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In Focus
Makkah Alliance partners meet Iranian President in Tehran
Four countries agree to continue dialogue on security; Pezeshkian and Saudi cabinet praise Pakistan’s mediation efforts
On 28 October, Dawn and The News International reported that Iranian President Masoud Pezeshkian had urged greater unity among Muslim countries during talks in Tehran with senior officials from Pakistan, Saudi Arabia and Türkiye, the signatories of the Makkah Joint Defence Agreement. The four countries agreed to continue dialogue on regional peace and security, with discussions covering the US-Israeli war against Iran, Houthi attacks and maritime security. After the meeting, the Saudi cabinet highlighted Pakistan and Qatar’s mediation efforts as participants sought to prevent further escalation.
The meeting followed a visit by Pakistan’s Chief of Defence Forces, Field Marshal Asim Munir, to Tehran the previous week. Saudi Arabia described the initiative as part of efforts to promote de-escalation and diplomatic solutions, suggesting that closer defence cooperation among the pact’s members need not preclude engagement with Iran. However, no concrete agreement was announced on key issues, including the Strait of Hormuz, renewed US-Iran negotiations or a possible regional non-aggression framework.
The diplomatic push comes as regional hostilities intensify. Saudi Arabia reported intercepting missiles launched by Yemen’s Houthis, who claimed attacks on Saudi military and energy targets, while fighting in Yemen killed dozens of combatants. Separately, Pezeshkian met Russian President Vladimir Putin and Qatar’s emir in Moscow, advocating regional solutions without US involvement. These parallel contacts underscore efforts to build a regional security framework, but continued attacks and disputes over maritime access threaten to undermine de-escalation. (“Pezeshkian urges 'regional unity' in meeting with Makkah pact countries in Tehran,” Dawn, 26 October 2026; "Riyadh backs Pakistan’s peace push,” The News International, 28 October 2026; “Makkah pact allies move from defence to diplomacy,” Dawn, 27 October 2026)
Pakistan strikes Taliban checkpoints in response to “unprovoked” attack
Islamabad accuses Kabul of killing a civilian in South Waziristan; Peshawar to repatriate undocumented Afghans from 01 November
On 28 October, The Express Tribune and The News International reported that the Pakistan Army had destroyed several Afghan Taliban checkposts following alleged "unprovoked" cross-border shelling in South Waziristan’s Angoor Adda, which killed one civilian and injured five members of the same family. Local authorities said the shelling also damaged shops and residential property, while Pakistani forces remained on high alert. The incident adds to recurring border clashes amid Islamabad’s accusations that militant groups, particularly the banned Tehreek-i-Taliban Pakistan (TTP), operate from Afghan territory, which Kabul denies.
The latest violence comes amid a broader deterioration in Pakistan–Afghanistan relations, following renewed clashes in February and Pakistan’s launch of “Operation Ghazab lil-Haq”. Islamabad has pressed Kabul to dismantle militant infrastructure and provide verifiable assurances against cross-border attacks. Separately, authorities in Peshawar have reportedly prepared an operation to repatriate undocumented Afghan nationals from 1 November, with 120 teams organised across five sectors and involving police, security forces and federal agencies.
On 26 October, Pakistan’s Foreign Office (FO) also rejected Afghan Taliban allegations that Pakistani strikes caused 1,119 civilian casualties since late 2021, maintaining that its operations targeted terrorist infrastructure and were proportionate. These competing claims underscore how unresolved disputes over civilian harm, militant sanctuaries and border security continue to strain bilateral relations. (“Army destroys Afghan border check posts after 5 of a family injured, one killed in Angoor Adda: official,” The Express Tribune, 28 October 2026; “Pakistan pounds Afghan Taliban postitions after mortar attack martyrs civilian in South Waziristan," The News International, 28 October 2026; “Operation against illegal Afghans in Peshawar from Nov 1,” Dawn, 27 October 2026; “Pakistan rejects Afghan Taliban's claims of civilian casualties in counterterrorism operations,” Dawn, 26 October 2026)
In Brief
SECURITY
Punjab: Crime rate declines by 63 per cent in September, according to CCD
On 26 October, Dawn reported that the Crime Control Department (CCD) had released figures showing a 63 per cent reduction in overall crime, including robbery and motorcycle theft. CCD chief Sohail Zafar Chatha shared the data showing the decline in 2025-26, in comparison to 2023-24. The CCD spokesperson informed that Lahore saw the highest decrease in overall crime rate with 78 per cent, followed by Faisalabad with 68 per cent and Sahiwal with 66 per cent. In September 2025-26, the house robbery rate saw an 81 per cent decrease, compared to September of the previous year. Highway dacoity incidents and robbery saw a decrease of 72 per cent and 71 per cent, respectively. Similarly, there was a decline of 67 per cent in motorcycle snatching and 56 per cent in motorcycle theft. The CCD spokesperson credited the decline in crime rates to the vigorous and intelligence-based operations against criminal elements conducted by the department. (“Crime in Punjab cut by 63pc in Sept, claims CCD,” Dawn, 26 October 2026)
ENVIRONMENT
Pakistan reactivates Clean Environment Fund Company
On 27 October, Dawn reported that Pakistan had decided to reactivate the Clean Environment Fund Company (CEFC), a non-profit entity established in 2015 to mobilise resources for environmental protection, conservation and rehabilitation. The Cabinet Committee on State-Owned Enterprises, chaired by Finance Minister Muhammad Aurangzeb, approved the induction of two ex-officio and three independent directors to the company under the Pakistan Environmental Protection Agency. The move reportedly aims to establish an institutional mechanism to utilise funding for environmental protection initiatives in Pakistan. Additionally, the report notes that the CEFC had remained dormant for more than a decade, with the Auditor General of Pakistan flagging statutory violations and warning that the company was failing to meet its core objectives. (“Dormant green fund revived,” Dawn, 27 October 2026)
Pakistan’s air pollution cuts life expectancy by 3.9 years, PAQI report finds
On 28 October, Dawn reported that air pollution reduces life expectancy in Pakistan by an estimated 3.9 years and contributes to around 128,000 premature deaths annually, according to a report by the Pakistan Air Quality Initiative (PAQI). The report noted that pollution imposes an economic burden equivalent to 6.5 per cent of Pakistan’s GDP, while prolonged exposure could reduce life expectancy in Lahore by up to seven years. Lahore’s annual average PM2.5 concentration exceeds 110 micrograms per cubic metre, more than 22 times the World Health Organisation’s annual guideline of five micrograms. Moreover, transport accounts for 35 per cent of primary PM2.5 emissions in Lahore, with industry at 28 per cent and brick kilns at 17 per cent, and industrial activity at 49 per cent of emissions in Karachi. Additionally, the report assessed pollution across Lahore, Karachi, Islamabad-Rawalpindi and Peshawar, identifying major emission sources and outlining measures that could reduce emissions.
This comes as The Express Tribune reported that Lahore ranked second among the world’s most polluted major cities on IQAir’s live tracker, recording an Air Quality Index (AQI) of 199. Pollution remained widespread across Punjab, with Pakpattan recording an AQI of 210 and Multan 204, while several other districts also reported elevated readings. Fine particulate matter (PM2.5) was identified as Lahore’s main pollutant. With dry weather forecast ahead of the peak winter smog season, concerns persist over prolonged exposure to polluted air, particularly for children, older people and those with respiratory or cardiovascular conditions. (“Lahore ranks second globally as air pollution persists across Punjab,” The Express Tribune, 26 October 2026; “Pakistan air pollution cuts life expectancy,” The Express Tribune, 28 October 2026)
POLITICS & GOVERNANCE
PTI chairman demands talks with government and end to ban on family meetings with Imran Khan
On 28 October, The News International reported that PTI Chairman Barrister Gohar Ali Khan told the media on Tuesday that political tension has risen sharply and that keeping Imran Khan in isolation and denying his family meetings solves nothing, saying the ban, now 375 days old, must end immediately. He called for meaningful negotiations with the government and claimed political opponents were exploiting the emergency and governor's rule in KP for undue advantage. ("Solution to political issues lies in talks: Gohar," The News International, 28 October 2026)
Interior minister signals Imran Khan may be moved to Islamabad's newly finished Model Jail
On 27 October, The Express Tribune reported that Interior Minister Mohsin Naqvi, after touring the Islamabad Model Jail in sector H-16, said the project, pending for 17 years, is complete and will be inaugurated by PM Shehbaz Sharif within days. Asked about Imran Khan, who has been held at Adiala Jail since August 2023, Naqvi said, "whosoever is a prisoner of Islamabad will be shifted here," with 1,500 prisoners moving in the first phase and 3,000 to 4,000 in the second. Jail sources told the paper Imran could be moved between 20 and 30 November, with a special ward reportedly ready and its CCTV installation nearly finished. ("Naqvi hints at Imran's transfer to Islamabad's new Model Jail," The Express Tribune, 27 October 2026)
National Assembly clears seven bills before losing quorum
On 27 October, Dawn reported that the National Assembly passed seven amendment bills on Monday, covering Pakistan Study Centres, the Federal Board of Intermediate and Secondary Education, travel agencies, tourist guides, hotels and restaurants, motion pictures and the National College of Arts institutes. Proceedings were adjourned until 11 am the next day after MNA Sohail Sultan pointed out the lack of quorum, which also put off a resolution on Pakistan-occupied Kashmir and cut short a point of order by PTI's Gohar Ali Khan. Earlier, the speaker objected to parliamentary secretaries answering questions meant for absent ministers, remarking that ministers would then not need to attend, while the law minister said the law authorises such replies. ("National Assembly passes seven bills amid sparse attendance," Dawn, 27 October 2026)
PPP’s Bilawal says Sindh has settled the new provinces question and the debate should end
On 27 October, Dawn reported that PPP Chairman Bilawal Bhutto-Zardari, speaking in Karachi alongside Sindh Chief Minister Murad Ali Shah, said the people of Sindh and their elected representatives have decided the matter, that the Sindh Assembly has made its position clear "at least seven to eight times," and that the conversation should get a "full stop." Asked whether the government had approached him on a 28th constitutional amendment, he answered "No," and he urged the federal government to pay more attention to Karachi as the economic hub. The debate dates to Interior Minister Mohsin Naqvi's July call for dialogue on new provinces, which MQM-P has backed with a demand for a separate Karachi province, while the Sindh Assembly rejected any division in September. ("Bilawal calls for 'full stop' on conversations about new provinces," Dawn, 27 October 2026)
Government and Jamaat-i-Islami set up joint panel to discuss wider fuel relief
On 27 October, Dawn reported that PM Shehbaz Sharif and JI chief Hafiz Naeemur Rehman agreed to form a six-member committee, with Ishaq Dar, Ahsan Iqbal and Rana Sanaullah for the government and Liaquat Baloch, Farasat Shah and Nasrullah Randhawa for JI. It will recommend widening the petrol relief scheme, which 12.7 million people have registered for, and draft budget proposals for a phased reduction of the petroleum levy. Rehman said the sides agree on expanding relief but differ on how to proceed, with JI demanding abolition of the levy and the government favouring phased cuts, calling a reported offer of a PKR 20 to 30 reduction "peanuts," and said the Islamabad march will go ahead in mid-November unless a relief package is announced. Iqbal stressed that any relief must be durable and affordable, while Sanaullah said beneficiaries could reach 20 million soon. ("Joint JI-govt committee to mull ways to expand fuel relief scheme," Dawn, 27 October 2026)
Lahore High Court rejects petition on release of Imran Khan’s sisters
On 26 October, Dawn reported that the Lahore High Court (LHC) had rejected a petition seeking the release of jailed PTI founder Imran Khan’s three sisters. The Punjab government informed the court that the detention of the three women- Aleena, Noreen and Uzma had been extended by a further 30 days, on the recommendation of the Lahore deputy commissioner. The petition requesting their release was filed by Aleena’s son Shahrez, who alleged that the sisters remained in custody even after the end of their initial 30-day detention period. The argument of the petitioner was that the detention was unlawful, since none of the detainees had criminal cases against them, and criminal law could not be substituted with preventive detention. It requested the immediate release of the detainees. However, the LHC observed that the petitioner had not made the deputy commissioner a respondent in the petition. The court verdict was that it could not issue an order beyond the scope of the petition. (“LHC disposes of petition seeking release of Imran’s sisters after govt extends detention,” Dawn, 26 October 2026)
ECONOMY
Pakistan plans to increase water use efficiency from 40 per cent to 70 per cent
On 28 October, The News International reported that Pakistan plans to increase water-use efficiency from the current 40 per cent to 70 per cent and raise water availability at farm gates from 58.3 million acre-feet (MAF) to 79 MAF by 2029. According to the Planning Commission report, Pakistan requires an estimated USD 18 billion in federal financing over the next decade for strategic water infrastructure. The National Water Security framework under URAAN Pakistan envisages major reforms in irrigation management, reservoir development, flood protection and groundwater regulation to address the country’s worsening water scarcity. The report sets a target of increasing water storage capacity from the existing 15.318 MAF to 23.54 MAF by 2029, while warning that current live storage represents only 11 per cent of annual Indus River flows. The report also highlights a sharp reduction in flood warning time at Marala Headworks, from 40 hours in 2014 to just 5.5 hours in 2025 and proposes declaring water security a national security agenda. It recommends enacting the National Flood Protection Plan-IV, strengthening glacier monitoring through a National Glacier Protection Act and revising flood design assessments using updated hydrological data. The framework further proposes recycling at least 25 per cent of urban wastewater, noting that approximately 53 per cent of monitored urban water sources are unsafe for human consumption. (“Centre plans 18bn investment for strategic water infrastructure over next decade,” The News International, 28 October 2026)
Iran border closure remains the main factor for skyrocketing prices, says Petroleum Minister
On 27 October, Dawn reported that during the National Assembly session, the Federal Minister for Petroleum Ali Pervez Malik said that closure of the Pakistan-Iran border was one of the main reasons for the skyrocketing price of Liquefied Petroleum Gas (LPG) in the country. He further said that 50 to 60 per cent of LPG was imported from Iran, and the rest of the required fuel Pakistan gets from Qatar. He said that, due to the United States-Iran war, LPG supply from Qatar has been suspended. The minister also agreed that the official price of LPG, prescribed by the Oil and Gas Regulatory Authority (OGRA), was PKR 280 per kg. However, it has been observed that even during surplus supply of LPG, the gas is nowhere sold at the government rate. (“Minister blames closure of border for LPG price hike,” Dawn, 27 October 2026)
Pakistan ready to roll out new private equity policy framework to attract USD 10-15 billion in investment
On 27 October, Dawn reported that the government is set to roll out a new private equity policy framework covering enhanced risk portfolios. The policy aims to target USD 10 to USD 15 billion in tax-neutral investment from domestic and international players in the private equity market. The government aims to finalise the policy framework within the next two weeks, which would entail policy actions to be introduced through the finance bill for the next fiscal year (FY27-28). The framework is based on models such as those in the United Kingdom, West Asia and India, which are estimated to have attracted USD 100-150 billion. The finance minister appreciated the progress achieved across key workstreams and underscored the importance of translating regulatory and policy reforms into practical investment opportunities. He emphasised the need for transparency. (“New private equity policy framework on the horizon to bring over 10bn in investments,” Dawn, 27 October 2026)
Government enhances currency transaction threshold by 50 per cent to PKR 3 million
On 28 October, Dawn reported that the government has enhanced the currency transaction threshold by 50 per cent to PKR 3 million for banks to trigger suspicious reports to the Financial Monitoring Unit (FMU) of the State Bank of Pakistan under the Anti-Money Laundering Act (AMLA). The increase in threshold from PKR 2 million to PKR 3 million for Currency Transaction Reports (CTRs) under the framework for analysing Suspicious Transaction Reports (STRs) and CTRs was approved by the National Executive Committee (NEC) on Anti-Money Laundering and Countering Financing of Terrorism (AML-CFT). The NEC, led by the Finance Minister, is responsible for setting limits for banks, financial institutions or other agencies dealing with financial transactions to generate CTRs and STRs on the amount of currency transactions through notifications in the official Gazette. (“Govt raises threshold for currency transaction reports to Rs 3m as anti money laundering framework reviewed,” Dawn, 28 October 2026)
Government decides to scrap the electricity slab system
On 27 October, Dawn reported that Power Minister Awais Leghari told the Senate that the government has decided to scrap the electricity slab system that punishes consumers for crossing the 200-unit threshold even by one unit, and to provide targeted subsidy only to those deserving. The minister was responding to a calling-attention notice moved by PML-N Senator Abid Sher Ali regarding tariffs charged by distribution companies (Discos) and the financial burden on consumers. Under the current mechanism, consumers using up to 200 units per month fall under the “protected” category and avail a subsidy of around PKR 13 per unit. However, any consumer exceeding the limit by even one unit has to pay up to PKR 33 per unit and is then not allowed to avail the facility for six months. The minister also said that the government was considering two options: one is raising the threshold from 200 to 250 units or abolishing the six-month penalty by allowing consumers to get the protected category benefit for the month in which they restrict consumption to 200 units. (“Govt to end slab system punishing power consumers crossing 200 unit threshold,” Dawn, 27 October 2026)
Government approves USD 750 million in ADB loans for pension reform and PPP programmes
On 27 October, The Express Tribune reported that a concept clearance committee headed by Ahsan Iqbal approved negotiating two Asian Development Bank (ADB) loans worth USD 750 million (PKR 209 billion), USD 500 million for pension reforms such as cutting legacy liabilities and operationalising a defined contribution scheme, and USD 250 million for a public-private partnership (PPP) programme, of which USD 200 million is relatively expensive financing. The report notes that the stated goals need political will rather than foreign lending, and sources said the loans are effectively for budget support. It adds that total debt and liabilities were nearly PKR 100 trillion in June, with public debt at 68.3 per cent of GDP, while the Planning Commission asked for an impact assessment of an earlier USD 250 million PPP loan. ("$750m borrowed for pensions, PPP," The Express Tribune, 27 October 2026)
Travel costs drop 7.9 per cent between May and September, new Mobility Index finds
On 26 October, Dawn reported that a new Mobility Index from Pakistan & Counting and BusCaro fell from 100 in May to 92.1 in September, with the average per-kilometre cost across vehicles dropping from PKR 10.48 to PKR 9.65. The decline came from cheaper petrol, which averaged PKR 374.61 per litre in September against PKR 405.19 in May, bringing a Honda CD70's cost per kilometre down from PKR 7.37 to PKR 6.81, a car's from PKR 26.80 to PKR 24.78 and a private rickshaw's from PKR 12.66 to PKR 11.71. Public transport costs moved the other way even though fares did not rise, because Punjab's BRT services were free until 12 June. ("Travel cost falls 7.9pc since May in Pakistan," Dawn, 26 October 2026)
Agricultural census shows Pakistani farms getting smaller and more scattered
On 26 October, Dawn reported that the seventh Agricultural Census shows the number of farms rising from 8.26 million in 2010 to 11.10 million in 2024 while average farm size fell from 6.4 to 5.3 acres, and fragmented farms grew from 2.83 million to 4.98 million, with each holding seven separate plots on average instead of three. The share of farms under 2.5 acres rose from 43.5 to 59 per cent, which the article says makes mechanisation, credit and commercial surpluses harder and pushes smallholders toward subsistence farming and off-farm work. It points to shared machinery services, cooperatives, land clustering and voluntary consolidation as possible responses. ("Brewing crisis of shrinking farm size," Dawn, 26 October 2026)
Food security minister promises wheat reserves of up to six million tonnes
On 26 October, Dawn reported that Food Security Minister Rana Tanveer Hussain said the government will hold strategic wheat reserves of up to six million tonnes, that there will be no shortage this year, and that the current price rise is artificial and manipulated by certain market elements, which he expected to ease within days. He said the indicative price of PKR 4,500 per 40kg, which is PKR 1,000 above last year, was fixed after consulting the provinces and matches the likely cost of imported wheat, that more than 1.3 million tonnes had been released to the provinces from Passco stocks, and that imports of up to 550,000 tonnes could be arranged. Pakistan Kissan Ittehad welcomed the price, though it had earlier demanded PKR 5,000. ("Govt to maintain wheat reserves of up to 6m tonnes to ensure uninterrupted supply: minister," Dawn, 26 October 2026)
Lucky Group and Qatar Energy to withdraw from Port Qasim LNG terminal plan
On 26 October, Dawn reported that Energas, the consortium of Lucky Group and Qatar Energy, has given up its plan for an LNG terminal at Port Qasim, citing a fundamental change in Pakistan's energy policy and long-unresolved policy and fiscal issues, including a March 2025 Integrated Energy Study finding no new terminals were needed for five years and the 2021 withdrawal of the terminal tax holiday. The Port Qasim Authority has warned it will terminate the final letter of intent and forfeit the USD two million initial concession fee unless unconditional acceptance arrives by 30 November, so Energas chairman Muhammad Ali Tabba has asked Prime Minister Shehbaz Sharif for a refund and blamed factors beyond the consortium's control. The authority says the fee is not an ordinary refundable advance and that the developer bears responsibility for project obligations. ("Lucky Group, Qatar Energy consortium quits Port Qasim LNG terminal plan over 'policy changes'," Dawn, 26 October 2026)
State Bank lifts benchmark rate to 12 per cent, citing inflation risks from the Iran war and oil prices
On 26 October, Dawn reported that the State Bank of Pakistan raised its policy rate by 50 basis points from 11.5 to 12 per cent, with Governor Jameel Ahmed saying nine of the ten Monetary Policy Committee members voted for the increase and one favoured a larger one. He pointed to the inflation outlook, the impact of the US-Israel war on Iran on energy and oil prices, and the effect of commodity prices on the external account, remittances and exports. It is the first move since a 100 basis point hike in April, after cumulative cuts of 1,050 basis points since mid-2024 from a record 22 per cent. ("Central bank raises policy rate by 50 basis points to 12pc," Dawn, 26 October 2026)
Bill to merge privatisation and PPP bodies into one commission introduced by government
On 26 October, Dawn reported that the government introduced a bill in the National Assembly to merge the Public-Private Partnership Authority and the Privatisation Commission into a single Privatisation and Public-Private Partnership Commission, repealing the 2017 PPP Authority Act and dissolving the authority to remove duplicated functions. The commission would be led by incumbent chairman Muhammad Ali, have a majority of private-sector members including at least two women, and administer four public funds covering privatisation, public contributions, viability gap and project development. The bill also gives current and former chairmen, secretaries, board members, officials and consultants legal and investigative immunity for acts done in good faith, with public funds committed to defend such cases. ("Govt moves to establish new 'umbrella' privatisation entity," Dawn, 26 October 2026)
EXTERNAL
Pakistan argues more permanent members in UNSC will increase inequalities
On 27 October, Dawn reported that Pakistan had warned that adding more permanent members to the UN Security Council (UNSC) would only deepen existing inequalities. The counsellor at the Pakistan Mission at the UN, Gul Qaiser Sarwani, said the UNSC needed equitable and democratic reform. According to Sarwani, strategic rivalries and narrow interests among the permanent UNSC members had prevented concrete collective action on peace and security. Additionally, he informed that Pakistan wished for the abolition of the veto power, or imposition of strict restrictions upon its usage. It was further stated by Sarwani that measures to restrain the veto needed to be balanced alongside greater representation for elected members of the UNSC as a check. He also reaffirmed Pakistani support for UN General Assembly (UNGA) Resolution 76/262, which called for a debate in the UNGA after the exercise of a veto for greater accountability. (“At UNGA debate, Pakistan warns against adding more permanent members to UNGA, extending veto privileges,” Dawn, 27 October 2026)
Pakistan and China announce start of new information corridor
On 27 October, Dawn reported that Pakistan and China had launched the China-Pakistan Information Corridor (CPIC). Pakistani Information Minister Ataullah Tarar informed that the initiative would counter misleading narratives alongside fostering greater cooperation between think tanks and cultural exchange. Tarar informed that this would connect the minds of the two countries, and the initiative contained four pillars. He stated the first of these pillars was media, which would include a news exchange working group of 18 Pakistani and Chinese media organisations, alongside a fact-check mechanism. The second pillar mentioned was business, with a trade portal for tracking trade, investment and FDI being built, alongside a podcast on Chinese entrepreneurs in Pakistan and vice versa. Tarar stated the third pillar was collaboration between think tanks from the two countries, with joint dialogue, research and publications being prioritised. Tarar informed that the fourth pillar of tourism was the “heart of the corridor”, with the Xinjiang-“Gilgit-Baltistan” tourism corridor being worked upon. It was further stated by Tarar that CPIC was a “digital corridor”. The launch ceremony was attended by Chinese Foreign Ministry spokesperson Mao Ning and Chinese Ambassador to Pakistan Jiang Zaidong as well. (“Pakistan, China launch information corridor ‘CPIC’ to counter misleading narratives, promote cultural exchange,” Dawn, 27 October 2026)
Pakistan's trade deficit with neighbours widens to USD 4.97 billion
On 27 October, Dawn reported that Pakistan’s trade deficit with neighbouring countries had widened by 26.62 per cent to USD 4.97 billion during the first quarter of 2026-27. This is in contrast to USD 3.9 billion last year. One reason for the deficit is increasing imports from China, while the bilateral deficit with Beijing increased by USD 858.808 million, accounting for approximately 82.18 per cent of the deficit increase. Data from the State Bank of Pakistan showed that exports to Bangladesh, Afghanistan and Sri Lanka declined. The total export volume to nine of Pakistan’s neighbouring countries declined by 6.72 per cent to USD 944.24 million for the July to September period, compared to USD 1.01 billion last year in the same period. However, imports increased to USD 5.92 billion from USD 4.94 billion, an increase of 19.79 per cent. Notably, imports from India grew by 68.90 per cent from USD 36.55 million to USD 61.74 million. On the other hand, exports to Afghanistan saw an 88.34 per cent decline from USD 161.76 million to USD 18.86 million. (“Regional trade deficit widens sharply,” Dawn, 27 October 2026)
Finance Minister seeks stronger banking links with Ethiopia
On 27 October, The Express Tribune reported that Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb discussed improving financial and banking connectivity with Ethiopia’s Ambassador Extraordinary and Plenipotentiary Dr Oumer Hussein Oba. The envoy highlighted the importance of closer cooperation between the two countries’ banking sectors. Aurangzeb briefed him on reforms aimed at lasting economic stability and investment-led growth. Both sides discussed energy and fertiliser supply risks linked to ongoing conflicts, along with food security concerns. They also reviewed air connectivity, which they said could strengthen commercial and people-to-people links. Both sides committed to continued engagement on trade and investment. (“Banking links sought with Ethiopia,” The Express Tribune, 27 October 2026)
Foreign Minister and Chinese envoy review CPEC progress, call for sustained high-level engagement
On 26 October, Dawn reported that Deputy Prime Minister and Foreign Minister Ishaq Dar met Chinese Ambassador Jiang Zaidong in Islamabad to review progress on the China-Pakistan Economic Corridor (CPEC). Dar praised the expansion of the all-weather strategic cooperative partnership between the two countries. Discussions covered trade, investment, regional connectivity, agricultural modernisation and people-to-people exchanges. Dar stressed the need for sustained high-level engagement to build a shared future community. The meeting comes as Pakistan seeks to accelerate the corridor’s second phase, focused on industrialisation, technology and export-led growth. The first phase reportedly attracted approximately USD 25 billion in Chinese investment. (“DPM Dar, Chinese envoy review CPEC progress,” Dawn, 26 October 2026)
Pakistan and Qatar seek expanded trade and investment through joint task force
On 26 October, Dawn reported that Pakistan and Qatar reaffirmed their commitment to deepening economic ties at the second meeting of their Joint Task Force on Trade and Investment in Doha. Commerce Minister Jam Kamal Khan and Qatar’s State Minister for Foreign Trade Affairs, Dr Ahmad bin Mohammed Al-Sayed, co-chaired the session. Pakistan urged the early signing of the Pakistan-Gulf Cooperation Council Free Trade Agreement and sought an end to restrictions on bone-in meat exports. Islamabad also proposed a rice supply MoU between the Trading Corporation of Pakistan and Qatar’s Hassad Food. Pakistan invited Qatari investment in agriculture, electric vehicles, IT and shipping. Islamabad also called for early operationalisation of 11 technical working groups. (“Pakistan, Qatar explore new avenues for trade, investment cooperation,” Dawn, 26 October 2026)
Petroleum Minister seeks US investment in refinery upgrades amid Middle East fuel challenges
On 26 October, Dawn reported that Petroleum Minister Ali Pervaiz Malik sought investment from US financial institutions in Pakistan’s refinery upgradation projects. He met US Chargé d’Affaires Natalie Baker and briefed her on measures to secure energy supplies amid Middle East tensions. Malik said the refinery programme could offer investment opportunities, and invited US companies to the Pakistan Minerals Investment Forum. Baker praised Pakistan for avoiding a fuel shortage and expressed optimism about long-term energy supply contracts. Officials also discussed US companies’ interest in LNG supply to Pakistan. Four of the five local refineries recently signed agreements to upgrade their technology, with an estimated investment of USD 5 billion over five years. (“Pakistan seeks investment from US in oil refinery upgradation projects,” Dawn, 26 October 2026)
PROVINCES
ICT & Rawalpindi: Alternative fuels sought by residents amid gas shortages
On 26 October, Dawn reported that gas shortages and rising liquefied petroleum gas (LPG) prices were forcing residents of Rawalpindi and Islamabad to turn to wood and coal for cooking. Piped natural gas was available for only around six hours daily, while LPG prices had surged to PKR 600 per kilogram against the Oil and Gas Regulatory Authority’s (OGRA) fixed rate of PKR 279. The suspension of cylinder supplies by Sui Natural Gas Pipelines (SNGPL) and reliance on imports have compounded the shortage, raising concerns over affordability and winter energy security for households and businesses. (“Residents turn to alternative fuel amid gas shortages and rising LPG prices in twin cities,” Dawn, 26 October 2026)
HEALTH
KP: Dengue caseload hits 4,856 as officials stress on preventative measures
On 26 October, Dawn reported that Khyber Pakhtunkhwa’s dengue tally had reached 4,856, with 51 new cases recorded on Sunday and 2,244 infections reported during October. Kohat remained the worst-affected district, accounting for 2,822 cases overall and 1,230 this month, followed by Peshawar with 611 cases and Khyber with 430. The province had recorded one death, while 4,656 patients had recovered and 199 cases remained active, none requiring hospitalisation. Health officials identified stagnant water and inadequate mosquito-control measures as key concerns, emphasising community awareness and environmental management as priorities for prevention. (“Experts call for preventive measures as dengue cases continue to rise in KP,” Dawn, 26 October 2026)
FAO warns of major dietary gaps in Pakistan’s food supply
On 26 October, Dawn reported that Pakistan’s food supply remained misaligned with national dietary guidelines, with persistent shortages of vegetables, fruits, roots and tubers, and pulses, alongside excess supplies of cereals and sugar, according to the Food and Agriculture Organisation (FAO). More than 60 per cent of Pakistanis cannot afford a healthy diet, contributing to malnutrition and rising diet-related diseases. Between 2010 and 2023, estimated supply gaps widened for vegetables and fruits, while population growth and climate change are expected to increase pressure on the agrifood system. The FAO recommended redirecting agricultural investment towards nutritious foods, reducing post-harvest losses, improving food distribution and introducing measures such as nutrition labelling and evidence-based taxes on unhealthy products. (“Pakistan’s food supply fails own dietary guidelines: FAO,” Dawn, 26 October 2026)
SOCIETY
Human Rights Commission warns online child sexual abuse still pressing concern
On 27 October, Dawn reported that the Human Rights Commission of Pakistan (HRCP) had warned that online sexual abuse of children was still a serious concern. The HRCP informed through its report on online child sexual abuse that the problem needed to be looked at as a violation of the fundamental rights, dignity and safety of children, beyond merely a cybercrime challenge. A case in Muzaffargarh in 2025 wherein at least 50 children were allegedly subjected to sexual exploitation through an international network was referred to. The report further informed that reports of online activity linked to suspected child sexual abuse material in Pakistan were over two million in 2021. The HRCP demanded stronger steps to tackle the issue, including better coordination among different wings, including child protection authorities, prosecutors, cybercrime investigators, police and the judiciary for effective investigations and accountability. Additionally, it emphasised providing children with psychological support, rehabilitation services and legal assistance. The HRCP expressed its view that awareness campaigns would not be sufficient. Institutional accountability, more stringent child protection mechanisms and greater responsibility from online platforms were among the steps outlined. (“Pakistan’s child protection system failing to address online sexual abuse: HRCP,” Dawn, 27 October 2026)
Editorials/Opinions
Politics & governance
Khwaja Ahmad Hosain, “Constitutional questions,” Dawn, 28 October 2026
"Pakistan has had three constitutions. Two given to it by its people in 1956 and 1973. One promulgated by a field marshal in 1962. The 1973 Constitution was adopted by the people through their representatives in the constituent assembly. Article 1 states that Pakistan shall be a federal republic. Neither the term “federal” nor “republic” is expressly defined. The Objectives Resolution provides guidance."
https://www.dawn.com/news/2040389/constitutional-questions
Press freedom
Editorial, “Press solidarity,” Dawn, 28 October 2026
“Pakistan's journalists have seldom lacked organisations speaking in defence of press freedom. What has been missing is a sustained, united response when reporters are threatened, silenced or prosecuted. The alliance proposed at an Islamabad roundtable offers a chance to address that weakness. Its six-member committee plans to document restrictions on expression and draw up a charter of demands after consulting stakeholders. Both tasks are necessary, but the committee must go beyond issuing statements whenever another journalist is targeted. Press unions have too often been divided by politics, personalities and competing interests. The test of solidarity comes when a reporter facing intimidation holds views that others in the profession dislike. If the alliance can defend that journalist as firmly as it defends its own supporters, it will have established a principle that powerful actors cannot easily exploit. A free press depends on that independence, not merely on the number of organisations pledged to protect it."
https://www.dawn.com/news/2040349/press-solidarity
External
Editorial, “Regional security,” Dawn, 28 October 2026
“The fact that high officials from the Makkah defence pact partner states — Pakistan, Saudi Arabia and Turkiye — were in Tehran on Monday made global headlines, and with good reason. At a time when the clouds of war are once again hovering over the Gulf, the meeting sent a strong message that regional states with often competing agendas can come together and discuss their issues at the negotiating table. The event was also significant as the Makkah alliance has been seen as an alternative defence arrangement vis-à-vis Iran’s ‘Axis of Resistance’."
https://www.dawn.com/news/2040352/regional-security
Society
Mujeeb Ali, “Japan rebuilt itself; why can't Pakistan?” The Express Tribune, 27 October 2026
"Pakistan must prioritise education through adequate funding, effective governance and consistent policies. Teachers require professional training, fair compensation and institutional support. Every child, regardless of gender, family income or geographical location, deserves access to quality schooling. No country can develop when its children are deprived of education, its citizens struggle for equal treatment and women are ignored instead of being empowered to play their part in developing society."
https://tribune.com.pk/story/2637064/japan-rebuilt-itself-why-cant-pakistan
Economy
Editorial, “Rate hike,” Dawn, 28 October 2026
“The SBP’s decision to raise its policy rate by 50 basis points to 12pc was largely expected. It is also justified by growing risks to price stability. Although the increase has disappointed many businesses seeking cheaper credit, the monetary policy cannot be determined by their immediate financing needs. With global inflation proving stickier than expected, borrowing costs remaining high internationally, and domestic energy prices vulnerable to fresh external shocks, cutting or holding rates was no option. Pakistan’s recent currency stability, rising reserves and strong remittances have strengthened its external position. Still, these gains do not insulate the economy from the shocks of the Gulf war, or from tighter global financial conditions. Competition for capital is intensifying as major central banks tighten monetary policy, while the IMF expects global inflation to reach 4.7pc."
https://www.dawn.com/news/2040350/rate-hike
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