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In Focus
Pakistan and Kyrgyzstan agree to raise bilateral trade to USD 200 million
Foreign Minister meets Kyrgyz counterpart; two sides sign MoUs expanding cooperation in mining, agriculture and textiles
On 02 September, The Express Tribune and Dawn reported that Pakistan and Kyrgyzstan agreed to prepare an action plan to raise bilateral trade from around USD 16 million to USD 200 million within two years, with Prime Minister Shehbaz Sharif calling for recently signed MoUs to be converted into concrete agreements. The two sides agreed to expand cooperation in mining, agriculture, pharmaceuticals, textiles, digital technologies and joint ventures, while strengthening business-to-business links and the Kyrgyz-Pakistan Intergovernmental Commission.
The two countries also signed multiple agreements and MoUs covering transit trade, energy, virtual assets, education, health, climate, security, research and postal services. They agreed to simplify transport and customs procedures, increase use of Pakistani seaports for Kyrgyz trade and advance the CASA-1000 project through a joint energy working group. Pakistan and Kyrgyzstan also established a sister-city relationship between Lahore and Osh and reaffirmed cooperation against terrorism, transnational crime and other security threats.
Separately, Deputy Prime Minister and Foreign Minister Ishaq Dar and Kyrgyz Foreign Minister Zheenbek Kulubaev reaffirmed their commitment to expanding bilateral cooperation in trade, investment, energy, connectivity, regional security and people-to-people exchanges. Kulubaev congratulated Pakistan on assuming the Shanghai Cooperation Organisation's (SCO) 2026-27 chairmanship and expressed confidence in Islamabad's leadership, while both sides agreed to maintain close coordination through the SCO and other multilateral forums. (“Pakistan, Kyrgyzstan sign agreement to boost bilateral trade to $200m in two years,” Dawn, 02 September 2026; “Kyrgyz FM underscores close ties with Pakistan, seeks expanded cooperation,” The Express Tribune, 02 September 2026; “Pakistan, Kyrgyzstan to raise bilateral trade to $200m,” The Express Tribune, 02 September 2026)
In Brief
ECONOMY
ADB praises Pakistan's progress in sustaining macroeconomic stability
On 02 September, The Express Tribune reported that the Asian Development Bank (ADB) praised Pakistan’s progress in macroeconomic stabilisation. During a meeting with the Finance Minister, ADB Vice President for South, Central and West Asia Yingming Yang congratulated the minister and government on Pakistan’s progress in macroeconomic stabilisation and commended improvements in fiscal management, the external account and overall economic stability. The meeting discussed access to finance for SMEs. The finance minister highlighted efforts to expand financing for SMEs and strengthen their capacity to contribute to employment, investment and exports. The two sides also underscored the importance of integrating SMEs into global value chains and improving their competitiveness. The ADB vice president, however, stressed the importance of maintaining fiscal prudence as Pakistan transitioned towards sustainable growth. The finance minister stressed that Aurangzeb said future ADB support should align with the government’s priorities of private-sector-led growth, export competitiveness, access to finance, infrastructure development, climate resilience and social protection. (“ADB praises Pakistan's economic progress backs shift towards private sector led growth,” The Express Tribune, 02 September 2026)
Pakistan raises USD three billion through Eurobonds
On 03 September, Dawn reported that Pakistan has raised a record USD three billion through a dual-tranche Eurobond sale that drew nearly USD six billion in orders. It became Pakistan's single largest international capital market transaction. Pakistan’s last most expensive Eurobond was raised more than a decade ago at an 8.25 per cent interest rate during the tenure of the PML-N government. The successful transaction marks a major milestone in Pakistan’s renewed and increasingly diversified access to international capital markets, demonstrating strong investor confidence and Pakistan’s ability to access global funding markets at significant scale. The transaction includes USD 1.75 billion through a 5.5-year bond at a coupon rate of 7.5 per cent and USD 1.25 billion through a 10-year bond at 7.9 per cent. Also, in April, the government initially raised USD 500 million through a three-year Eurobond under its GMTN Programme at a coupon of 6.975 per cent. The issue was subsequently increased to USD 750 million through a USD 250 million green-shoe option after stronger-than-expected investor demand. The bond matures in April 2029. The latest offering extends the maturity profile beyond the three-year tenor used in April, with the proposed five- and 10-year tranches providing a test of investors’ willingness to hold Pakistani sovereign debt for longer periods. (“Pakistan raises 3 bn through dual tranche eurobond sale,” Dawn, 03 September 2026)
POLITICS & GOVERNANCE
Low attendance by MNAs during 29th NA session
On 03 September, The Express Tribune reported, citing a report by the Free and Fair Election Network (Fafen), that only 65 of the 332 National Assembly members, around 20 per cent, attended all eight sittings of the 29th session held from 17 to 28 August, while 37 members, or 11 per cent, did not attend any sitting. The fourth sitting reportedly recorded the highest attendance, with 247 Members of the National Assembly (MNAs), or 74 per cent of the current membership. At the same time, the fifth had the lowest attendance, with 179 members, or 54 per cent, present. Overall, reportedly 267 MNAs, or 80 per cent, missed at least one sitting. On the other hand, Prime Minister Shehbaz Sharif attended one sitting, while the Leader of the Opposition participated in seven. The Fafen report also added that 12 of the 26 federal ministers scheduled to respond to questions during question hour were present on the days they were required to answer. (“Only 20% MNAs attend all sittings of assembly,” The Express Tribune, 03 September 2026)
EXTERNAL
Pakistan and Saudi Arabia sign MoU strengthening cybersecurity cooperation
On 03 September, The Express Tribune reported that Pakistan and Saudi Arabia have signed a memorandum of understanding (MoU) to strengthen cooperation in the field of cybersecurity. Pakistan’s Minister for Information Technology, Shaza Fatima Khawaja, and Saudi Arabia’s National Cybersecurity Authority (NCA) Governor Majed Al-Mazyed signed the agreement. The MoU reportedly aims to protect cyberspace and the interests of both countries while enabling the exchange of expertise to address emerging cybersecurity threats. Separately, Khawaja met Saudi Arabia’s Data and Artificial Intelligence Authority (SDAIA) President Abdullah bin Sharaf Alghamdi on the sidelines of LEAP Conference 2026 in Riyadh, where both agreed to continue discussions on strengthening cooperation in artificial intelligence, data governance and emerging technologies. Khawaja reportedly discussed Pakistan’s initiatives to advance its national AI and data-governance agenda and reiterated Islamabad’s commitment to developing a strong digital economy. (“Pakistan, KSA sign MoU on cybersecurity,” The Express Tribune, 03 September 2026)
UN adopts Pakistan-led resolution on improving global access to assistive technology
On 03 September, Dawn reported that the UN General Assembly unanimously adopted a Pakistan-led resolution reportedly aimed at improving access to affordable assistive technology. The resolution was titled “Access to Assistive Technology” and is reportedly the first General Assembly resolution dedicated to this issue. Pakistan’s UN Ambassador Asim Iftikhar Ahmad said that around 2.5 billion people worldwide require one or more assistive products or related services, while millions face barriers including high costs and limited availability. The resolution reportedly covers technologies such as wheelchairs, prosthetic limbs, hearing aids, screen readers and communication devices, calling for greater international cooperation, financing and technical assistance for developing countries and urging governments to include assistive technology in humanitarian preparedness and responses to armed conflicts and natural disasters. The resolution was reportedly drafted and negotiated by Counsellor Saima Saleem, Pakistan’s first visually impaired career diplomat. (“UN adopts Pakistan-led resolution on access to assistive technology,” Dawn, 03 September 2026)
Pakistan remains hopeful for US-Iran diplomacy amid renewed escalations
On 02 September, Dawn reported that Foreign Office (FO) Spokesperson Tahir Andrabi said Pakistan remained “hopeful” of resolving the US-Iran conflict through dialogue and diplomacy despite the recent escalations. Andrabi said Prime Minister Shehbaz Sharif and Deputy Prime Minister Ishaq Dar had talked to Iran’s leaders on the sidelines of the SCO summit, while Chief of Army Staff Field Marshal Asim Munir visited Tehran last week to further diplomatic efforts. Andrabi added that the discussions focused on “regional de-escalation, breaking the military stalemate and exploring a negotiated settlement.” Separately, the Foreign Office welcomed the Permanent Court of Arbitration ruling concerning the Indus Waters Treaty, saying the court had reaffirmed that the treaty remained fully in force and binding. Additionally, Andrabi also announced that Ambassador Sajjad Haider Khan would replace him as Foreign Office spokesperson as he takes up Pakistan’s new role as permanent representative to the UN in Geneva. (“Pakistan 'hopeful' despite US-Iran escalation, will continue to strive for dialogue and diplomacy: FO,” Dawn, 02 September 2026)
SECURITY
Navy commences SEASPARK-2026 exercise to test maritime combat readiness
On 02 September, Dawn reported that Pakistan Navy commenced a major maritime exercise in Karachi to test combat readiness against conventional and emerging threats. Chief of the Naval Staff Admiral Naveed Ashraf presided over the opening brief of the SEASPARK-2026 exercise, attended by senior officers from other armed forces branches. The exercise rigorously integrates ships, submarines, aircraft, unmanned systems, marines, special forces and joint Army and Air Force elements whilst rehearsing multi-domain operations spanning maritime, air, land, cyber and space-enabled capabilities. The naval chief stressed the evolving security environment demands "uncompromising readiness, enhanced tri-service integration, adaptability and effectiveness across physical and information domains." ("Pakistan Navy commences SEASPARK-2026 exercise to test combat readiness," Dawn, 02 September 2026)
South Waziristan: Two children injured in quadcopter strike
On 02 September, Dawn reported that two minor siblings were injured in a suspected quadcopter strike on a house in Azam Warsak area of Birmal tehsil in Lower South Waziristan district on Tuesday afternoon. The injured children were identified as five-year-old Ayan and nine-year-old Adna Bibi. Both were initially taken to District Headquarters Hospital in Wana for medical treatment; however, owing to the severity of their injuries, they were later referred to a hospital in Dera Ismail Khan. On Monday, a man and three children were similarly injured in a suspected quadcopter attack on a house in Splay Panra area of Toi Khulla tehsil. The repeated occurrence of such attacks raised concern among residents demanding a transparent investigation into incidents wherein civilians, particularly children, were killed or injured. ("2 injured in South Waziristan quadcopter attack," Dawn, 02 September 2026)
CLIMATE CHANGE
Experts raise concerns over erosion of Indus Delta Basin
On 02 September, Dawn reported that the Indus Delta is steadily drying, eroding and sinking as inadequate freshwater and sediment reach its lower reaches, leaving coastal areas of Thatta, Sujawal and Keti Bandar increasingly uninhabitable and forcing residents to abandon livelihoods built around the river and sea. During a book “The Disappearing Delta: Ecological Devastation and Imperilled Livelihood” launch ceremony at the Arts Council of Pakistan, experts warned that the degradation of the delta is not merely a crisis for Sindh’s coastal communities. The loss of mangroves, increasing seawater intrusion and erosion of the natural coastal system, they pointed out, can also make Karachi increasingly vulnerable to flooding, sea intrusion and other climate-related threats. One expert emphasised that the Indus Delta should not be viewed as a “Sindh issue”, arguing that the river was a national ecological system that connected different parts of the country. The Indus is not just about Sindh. A healthy delta is essential to a prosperous Pakistan, and people across the country need to understand its importance. (“'Dying Indus Delta threatens coastal livelihoods, Karachi's future',” Dawn, 2 September 2026)
HEALTH
Experts emphasise nutrition investment; over 40 per cent of children under five stunted
On 03 September, The Express Tribune reported that policymakers, development leaders, health professionals and nutrition experts gathered at Serena Hotel for a two-day international conference titled "Act for Nutrition: The Emergency We Can No Longer Ignore" focused on Pakistan's persistent malnutrition and stunting crisis. More than 40 per cent of Pakistani children under five are stunted, whilst the country records 155 maternal deaths per 100,000 live births and loses upwards of USD 17 billion annually to malnutrition. The conference aimed at moving the national conversation beyond statistics towards practical, measurable interventions protecting Pakistan's human capital and future generations. Planning Minister Ahsan Iqbal conveyed Prime Minister Shehbaz Sharif's commitment to treating malnutrition as a national development priority, noting around 90 per cent of child brain development occurs by age five. ("Experts push for nutrition investment," The Express Tribune, 03 September 2026)
AF-PAK
Foreign Office reiterates no thaw in relations until Kabul acts against terrorists
On 03 September, Dawn reported that Pakistan's Foreign Office remained firm that meaningful progress in Pakistan-Afghanistan relations depends on the Taliban taking concrete and verifiable action against Tehreek-i-Taliban Pakistan and other terrorist organisations operating from Afghan territory. Foreign Office spokesperson Tahir Andrabi said Islamabad welcomed China's continuing engagement but external facilitation could not substitute for Kabul's action against terrorist infrastructure. Progress would depend on "Afghan Taliban regime taking concrete and verifiable action against TTP, BLA and other terrorist organisations operating from their soil into Pakistan." Andrabi noted Islamabad sees little proof the Taliban moved beyond containing TTP activities; UN monitoring reports indicated the Taliban relocated approximately 2,000 TTP fighters but continued supporting the group as it escalated attacks and expanded organisational structure. ("No thaw until Kabul acts against terrorists: FO," Dawn, 03 September 2026)
Editorials/Opinions
External
Editorial, “Agri deal with Riyadh,” The Express Tribune, 03 September 2026
"Pakistan has aptly connected the dots on its agrarian potential by mapping Saudi Arabia as a valued food export market. It plans to export $3 billion of food products, including red meat, within the next two years, in addition to expanding cooperation in water-efficient agricultural technologies. Since Saudi Arabia is predominantly a sprawling desert, green fodder has been identified as a major raw export ingredient. Moreover, fruits, concentrates, rice and cereals - alongside Pakistani textiles - are already in high demand. This new trade alignment coincides with Saudi Arabia's food security strategy under its Vision 2030, and it will go a long way in providing an impetus to Pakistan's desire to tap new forex avenues for its struggling economy."
https://tribune.com.pk/story/2627123/agri-deal-with-riyadh
Economy
Ishrat Husain, “Managing external debt,” Dawn, 03 September 2026
“Pakistan's debt has crossed Rs100 trillion raising doubts about the stabilisation programme’s veracity. First, it’s not advisable to use absolute amounts or per capita debt. The correct way is to use indicators that relate public debt stock and debt servicing to national income, exports of goods and services, revenues, total foreign exchange earnings and foreign exchange reserves to gauge the future capacity to discharge these obligations."
https://www.dawn.com/news/2027100/managing-external-debt
Editorial, “Bond market return,” Dawn, 03 September 2026
“Pakistan's proposed dual-tranche Eurobond launch marks the country’s return to the international debt markets for longer-term financing. The initiative is part of a budgetary plan to raise $2bn through bond issuance for the current year. The issue will test the market’s willingness to price the country’s needs at relatively lower rates."
https://www.dawn.com/news/2027095/bond-market-return
Foreign policy
Editorial, “Diplomatic success,” Dawn, 03 September 2026
“Pakistan's star in the field of foreign policy is on the ascendant. Not too long ago, because of our own mistakes and the malevolence of some in the neighbourhood, Pakistan’s reputation had suffered internationally. That situation has changed. Today, in the region and the world, Pakistan is recognised for its diplomatic finesse, for bringing together adversaries, and for contributing to regional peace. Yet for all the accolades, the country can only capitalise on this improved reputation by addressing the internal hurdles holding it back from the path of progress."
https://www.dawn.com/news/2026734/azad-kashmir-saga
On Afghanistan
Touqir Hussain, “A disaster foretold,” Dawn, 02 September 2026
“Regardless of whoever has ruled Afghanistan, the country has been a problem for Pakistan. Unfortunately, Islamabad’s policy responses have aggravated the issue. The Afghan policy needs a fundamental shift. But that requires a clearer understanding of what went wrong."
https://www.dawn.com/news/2026731/a-disaster-foretold
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