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In Brief
POLITICS & GOVERNANCE
Government withdraws Telecommunication Amendment Bill, announces new draft
On 28 August, Dawn reported that the government withdrew the Pakistan Telecommunication (Re-organisation) (Amendment) Bill, 2026, which was to give telecom licensees powers to install infrastructure on public and private land, and said it would introduce a fresh draft. The bill was originally tabled by Information Technology (IT) Minister Shaza Fatima Khawaja, was approved by the National Assembly on 11 June, and later faced objections in the Senate. The motion to withdraw was moved by Minister of State for Interior Tallal Chaudhry on behalf of Khawaja and approved by the Senate as the 90-day period for passage neared expiry. The Ministry of IT said the fresh bill would retain the essence of the proposed legislation while expediting the legislative process. The withdrawn bill allowed access to public property without charges, provided for deemed approval if authorities did not respond within 30 days, and contained provisions for access to private land and fines of up to PKR 50 million for obstruction. In response to these provisions, the Islamabad Bar Association and digital rights groups raised concerns over property rights and possible forced entry. Subsequently, Prime Minister Shehbaz Sharif constituted a committee headed by Law Minister Azam Nazeer Tarar to examine the legislation. (“Govt withdraws controversial telecom bill, to bring new draft of proposed legislation,” Dawn, 28 August 2026)
EXTERNAL
Recent deportations raise concerns over Pakistan's reliance on overseas jobs
On 29 August, The Express Tribune reported that recent deportations of 21,951 Pakistanis have brought into focus the country's heavy dependence on overseas jobs to absorb its workforce and on the resulting remittances to support its external account. Economists warn that dependence on labour markets and policy decisions beyond Pakistan's control leaves millions of households exposed. An economist at the Sustainable Development Policy Institute (SDPI) said remittances create no public debt, demand no profit repatriation and reach households directly. The weakness arises because Pakistan uses them to compensate for weak exports and low investment, while millions of workers remain subject to rules over which it has almost no influence. Remittances exceeded all export earnings in FY26, while Saudi Arabia and the UAE supplied nearly 45 per cent of the total. The UAE deportations have not yet reduced national inflows materially. A recent report by PIDE Professor of Economics warned that Pakistan's heavy reliance on the Middle East for labour exports and remittances remained a critical vulnerability. The data presented in the National Assembly showed that 21,951 Pakistanis were deported from Gulf countries between March 1 and 13 July, 2026. Saudi Arabia accounted for the largest share at 15,495, followed by the UAE with 3,803 and Oman with 1,606. However, the government has rejected the impression of a blanket deportation campaign, maintaining that deportations are linked to violations of host-country laws. (“Deportations expose gulf job reliance,” The Express Tribune, 29 August 2026)
PM Shehbaz praises Makkah Pact
On 28 August, Dawn reported that during a meeting with Saudi Minister for Environment, Water and Agriculture, at Prime Minister’s House in Islamabad, Prime Minister Shehbaz Sharif said that the recent Makkah Joint Defence Agreement signed by Saudi Arabia, Turkiye and Pakistan had brought the three countries “closer together” and sent a message of “unity and peace throughout the region. The three countries signed the joint defence agreement at a trilateral summit in Makkah on 7 August, pledging to strengthen collective security, deepen defence cooperation and promote peace and stability in the region and beyond. Pakistan has said that the pact is “open to any country in the region” willing to uphold its fundamental principles. He underscored that as strategic partners, both Pakistan and the kingdom must now focus their energies towards deepening economic and agricultural ties to translate their longstanding relationship into a stronger, mutually beneficial trade and investment partnership. (“PM Shehbaz says Makkah defence pact has sent message of peace unity throughout region,” Dawn, 28 August 2026)
Pakistan anchors balanced approach to US sanctions on Iran
On 28 August, Dawn reported that Pakistan adopted a measured position on the US campaign of economic pressure against Iran, stressing that it would comply with international law and hoped that economic issues would eventually form part of a wider settlement of the US-Iran conflict. On 24 August 2026, the US announced ‘Operation Economic Outcast’, an intensified sanctions campaign aimed at economically strangulating Iran to force it to capitulate after months of military confrontation. Islamabad, however, avoided directly confronting the US measures, instead anchoring its position in international law and its existing agreements with Tehran. The position reflects the difficult balance facing Islamabad. While the US is an important economic partner for Pakistan, Iran is a neighbouring country with strong connections with a segment of its population. (“Pakistan treads carefully as US tightens Iran sanctions,” Dawn, 28 August 2026)
ECONOMY
Pakistan-Central Asia trade falls by four per cent in FY26
On 28 August, Dawn reported that Pakistan’s exports to five Central Asian republics fell 4.1 per cent year-on-year to USD 190.578 million in FY26, while overall bilateral trade plunged 50.62 per cent to USD 219.125 million. The decline was driven primarily by an 88.35 per cent collapse in Pakistan’s imports from the region, which fell to USD 28.547 million. Kazakhstan remained Pakistan’s largest trading partner among the five states, with bilateral trade of USD 104.313 million, followed by Uzbekistan at USD 87.732 million. Pakistan’s trade with the region has been constrained by the closure of border trade stations and land routes through Afghanistan, despite annual trade potential of USD 400-500 million. (“Exports to 5 Central Asian states fall 4.1pc in FY26,” Dawn, 28 August 2026)
NEPRA rejects tariff package without industry consultations
On 28 August, Dawn reported that the National Electric Power Regulatory Authority (NEPRA) would reject a proposed review of the industrial tariff incentive package if the government finalised it without consulting industry representatives. The regulator’s stance came as consumers face an additional PKR 36.52 billion recovery in September due to higher power generation costs from expensive LNG imports. The Central Power Purchasing Agency said the cost of RLNG-based generation surged to PKR 47.4 per unit in July after Qatar’s LNG supplies were disrupted, forcing Pakistan to rely on costly spot-market cargoes. Industrial consumers also criticised tariff changes and questioned subsidised furnace oil exports, while NEPRA said the government must consult industry before resubmitting the package. (“Nepra rejects tariff review sans industry input,” Dawn, 28 August 2026)
State Bank remits PKR 1.9 trillion profit to government
On 28 August, Dawn reported that the State Bank of Pakistan (SBP) had remitted PKR 1.932 billion to the federal government from its FY26 profit, helping support public finances and reduce reliance on domestic borrowing. The central bank earned a net profit of PKR 1.990 billion during the year, down from PKR 2.5 trillion in FY25 as the benchmark interest rate eased to 11.5 per cent from a peak of 22 per cent. The government has relied on SBP profits in recent years to boost non-tax revenue, contain the fiscal deficit and retire short-term domestic debt. Meanwhile, Pakistan’s total liquid foreign exchange reserves stood at USD 22.587 billion as of 21 August, including USD 17.098 billion held by the SBP. (“Rate cuts shrink SBP profits in 2025-26,” Dawn, 28 August 2026)
Short-term inflation rises 9 per cent amid energy price pressures
On 29 August, Dawn reported that Pakistan’s Sensitive Price Indicator (SPI) rose 9.04 per cent year-on-year in the week ending 27 August, driven largely by higher energy and transport costs. The index increased 0.05 per cent from the previous week, marking its 72nd consecutive week of year-on-year growth. Major annual increases included LPG at 55.66 per cent, wheat flour at 45.28 per cent, diesel at 36.33 per cent and petrol at 29.84 per cent. Food prices also remained under pressure, with onions rising 125.86 per cent and tomatoes 36.69 per cent year-on-year, although both recorded weekly declines. Rising fuel prices have contributed to higher transport costs, which have also pushed up prices of essential food items. (“Short-term inflation rises over 9pc,” Dawn, 29 August 2026)
Domestic bonds raise USD 171 million
On 29 August, Dawn reported that foreign investors had invested about USD 171 million in Pakistan’s government securities during the first 50 days of FY27, with Treasury bills attracting USD 126.9 million and Pakistan Investment Bonds (PIBs) receiving USD 44 million. The renewed interest has been attributed to relatively high domestic yields of around 12 per cent, while fresh investment in PIBs was seen as a positive sign after limited foreign interest in long-term debt over the past two years. Foreign investors also put USD 82.8 million into Pakistan’s equity market, bringing total inflows across equities and government securities to about USD 253 million, against cumulative outflows of around USD 214 million. During August, however, investment remained concentrated in T-bills, which attracted USD 46.7 million while PIBs received no fresh inflows. (“Domestic bonds attract $171m in 50 days,” Dawn, 29 August 2026)
PM Shehbaz orders third-party audit of Revenue Board tax reforms
On 29 August, Dawn reported that Prime Minister Shehbaz Sharif had directed the Federal Board of Revenue (FBR) to ensure a third-party audit of ongoing tax reforms, stressing transparency, effectiveness and sustainability. The reforms are focused on digitalising the tax system, improving production monitoring and automating tax processes, while authorities have been instructed to intensify action against tax evasion, smuggling and illegal businesses. Officials said work was progressing on IRIS 3.0, a new tax operating model and a central data hub to create a more integrated, data-driven system. International consultants have been hired to design IRIS 3.0, which is expected to support automated taxation and eventually incorporate artificial intelligence and machine learning to improve revenue collection. (“Third-party FBR audit ordered,” Dawn, 29 August 2026)
Exchange Commission streamlines digital investor onboardings
On 28 August, Dawn reported that the Securities and Exchange Commission of Pakistan (SECP) had introduced a unified digital investor onboarding framework to simplify entry into the capital market by reducing repetitive verification, paperwork and documentation. Under the framework, Sehl/Sahulat accounts will be processed within one working day and normal accounts within two working days, with applicants receiving tracking IDs and written reasons for any rejection. The initiative standardises onboarding across brokers, asset managers, insurers and other regulated intermediaries, while allowing reliance on previously completed customer verification. It also enables API-based processing, digital onboarding, instant UIN issuance and CDC sub-account opening. The SECP aims to expand retail participation, particularly among young Pakistanis, and increase the country’s capital-market investor base to 2.5 million. (“SECP introduces unified framework for 'faster and easier' entry into Pakistan's capital market,” Dawn, 28 August 2026)
SECURITY
South Waziristan: IED kills peace committee member, injures eight
On 28 August, Dawn reported that an improvised explosive device (IED) exploded in Makeen Bazaar in Khyber Pakhtunkhwa’s Upper South Waziristan district, killing a peace committee member and injuring eight others. The IED had been attached to a motorcycle by unidentified people, exploding at 1045 hours; this injured peace committee members Sharat Khan and Bangi Khan among the eight injured; they were taken to Razmak Hospital, said Dera Ismail Khan Regional Police Officer (RPO) Ghulam Mubashir Makin. RPO Makin added that the police had registered a preliminary report and launched an investigation into the incident. Deputy Superintendent of Police Hidayatullah stated that the killed member was Inayatullah. Additionally, the police noted that following the blast, the area was cordoned off, security was tightened, and personnel conducted a search for evidence and possible suspects. This comes in the backdrop of a reportedly deteriorating security situation in Upper South Waziristan and Lower South Waziristan, with an attack on a member of a local peace committee in the Sararogha tehsil of Upper South Waziristan on 26 August, killing a police officer. (“Peace committee member killed, 8 injured in IED blast in Upper South Waziristan market,” Dawn, 28 August 2026)
Balochistan: CM warns property owners over allowing terrorist attacks from private land
On 29 August, Dawn reported that Balochistan Chief Minister Mir Sarfraz Bugti warned owners of vineyards and other private properties in Mastung that they would be treated as facilitators if their land was used to launch attacks on security forces. Speaking at the inauguration of digital initiatives at the Central Police Office, CM Bugti said the government did not want to take action that could harm ordinary citizens, as terrorists often used civilians as human shields, while noting that property owners could not claim ignorance if attacks were launched from their land. He stated that “If a security forces’ convoy or the home minister is attacked from a vineyard, the owners cannot say they did not know terrorists were present on their land,” adding that “The blood of Pakistan Army, Frontier Corps and police personnel is extremely sacred.” Separately, he said Balochistan was moving towards maximum digitalisation of governance, with eight police apps upgraded and eight new ones introduced. He announced PKR five million in rewards for personnel involved in the digitalisation drive and PKR 50 million for further digitalisation of Balochistan Police. (“Owners to be liable if terrorists use their land: Bugti,” Dawn, 29 August 2026)
ON INDIA
Foreign Minister reiterates India must uphold Indus Waters Treaty, says Islamabad will safeguard its interests
On 28 August, Dawn reported that Deputy Prime Minister and Foreign Minister Ishaq Dar stated that any attempt to deprive Pakistan of waters “rightfully allocated to it” under the Indus Waters Treaty would have “profound consequences for regional peace and security.” Speaking online at a seminar in Washington called “The Indus Waters Treaty: South Asian Security at the Crossroads,” he stated that Pakistan would safeguard its interests under the treaty and international law. Dar noted that the treaty was still valid, that no provision permits either party to place it in abeyance, and that the issue went beyond bilateral disputes and concerned the “sanctity of treaties.” Concerning Pakistan using the Permanent Indus Commission, a neutral expert or a Court of Arbitration, he said it was “not an act of confrontation” but implementation of the legal framework agreed by both countries. He further stressed that the Indus Basin was the “lifeline of more than 250 million Pakistanis,” making water security inseparable from economic, food and national security. Additionally, he called for disputes to be addressed through the treaty’s mechanisms, and for technical engagement, transparency, and data-sharing to be strengthened, noting that “Shared waters must never be weaponised.” (“'Profound consequences': Indus Water Treaty must not be weaponised, FM Dar warns India,” Dawn, 28 August 2026)
Editorials/Opinions
Air pollution
Faisal Bari, “Clearing the air,” Dawn, 28 August 2026
"Hundreds of cities are embarking on the journey to clean up the environment. There is a lot of discussion of these issues in Pakistan whenever we have a season of high AQI numbers and schools are closed and emergency action is taken to address pollution. But we have not seen major medium- to long-term initiatives to take us to a place where the lungs and brains are not impacted by pollutants in the air, and where medication is not our children’s best friend."
https://www.dawn.com/news/2025678/clearing-the-air
Politics & governance
Shahab Usto, “A polity or petri dish?” Dawn, 28 August 2026
“Contrary to the interior minister’s recent claim, bad governance is not the cause of the recurring collapse of political systems. It is only a symptom of a deeper systemic malaise — an undemocratic dispensation that allows the rulers to escape political and institutional accountability for their ills and excesses. The minister’s panacea for bad governance — the creation of more provinces — is also misconceived, if not potentially disastrous for a country already riddled with multiple fault lines."
https://www.dawn.com/news/2025677/a-polity-or-petri-dish
Shahzad Chaudhry, “Putting people first,” The Express Tribune, 28 August 2026
“Cockroaches, real or imagined, have shaken up the system. It is about time. Better stitch in time to save some than none. The debate, though, has lost its direction. Smaller units are a separate need, and transformed – not better alone – governance is an imperative. Both have different reasons. Simply put, drastically improved governance is to keep the cockroaches at bay, while smaller administrative units are essential to keep the integrity of the federation in place."
https://tribune.com.pk/story/2626112/putting-people-first
PIMS tragedy
Editorial, “Hospital tragedy,” Dawn, 28 August 2026
“Until Pakistan stops chronically underspending on healthcare, the safety standards and quality of care in state-run hospitals cannot be expected to improve, and tragedies like this one will continue to claim lives. The bigger question is whether the authorities are ready to address that challenge."
https://www.dawn.com/news/2025672/hospital-tragedy
Climate change
Mehak Anwar, “Google has arrived; but is Pakistan ready?” The Express Tribune, 28 August 2026
“On August 18, Google opened its first office in Pakistan. For many, it was simply another multinational putting its name on Pakistan's corporate map. For me, it raises a much bigger question: what does Google see in Pakistan that we have failed to see in ourselves?"
https://tribune.com.pk/story/2625842/why-climate-message-keeps-missing-the-people
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