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In Focus
Pakistan, Saudi Arabia and Türkiye institutionalise Makkah Defence Agreement
Secretariat to be established in Riyadh, to be headed by Pakistan as secretary-general for first three years
On 31 August, Dawn reported that Pakistan, Saudi Arabia and Türkiye agreed to institutionalise their cooperation under the Makkah Agreement to strengthen collective deterrence and defence, with a secretariat to be established in Riyadh and initially headed by a Pakistani secretary-general for three years. The decision was taken at the first meeting of the Strategic Political and Defence Committee in Istanbul, attended by foreign and defence ministers and senior military officials from the three countries. Turkiye’s Foreign Minister Hakan Fidan said the alliance would officially be known as the “Makkah Defence Alliance” and would remain open to other countries meeting its conditions and standards.
The three countries agreed to strengthen defence capabilities and military cohesion through joint activities, defence-industry cooperation and joint technology development and production. They also pledged to support de-escalation, restraint and peaceful resolution of regional crises, while respecting sovereignty, territorial integrity and non-interference. The alliance, established by a joint defence pact signed on 07 August, treats an armed attack against one member as an attack against all. On the sidelines, Pakistan’s Field Marshal Asim Munir held separate meetings with Saudi and Turkish defence officials to discuss bilateral military cooperation and regional security developments. ("Makkah Defence Alliance to be institutionalised, Pakistan to head secretariat for 3 years: FO," Dawn, 31 August 2026)
In Brief
POK
Sudhnoti March calls for peace and uninterrupted supply of essentials
On 01 September, Dawn reported that political and religious parties and civil society representatives held a march in Sudhnoti, “Azad Jammu and Kashmir”, calling for an end to unrest and violence and uninterrupted transportation of food and essential commodities from Pakistan. Organised by the Awami Ittehad Forum Sudhnoti, the march brought together supporters of major political parties, including PML-N, PPP, JUI, PTI and others. A joint declaration reaffirmed the bond between “AJK” and Pakistan and called for immediate elections in seven constituencies of Rawalakot and Sudhnoti. Participants also demanded an end to blockades and entry restrictions, restoration of internet, travel and educational services, and adequate wheat supplies to flour mills to ensure uninterrupted flour availability. (“AJK marchers call for peace, essential supplies,” The Express Tribune, 01 September 2026)
ECONOMY
Pakistan's rising food exports raise concerns over domestic food security
On 01 September, The Express Tribune reported that West Asian destinations, Central Asian economies and China continue to press Pakistan's local policymakers and private entities for diversified agricultural and livestock shipments. Islamabad and Riyadh have set an ambitious target to scale Pakistan's food and agricultural exports to Saudi Arabia to USD three billion within the next two years. The priority sectors include rice, red meat, fruits, concentrates, green fodder and water-efficient farming technologies. Saudi Arabia currently imports about 169,000 tonnes of Pakistani rice worth USD 163 million and around 30,000 tonnes of red meat valued at USD 167 million annually, with plans to double meat imports rapidly. China stands out as another massive seeker of Pakistani agricultural commodities. Total agro-food exports from Pakistan reached over USD 8 billion, driven heavily by record sesame seed shipments to China, exceeding USD 400 million in recent cycles, alongside expanding trade in frozen meat, seafood and rice. The United Arab Emirates (UAE) also remains a vital destination, absorbing over USD 33 million in animal fodder exports alone, while markets across Oman, Kuwait and Central Asia actively pull fresh produce and meat products from Pakistani fields. However, Punjab's agricultural machine has struggled to consistently match foreign expectations. High production costs, erratic fertiliser and diesel prices, shifting crop policies and razor-thin market returns have squeezed the average grower. Decades of low bank credit access have left smallholders operating on hand-to-mouth margins, lacking the capital to experiment with high-value crops. This vulnerability raises serious concerns over domestic food security. Exporters emphasised that structural transformation is the only way forward. The role of Value addition and using new technologies to increase per-acre yield will be important; the same is the case when it comes to the livestock sector. Processed meat, especially red meat, alone can lift the entire rural population one level up, but it needs commitment, finances, consistency and technology transfer. Private sector leadership believes structural cooperation can bridge these gaps. The Convener of the Federation of Pakistan Chamber of Commerce and Industry (FPCCI) regional committee on food noted that Pakistani businesses are eager to turn historic diplomatic ties into long-term commercial trade. (“Exports raise food security fears,” The Express Tribune, 01 September 2026)
Board of Revenue meets first two months’ target of PKR 1.71 trillion
On 01 September, The Express Tribune reported that the Federal Board of Revenue (FBR) met its first two months' target of PKR 1.71 trillion, driven by higher sales tax receipts. The tax collection increased to PKR 1.722 trillion during July-August of the current fiscal year. It was higher by a mere PKR 55 billion, or 3.3 per cent, than tax receipts during the same period last year. The pace was far slower than the 17.4 per cent growth required for the annual target. The collection was PKR 12 billion higher than the target. The FBR hit the two-month goalpost due to better collection in July, but it missed August's target by PKR 29 billion; against the PKR 930 billion target, the FBR received PKR 900 billion. For the current fiscal year, the government and the International Monetary Fund (IMF) have agreed on the annual tax target of PKR 15.263 trillion. This requires a 17.4 per cent increase over last year's receipts. (“FBR achieves Rs 171tr tax target,” The Express Tribune, 01 September 2026)
Pakistan signs two major agreements to boost exports
On 01 September, The Express Tribune reported that Finance Minister Muhammad Aurangzeb welcomed the two agreements related to exports. A reinsurance partnership between the Export-Import Bank of Pakistan (Pak EXIM) and the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), and an approximately PKR three billion SME Risk Pool between the Export Development Fund (EDF) and Pak EXIM. Federal Minister for Finance said Pakistan was moving from stabilisation towards growth. The economy grew 3.7 per cent in FY26, while the fiscal deficit declined to 2.6 per cent of GDP, its lowest in 22 years. Pakistan has recorded primary surpluses for three consecutive years. He noted that despite policy rate movement, financing was available to exporters at 4.5 per cent. The minister noted services exports gains, including IT exports of around USD 4.6 billion and freelancer earnings of around USD 1.7 billion. However, he highlighted that incremental growth around the existing USD 30 billion goods exports base would not be sufficient. (“Govt signs two export financing deals,” The Express Tribune, 01 September 2026)
Pakistan world's third-largest cryptocurrency market with 40 million accounts
On 01 September, The Express Tribune reported that Pakistan has emerged as the world's third-largest cryptocurrency market, with around 40 million Pakistanis holding crypto accounts. Pakistan Virtual Assets Regulatory Authority (PVARA) Chairman told the Senate Standing Committee on Cabinet Secretariat that Pakistani youth had developed an understanding of digital currencies and were seeking greater economic independence. The committee discussed the growing trend of digital currencies as well as the pricing and taxation of imported mobile phones. Pakistan had around 40 million crypto accounts, while the total number of active taxpayers stood at approximately six million. This highlights a significant gap between the number of crypto users and registered taxpayers in the country. PVARA Chairman informed the committee that PVARA had been established to bring digital currency users into the tax net and regulate the rapidly expanding virtual assets sector. He also said that the authority was recruiting permanent staff and had so far utilised only eight per cent of the budget allocated to it by the government. (“Pakistan ranks third globally in crypto,” The Express Tribune, 01 September 2026)
POLITICS & GOVERNANCE
Judicial commission blames Gul Plaza fire on systemic failures
On 31 August, Dawn reported that the Gul Plaza Judicial Commission had described the deadly January fire in Karachi as a systemic failure across successive provincial and local governments, saying existing legal and administrative mechanisms had not been effectively implemented. The 78-page report, headed by Sindh High Court Justice Agha Faisal, highlighted locked exits, blocked windows, absent fire-safety systems, unimplemented inspections and audits, fragmented authority and inadequate coordination among institutions including the Karachi Metropolitan Corporation, Sindh Building Control Authority and Rescue 1122. More than 70 people died in the blaze, which took nearly two days to extinguish. The commission said the tragedy resulted from cumulative institutional failures and noted that the fire was reportedly caused by children playing with and igniting matchsticks. (“Gul Plaza fire commission blames no single entity or person directly,” Dawn, 31 August 2026)
PkMAP’s Achakzai calls for democratic solution to address Pakhtun grievances
On 31 August, Dawn reported that Pakhtunkhwa Milli Awami Party (PkMAP) Chairman Mehmood Khan Achakzai called on the state to address Pakhtuns’ constitutional, political, economic and national rights through democratic and constitutional means, warning that grievances should not be driven to international forums. Speaking at a three-day public jirga in Southern Pakhtunkhwa, he said coercion could not sustainably govern any state and stressed that Pakhtun-majority areas should not be used for wars, proxy conflicts or strategic rivalries. Achakzai also demanded protection of local communities’ rights over land and resources, expressed concern over insecurity in Pakhtun-majority areas of Balochistan and called for equality and partnership between Baloch and Pakhtun communities. On Afghanistan, he criticised the region’s security-centric approach and highlighted the historical role of foreign interventions and proxy conflicts. (“Achakzai calls for democratic solution to Pakhtun grievances,” Dawn, 31 August 2026)
EXTERNAL
Pakistan Railways and Russia sign freight rail contract; pilot train launch delayed
On 01 September, The Express Tribune reported that Pakistan Railways signed a Freight Forwarding Contract with Russian Railways Logistics, establishing a cooperation framework for international freight transportation and multimodal logistics. Both sides agreed to launch a Pakistan-Russia Pilot Container Freight Train, promoting rail-based trade and strengthening connectivity between Pakistan, Russia, and Central Asian countries. However, the pilot train commencement was postponed due to regional conflict. The cooperation aims to enhance rail-based trade, facilitate technical expertise exchange, strengthen international freight services and improve logistics efficiency. The initiative is expected to contribute to Pakistan Railways' modernisation and financial sustainability whilst integrating the country more closely with regional and international trade routes. ("Pakistan, Russia sign freight rail contract," The Express Tribune, 01 September 2026)
Planning Minister emphasises strengthening IT, agriculture cooperation with China
On 01 September, The Express Tribune reported that Minister for Planning Ahsan Iqbal said Pakistan was strengthening cooperation with China in information technology, agriculture and climate resilience. Iqbal made remarks whilst addressing a review meeting marking one year of implementation of the 2025-2029 Action Plan agreed during Prime Minister Shehbaz Sharif's August 2025 China visit. The minister noted the government was working closely with China to enhance Pakistan's IT sector capacity and create greater opportunities for the young population. Pakistan aims to equip youth with modern skills supporting sustainable economic growth. The cooperation framework encompasses information technology development, agricultural advancement, and climate-resilient infrastructure, strengthening bilateral partnership. ("Pakistan, China deepen IT, agriculture ties," The Express Tribune, 01 September 2026)
PM Shehbaz meets Iranian President Pezeshkian at SCO summit in Kyrgyzstan
On 31 August, Dawn reported that Prime Minister Shehbaz Sharif met Iranian President Masoud Pezeshkian on the sidelines of the Shanghai Cooperation Organisation Council of Heads of State meeting in Bishkek, Kyrgyzstan. The leaders reaffirmed close, longstanding ties and emphasised strengthening bilateral relations across mutual cooperation areas, consistent with President Pezeshkian's June visit to Pakistan. They reviewed ongoing efforts to enhance regional connectivity and people-to-people contacts whilst exchanging views on the evolving regional situation. PM Shehbaz stressed restraint and sustained diplomatic engagement for lasting peace and stability. He underscored the Islamabad Memorandum of Understanding signed between the United States and Iran in June as offering "the only viable pathway towards enduring peace." President Pezeshkian appreciated Pakistan's consistent diplomatic efforts for regional peace. ("PM Shehbaz meets Iranian President Pezeshkian on sidelines of SCO summit in Kyrgyzstan," Dawn, 31 August 2026)
SECURITY
Balochistan: Two terrorists killed in Washuk IBO
On 31 August, Dawn reported that two terrorists were killed during an intelligence-based operation (IBO) in Balochistan’s Washuk district, according to state-run PTV, with security forces also destroying their vehicle and recovering weapons and ammunition. The operation was conducted in the Palantak area under “Operation Radul Fitna” against militant groups. PTV said the militants were involved in attacks on the Mashkhel police station and Customs House. The operation came amid a deteriorating security situation in Balochistan, where the Pakistan Institute for Conflict and Security Studies (PICSS) recorded a 241 per cent increase in overall deaths in July compared with June, with terrorist deaths rising from 75 to 238 and security personnel deaths from six to 62. (“2 terrorists killed during intelligence-based operation in Balochistan’s Washuk: state media,” Dawn, 31 August 2026)
KP: Police constable killed, six injured in IED attack in Karak
On 31 August, Dawn reported that a police constable was martyred and six officials were injured when an improvised explosive device targeted a police patrol van during a search and strike operation in Karak district, Khyber Pakhtunkhwa. The IED was planted along a roadside in the Ghol Dam area and detonated as personnel from the Counter-Terrorism Department (CTD) and police passed by, damaging their vehicle. The injured officials were taken to the District Headquarters Hospital. The attack came amid a broader rise in militancy in KP, where the Centre for Research and Security Studies (CRSS) recorded 2,331 fatalities from violence in 2025, up from 1,620 in 2024. Karak has also witnessed attacks on security personnel, including the killing of three Federal Constabulary (FC) officers in February. (“Police constable martyred in IED attack on police van in KP's Karak,” Dawn, 31 August 2026)
PROVINCES
Punjab: Assembly passes controversial anti-terrorism bill amid opposition walkout
On 31 August, Dawn reported that the Punjab Assembly passed the controversial Anti-Terrorism (Amendment) Bill 2026 despite opposition objections and a full walkout by opposition lawmakers. Speaker Malik Muhammad Ahmad Khan ruled the bill could legally be placed on the agenda, citing Article 142 concerning criminal-law jurisdiction. Opposition Leader Moin Riaz Qureshi condemned the legislation as "draconian," calling it a "bill to crush citizens of Punjab." Opposition lawmaker Ahmar Rashid Bhatti compared the proposed law to a 1909 British colonial-era act opposed by Muhammad Ali Jinnah. Following intense debate, opposition members chanted slogans and walked out. The bill creates a "special security case" mechanism allowing confidential designation of judges, prosecutors, defence counsel, witnesses and proceedings involving extraordinary protection requirements. ("Opposition walks out as Punjab Assembly passes controversial Anti-Terrorism (Amendment) Bill 2026," Dawn, 31 August 2026)
Punjab: Chief Minister meets Alibaba Cloud delegation; discusses AI cooperation
On 31 August, Dawn reported that Chief Minister Maryam Nawaz, during her China visit, met a high-level Alibaba Cloud delegation expressing keen interest in Punjab's information technology sector. Alibaba Cloud officials appreciated Punjab's artificial intelligence-based governance initiatives. The meeting discussed AI utilisation in agriculture, healthcare, socio-economic programmes and climate forecasting, whilst exploring strategic partnership possibilities for AI integration in public services. Chief Minister Nawaz stated Punjab's governance system is being integrated with artificial intelligence and that Punjab became the first province to establish an AI policy. She noted Punjab possesses the fourth-largest young, skilled workforce and leads in digital economy development. Alibaba Cloud Senior Vice President Li Jiaping briefed the Chief Minister about the company's operations whilst discussing small and medium enterprise matters for overseas Pakistanis. ("Chinese firm interested in Punjab's IT sector," Dawn, 31 August 2026)
ON INDIA
Permanent Court of Arbitration asks India to uphold Indus Water Treaty
On 31 August, Dawn reported that the Permanent Court of Arbitration (PCA) ordered India to uphold the Indus Waters Treaty (IWT) with Pakistan and suspend work on a hydropower project in occupied Kashmir. The PCA unanimously declared that the IWT remains fully in force and India had no justification for ending or suspending the agreement. The court imposed measures prohibiting India from concreting the Ratle Hydro-Electric Plant dam wall and power intake structure above certain levels until 90 days after the neutral expert's final decision. The PCA examined potential grounds India cited for suspension, including demographic changes, clean energy needs, dam technology advances, terrorism allegations, and climate change, but found none justified suspension or termination. Islamabad welcomed the findings whilst India rejected the verdict, stating the court had no jurisdiction over India's sovereign decisions. ("Hague court orders India to uphold Indus Waters Treaty, suspend work on its hydropower project," Dawn, 31 August 2026)
Editorials/Opinions
Politics & governance
Dr Niaz Murtaza, “Peaceful path,” Dawn, 01 September 2026
"Repression today provides ample fuel; disputed polls, power grabs, economic pain, abuses and judicial curbs have given many sparks. Yet no fire has spread. The missing circuitry is a coalition able to integrate local anger into national action. This reflects regime tactics based on past lessons — arrests, speech bans and co-optation of civil society — plus the impact of past curbs on student and worker groups. But anger against repression is like dammed floodwater that finds new outlets to cause havoc."
https://www.dawn.com/news/2026551/peaceful-path
Health
Shizah Kashif, “Closing the gap,” Dawn, 01 September 2026
“Forty per cent of Pakistan’s children under five years are stunted while 17.7pc suffer from wasting, as of 2018. The scale of this crisis cannot be understated. Driven by more than just diet, the onset of stunting in a child is driven cumulatively by maternal nutrition, household poverty, food security, sanitation, healthcare, and education."
https://www.dawn.com/news/2026550/closing-the-gap
Energy
Editorial, “EV transition,” The Express Tribune, 28 August 2026
“Pakistan's transition to electric mobility is stalling not for want of ambition but consistency. The government’s plan for 30pc EV penetration within five years, meant to save $4.5bn annually on fuel imports, sits uneasily alongside a policy environment that sends mixed signals to investors, manufacturers, auto parts makers and consumers alike. Oil marketing companies, which should be natural partners in building the charging infrastructure needed, keep pouring capital into conventional retail expansion. The absence of investment in charging infrastructure reflects where OMCs expect the money to keep flowing. Their decision is shaped directly by what government policy signals, or does not signal, about the future. With different lobbies trying to influence the upcoming auto policy, the government has delayed its announcement, creating more market uncertainty."
https://www.dawn.com/news/2026547/ev-transition
PIMS tragedy
Muhammad Hamid Zaman, “A choice to not care,” The Express Tribune, 01 September 2026
“The horror of the PIMS tragedy last week has stayed in the news for about a week – as expected – and has already started to fade in the background. Soon, in a manner not unfamiliar to us, it will get lost in the bureaucratic burden of poorly written reports and recommendations that are unlikely to be acted upon. That will follow with a collective memory loss for most, except for those who will carry that burning scar in their hearts and souls for the rest of their lives."
https://tribune.com.pk/story/2626771/a-choice-to-not-care
Economy
Shujjat Ahmed, “The borrowing dependency and debt sentence,” The Express Tribune, 01 September 2026
“We are all borrowers in one sense or the other, and our survival cannot be sustained without this reliance. What matters most is the form of borrowing and its purpose: to pacify feelings, satisfy needs and ambitions, build productivity, hide personal or enterprise failures, or conceal national failings."
https://tribune.com.pk/story/2626776/the-borrowing-dependency-and-debt-sentence
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