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In Brief
ECONOMY
Consumer Confidence Index falls by 24.4 per cent, a two-year low
On 04 September, The Express Tribune reported that the Consumer Confidence Index (CCI) fell by 24.4 per cent to 65.3 in the third quarter of FY26, down from 86.4 in the previous quarter. The index, released by Dun & Bradstreet Pakistan and Gallup Pakistan, tracks consumer perceptions of the economy and personal finances across four parameters: household financial situation, national economic conditions, unemployment and savings. The report highlights a two-fold view of consumer sentiment. The current sentiment index dropped to 51.8, while the future outlook stood at 78.7, both lower than the previous quarter. Inflation remains the dominant concern, with 89.3 per cent of respondents reporting price hikes for essential goods in the last six months. Unemployment has also intensified as a source of strain, with 81per cent of respondents saying joblessness had worsened over the past six months. Close to 40 per cent of respondents expect their own finances to worsen further in the next six months. Respondents aged 50 and above showed the steepest drop in confidence, down 30.4 per cent, while those below 30 showed a relatively less steep decline but were still much less optimistic than in the previous survey. (“Consumer confidence falls by 24% to 2-year low,” The Express Tribune, 04 September 2026)
Government to import 750,000 tonnes of wheat to meet domestic demands
On 04 September, The Express Tribune reported that Deputy Prime Minister and Foreign Minister Ishaq Dar reiterated the government’s decision to import up to one million metric tonnes of wheat, with 750,000 tonnes to be brought in during the first phase in November. During a review meeting on Wheat stocks, the deputy prime minister appreciated the cooperation and coordination extended by all provinces, the Ministry of National Food Security and Research and the Ministry of Commerce in resolving issues related to wheat imports, stabilising prices and curbing hoarding. He also directed the Pakistan Agricultural Storage and Services Corporation (Passco) to immediately supply wheat to the provinces according to allocations approved by the Economic Coordination Committee (ECC) and the steering committee. The government’s decision comes amid concerns among wheat growers that the country could face a shortfall of nearly three million tonnes, with farmer representatives warning that urgent steps were needed to encourage cultivation ahead of the Rabi sowing season. The Country’s leading farmers’ body said the decline in farmer incomes had discouraged growers from planting wheat on land. According to the farmers’ body’s calculations, the current wheat support price of PKR 3,900 per 40-kilogramme maund, last approved by the federal ECC in March 2023, falls short of covering current production costs, which it puts at PKR 3,761 per maund. (“DPM Dar says 750000 tonnes of wheat to be imported in November,” The Express Tribune, 04 September 2026)
IT sector accounts for nearly half of services exports
On 04 September, The Express Tribune reported that State Bank of Pakistan (SBP) data show IT and IT-enabled services receipts climbed to USD 4.6 billion in fiscal year 2025-26, up about 21 per cent from USD 3.814 billion a year earlier. The sector is now the largest services export category, accounting for close to half of all services earnings. It still missed the government's USD 5 billion target by roughly USD 400 million. The longer-term Uraan Pakistan goal remains USD 10 billion by FY2028-29. However, the Pakistan Software Houses Association found that in the same year, entry-level hiring at major technology firms fell by around 25 per cent. Employment among developers aged 22 to 25 has fallen nearly 20 per cent since 2024. Entry-level freelance listings have dropped from about 15 per cent of the market to below 9 per cent. Basic writing and translation work is down 32 per cent year-on-year as clients switch to AI tools. Chief Executive of Jaffer Business Systems draws a sharper line between the domestic market and the export machine. On the local side, he said, not a single Pakistani tech company has scaled to a size comparable with the country's major industrial groups. Tech elsewhere grows on the back of corporates, government demand for systems and institutions stronger than personalities. Pakistan, he argued, drifted after the 1980s into weak institutions and personality-driven governance. Technology giants need data, audits, transparency and accountability. Those foundations never matured; capital preferred real estate, and large groups that did experiment with tech often retreated to brick-and-mortar. (“IT exports soar, AI triggers job cuts,” The Express Tribune, 04 September 2026)
Foreign exchange reserves rise by USD 19 million in the week ending 28 August
On 04 September, The Express Tribune reported that foreign exchange reserves held by the State Bank of Pakistan (SBP) rose USD 19 million to USD 17.12 billion in the week ended 28 August, 2026. The net foreign reserves with commercial banks dropped USD 78.8 million to USD 5.41 billion over the same period. As a result, the country's total liquid foreign reserves fell from USD 59.5 million to USD 22.53 billion. Furthermore, Gold prices in Pakistan rose sharply, tracking a more than 2 per cent gain in the international market. According to the All-Pakistan Gems and Jewellers Sarafa Association, ten-gram gold was sold at PKR 398,864, up USD 9,602. Globally, spot gold rose 2.4 per cent to USD 4,491.55 per ounce by 1618 GMT, after touching its highest level since 28 August. US gold futures for December delivery surged 2.8 per cent to USD 4,539.20. Silver also advanced in the local market, rising PKR 185 to PKR 7,044 per tola. (“SBP reserves rise $19m; gold jumps Rs 11,200,” The Express Tribune, 04 September 2026)
Pakistan's exports decline in FY26
On 04 September, The Express Tribune reported that Pakistan's exports fell last fiscal year compared with 2024-25, while bilateral trade with neighbouring countries also declined. The Commerce Secretary informed the Senate Standing Committee on Commerce that Pakistani exports stood at USD 30.8 billion during the last fiscal year, with rice exports alone registering a USD 1 billion decline. Exports of sugar, cotton, onions, sesame and potatoes also decreased. He said high domestic energy and import costs were making Pakistani products expensive and preventing them from competing effectively in global markets. The committee also considered the third amendment to the Trade Organisations Bill 2026, introduced by committee member Farooq Sattar. The proposed legislation seeks to address the restriction of trade chambers to individual districts. (“High costs squeeze Pakistan's exports,” The Express Tribune, 04 September 2026)
PM Shehbaz approves establishment of Trade Facilitation Board to decide on non-tariff matters
On 03 September, Dawn reported that Prime Minister Shehbaz Sharif has approved the establishment of a Trade Facilitation Board to decide on non-tariff matters related to cross-border trade and create a roadmap for trade promotion. PM Shehbaz would head the board. The proposed board will make decisions regarding all non-tariff matters related to cross-border trade and to bring improvements to the supply chain. This board will prepare a roadmap for trade promotion, as well as strategies regarding the Trade Facilitation Index and monitoring. PM Shehbaz also directed that work be carried out on an emergency basis to enhance the capacity of the country’s ports, as well as to form working groups for this purpose. The prime minister also issued directives for measures to facilitate importers and exporters at ports, including steps to make the clearance of goods easier. (“PM Shehbaz approves establishment of Trade Facilitation Board, will head the body himself,” Dawn, 03 September 2026)
Trade gap widens by 18 per cent in first two months of FY27
On 04 September, Dawn reported that the trade gap widened alarmingly by over 18 per cent in the first two months of 2026-27. The swelling deficit could pose major risks for the country, already under pressure to pay over USD 26 billion in external debt servicing in the current fiscal year. However, the trade gap narrowed by 19.7pc to US 3.17 billion in August from USD 3.95 billion in July. The decline appears to be an improvement, but the deficit remains much higher than last year. The trend mirrors last year’s pattern, with an aggressively widening trade gap that would ultimately eat up all remittances. The trade deficit in FY26 was USD 39.5 billion against remittances of USD 41.5 billion. In FY26, the current account finally ended with a deficit of USD 139 million; though the amount was negligible, it was only possible due to unprecedented inflows of USD 41.5 billion in remittances. (“Trade gap swells 18pc to $7.1bn,” Dawn, 04 September 2026)
Government plans to deregulate petrol prices by June 2027
On 04 September, Dawn reported that the government is unlikely to operationalise the recently created Petroleum Prices Stabilisation Fund (PPSF) and instead plans more changes to the pricing mechanism, including complete deregulation of petrol by June 2027, with high-speed diesel to follow at a later stage. The government had notified the establishment of a petroleum price stabilisation fund in June amid sharp price fluctuations following US attacks on Iran. However, the fund currently holds no deposits, although the Ministry of Finance has already created special heads of account for it. A meeting of the committee on petroleum pricing, led by the Petroleum Minister, also agreed in principle to empower the Oil and Gas Regulatory Authority (Ogra) to switch diesel pricing to crude-based calculations in case of an unusual rise in the diesel crack spread without seeking repeated approvals from the federal cabinet. In August, the cabinet had temporarily capped the HSD crack, spreading the gap between international diesel and crude oil prices at USD 41.89 per barrel after it averaged above USD 60, resulting in windfall gains for local refineries and sharp increases in their profitability and share prices. For consumers, deregulation could mean more frequent changes in petrol prices and, eventually, different prices across oil marketing companies as they compete in the market. It could offer cheaper options in some cases but would also expose consumers more directly to movements in international oil prices and the exchange rate. In a subsequent phase, diesel pricing would also be considered for complete deregulation, allowing oil marketing companies (OMCs) to adjust prices in a competitive environment. (“Govt eyes petrol deregulation by June next year,” Dawn, 04 September 2026)
Biometric loopholes enable illegal SIM-driven banking fraud schemes, parliamentary committee warned
On 03 September, Dawn reported that regulators acknowledged persistent security breaches enabling illegal SIM distribution for financial fraud. The National Assembly Standing Committee on Interior was told that criminals exploit stolen fingerprints and "rented" bank accounts despite authorities blocking 18.2 million illicit SIMs over two and a half years. Pakistan Telecommunication Authority (PTA) Chairman Major General (retd) Hafeezur Rehman admitted the biometric SIM issuance system is being bypassed. Fraudsters steal fingerprint data from airports, licensing centres and passport offices. State Minister Talal Chaudhry called for facial and iris recognition upgrades. Officials recommended transitioning SIM issuance through NADRA's PAK ID system, restricting each SIM to a single device, and heightening public awareness of foreign SIM misuse. ("Loopholes fuel crime wave as illegal SIMs drive banking fraud, NA panel told," Dawn, 03 September 2026)
POLITICS & GOVERNANCE
Government and JI agree to establish committees on petroleum levy relief
On 03 September, Dawn reported that the federal government and Jamaat-i-Islami (JI) agreed to form expert committees to recommend measures for reducing the petroleum levy. Planning Minister Ahsan Iqbal said the government would establish a committee while JI would form its own team to jointly develop recommendations. The government added that it would constitute an expert committee, headed by Liaquat Baloch, including Naveed Ali Baig, Ziaddun Ansari, Nasrullah Randhawa and Farasat Shah. Iqbal stated that “The government will happily act upon recommendations put forward by these committees.” JI Chief Hafiz Naeemur Rehman said his party’s nationwide sit-ins against the levy had entered the 19th day and were focused on highlighting the financial burden on citizens. He reiterated that JI’s primary demand was the abolition of the petroleum levy and lower fuel prices. Moreover, he confirmed that protests would continue alongside negotiations, despite the government’s reported request to postpone them. Prime Minister’s Adviser Rana Sanaullah said the committees would seek a solution within two weeks. (“Govt, JI agree to form committees to recommend reduction in petroleum levy,” Dawn, 03 September 2026)
EXTERNAL
UN envoy calls for expanded role of women in peace and security
On 04 September, The Express Tribune reported that at a forum on the Culture of Peace, Pakistan called for the expanded role of women in peace and security. Ambassador Usman Jadoon, Deputy Permanent Representative of Pakistan to the UN, at a commemoration of the Programme of Action on a Culture of Peace by the UN General Assembly on 13 September 1999, stated, “Let's invest in women's leadership, let's invest in peace, let's invest in future.” He added that to foster a “full” culture of peace, the participation of women in the political process and their unhindered access to education and justice would be necessary. Additionally, he also noted Bangladesh’s sponsorship of the annual follow-up resolution adopted by the 80th session of the UNGA. Regarding this, he stated that “This landmark document affirmed that peace does not merely lie in the silence of guns but, in fact, flows from the protection of human rights, celebration of plurality, and promotion of the rule of law.” (“Pakistan advocates women's leadership,” The Express Tribune, 04 September 2026)
EU assessment highlights Pakistan’s GSP+ progress and persistent rights concerns
On 03 September, Dawn reported that the European Commission’s July assessment of Pakistan under the Generalised Scheme of Preferences Plus (GSP+) framework reviewed the country’s performance during 2023–2025. Under this, Pakistan reportedly maintained ratification of all 27 relevant international conventions and largely complied with reporting requirements. During the period, Pakistan reportedly narrowed the scope of the death penalty by removing four offences, establishing a National Prison Reform Action Plan, and introducing measures related to women’s rights, such as the Domestic Violence (Prevention and Protection) Bill for Islamabad Capital Territory and a national strategy on technology-facilitated gender-based violence. Moreover, Pakistan reportedly adopted measures on child marriage, education, labour rights and forced labour, including ratification of the 2014 Protocol to the ILO Forced Labour Convention in 2025. Conversely, the assessment reportedly identified continued concerns over the implementation of labour laws, forced and child labour, freedom of expression, enforced disappearances, minority rights, judicial independence and human rights accountability. Additionally, Dawn notes that Pakistan has benefited from GSP+ since 2014 and remains its largest beneficiary. In 2024, EU imports from Pakistan were valued at EUR 8.3 billion, with around EUR 7.5 billion eligible for GSP+ preferences, while Pakistan received an estimated EUR 732 million in tariff exemptions. On the other hand, the EU accounted for 28 per cent of Pakistan’s total exports in 2024, with textiles and clothing dominating trade, and GSP+ utilisation reached 95.1 per cent. (“The EU Commission's GSP+ review found some progress in Pakistan's reform journey but much remains to be done,” Dawn, 03 September 2026)
Makkah Pact to be used to promote regional peace through deterrence, says Planning Minister
On 04 September, Dawn reported that Planning Minister Ahsan Iqbal and Punjab Assembly Speaker Malik Muhammad Ahmad Khan described the Makkah Pact as a strategic development at a seminar at the University of Lahore, titled ‘Makkah Pact and New Geometry of Power’. Iqbal stated that Pakistan had achieved defence and diplomatic gains but noted that these could not be sustained without economic strength and improved domestic governance. He called for an “economic reset”, adding that “Without economic strength and defence and diplomatic successes begin to lose their effectiveness over time.” On the other hand, Khan said the pact could promote regional peace through deterrence and reflected strength and unity among Pakistan, Saudi Arabia and Turkiye. Former Foreign Minister Khurshid Mahmood Kasuri described it again as a deterrence arrangement aimed at safeguarding the sovereignty and integrity of the three countries. Additionally, former National Security Adviser Nasir Janjua called for regional unity amid a shifting global balance of power, while former Foreign Secretary Jalil Abbas Jilani linked the pact to Pakistan’s diplomatic gains and the changing strategic environment in the Middle East. (“Makkah Pact will provide ‘deterrence for peace’,” Dawn, 04 September 2026)
SECURITY
North Waziristan: Security forces kill 15 TTP terrorists attempting infiltration through Afghan border
On 03 September, Dawn reported that Pakistan's military killed 15 terrorists attempting cross-border infiltration into North Waziristan during a 36-hour engagement spanning 31 August-01 September. The Inter-Services Public Relations (ISPR) statement identified the militants as members of the banned Tehreek-i-Taliban Pakistan (TTP), labelled as India-sponsored operatives. Security forces recovered significant weapons and ammunition during follow-up sanitisation operations. Pakistan's military renewed criticism of Afghanistan's Taliban government, asserting its failure to prevent terrorist organisations from using Afghan territory for cross-border attacks. The statement reaffirmed that Pakistan's counter-terrorism campaign "Azm-e-Istehkam" (approved by the Federal Apex Committee on the National Action Plan) would intensify. ("Security forces kill 15 terrorists trying to cross into Pakistan through Afghan border: ISPR," Dawn, 03 September 2026)
Karachi: CTD arrests two TTP operatives who infiltrated Afghan border for planned attacks
On 03 September, Dawn reported that Islamabad's Counter-Terrorism Department (CTD) arrested two suspected Tehreek-i-Taliban Pakistan (TTP) terrorists, identified as Umer Farooq and Abdullah, in an intelligence-based joint operation. The CTD said the suspects arrived from Afghanistan to execute terrorist attacks in the city. Officers established that the detained individuals conducted reconnaissance of Rangers and police facilities, transmitting intelligence to handlers. Two hand grenades were recovered during the raid. The arrests underlined the persistent threat posed by cross-border TTP infiltration targeting Karachi. ("Two 'TTP terrorists' arrested in CTD raid in Karachi," Dawn, 03 September 2026)
PROVINCES
Punjab: HRCP warns anti-terrorism amendment may undermine fair-trial guarantees
On 03 September, Dawn reported that the Human Rights Commission of Pakistan (HRCP) expressed serious concern over the passage of the Punjab Anti-Terrorism (Amendment) Bill 2026, warning that provisions allowing certain cases to be declared “special security cases” could undermine fair-trial guarantees and create scope for abuse of state power. Under the amendment, a government-designated officer whose identity remains confidential can declare a case a “special security case”, after which the identities of judges, prosecutors, police officers, witnesses and defence counsel may be withheld. HRCP said the amendment did not adequately define the circumstances in which these extraordinary powers could be exercised, raising concerns that they could be used against ordinary citizens, political opponents or protesters under the pretext of security. The rights body said the secrecy provisions raised serious concerns under Articles 9, 10A and 14 of the Constitution and Article 14 of the International Covenant on Civil and Political Rights. It warned that accused persons could be prevented from effectively challenging evidence or the fairness of proceedings. HRCP acknowledged the state’s responsibility to protect officials from genuine threats but called for the bill to be reconsidered and for any security measures to be narrowly defined, clearly regulated and subject to independent judicial oversight. (“HRCP fears bill passed by Punjab Assembly may undermine fair-trial guarantees," Dawn, 03 September 2026)
Sindh: Assembly debate on new provinces enters third day
On 03 September, Dawn reported that the Sindh Assembly continued its debate on the creation of new provinces and administrative units, with 50 more members speaking during over eight hours of proceedings, bringing the total number of speakers to 85. Ruling Pakistan Peoples Party (PPP) members unanimously rejected any division of Sindh, while opposition lawmakers from the Muttahida Qaumi Movement-Pakistan (MQM-P), Pakistan Tehreek-i-Insaf (PTI) and Jamaat-i-Islami (JI) called for new administrative units, arguing that Pakistan’s 250 million people could no longer be effectively governed through four provinces. Opposition members accused the provincial government of invoking the issue of Sindh’s division to deflect attention from bad governance, corruption, weak service delivery and lack of devolution, while PPP members warned against any move towards new administrative units and stressed that Karachi remained an inseparable part of Sindh. (“Opposition in Sindh Assembly presses for new administrative units, rejects province's division," Dawn, 03 September 2026)
SOCIETY
1.5 million children subjected to online sexual abuse annually, UNICEF-backed report finds
On 04 September, The Express Tribune reported that approximately 1.5 million internet-using Pakistani children aged 12 to 17 experience sexual exploitation and abuse online each year. The Disrupting Harm in Pakistan report, launched by the National Commission on the Rights of the Child (NCRC) in collaboration with UNICEF Pakistan, Safe Online, ECPAT International and INTERPOL (International Criminal Police Organisation), examined the scale and nature of online abuse affecting minors. NCRC Chairperson Ayesha Raza Farooq emphasised the need for legislative reforms, child-centred reporting mechanisms, and trauma-informed justice systems. UNICEF Pakistan Representative Pernille Ironside called for stronger systems to prevent abuse and hold perpetrators and digital platforms accountable. Officials highlighted the necessity of effective implementation of the Prevention of Electronic Crimes Act to address online grooming and cyber enticement. ("1.5 million children face online abuse," The Express Tribune, 04 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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