|
In Focus
Pakistan and Iran advance FTA talks, expand border trade cooperation
Both countries agree to keep borders open round the clock to improve logistics; aim for USD 10 billion bilateral trade
On 05 August, Dawn and The Express Tribune reported that Pakistan and Iran agreed to expand bilateral trade by keeping border crossings open round the clock, improving logistics, and harmonising customs procedures during a meeting between Prime Minister Shehbaz Sharif and Iranian Industry, Mine and Trade Minister Mohammad Atabak. The two sides also agreed to strengthen cooperation in the mining sector, particularly in the processing and value addition of precious stones. Prime Minister Shehbaz reaffirmed Pakistan's commitment to regional peace and expressed confidence that bilateral trade could reach the jointly agreed target of USD 10 billion.
Pakistan and Iran also concluded the 10th Joint Trade Committee meeting after making progress on technical negotiations for a proposed free trade agreement (FTA). Officials discussed rules of origin, tariff reduction modalities, product lists, barter trade, investment, business-to-business cooperation, and improved customs coordination, transport, and border infrastructure. Both countries reaffirmed their commitment to expanding annual bilateral trade to USD 10 billion, although no timeline was announced for finalising the agreement.
The latest agreements build on a series of trade facilitation measures introduced since March, including new transit routes through Karachi and Gwadar ports, customs reforms, and plans to expand border trade infrastructure. Formal trade between the neighbours declined sharply after international sanctions on Iran disrupted banking channels and commercial exchanges, but both governments have accelerated efforts in recent months to revive economic ties through an FTA, improved connectivity, and greater cross-border commercial cooperation. (“Pakistan, Iran agree to keep border crossings open round the clock to boost trade,” Dawn, 05 August 2026; “Pakistan, Iran push for FTA,” Dawn, 05 August 2026; “Pakistan, Iran agree on round-the-clock border operations to spur trade,” The Express Tribune, 05 August 2026)
In Brief
EXTERNAL
Pakistan and the Netherlands target USD five billion in bilateral trade
On 06 August, The Express Tribune reported that the Dutch Chargé d'Affaires Hajo Provo Kluit visited the Lahore Chamber of Commerce and Industry (LCCI) and identified it as a key partner for expanding bilateral economic ties. Current bilateral trade stands at USD 1.9 billion, with Pakistan's exports to the Netherlands at USD 1.44 billion and imports at USD 505 million. The LCCI said the volume had the potential to reach USD five billion through stronger business linkages and joint ventures. Pakistan's major exports include home textiles, hosiery, and rice, while it imports petroleum products, medical equipment, and dairy products from the Netherlands. ("Pakistan, Netherlands target $5b trade," The Express Tribune, 06 August 2026)
Pakistan and US reaffirm counterterrorism partnership at fourth bilateral dialogue
On 05 August, Dawn reported that Pakistan and the United States were holding the fourth round of their Counterterrorism Dialogue in Washington, led by US Coordinator for Counterterrorism Ambassador Gregory LoGerfo and Pakistan's Special Secretary Ambassador Nabeel Munir. A joint statement named the Islamic State Khorasan (IS-K), Al Qaeda, the Tehreek-e-Taliban Pakistan (TTP), and the Balochistan Liberation Army (BLA) as shared threats and reaffirmed both sides' commitment to combating them. Separately, Finance Minister Muhammad Aurangzeb held a virtual meeting with US Trade Representative Ambassador Jamieson Greer to review progress on bilateral trade negotiations, with both sides reaffirming their intent to finalise a reciprocal trade framework at the earliest. ("Pakistan, US hold counter-terrorism dialogue, reaffirm commitment to combating terrorist groups," Dawn, 05 August 2026)
Foreign Minister condemns settler raids on Al-Aqsa Mosque, reaffirms Palestine stance at Amman ministerial
On 05 August, Dawn reported that Deputy Prime Minister and Foreign Minister Ishaq Dar attended a ministerial conference in Amman, Jordan, where he condemned ongoing incursions into Al-Aqsa Mosque by Israeli settlers and reiterated that Israel has no sovereignty over occupied East Jerusalem or its holy sites. Dar stressed that all measures seeking to alter Jerusalem's status were null and void under international law. He also met his Jordanian counterpart, Deputy Prime Minister and Foreign Minister Ayman Safadi, and separately held meetings with the foreign ministers of Türkiye, Egypt, and Algeria. The foreign ministers of the R-4 Group comprising Egypt, Pakistan, Saudi Arabia, and Turkiye also met on the sidelines to reaffirm support for Palestinian self-determination and statehood based on pre-1967 borders. ("‘No sovereignty over East Jerusalem’: Dar condemns Al-Aqsa incursions by ‘extremist Israeli settlers’," Dawn, 05 August 2026)
PM Shehbaz and CDF Munir to visit Saudi Arabia from 06-08 August
On 06 August, The Express Tribune reported that Prime Minister Shehbaz Sharif, accompanied by the Chief of Defence Forces and Chief of Army Staff (CDF/COAS) Field Marshal Syed Asim Munir and a high-level delegation, will undertake an official visit to Saudi Arabia from 06-08 August. According to the Foreign Office (FO), the delegation will meet Crown Prince Mohammed bin Salman to discuss strengthening bilateral relations, deepening strategic cooperation, and exchanging views on regional developments, particularly amid heightened tensions in the Gulf. The visit comes as Pakistan continues diplomatic engagement with regional partners to support de-escalation efforts in the Middle East, while Deputy Prime Minister Ishaq Dar has also held consultations with Arab counterparts on Palestine, Red Sea security, and broader regional issues. ("PM Shebaz, CDF Munir to visit Saudi Arabia from Aug 6 to 8: MoFA," The Express Tribune, 06 August 2026)
PM Shehbaz pledges to deepen partnership with Japan
On 06 August, Dawn reported that Prime Minister Shehbaz Sharif met a nine-member delegation led by Japan International Cooperation Agency (JICA) President Dr Tanaka Akihiko, reaffirming Pakistan's commitment to strengthening its long-standing partnership with Japan. Prime Minister Shehbaz highlighted that government reforms had doubled state revenues in three years and said mineral sector development was a key priority, welcoming JICA's technical cooperation in the field. He also said cooperation between JICA and the Small and Medium Enterprises Development Authority (SMEDA) would help boost Pakistan's exports and promote smaller businesses. ("PM reaffirms commitment to strengthen partnership with Japan," Dawn, 06 August 2026)
US companies explore critical mineral deals with Pakistan
On 06 August, Dawn reported that American companies are actively exploring opportunities to invest in Pakistan's critical mineral sector, including taking over smaller mines and potentially developing larger copper and antimony projects, as the Trump administration pushes to diversify US supply chains away from China. A US Embassy official said the US Export-Import Bank (Exim) had committed USD 1.25 billion for the Reko Diq copper-gold project in Balochistan, though financing terms were still being finalised. Pakistan possesses significant deposits of antimony, copper, and other minerals found across Chitral, Waziristan, and "Gilgit-Baltistan", and is currently contributing around 3 per cent of national GDP from its mineral sector, with Reko Diq alone expected to add another 0.5 per cent. ("US firms look to Pakistan for critical mineral supplies," Dawn, 06 August 2026)
ECONOMY
Investors demand longer power tariff guarantees and protection against regulatory reversals
On 06 August, Dawn reported that the investor feedback report prepared for the Privatisation Commission following roadshows held in Pakistan, Turkiye, Saudi Arabia, and China in June and July for the proposed sale of Fesco, Gepco, and Iesco. The report highlighted that a strong investor interest in the planned privatisation of three power distribution companies could translate into actual bids only if the government provides longer tariff guarantees, protection against regulatory reversals, and greater freedom to operate in the electricity market. The strongest demand was for a longer multi-year tariff (MYT) regime. Investors want the tariff control period extended to 7-10 years, saying the existing 5-year framework is too short to support investment in long-lived distribution assets. The report also highlighted that investors demanded that a uniform tariff system be gradually replaced with tariffs linked to individual Disco performance and efficiency. Also, International investors fear that tariffs and contractual arrangements agreed at the time of privatisation could later be reopened by a government or court. They have therefore sought contractual safeguards against such changes. Foreign investors have also raised concerns about exchange-rate risks on overseas borrowing for capital expenditure and dividend repatriation. (“Sell-off hinges on guarantees,” Dawn, 06 August 2026)
Pakistan's trade deficit widens in first month of FY27
On 06 August, Dawn reported that Pakistan’s merchandise exports rose 9.54 per cent in the first month of FY27. In absolute terms, export proceeds stood at USD 2.94 billion in July, up from USD 2.68 billion in the same month last year. On a month-on-month basis, export proceeds surged 31.09 per cent. In FY26, Pakistan’s merchandise exports not only missed the annual target by USD 4.87 billion, but also contracted, reflecting the PML-N-led coalition government’s failure to achieve visible improvement over the last four years. The export proceeds also contracted by 5.97 per cent compared with last year’s USD 32.04 billion. The slowing trend in exports has persisted in recent months, with exports posting negative growth in February and March, followed by a brief recovery in April and May. In June, exports dipped by 9.61 per cent year-on-year. According to the Pakistan Bureau of Statistics data, imports surged 17.99 per cent to USD 6.88 billion in July from USD 5.84 billion in the same month last year. Month-on-month, imports decreased by 0.17 per cent. The trade deficit rose 25.17 per cent to USD 3.95 billion in July from USD 3.15 billion in the same month last year. (“Exports rise 9.5 pc in July,” Dawn, 06 August 2026)
POLITICS & GOVERNANCE
PTI marks three years of Imran Khan's detention with nationwide protests
On 06 August, Dawn reported that PTI held countrywide protests marking three years since founder Imran Khan's arrest, with Khyber Pakhtunkhwa Chief Minister Sohail Afridi warning of a march on Islamabad on 27 September unless Khan and wife Bushra Bibi's cases are heard on merit and restrictions on meeting lawyers and family are lifted; in Lahore, police baton-charged protesters and arrested one MNA, four MPAs and several workers, while in Karachi authorities sealed roads to the press club with containers, using teargas and baton charges before PTI shifted its rally to Zainab Market, with more than 10 workers reportedly detained there and further arrests in Pano Aqil and Kandhkot. Protests also took place peacefully in Islamabad, Hyderabad, and Larkana, while Afridi accused the federal government of allowing a resurgence of terrorism in KP and said Khan would be freed "within 30 minutes" if the judiciary acted independently. ("KP CM Afridi warns of march on Islamabad," Dawn, 06 August 2026)
Interior Minister walks back "collapsed system" remarks, insists PM Shehbaz will serve full five-year term
On 05 August, Dawn reported that Interior Minister Mohsin Naqvi said the government would complete its constitutional tenure with Shehbaz Sharif remaining prime minister for the full five years, a week after saying the country's 80-year-old administrative system had "collapsed" and calling for new provinces; he stood by the earlier remark but denied it was a "charge sheet" against the government, crediting Shehbaz with raising Federal Bureau of Revenue (FBR) revenue, winning "a war against India," and improving Pakistan's diplomatic standing. The clarification followed pushback from Defence Minister Khawaja Asif, who said reform should go through parliament, and from the PPP, which demanded Naqvi's resignation over what it called an endorsement of a "hybrid system," while former Senate chairman Raza Rabbani separately argued Pakistan's governance failures stem from constitutional violations rather than the existing provinces. ("Govt will complete tenure, Shehbaz to remain PM for five years: Naqvi," Dawn, 05 August 2026)
Election Commission requests power to verify lawmakers' wealth statements
On 06 August, Dawn reported that the Election Commission of Pakistan proposed an amendment to the Election Rules 2017 giving it authority to seek direct clarification on any ambiguity in a lawmaker's statement of assets and liabilities, from the member or from any person, department, organisation or financial institution, with respondents legally bound to reply within a commission-set deadline; the draft has been published for public consultation with objections due by 15 August. The move comes as the ECP is hearing three cases against Leader of the Opposition Mehmood Khan Achakzai, including one on his own wealth statement, scheduled for hearing on 19 August. ("ECP seeks powers to verify lawmakers' asset declarations," Dawn, 06 August 2026)
SECURITY
Balochistan: Journalist shot dead in Jaffarabad district
On 05 August, Dawn reported that a local journalist, Nazar Muhammad Kanrani, was shot dead by an armed gunman in the Ladies Bazaar area of Dera Allahyar town, Jaffarabad district, while his brother was also wounded; police arrested a suspect identified only as Hafiz and launched an investigation, with the motive not immediately known. Kanrani, a resident of Sohbatpur district, had served as vice president of the Awami Press Club Sohbatpur. ("Journalist killed in Balochistan's Jaffarabad district," Dawn, 05 August 2026)
South Waziristan: Mortar strike on nomad camp kills three; quadcopter attack injures children
On 05 August, Dawn reported that three people, two women and a young girl from a nomadic family, were killed and three others injured when a mortar shell of unknown origin struck a tent camp on a riverbank in the Ahmadwam area of Sararogha tehsil, with the injured shifted to Razmak Hospital; the attack came a day after a religious scholar died in a bomb explosion at a Wana supermarket. Separately, a suspected quadcopter attack in the Chalweshtai area of Ladha tehsil injured three people, including two 10-year-old children, prompting a peaceful protest outside the Sam Brigade camp and plans for a consultative meeting on 11 August to address such incidents. ("Three killed as mortar hits tents of nomads in South Waziristan," Dawn, 05 August 2026)
PROVINCES
KP: Government aims for 30 per cent literacy in two years, says CM Afridi
On 05 August, Dawn reported that Khyber Pakhtunkhwa Chief Minister Sohail Afridi reviewed a proposed PKR five billion digital education reform programme aimed at expanding access to quality education through technology-driven learning. Under the "Parho Khyber Pakhtunkhwa" initiative, the provincial government plans to digitise the curriculum, make textbooks accessible via mobile phones, introduce offline learning, and connect 500 schools to a virtual learning platform by the end of the month. Officials said the reforms could generate annual savings exceeding PKR 100 billion, while the government aims to raise the province's literacy rate by 30-35 per cent over the next two years by improving access, particularly for out-of-school children and girls in underserved areas. (“KP plans 30pc literacy rate in two years: CM,” Dawn, 05 August 2026)
Sindh: Cabinet approves import of wheat to meet province’s consumption needs
On 06 August, Dawn reported that the Sindh cabinet approved the import of 500,000 metric tons of wheat to meet the province’s food security requirements for the current fiscal year amid a projected shortfall of 1.69 million metric tons (MMT). The chief minister said that the move was aimed at safeguarding food security, stabilising prices, and ensuring adequate wheat stocks across the province. Also, the cabinet endorsed the constitution of the Board of the Shaheed Benazir Bhutto Institute for Democracy and Federalism, set up under the SBBIDF Act, 2024. The cabinet also approved several other items, including extending the Sindh Peoples Housing Initiative to Gilgit-Baltistan for 196 flood-affected houses, imposing a toll on the 135-kilometre Nawabshah-Ranipur Mehran Highway for heavy traffic. (“Sindh cabinet approves import of wheat to meet projected shortfall,” Dawn, 06 August 2026)
SOCIETY
Human Rights Commission and Union of Journalists criticise foreign media restrictions
On 06 August, The Express Tribune reported that the Human Rights Commission of Pakistan (HRCP) and the Pakistan Federal Union of Journalists (PFUJ) criticised the government's new Foreign Media Facilitation Guidelines 2026, warning that the policy would undermine press freedom and restrict independent journalism. The groups objected to the requirement for foreign media organisations to obtain prior approval before reporting outside Islamabad, Lahore and Karachi, arguing it would deter scrutiny of matters of public interest. They called for the immediate withdrawal of the guidelines, with PFUJ warning that the restrictions could damage Pakistan's international reputation and threaten the jobs of local journalists working with foreign media outlets. (“HRCP, PFUJ voice strong concern over new foreign media rules, call them threat to press freedom,” The Express Tribune, 06 August 2026)
AF-PAK
Pakistan raises Afghanistan terror concerns at UNSC
On 06 August, Dawn reported that Pakistan told the UN Security Council (UNSC) that multiple terrorist groups, including the banned TTP, BLA, IS-K, ETIM, and Al Qaeda affiliates, continued to operate from safe havens in Afghanistan, posing a growing threat to regional security. Addressing a UNSC briefing, Pakistan's UN envoy Asim Iftikhar Ahmad urged the Taliban to prevent Afghan territory from being used against other countries and called for action against external sponsors of terrorism. (“Islamabad raises Afghan terrorism concerns at UN Security Council,” Dawn, 06 August 2026)
Editorials/Opinions
Politics & governance
Zahid Hussain, “Unravelling order,” Dawn, 05 August 2026
"It is not so much what he said as who said it. We all know that the existing political system has failed to deliver, but that admission coming from the all-powerful interior minister raises many questions. Mohsin Naqvi is himself a product of a system whose legitimacy he is now questioning. His statement points to the unravelling of the hybrid arrangement. What he said cannot be dismissed as merely his personal views, given his perceived association with the powers that be."
https://www.dawn.com/news/2020708/unravelling-order
Tahsin Shah, “Rethinking governance in Pakistan,” Dawn, 05 August 2026
“Every few years, Pakistan revisits the debate on creating new provinces. The interior minister’s recent proposal to establish smaller administrative units has again raised an important question. Yet the real issue is not how many provinces Pakistan should have. It is whether government is close enough to serve its citizens effectively. Administrative boundaries matter only because they influence how quickly people receive education, healthcare, justice, infrastructure and disaster relief. If governance remains distant and unresponsive, merely redrawing maps won’t improve lives."
https://www.dawn.com/news/2020707/rethinking-governance-in-pakistan
Gaza
Mahir Ali, “Gaza: what hope?” Dawn, 05 August 2026
“Only an unreasonably optimistic worldview could persuade anyone to view last week’s announcements about the Gaza Strip as a ‘breakthrough’. Hamas might have agreed to put away its weapons, but that’s contingent on Israel’s withdrawal from the occupied territory. Its armed forces control more than 70 per cent of the Strip, and says it won’t budge until Hamas ‘completely’ disarms. At best, this is a recipe merely for prolonging the status quo that followed last year’s so-called ceasefire, which has been violated more or less daily by the Israel Defence Forces, with nary an objection from Donald Trump’s ridiculous Board of Peace (BoP). One can just about imagine a scenario in which the graduated disarmament of not just Hamas but also Israeli-sponsored factions in the territory is accompanied by a reciprocal IDF pullout.|
https://www.dawn.com/news/2020704/gaza-what-hope
Health
Editorial, “Preventable deaths,” The Express Tribune, 05 August 2026
“The deaths of 144 children from measles and diphtheria in Karachi during the first seven months of the year expose a grave failure of routine immunisation. That failure is evident in the large number of children who receive their earliest vaccines but are never brought back for the doses needed to complete their protection. Officials may cite a decline in reported cases, but that offers little comfort when hospitals continue to record such a devastating toll."
https://www.dawn.com/news/2020701/preventable-deaths
Environment
Editorial, “Bracing for the rains,” The Express Tribune, 04 August 2026
“According to the Pakistan Meteorological Department, most of Pakistan has experienced either near normal or below normal rainfall in the month of June. For a country that battles urban flooding and increased fatalities during the monsoon season every year, this should've been a major relief. But despite lower averages, 126 people tragically lost their lives due to heavy rains in just a single week towards the end of July. Whether this implicates the country's capacity for dealing with natural disasters is a question the government will once again evade."
https://tribune.com.pk/story/2621880/bracing-for-the-rains
|
