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In Focus
US State Department flags Pakistan's fiscal transparency gaps
Report urges greater civilian oversight and stronger fiscal transparency; FO says Pakistan adheres to established best practices
On 12 August, Dawn and The Express Tribune reported that the US State Department's 2026 Fiscal Transparency Report placed Pakistan among 67 countries not meeting minimum fiscal transparency criteria, citing its failure to publish the executive budget proposal within a reasonable period, limited disclosure of government debt obligations including major state-owned enterprise debt, and military and intelligence agency budgets that are not subject to "adequate parliamentary or civilian public oversight." The report recommended three fixes: timely publication of the executive budget proposal, fuller debt-obligation disclosure, and parliamentary or civilian oversight of military and intelligence spending, the latter recommendation coming against the backdrop of a PKR three trillion defence budget, including at least PKR 335 billion in provincial contributions, approved within June's PKR 18.8 trillion Finance Bill 2026-27.
The report also credited Pakistan on several counts, noting its enacted budget and end-of-year reports were made "widely and easily accessible" online, that available budget documents gave a "substantially complete picture" of planned expenditures and revenues including natural resource revenues, and that budget information was generally reliable and subject to audit by a supreme audit institution meeting international independence standards, with findings published within a reasonable period. It further found that Pakistan followed established legal procedures for awarding natural resource extraction contracts, published accessible public procurement information, and maintained a sovereign wealth fund with a "sound legal framework."
Responding at a weekly press briefing, Foreign Office (FO) spokesperson Tahir Andrabi acknowledged the report and said Pakistan adhered to "internationally established best practices" on fiscal transparency, budgeting, and financial disclosure within its own constitutional and regulatory framework. He pointed to the country's ongoing IMF programme, its completion of three IMF reviews, and recent sovereign credit rating upgrades by three international agencies as evidence that its reform process had been "widely appreciated," referring further questions to the finance ministry. ("US report calls for strengthening parliamentary oversight of Pakistan's public finances," Dawn, 12 August 2026; "US State Dept urges increasing civilian oversight to improve Pakistan's fiscal transparency," The Express Tribune, 12 August 2026)
In Brief
EXTERNAL
Pakistan and Belarus agree to expand agricultural and industrial cooperation
On 13 August, The Express Tribune reported that Finance Minister Muhammad Aurangzeb met Belarusian Energy Minister Denis Moroz to discuss expanding bilateral trade and investment, with discussions covering industrial cooperation, agriculture, education, and culture. Separately, Federal Minister for National Food Security and Research Rana Tanveer Hussain met Belarus's Deputy Minister of Agriculture Yakovchits Aleksander, and both sides agreed to facilitate the export of seeds, promote fish farming cooperation, and establish a universal agricultural machinery testing facility at the Pakistan Agricultural Research Council (PARC) with Belarusian financial and technical support. ("Pakistan, Belarus to deepen cooperation," The Express Tribune, 13 August 2026)
Iran calls Pakistan and Türkiye key pillars of Muslim world unity
On 12 August, The Express Tribune reported that Iran's Supreme National Security Council Secretary Mohsen Rezaei, during a meeting in Tehran with Interior Minister Mohsin Naqvi, described Pakistan's government, armed forces and people as among the Islamic world's greatest assets and said Iran, Turkiye, Pakistan, Saudi Arabia, Egypt and Indonesia bore a shared responsibility to advance unity across the Muslim world. Rezaei said Iranian President Masoud Pezeshkian attached special importance to relations with Pakistan and believed bilateral trade should increase severalfold, describing Iran-Pakistan ties as rooted in shared beliefs, with each country being the other's strategic depth. ("Tehran says Iran, Türkiye, Pakistan among major Muslim states responsible for advancing unity," The Express Tribune, 12 August 2026)
Pakistan warns UNSC of "tipping point" as West Bank settlement expansion continues
On 12 August, Dawn reported that Pakistan's Permanent Representative to the UN, Ambassador Asim Iftikhar Ahmad, warned the United Nations Security Council (UNSC) that the situation in the occupied West Bank was approaching a dangerous "tipping point" and called for international pressure on Israel to halt settlement expansion and settler violence. Ahmad said the cumulative effect of settlement expansion, land seizures, and forced displacement was part of a broader effort to entrench the occupation and undermine the prospect of a Palestinian state. UN Secretary-General António Guterres separately described all Israeli settlements in the occupied West Bank as legally invalid and a flagrant violation of international law. ("Pakistan warns UN Security Council of ‘tipping point’ in occupied West Bank," Dawn, 12 August 2026)
Pakistan and US extend Fulbright higher education partnership by five years
On 12 August, Dawn reported that the Higher Education Commission (HEC) and the United States Educational Foundation in Pakistan (USEFP) signed a new five-year agreement renewing their Fulbright higher education partnership, covering the period from FY2026-27 through FY2031-32. The agreement encompasses the Fulbright Master's and PhD Programmes, a Visiting Scholar Programme, the Foreign Language Teaching Assistant (FLTA) Programme, and the Hubert H. Humphrey Fellowship Programme. It sets a target of supporting 66 PhD scholars over five years, with HEC committing at least USD 4.54 million annually, capped at a total of PKR 6.48 billion. ("Pakistan, US extend higher education partnership for 5 years," Dawn, 12 August 2026)
Norwegian Foreign Minister visits Pakistan in first such trip in a decade
On 12 August, Dawn reported that Norwegian Foreign Minister Espen Barth Eide arrived in Pakistan on 13 August for a two-day official visit, the first by a Norwegian foreign minister in a decade. During the visit, Eide held delegation-level talks with Deputy Prime Minister and Foreign Minister Ishaq Dar covering the full spectrum of Pakistan-Norway bilateral relations, with discussions focusing on trade and investment, climate change, renewable energy, education, and people-to-people contacts. Eide had previously appreciated Pakistan's mediation efforts during the US-Iran conflict, and the two sides also exchanged views on key regional and international developments. ("Norwegian FM to visit Pakistan on Aug 13-14, first such visit in a decade," Dawn, 12 August 2026)
Pakistan condemns Houthi attack that killed three Pakistani sailors in Red Sea
On 12 August, Dawn reported that Deputy Prime Minister and Foreign Minister Ishaq Dar condemned the Houthi attack on a commercial vessel in the Red Sea that killed three Pakistani sailors and one Indonesian crew member. The Tanzania-flagged vessel Tihamah was struck three times by ballistic missiles in the Bab al-Mandeb Strait while carrying food supplies, with a fourth missile fired at the ship as rescue teams were attempting to evacuate the crew. Dar said Pakistan was in contact with Saudi and Yemeni authorities to ascertain further details and directed the embassy in Riyadh to pursue all necessary measures for the retrieval and repatriation of the dead. ("Pakistan condemns Houthi attack in Red Sea that claimed lives of 3 nationals," Dawn, 12 August 2026)
Pakistan pledges to implement Saudi-led maritime coalition after sailors' deaths
On 12 August, Dawn reported that the Foreign Office (FO) reaffirmed Pakistan's commitment to implementing the Saudi-led multinational maritime defence coalition in full earnest, following the deaths of three Pakistani sailors in Houthi strikes on a vessel in the Bab al-Mandeb Strait. FO spokesperson Tahir Andrabi said Pakistan, as a signatory to the coalition's joint statement, was engaged with Saudi authorities on operationalising its commitments. On the stalled US-Iran Islamabad Memorandum of Understanding (MoU), Andrabi said the 60-day negotiation deadline of 17 August could be extended if there was the intent to resume dialogue, adding that Pakistan would continue to offset spoilers through direct and indirect channels. ("After death of 3 Pakistani sailors, FO says Islamabad will implement maritime coalition 'in full earnest'," Dawn, 12 August 2026)
ECONOMY
Pakistan's debt and liabilities reach nearly PKR 100 trillion
On 13 August, The Express Tribune reported that Pakistan's total debt and liabilities mounted to nearly PKR 100 trillion by June 2026. The State Bank of Pakistan (SBP) reported that the nation's total debt and liabilities, 87 per cent of which was public debt, increased to PKR 99.6 trillion during fiscal year 2025-26. The debt bulletin showed that within one year the debt burden grew by PKR 5.2 trillion, or 5.5 per cent. The country's total debt includes the federal government and the central bank's direct and indirect obligations, which are serviced by the central bank and taxpayers through the Ministry of Finance. In terms of the size of the economy, the total debt and liabilities contracted to 78.5 per cent of gross domestic product, marking an improvement of 4.2 per cent within a year. However, it was still far higher than the level considered viable for a developing country like Pakistan, which has the fewest resources to sustain such a heavy burden. The central bank reported that the total debt, excluding liabilities, stood at PKR 97.9 trillion by the end of the last fiscal year, showing an increase of PKR 6.3 trillion. The International Monetary Fund's (IMF) debt surged 17 per cent to PKR 3.1 trillion. (“Debt liabilities near Rs 100tr,” The Express Tribune, 13 August 2026)
Over 300,000 Pakistanis seek employment abroad, reports The Express Tribune
On 13 August, The Express Tribune reported that over 317,000 Pakistanis seek employment abroad, including doctors, software engineers, IT specialists, petroleum and mechanical engineers, paramedical staff, and technicians. Those departing for overseas jobs are also reportedly facing difficulties at airports, including Allama Iqbal International Airport in Lahore, as well as airports in Karachi, Islamabad, and other cities. The deteriorating employment situation, heavy taxation, and lack of technological infrastructure have contributed to a significant rise in the number of Pakistanis seeking work abroad. According to official figures, 317,436 Pakistanis left the country for employment during the first six months of 2026, from January to June. Saudi Arabia was the top destination, with 183,951 Pakistani workers travelling there for employment. The United Arab Emirates (UAE) ranked second with 50,773 workers, followed by Qatar with 34,025, Bahrain with 13,329, and Türkiye with 4,673. Cyprus, Greece, the United Kingdom, and Malaysia were also among the countries attracting significant numbers of Pakistani workers. (“Over 317k workers seek jobs abroad,” The Express Tribune, 13 August 2026)
US-Iran crisis hits Pakistani fishermen
On 12 August, Dawn reported that a barter system between Pakistani fishermen and Iranians, where Pakistani fishermen exchange subsidised Iranian fuel for high-value tuna, is coming under threat from escalating US-Iran tensions. Tuna is a staple in Iranian kitchens, but it has little demand in Pakistan, leaving fishermen with few options for selling their catch. Also, there is not even a single company in Pakistan to buy our tuna. The recent targeting of Iranian seaports by Washington has made matters worse. Iran’s southern ports of Konarak, Pasabandar and Beris, which border Pakistan’s southwestern Balochistan province and serve as key fish trade hubs, are among the sites targeted by US airstrikes in recent weeks. Boat owners have completely stopped sending their vessels to the Iranian ports for fear of US strikes. (“No catch for the day: Pakistan's tuna trade caught in US-Iran crossfire,” Dawn, 12 August 2026)
POLITICS & GOVERNANCE
PM Shehbaz announces steps for establishment of minority commission
On 12 August, Dawn reported that Prime Minister Shehbaz Sharif said that his government was taking steps to establish an independent commission to protect minority rights, while speaking at an event for National Minorities Day. At the event, PM Sharif emphasised the need for modern education, skill development, and youth empowerment. He added that minority communities, including Christians, Hindus, Parsis, and Sikhs, have played a part in creating a cohesive society and have played a role in the development of the country. Moreover, the commission will reportedly address grievances, monitor constitutional and legal safeguards, employment quotas, and make recommendations on government policies and laws. (“Commission to protect minority rights announced,” Dawn, 12 August 2026)
PM Shehbaz announces youth empowerment and opportunity schemes and initiatives
On 12 August, Dawn reported that Prime Minister Shehbaz Sharif, at an event for International Youth Day, inaugurated the Power Sector Innovation Programme, the National Youth Employment Policy, and the Skills Ambassador Programme. Under the National Youth Employment Policy, the PM stated that a 35 per cent quota would be for women in the labour force, while 10 per cent of opportunities will be specified annually for startups to encourage young people to establish businesses. He highlighted the role of Daanish schools in providing equal access to quality education regardless of financial status, announcing the establishment of “Daanish University” focused on technology education. He also said 1000 high-achieving students would again be sent to China for agricultural studies, while additional top-performing students would receive state-funded opportunities to study IT and AI there. Moreover, 250,000 high-achieving students will reportedly receive Chromebook laptops this year, with funding for youth empowerment and development also included in the current budget. (“Pakistan ‘still far’ from becoming a social welfare state: PM Shehbaz,” Dawn, 12 August 2026)
PTI cannot “absolve itself of responsibility”, State Interior Minister says after Pindi shooting
On 12 August, Dawn reported that Minister of State for Interior Tallal Chaudhry said the PTI could not “absolve itself of responsibility” following the shooting death of a man by law enforcement officials on Rawalpindi’s Mall Road, where he was allegedly shot after opening fire on security forces. The assailant was reportedly an “active PTI member.” Minister Tarar stated that the shooter had a PTI flag and other related information on his phone. He accused the PTI of perpetuating “politics of violence” and fueling “hatred and anarchy,” adding that PTI leaders and workers had published speeches and videos on their social media accounts that incite violence. The PTI has stated that it had nothing to do with the violence. (“Shooting on security personnel in Pindi: Minister says PTI leadership cannot 'absolve themselves of responsibility'," Dawn, 12 August 2026)
SECURITY
Balochistan: 18 militants killed in Surab district
On 12 August, Dawn reported that at least 18 militants were killed in Balochistan’s Surab district after a vehicle-borne improvised explosive device (VBIED) detonated while being prepared, followed by a security operation targeting those who fled the site. According to the Inter-Services Public Relations (ISPR), the blast killed eight militants and three civilians, while security forces later killed 10 more militants. Two soldiers were injured during the operation, which remains ongoing. The incident comes amid a sharp deterioration in Balochistan’s security situation, with the Pakistan Institute for Conflict and Security Studies reporting a steep rise in militant violence and conflict-related deaths in the province during July. (“18 terrorists killed in Balochistan’s Surab district: ISPR,” Dawn, 12 August 2026)
KP: Two militants killed by security forces in Bannu district
On 12 August, Dawn reported that Pakistani security forces killed two militants during an intelligence-based operation in Shahid Khan village in the Janikhel area of Bannu district. According to Dawn, the militants were killed in an exchange of fire, and their bodies were recovered by local security personnel. In a separate incident, a roadside explosive device detonated in the Khanikhel area of Miryan tehsil, creating a large crater but causing no casualties. Authorities believe the device was intended to target security forces conducting ongoing counterterrorism operations in the area. (“2 terrorists killed in Bannu operation,” Dawn, 12 August 2026)
PROVINCES
Karachi to be transformed into modern maritime hub, says Maritime Affairs Minister
On 12 August, Dawn reported that the Maritime Affairs Minister has announced plans to transform Karachi into a modern maritime hub by expanding port infrastructure, logistics, and ocean-based economic activities, including tourism. He said Karachi is not merely a port city; it is the heart of Pakistan’s maritime economy, while speaking at the inauguration ceremony of a new cruise coastal service. The minister said that Pakistan’s coastline along Sindh and Balochistan offered beaches, islands, fishing communities, and maritime heritage. The sector remains underdeveloped due to inadequate tourism infrastructure, limited cruise facilities, poor connectivity, and growing environmental pressures. The minister added that Karachi Port was being developed as a major transshipment hub. Ongoing projects include a maritime industrial complex and facilities for shipbuilding and ship repair. Also, ship recycling and industrial estates were being promoted to strengthen linkages between maritime activities and the wider industrial economy. (“Govt plans to turn Karachi into maritime hub: maritime affairs minister,” Dawn, 12 August 2026)
POK
“AJK” Election Commission withholds results for two constituencies in Bagh district
On 12 August, Dawn reported that the “Azad Jammu and Kashmir (AJK)” Election Commission announced the result of one constituency and withheld the results of two others in Bagh district, with repolling pending at 23 polling stations. The announced result was for LA-14 (Bagh-I), Dhirkot, where Jammu Kashmir Awami Dast-o-Bazu Party candidate Sajid Iqbal Abbasi secured a landslide victory with 40,522 votes. In LA-15 (Central Bagh), PPP’s Sardar Ziaul Qamar was leading with 16,637 votes. In LA-16 (Eastern Bagh), PML-N’s Sardar Mir Akbar was leading with 19,515 votes; results are withheld, as polling could not be held at 14 polling stations. In LA-17 (Haveli), initial reports had put PML-N candidate Engr Mohsin Aziz, but the contest reportedly appeared to have become extremely close. As a result of this, the Election Commission (EC), along with the Quick Response Force (QRF), evacuated EC officials overseeing the election process and sealed the polling bags. Chief Election Commissioner of “AJK,” Ghulam Mustafa Mughal, said a decision on the results would be taken after the relevant election records reached the commission’s office. In response, PML-N regional president Shah Ghulam Qadir said “great injustice” had been done. (“Results withheld in Bagh, Haveli amid demands for recounting,” Dawn, 12 August 2026)
Editorials/Opinions
The Middle East
Zahid Hussain, “New regional security order,” Dawn, 12 August 2026
"The triangular defence pact signed last week by Turkiye, Saudi Arabia and Pakistan is the most consequential geopolitical development reshaping the strategic landscape of the region and beyond. It has been concluded in the midst of a war that not only affects the region but also has far-reaching implications for the wider world. The three countries span the Middle East, South Asia and Europe."
https://www.dawn.com/news/2022309/new-regional-security-order
Society
Editorial, “Nutrition emergency,” Dawn, 12 August 2026
“Malnutrition has become one of the biggest obstacles to Pakistan’s development. Around 40pc of children under five are stunted, a figure that should trouble us not only because of what it says about child health, but because of what it means for the country’s future. Children who do not get the nutrition they need in their earliest years are more likely to struggle with learning, health and productivity later in life. The damage can follow them into adulthood and, in many cases, into the next generation. Pakistan is also estimated to lose nearly $17bn every year because of malnutrition and undernutrition. That makes it an economic and development problem as well."
https://www.dawn.com/news/2022311/nutrition-emergency
Editorial, “Poison on our plates,” The Express Tribune, 12 August 2026
“A disconcerting amount of packaged kitchen staples fail to meet national quality standards. About 48% of all ghee samples analysed by the Ministry of Planning were found to be substandard, along with 75% of refined palm oil, and 44% of packaged milk. Out of 491 samples of different kitchen staples collected from markets across the country, 176 were found non-compliant - an overall failure rate of about 36%."
https://tribune.com.pk/story/2623348/poison-on-our-plates
Education
Mehak Anwar, “Our education system needs more than a new syllabus,” The Express Tribune, 12 August 2026
“Pakistan's education crisis is not simply a crisis of outdated textbooks. It is a crisis of an outdated educational philosophy. While the world is moving towards AI, automation and knowledge-based industries, too many of our classrooms remain organised around memorisation, rote learning and examination scores. We have modernised the language of education, but have we modernised the way we teach children to think?"
https://tribune.com.pk/story/2623347/our-education-system-needs-more-than-a-new-syllabus
Politics & governance
Editorial, “Redirected funds,” The Express Tribune, 12 August 2026
“There is something deeply troubling about a development programme designed to help some of Balochistan's poorest flood victims becoming the subject of a dispute over whether its funds should be diverted elsewhere. The World Bank's strong objection to the redirection of housing funds should not be dismissed as donor interference. Nor, however, should the government's broader development priorities be ignored. The real question is whether the two can be reconciled without making the province's most vulnerable people pay the price."
https://www.dawn.com/news/2021795/more-provinces-or-modernisation
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