cause of death undisclosed and investigation ongoing. ("Five tankers torched on Quetta-Taftan Highway," Dawn, 27 July 2026)
HEALTH
Pakistan tells global polio watchdog eradication is within reach despite KP insecurity
On 27 July, Dawn reported that Pakistan told the Independent Monitoring Board (IMB), meeting in Geneva from 20-23 July, that it has entered a decisive phase against polio, with cases reduced 99.8 per cent since the early 1990s and falling from 74 in 2024 to 31 in 2025 and just three so far in 2026, though persistent insecurity in southern Khyber Pakhtunkhwa remains the biggest obstacle to reaching every child. Minister of State for Health Dr Malik Mukhtar Ahmad Bharath called eradication "a whole-of-government mission" led by Prime Minister Shehbaz Sharif, while PM's Focal Person for Polio Eradication Ayesha Raza Farooq said the virus is now concentrated in the most insecure areas and described a more targeted strategy using smaller local vaccination teams and repeated visits to missed children. ("Pakistan tells global watchdog polio eradication is within reach, insecurity in KP remains biggest hurdle," Dawn, 27 July 2026)
ENVIRONMENT
Pakistan needs water security policy to tackle flood risks, report finds
On 27 July, Dawn reported that a research report launched by EMPAK Strategies, titled "Water, Climate and Diplomacy: Securing Pakistan's Indus Basin Future," said Pakistan must move beyond short-term emergency responses and adopt a comprehensive national water security policy, citing recent Chenab River flow surges as exposing weaknesses from inadequate storage capacity, ageing irrigation infrastructure and poor groundwater governance; it proposed five priorities including implementing the 1991 Water Apportionment Accord, expanding storage and flood infrastructure, and enhancing hydrological cooperation with China and technical dialogue with Afghanistan. Investment Minister Qaiser Sheikh, addressing the seminar, said the Indus Waters Treaty cannot be unilaterally suspended and described any such move by India as illegal under international law. ("Pakistan needs water security policy to tackle flood risks, says report," Dawn, 27 July 2026)
Mangroves shield Pakistan's shores from climate impacts, minister says
On 27 July, Dawn reported that Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry, marking World Mangrove Day, said mangroves act as a natural shield against coastal erosion, flooding and storm surges while supporting fisheries and biodiversity, noting Pakistan hosts the world's largest arid-climate mangrove forest, concentrated in the Indus Delta, and ranks around seventh globally with potential to rise to fourth or fifth through restoration; he estimated the country's mangrove carbon market could generate USD 20-50 million annually and cited Karachi Port Trust rehabilitation efforts, including recovering encroached areas and appointing environmental activist Almas Kasmani as restoration ambassador, targeting 100,000 new mangrove plants. ("Mangroves shield shores from climate impacts: minister," Dawn, 27 July 2026)
PROVINCES
Sindh: Government and World Bank agree to fast-track Karachi water overhaul
On 28 July, The Express Tribune reported that Sindh Chief Minister Murad Ali Shah met World Bank Country Director Bolorma Amgaabazar to review the Karachi Water and Sewerage Services Improvement Project and agreed on a fast-track roadmap to strengthen the city's water and sewerage infrastructure, targeting safe drinking water for around two million residents; Karachi Mayor Murtaza Wahab said relocated chlorination plants were being made operational, with water quality testing expected to begin by 30 July. World Bank officials stressed that infrastructure upgrades must be paired with institutional reforms in governance and financial management, and the meeting produced agreement on clear milestones and stronger monitoring mechanisms. ("Sindh govt, WB agree to fast-track city water overhaul," The Express Tribune, 28 July 2026)
ON INDIA
Foreign Office condemns Indian minister's remarks on Kashmir, warns against underestimating resolve to thwart 'adventurism'
On 27 July, Dawn reported that Pakistan's Foreign Office (FO) condemned Indian Defence Minister Rajnath Singh's "highly provocative and irresponsible" remarks rejecting talks with Pakistan except on Pakistan occupied Kashmir, which he called "illegally occupied," saying the statement distorts the UN-recognised Jammu and Kashmir dispute and warning India "must not underestimate" Pakistan's resolve to thwart any "adventurism," as demonstrated during Operation Bunyanum Marsoos following last year's four-day conflict; the FO urged the international community to hold India accountable for failing to uphold relevant UN Security Council resolutions. Defence Minister Khawaja Asif separately said India's rhetoric reflects an attempt to distort "internationally recognised legal realities" and deflect from internal unrest against the Modi government, while affirming Pakistan's commitment to peace and dialogue alongside an "absolute" resolve to safeguard its sovereignty. ("FO condemns Indian minister's remarks on Kashmir issue, warns against underestimating resolve to thwart 'any adventurism'," Dawn, 27 July 2026)
Editorials/Opinions
The Middle East
Editorial, “Lull in fighting,” Dawn, 28 July 2026
"After two weeks of escalating violence, the US has halted its strikes on Iran, with Tehran also silencing it guns. But rather than any newfound belief in the benefits of peace, the Trump administration may have made the U-turn on account of the mounting practical costs of continuing the conflict."
https://www.dawn.com/news/2018922/lull-in-fighting
Water security
Editorial, “Water policy,” Dawn, 28 July 2026
“The country is caught in a crisis where there too much water at the wrong time and too little when it is most needed. The response remains reactive — managing emergencies instead of building resilience against mounting water insecurity. Climate change is altering the hydrological cycle itself. Erratic rainfall, accelerated glacier melt and prolonged droughts are making historical assumptions about water availability unreliable. Pakistan must now stop treating floods, droughts, water scarcity and climate change as separate policy problems. Instead, these should be seen as a single national security challenge."
https://www.dawn.com/news/2018921/water-policy
External
Adeel Munawar, “Benefiting from Chinese pharma innovation,” The Express Tribune, 27 July 2026
“Pakistan has set an overall merchandise export target of $32.9 billion for FY27. However, it risks repeating last year's missed targets if the government fails to promote export-led industries. Highlighting this need, a recent report by SMEDA identifies five high-potential, export-oriented sectors: Pharmaceuticals, Information Technology, Food Processing, Surgical Instruments, and Leather."
https://tribune.com.pk/story/2620445/benefiting-from-chinese-pharma-innovation
The neighbourhood
Editorial, “Festering Afghan crisis,” The Express Tribune, 26 July 2026
“Pakistan rightly took the opportunity to spell out at the SCO forum that regional intransigence is a threat to the solidarity and sovereignty of member states, warning against those who exploit instability to impose their hegemony. India's unilateral suspension of the Indus Waters Treaty and Kabul's snub to diplomatic treaties are cases in point."
https://tribune.com.pk/story/2620081/festering-afghan-crisis-1
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