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Thursday, 13 August, 2026 | 29 Safar, 1448 TEHRAN
AGENCIES
RAN’S Supreme National Security Council Secretary Mohsen Rezaei said on Wednesday that Iran, Türkiye, Pakistan, Saudi Arabia, Egypt and Indonesia had a responsibility, as major Muslim countries, to advance unity across the Islamic world. During a meeting in Tehran with Interior Minister Mohsin Naqvi, Rezaei described Pakistan’s government, armed forces and people as among the Islamic world’s greatest assets. He also welcomed what he described as the growing role of Prime Minister Shehbaz Sharif and Chief of Defence Forces and Chief of the Army Staff Field Marshal Asim Munir in regional developments, according to Mehr News Agency. Rezaei said Iranian President Masoud Pezeshkian attached special importance to relations with Pakistan and believed bilateral trade between the two countries should increase severalfold. He described IranPakistan ties as rooted in genuine affection and shared beliefs, saying leaders of both countries have long regarded the other as strategic depth. According to the official IRNA news agency, Naqvi thanked Pezeshkian, as well as Iranian Foreign Minister Abbas Araghchi and Interior Minister Eskandar Momeni, for their efforts to strengthen bilateral relations. Naqvi also praised what he described as exceptional solidarity be-
tween Iranian and Pakistani people, saying the close bond between the two nations should translate into deeper cooperation and more tangible results. He said the two countries needed greater engagement and sustained efforts to achieve shared objectives, expressing confidence that the determination of their leaders and officials would help realise those goals. Naqvi arrived in Tehran on Tuesday for an official visit. He has held talks with Momeni and Araghchi on bilateral ties and regional developments. Earlier this week on Monday, Iran Foreign Ministry spokesman Esmaeil Baghaei, at a weekly news conference, portrayed the Makkah Joint Defence Agreement signed by Pakistan, Turkiye and Saudi Arabia on August 7 "less as an anti-Iranian move" than as evidence of a broader reassessment by regional countries of their security relationships with Washington. The minister said, "Countries have reached the conclusion that they cannot rely on America's claim of providing security," adding that Tehran interpreted the new arrangement within the wider transformation of the regional security order rather than treating it as a hostile military alignment. On August 7, Pakistan, Saudi Arabia and Türkiye signed the Makkah Joint Defence Agreement, reaffirming their commitment to collective security, defence cooperation and regional stability, according to the Ministry of Foreign Affairs.
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Rs 20.00 | Vol XVII No 139 | 8 Pages | Islamabad Edition
IRAN, TÜRKIYE, PAKISTAN AMONG MAJOR MUSLIM STATES RESPONSIBLE FOR ADVANCING UNITY: TEHRAN
02 NEWS
Thursday, 13 August, 2026 | ISLAMABAD
PUNJAB’S FARMERS WANT MARYAM NAWAZ TO RESIGN. IS SHE TO BLAME?
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meant to serve. Politically influential farmers were given access to procurement first, and smaller farmers were still at the mercy of middlemen and arthis. The immediate priority is not to restore the old procurement system. It is to ensure that the next harvest does not arrive before its replacement is ready. Banks should begin lending against verified warehouse receipts at the village level. A farmer could then store his wheat, use the receipt to obtain a shortterm loan and repay the aarhti without immediately selling the crop. Farmers with existing bank loans should also receive an additional 90 days to repay them, with Punjab guaranteeing part of the risk. The financing of private procurement companies must also be settled before harvesting begins. Their credit limits, storage arrangements and purchasing rules cannot still be under negotiation in April or May. Meanwhile, PASSCO needs a clear system for moving its strategic stocks into areas facing shortages. The government should register private stockists, record how much wheat they hold and publish market prices. This would distinguish legitimate storage from hoarding while making shortages easier to identify. These are all suggestions that the government can and should begin planning for now, before the sowing season begins in October/November. Farmers have suffered this year. They will need the confidence of good prices to stick to wheat. After all, the entire reason behind support prices in the first place was to make sure farmers keep producing strategically important crops that are the backbone of Pakistan’s food security. Without such confidence, farmers are wont to continue switching to crops like sugarcane and rice which take up more water. Chief Minister Maryam Nawaz has probably copped more criticism from Punjab’s farmers over the past two years than was warranted. Yes, her government has been at the centre of the uproar and has failed to find a way out of the post-subsidy world. However, it is also the first Punjab Government to deal with this problem. If action is taken in time and the government plans both for the short and the long term, the situation can be reversed. The wheat crop is as old as this region and there are ways to bring it towards the free market that benefit farmers and the end buyers. But that requires investment and infrastructure. To begin to do the work, the Punjab Government must listen to the farmers, even when their stance is as confrontational as it is right now. For the sake of Pakistan’s food security and the sector that backs it, it must be hoped that the Chief Minister does the needful. After all, this could be one of the factors that end up defining her legacy.
THIS YEAR’S WHEAT PROCUREMENT POLICY HAS CAUSED AN UPROAR AMONG SOME FARMERS, WHO ARE CALLING FOR CHIEF MINISTER TO STEP DOWN OR FACE A “MILLIONS MARCH.” IS IT REALLY HER FAULT? PROFIT
AbDullAh niAzi
HE decision by the Pakistan Kissan Ittehad to come out swinging against Chief Minister Maryam Nawaz is an indication of just how far into a corner Punjab’s farmers have been pushed. Agitation, protest, and advocacy is pretty much the usual script for organisations like the PKI and other farmers' collectives, but their rhetoric usually ramps up over time. After all, it can be a little awkward negotiating with someone if you’ve already called for them to step down. But the PKI has picked its target very clearly. At a press conference at the Lahore Press Club, not only did they threaten to initiate a “millions march” headed towards Rawalpindi if the Chief Minister did not resign, they went so far as to clarify that their issue was not with the ruling PML-N — it was specifically with Maryam Nawaz. For the Chief Minister, this is the second major confrontation she is having with Punjab’s farmers in a tenure that is only as old as February 2024. And both times the focal point of the crisis has been wheat procurement. In that sense, Maryam Nawaz has had a difficult hand: she came to power the same year that the IMF directed provincial governments to quit their wheat subsidies and procurement policies. That process has gone far from smoothly. Punjab has tried three different systems in three years, with the fruits of the latest causing the current uproar from the PKI. The Maryam Administration’s decision making has left a lot to be desired in the past two years. But the root of the wheat procurement crisis is much older than Maryam Nawaz. And she still has time to make it work. Three years, three systems — what happened to Punjab’s wheat procurement? For decades, Punjab used to follow one basic wheat system. The government announced a minimum price and bought wheat from farmers after the harvest. This procurement system gave farmers a guaranteed buyer and prevented prices from falling too
Non-filer content creators, influencers to pay 10% withholding tax on social media earnings PROFIT
news Desk
Non-filer digital content creators and social media influencers will pay a 10% withholding tax on revenues received from social media platforms starting July 1, 2026, according to the Withholding Tax Card 2026 issued by the Federal Board of Revenue (FBR) on Tuesday. The FBR said the updated card incorporates all withholding tax amendments introduced through the Finance Act 2026, with rates updated up to June 30, 2026. Under Section 154B of the Income Tax Ordinance, which governs social media platforms, filers, digital content creators and influencers appearing on the FBR's Active Taxpayers List will pay a 5% withholding tax on such revenues, while non-filers will pay 10%. Beyond social media income, the updated card also revises withholding tax rates on the salaried class and on the buying and selling of immovable properties in the real estate sector.
TPL Life expands Mobilink Bank partnership to offer Shariah-compliant insurance plans PROFIT
news Desk
TPL Life Insurance Limited has expanded its strategic partnership with Mobilink Microfinance Bank Limited (Mobilink Bank) to introduce unit-linked Takaful plans and enable the conversion of existing insurance products into Shariah-compliant solutions. According to a notice submitted to the Pakistan Stock Exchange on Wednesday, the agreement will allow Mobilink Bank customers to access investment-linked protection products compliant with Shariah principles. TPL Life said the initiative would broaden the range of financial protection products available to Mobilink Bank customers and support greater financial inclusion in Pakistan through insurance and Takaful solutions. Read this: Jazz International takes control of TPL Insurance after acquiring 76.33% stake The company said it would continue to inform shareholders of material developments in accordance with applicable regulatory requirements. In July, Jazz International Holding Limited acquired a 76.33% stake in TPL Insurance Limited, taking control of the company. The transaction was completed on July 13, 2026, under a Share Purchase Agreement with TPL Corp Limited, alongside a mandatory tender offer conducted in accordance with applicable laws.
sharply. The government then stored the wheat and gradually sold it to flour mills. But over the years this system had become riddled with problems. It was extremely expensive, and the Punjab government had to borrow heavily from banks to buy and store the wheat. The interest payments quickly ballooned into a circular debt crisis. By 2023 these borrowings had reached Rs 680 billion. The system also suffered from systemic corruption and often benefited large farmers, importers and middlemen more than small growers. Just take a look at what happened in the spring of 2024.
2024: IMPORTS RUIN A BUMPER CROP: At the start of the year, the government had fixed the wheat price at Rs3,900 per 40kg, so farmers planted their crop expecting to receive roughly that amount. But the previous year, the caretaker government had already imported around 3.6m tonnes because they expected a shortage. Then in 2024 Pakistan produced a record wheat crop. This left Punjab with too much wheat and insufficient storage space. The province reduced its procurement target from more than 4m tonnes to around 2m tonnes and then largely stopped buying. Farmers who had planted wheat with the guarantee of the government as a buyer suddenly found the price of their crop had collapsed on the market, and sold wheat for as low as Rs 2,200 per 40 kilograms. Small farmers were hit hardest because they needed immediate cash to repay loans and plant their next crop. The main problem in 2024 was therefore a sudden withdrawal of government procurement at exactly the moment when excessive imports had flooded the market.
2025: THE IMF PUTS AN END TO SUPPORT PRICES: Then came the push from the International Monetary Fund (IMF). In September 2024, Pakistan entered a new $7 billion programme with the fund. The conditions for the programme barred provincial governments from setting crop prices. What the fund did not do was tell the Punjab Government how it was supposed to
go about getting rid of a subsidy addiction that has afflicted it for more than six decades. The result was confusion. Think of it this way. Wheat is sowed at the tail end of the year around October/November, and is harvested in the Spring of the next year around April. The IMF’s condition came in September, and by the time sowing began in October 2024 for the 2025 crop, no wheat support price had been announced. By February, the federal government was operating on a policy of not issuing a national support price for wheat. This was a big shift. Normally, wheat procurement worked in three stages. The federal government consulted the provinces on what the wheat support price should be, and announced a national price. The provincial governments then set their procurement targets. Finally, the provinces borrowed money from commercial banks to buy and store this wheat. The federal government also maintains its own strategic reserves of wheat. Without a support price, Maryam Nawaz’s government decided to assist farmers in other ways. Instead of buying wheat itself, Punjab introduced the Electronic Warehouse Receipt system. Under this arrangement, a farmer could place wheat in an approved warehouse, receive a digital receipt and use that receipt to obtain a bank loan. This was supposed to give farmers cash for their next crop without forcing them to sell immediately at low prices. It essentially took storage power away from arthis. The idea was sensible, but Punjab did not have enough approved warehouses, participating banks or financing. Small farmers often produced too little wheat to transport it economically to a distant warehouse. Many also lacked the documents and banking access needed to use the system. The government also introduced financial assistance for farmers and private-sector purchasing incentives, but the measures proved too little too late. By harvest time in April, wheat was being sold at Rs 2,200 - Rs 2,300 per 40 kilograms. The support price in 2024 had been Rs 3,900. Protests immediately erupted demanding a support price of at least Rs 4,000.
2026: PRIVATE SECTOR COMPANIES FAIL TO TAKE ROOT IN TIME: In 2026, the Punjab Government devised a new plan. The government selected 11 private companies to act as large-scale buyers of wheat. These companies were supposed to purchase 3 million tonnes of wheat at Rs3,500 per 40kg. The government offered them assistance with bank financing, subsidised borrowing and access to public warehouses. But the companies and banks were still negotiating financing and other rules when the harvest arrived. Nine of the 11 companies reportedly failed to buy any wheat by May, while total purchases remained only a small fraction of the target. Farmers again sold at low prices, generally between Rs2,800 and Rs3,200. Once much of their wheat had passed to traders and stockists, the price rose above Rs4,500. Lower production, reduced fertilizer use, limited stocks and hoarding all contributed. The government then considered importing wheat, even while PASSCO still held large stocks of its own.
WHAT SHOULD THE GOVERNMENT DO NOW? What we have here is a scenario in which the Punjab Government has some share of the blame. In 2024, they could point the finger at the previous caretaker government for importing excess wheat. In 2025, they introduced a system of Electronic Warehouse Receipts, which is a necessity for any modern agricultural market. However, the system could not be relied on because there were not enough warehouses to justify the system. In 2026, the government attempted to use private companies to fill the gap, but the system was not ready in time. Yes, the government’s attempts to come to grips with the change in wheat support price policy have not panned out, resulting in outrage from farmers. But the decision to leave the wheat crop to the free market originally came from the IMF. It is important to keep in mind that the old procurement system was far from free of flaws. It had burdened the provincial government under billions of rupees worth of debt, and it was not serving the people it was
Dubai crude jumps over 10% to $88.99/barrel, testing Pakistan's new daily pricing mechanism PROFIT
Monitoring report
Dubai crude, a key benchmark for Asian markets including Pakistan, jumped an extraordinary $8.2 per barrel, or 10.2%, to $88.99 per barrel on Tuesday, and the sharp rise has heightened concerns for Pakistan, with pressure coming from multiple directions. International gasoline and gasoil prices are also moving higher, while freight costs and import premiums have surged, potentially pushing up the landed cost of petroleum products. The News reported, citing industry sources, that if current international market conditions persist, Pakistan could face a significant increase in petroleum import costs, eventually putting upward pressure on domes-
tic petrol and high-speed diesel prices. The country's new daily petroleum pricing mechanism can cushion consumers from an immediate full-scale shock. Under the averaging mechanism, a sharp single-day movement in international prices does not necessarily translate into an equivalent increase at domestic fuel stations. This may help dilute the impact if the latest oil rally proves temporary. But the mechanism is now facing its first major test amid exceptional volatility in international oil markets. Usama Qureshi, vice chairperson of Cnergyico Pk Limited, said the eventual impact will largely depend on how international markets behave over the next several trading sessions. "If the increase reverses quickly, the averaging mechanism under daily pric-
ing could substantially dilute its impact on domestic consumers," Qureshi said. He warned, however, that if Dubai crude remains around $89 per barrel or moves higher, while gasoline, diesel, freight and premiums also stay elevated, the increased international costs will continue to pressure Pakistan's domestic market. Oil-sector experts said the challenge extends beyond petroleum prices. During periods of international conflict and disruption, an oil-importing country like Pakistan must also ensure uninterrupted fuel supplies. Pakistan has previously faced severe international market disruptions in which the government, domestic refineries and other oil-sector players worked together to maintain supplies despite extreme price volatility.
President approves Export-Import Bank, financial institutions and FBR amendment bills PROFIT
news Desk
President Asif Ali Zardari has approved a series of key bills and summaries, including legislation aimed at strengthening Pakistan's export financing, tax administration and the recovery of financial assets, according to an official statement issued on Tuesday. The President approved the ExportImport Bank of Pakistan (Amendment) Bill, 2026, the Financial Institutions (Recovery of Finances) (Amendment) Bill, 2026, and the Federal Board of Revenue (Amendment) Bill, 2026. The three bills touch on export financing, financial-sector recovery mechanisms and revenue administra-
tion, with the changes aimed at strengthening the institutional and regulatory framework in these areas and supporting greater efficiency in financial and economic management. The Export-Import Bank of Pakistan (Amendment) Bill, 2026 addresses the country's export financing framework, an area of growing focus as Pakistan looks to expand its export base, improve access to international markets and strengthen the competitiveness of domestic businesses. The Financial Institutions (Recovery of Finances) (Amendment) Bill, 2026 concerns the legal framework governing the recovery of finances by financial institutions, while the Federal Board of Revenue (Amendment) Bill, 2026 re-
lates to the country's tax administration and revenue collection framework. The approvals come as the government continues efforts to improve economic governance, strengthen revenue mobilisation and create a more supportive environment for investment, trade and private-sector activity. Separately, President Zardari approved the conferment of a Pakistan Civil Award on Syed Ali Mahmood, recognising his services to the country. The President also approved the ratification of the Makkah Al-Mukarramah Convention on Cooperation in the Enforcement of Anti-Corruption Laws among Member States of the Organisation of Islamic Cooperation (OIC).
FBR seals illicit cigarette factory in Chakwal, estimates Rs211m economic impact PROFIT
Monitoring report
The Federal Board of Revenue (FBR) sealed a clandestine cigarette manufacturing unit in District Chakwal and seized a substantial quantity of raw tobacco, manufacturing material, unstamped cigarettes and machinery, in an operation estimated to carry an overall economic impact of approximately Rs211 million, Business Recorder reported. The operation was conducted by teams of the FBR's Intelligence & Investigation Directorate, Islamabad, in coordination with the Inland Revenue Enforcement Network. Acting on credible information, the teams raided the premises of Hunter Tobacco SMC Pvt Ltd, located near Dharabi on Kallar Kahar Road, Chakwal. The premises were found being used for clandestine manufacture of cigarettes without mandatory tax stamps under the Track & Trace System. The unit had also not been integrated with the Track & Trace System, a mandatory requirement for tobacco-sector manufacturers. The operation resulted in the seizure of approximately 12,600 kilograms of raw tobacco, enough to manufacture around 630,000 packets of cigarettes. Filter rods, cigarette paper, aluminium foil, packaging material and other manufacturing inputs were also seized. The seized goods were shifted to a government warehouse, and the premises were subsequently sealed. The estimated revenue impact includes approximately Rs90 million in potential tax evasion linked to the sale of cigarettes that could have been manufactured from the seized raw tobacco. The overall Rs211 million impact also includes estimated duty and taxes evaded on stock found at the premises, along with the value of machinery and other materials seized or sealed. The FBR said manufacturing and selling cigarettes without paying applicable duties and taxes, along with non-compliance with the Track & Trace System, constitutes a serious violation of tax laws.
FBR considers further tax relief, super tax cuts as businesses seek lower tax burden PROFIT
Monitoring report
The Federal Board of Revenue (FBR) has indicated that further tax relief for businesses is under consideration, including additional reductions in super tax and the sales tax burden. The development came during a meeting of the Sub-Committee of the Senate Standing Committee on Finance, where business representatives raised concerns over high taxes, energy costs, expensive financing and alleged harassment by FBR field formations. Mian Zahid Hussain, chairman of the Policy Advisory Board of the Federation of Pakistan Chambers of Commerce and Industry, and Tariq Khan Jadoon, Vice President, said industries were operating at only 40-45% capacity and warned that contin-
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BUSINESS COMMUNITY SEEKS CUTS IN ADVANCE, WITHHOLDING AND CUSTOMS TAXES, SIMPLER AUDITS AND CURBS ON EXCESSIVE FBR NOTICES AND ENFORCEMENT
ued high costs could push more companies to relocate operations outside Pakistan. Hamid Ateeq Sarwar, Member FBR, said the government had already introduced tax relief since 2025 and was examining further reductions in super tax and the sales tax burden. He said the government had absorbed a revenue impact of around Rs361 billion to facilitate businesses. The relief measures already introduced include tax reductions for salaried individuals, a reduction in super tax and the elimination of super tax for exporters. FBR officials said the process of rationalising the tax burden would continue.
Business representatives called for reductions in advance and withholding taxes, rationalisation of customs duties, simpler audit procedures and action against excessive notices and enforcement by field formations. Jadoon called for broadening the tax base by bringing new sectors into the formal economy instead of increasing the burden on existing taxpayers. The FBR said it was also introducing taxpayer facilitation measures, including a mobile application for tax reimbursements and designated facilitation days in major commercial centres. Exporter facilitation
committees have been established in Karachi, Lahore, Sialkot, Faisalabad, Islamabad and Multan. The committee also discussed the ongoing goods transport strike and its impact on trade, including risks to perishable goods and rising container detention charges. Convener Muhammad Talha Mahmood called for immediate dialogue with transporters to restore normal business activity. Mahmood also recommended restoring taxpayers’ accounts within 24 to 48 hours where genuine errors in returns are rectified and called for an efficient biometric verification system.
Thursday, 13 August, 2026 | ISLAMABAD
PAKISTAN'S CENTRAL GOVERNMENT DEBT STOCK REACHES RS83.6TRN IN FY26
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DOMESTIC DEBT GROWS 9% TO RS59.94TRN WHILE EXTERNAL DEBT RISES 3% TO RS24.2TRN, AS SBP SAYS FISCAL DEFICIT NARROWED DESPITE HIGHER BORROWING PROFIT NEWS DESK
AKISTAN'S central government debt stock rose by Rs5.7 trillion during fiscal year 2025-26, driven by substantial borrowing from domestic and external sources, with total debt reaching Rs83.642 trillion by the end of June 2026, up from Rs77.888 trillion at the start of the fiscal year on July 1, 2025, according to the data released by the State
Bank of Pakistan (SBP). The overall increase amounted to 7.4%, or Rs5.754 trillion. The rise reflects continued growth in government borrowing to finance the fiscal deficit, with both domestic and external debt contributing to the increase. The growth was far more pronounced in domestic debt. Domestic debt stock rose 9%, or Rs4.969 trillion, reaching Rs59.94 trillion by the end of June 2026. External debt rose 3%, or Rs471 bil-
Pakistan to implement maritime defence commitments 'in full earnest': FO ISLAMABAD
STAFF CORRESPONDENT
Pakistan will implement its commitments under the recently announced multinational maritime defence coalition “in full earnest”, the Foreign Office said on Wednesday, following the deaths of three Pakistani sailors in a Houthi attack on a Saudi cargo vessel. At a weekly press briefing, FO spokesperson Tahir Andrabi said Pakistan was among the signatories to a joint statement backing the Saudi-led maritime coalition aimed at protecting shipping and energy supply routes in the Red Sea region. “Pakistan is a signatory to this maritime coalition communique and we will implement it with full earnest,” Andrabi said, adding that Islamabad was engaged with Saudi authorities on the matter. He said Deputy Prime Minister and Foreign Minister Ishaq Dar had directed the Foreign Office to ascertain the details of the agreement and Pakistan’s commitments under the framework. The FO spokesperson was responding to questions following the deaths of three Pakistani sailors aboard a Saudi cargo ship in Houthi strikes on Tuesday. Riyadh had announced plans last month for a multinational maritime defence coalition, with 14 countries, including Pakistan, Türkiye and Egypt, backing the initiative. Turning to Pakistan’s diplomatic efforts to de-escalate tensions between Iran and the United States, Andrabi said Islamabad remained engaged with “brotherly states” to facilitate a negotiated settlement. He said Interior Minister Mohsin Naqvi’s ongoing visit to Tehran was focused on bilateral relations, security issues and regional developments, particularly efforts to promote peace and stability. Naqvi, who arrived in Tehran on Tuesday, has held meetings with senior Iranian officials, including Foreign Minister Abbas Araghchi and President Masoud Pezeshkian. Andrabi said Pakistan was making “all-out efforts” to bring the two sides back to the negotiating table through the Islamabad Memorandum of Understanding and other diplomatic channels. Asked about the status of the MoU, he said the 60-day deadline for USIran negotiations was currently set for August 17 but could be extended if both sides remained willing to pursue dialogue. “Five days still remain, so we are not closing the chapter,” the spokesperson said, expressing hope that the process would eventually be extended and negotiations resumed. He added that Pakistan remained optimistic as a mediator and facilitator, arguing that periods of escalation and relative calm were a natural feature of major international conflicts. The FO also termed the Pakistan-Saudi Arabia-Türkiye joint defence agreement a major development of the week, saying it reflected the three countries’ resolve to share the burden of maintaining regional peace and security. Signed in Makkah last Friday, the agreement provides for collective defence, under which an armed attack on any one of the three signatories would be treated as an attack on all.
lion, to Rs24.2 trillion over the same period. The Federal Board of Revenue (FBR) achieved its revised tax collection target of Rs13.0 trillion by the end of FY26. However, the collection remained insufficient to meet overall expenditures, forcing the government to borrow more to finance the fiscal deficit. The primary balance is estimated to have remained in surplus for the third consecutive year, according to the SBP. The overall fiscal deficit was estimated
to have turned out significantly lower than the previous year. Fiscal consolidation is expected to continue in FY27, with the primary surplus targeted at 2.0% of GDP and the overall fiscal deficit targeted at 3.6% of GDP. The SBP said achieving these targets will require sustained progress in revenue mobilisation and expenditure discipline amid an uncertain domestic and global environment. The SBP's Monetary Policy Committee has re-emphasised the need for fiscal reforms, particularly tax base broadening efforts and curtailing losses at public sector enterprises, to support high and sustainable economic growth.
Makkah agreement vision extends beyond Turkiye, Saudi Arabia, Pakistan: Erdogan ANKARA
AGENCIES
The vision in the Makkah Joint Defence Agreement "is not limited" to only Turkiye, Saudi Arabia and Pakistan, President Recep Tayyip Erdogan said on Wednesday, expressing his desire to bring regional countries under the deal. "Indeed, our vision is not limited to three countries. We want it to expand further and, if possible, one day bring all countries in the region under this framework. This would be one of the most important steps toward achieving lasting regional stability," Erdogan said in an interview with Asharq Al-Awsat, one of the leading Arabic newspapers. While United States-Iran tensions are important to regional developments, the Makkah Joint Defence Agreement should not be viewed merely as a response to them, Erdogan said, adding: "Such an interpretation would fail to properly understand the policies and intentions of our countries." Noting that the agreement does not pose a threat to any country, the president said the deal is open to participation by "all brotherly countries that seek peace, prosperity, and stability in our region." There is a history behind the deal, Erdogan said, pointing to discussions with the other signatories and other regional countries that have been ongoing "for a very long period." Noting his remarks on remaining in regular consultation with regional countries in order to strengthen peace, stability and security in the region, Erdogan said Ankara has acted "accordingly" in this regard. "We know the
kinds of disasters that externally imposed prescriptions have caused in attempts to resolve the region’s problems. For this reason, Turkiye has always pursued a policy aimed at making the will and collective wisdom of regional countries decisive," he said. The deal is a representation of "a strategic determination" in response to changing regional circumstances, he said, adding that the trilateral mechanism is not a reaction to "day-to-day developments." "Türkiye has always favoured diplomacy over tension, dialogue over conflict, and stronger regional cooperation over division. As a country capable of speaking with all parties and assuming responsibility on difficult issues when necessary, we will continue to do our part to establish lasting peace and stability in our region," he further added. DEAL IS RESULT OF 'NEW CIRCUMSTANCES' IN REGION The agreement is "the result of the new circumstances" and a shared sense of responsibility, Erdogan said. "We have always favoured regional countries taking ownership of regional issues and resolving them themselves," he added. "The problems of the region should be resolved by the region’s own actors, and we can say that we have now taken the first step in that direction," he stressed. Recent developments have highlighted the necessity of solidarity among friendly and brotherly nations, whereas long-term peace necessitates not only an end to conflict but also mutual trust, political will and a shared vision for the future, he noted. The agreement represents more
than cooperation among Turkiye, Saudi Arabia and Pakistan, Erdogan said, adding that it is intended as a broader framework for regional stability and remains open to other countries seeking peace and security. Ankara views the deal as the beginning of a new era of regional cooperation and solidarity, with the possibility of expanding participation in the future, he said. AGREEMENT 'BASED ON COLLECTIVE DETERRENCE' Erdogan said the Makkah Joint Defence Agreement is built on the principle of collective deterrence and aims to deepen security and defence cooperation among its members while contributing to regional stability. The agreement will pave the way for joint defence industry projects and strengthen cooperation in the fight against terrorism, he explained, stressing that it does not target any country. Under the deal, a threat to one member’s security will be treated as a common security concern by the other parties, he said. He added that the agreement should not be viewed solely as a military arrangement, saying its broader purpose is to reinforce deterrence, strengthen mutual security through solidarity and preserve peace and stability in the region. Erdogan also said the signatories are sending a message that they will not pose a threat to one another but will instead work to guarantee each other’s security. “The security of one of us is the security of all of us,” he said, adding that an inclusive application of this approach can help establish lasting peace, stability and prosperity across the region.
VIS reaffirms Interloop's AA-/A1 ratings with stable outlook PROFIT
STAFF REORT
VIS said the medium- to long-term "AA-" rating reflects high credit quality with strong protection factors, though risk may vary modestly with economic conditions. The short-term "A1" rating points to a strong likelihood of timely repayment backed by excellent liquidity. The previous rating action was announced on August 4, 2025. Interloop, a vertically integrated textile composite, makes hosiery, denim, knitted apparel, seamless activewear and yarns for a diversified
export base. The company employs close to 40,000 people from 15 nationalities and operates across six countries. Its manufacturing base includes facilities in Pakistan and Sri Lanka, alongside a manufacturing and sourcing office in China and marketing offices in the US, Europe and Japan. A subsidiary, Top Circle Hosiery Mills, is based in Weissport, Pennsylvania, with its manufacturing facility in Shanghai. VIS attributed the ratings to Interloop's strong market position, integrated operations and sustained revenue growth, with con-
tinued expansion into denim and apparel. Hosiery remains the company's principal earnings driver. Consolidated profitability came under pressure in FY25 due to margin compression as the apparel business scaled up, though signs of recovery emerged in the first nine months of FY26. Higher capital spending pushed leverage up in FY25, but capitalisation metrics improved in 9MFY26 as major projects neared completion and debt levels eased. Liquidity remains adequate, with strong debt and cash-flow coverage.
Crestwell Healthcare launches Rs535m rights issue to fund pharma push PROFIT STAFF REPORT
Crestwell Healthcare Limited, formerly known as S.G. Power Limited, has finalised a rights issue of 53,499,600 ordinary shares worth PKR 534,996,000 to fund its expansion into the pharmaceutical sector, according to an offer document dated August 12, 2026. The issue offers three right shares for every one ordinary share held, representing roughly 300% of the company's existing paid-up capital, at par value of PKR 10 per share. The offer document is valid till November 12, 2026. The company plans to use PKR 250 million of the proceeds to acquire a 50% shareholding with controlling interest in Wellcome Medical Technologies (Private) Limited (WMTL), a pharmaceutical distribution
firm. Another PKR 10 million is earmarked for Drug Regulatory Authority of Pakistan (DRAP) registrations and licensing, while roughly PKR 275 million will go toward working capital, including inventory imports, storage expansion, vendor payments and logistics. The Board of Directors approved the rights issue on May 18, 2026. Book closure is set for August 20, 2026, with trading of unpaid rights beginning August 24. The last date for trading of the right letter is September 7, and the final payment deadline is September 14. The offering is fully underwritten by four firms, AKD Securities, Dawood Equities, Zahid Latif Khan Securities and M. Munir M. Ahmed Khanani Securities, covering PKR 453,936,300 in total, meaning there is no minimum subscription threshold. Meezan Bank Limited
is the banker to the issue. Substantial shareholders Umer Ali Malik, the company's CEO, and Fatima Ali Malik have committed to subscribing to their entitlements. The company was incorporated in Karachi in 1994 as S.G. Power Limited and was renamed Crestwell Healthcare Limited following a shareholders' resolution on May 13, 2026, and SECP approval on August 6, 2026. Following the issue, authorised capital will rise from PKR 200 million to PKR 800 million, and paidup capital from PKR 178.3 million to PKR 713.3 million — both increases of 300%. The break-up value per share is projected to jump from PKR 0.0376 to PKR 7.5094. The company reported standalone net revenue of PKR 6.15 million and a loss after tax of PKR 8.40 million for FY2025, against a profit of PKR 1.67 million in FY2024. Accumulated losses stood at PKR 266.78 million. The average market price of its share over the past six months was PKR 49.02. The offer document said the company's previous power generation business had been non-operative for over nine months due to high gas tariffs, prompting the shift to pharmaceutical distribution. It also disclosed two pending legal matters — a Sindh High Court petition challenging the applicability of the Workers' Profit Participation Fund levy, and a Sales Tax Appellate Tribunal appeal against a show-cause notice — both of which management expects to resolve favourably.
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Adil Salahuddin to take charge as Standard Chartered Pakistan CEO from Aug 13 PROFIT
STAFF REPORT
Mr. Adil Salahuddin will assume charge as the new CEO/Director of Standard Chartered Bank (Pakistan) Limited (SCBPL) with effect from August 13, 2026, the bank informed the Pakistan Stock Exchange (PSX) on Wednesday. In a notice to the PSX, SCBPL said the appointment follows the Fit and Proper Test (FPT) clearance received from the State Bank of Pakistan (SBP). The bank had earlier conveyed the development in a letter dated July 13, 2026, when its board approved Salahuddin's appointment subject to regulatory clearance. He succeeds Rehan Shaikh, who continued serving as CEO until the handover. Salahuddin brings over 30 years of banking experience, including 25 years with the Standard Chartered Group. He has held leadership positions across Markets, Coverage and Transaction Banking in various regions, with most of his career centred on Pakistan alongside stints in the UAE and Saudi Arabia, giving him exposure to Middle Eastern and African markets.
SECP establishes Shariah-compliant brokerage segment, approves 33 Islamic windows PROFIT
STAFF REPORT
The Securities and Exchange Commission of Pakistan (SECP), in a major breakthrough, has succeeded in establishing a dedicated Shariah-compliant brokerage segment in the capital market, with 33 brokerage houses now operating dedicated Shariah-compliant windows, collectively representing around 52% of total traded volume at the Pakistan Stock Exchange (PSX). In addition, two other dedicated brokers are offering a complete range of Islamic brokerage services. Under the dedicated framework, Islamic brokerage services will operate with clear segregation of client funds and defined Shariah governance requirements. The framework enables investors to directly access Shariah-compliant shares, Sukuk and Islamic Exchange Traded Funds (ETFs) through dedicated Islamic brokerage windows. Investor funds will be maintained through Islamic banking channels, while trading will be restricted to securities screened and approved as Shariah-compliant. Islamic brokers and windows will not undertake interest-based financing or nonShariah-compliant leveraged or speculative transactions. The initiative significantly expands investment opportunities for investors seeking Riba-free options. Currently, 308 of 535 listed securities are Shariah-compliant, representing around 65% of PSX’s market capitalisation, reflecting the growing demand and significant potential for Riba-free investment. Dedicated Islamic brokerage services will further expand access and attract new investors to the capital market and provide investors with a broad universe of Islamic investment opportunities. The SECP had introduced the framework through amendments to the Securities Brokers (Licensing and Operations) Regulations, 2016, allowing brokerage houses to offer Islamic financial services through dedicated Islamic windows, separate subsidiaries or full conversion to Shariah-compliant operations. The framework also requires appropriate Shariah oversight and compliance with applicable PSX, CDC and NCCPL requirements. Chairman SECP Dr. Kabir Ahmed Sidhu said, “The development of Shariah-compliant brokerage services is an important step towards the Government’s objective of a Riba-free economy.
04 COMMENT
NSG and the Indian questions
Transport troubles
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As if the transporters’ strike wasn’t enough, pump owners threaten to strike
India’s application to join the NSG exposes the global nonproliferation regime
HE daily pricing of petroleum is mentioned as a reason by both goods transporters who are on strike, as well as the petrol pumpowners who have threatened to on strike from August 15, which places a lot of pressure on the government, because either group has the ability to stop the country in its tracks within a couple of days. While the pump owners may be accused of going on strike because the daily pricing prevented their making windfall profits, the goods transporters do not have the same motive. Both groups have also brought other demands to the table, which indicates that the daily pricing is more the last straw for both, and the sector suffers from major difficulties. While the transporters are in negotiation with federal Communications Minister Aleem Khan, they have mentioned other grievances. Such as axle-load regulation and taxation issues. Their strategy seemed to be that the daily pricing must go, for there is no sense that they might accept it if their other demands were accepted. However, the pump owners have demanded the raising of their margin to eight percent, and it is probable that a higher margin would convince them to live with the daily pricing. Though daily pricing might be an IMF commitment, the real purpose is to deregulate the sector, which is not achieved so long as the government notifies the price. The government might not want to increase the margin because it would increase the price, which the government is reluctant to do. Instead of fixing the margin, true deregulation that the government should leave it to the market, allowing the pump owners to shift for themselves. There are more clouds on the horizon. The Kissan Ittehad has announced a one-point agenda for its September 29 Million March on Islamabad, the resignation of Punjab Chief Minister Maryam Nawaz. Ittehad officebearers say she has harmed the farming community across the entire gamut of crops, but particularly by not procuring wheat, The organizers seem inspired by the Indian farmers six years ago who marched on New Delhi to demand the restoration of support prices, waivers of farm loans and opposing free trade deals. Be that as it may, that still creates a crisis for Ms Nawaz as well as her uncle the PM. The fuel crisis meshes with this, because many perishable fruits and vegetables depend on transporters to reach markets. Matters seem to be coming to a head.
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NomeeN Kassi
HE formation of the Nuclear Suppliers Group (NSG) in 1975 was a direct result of India’s 1974 nuclear test, which inadvertently revealed the gaps in international nuclear export controls. Its primary purpose is to prevent civilian nuclear cooperation from contributing to nuclear weapons programmes by regulating the transfer of nuclear materials, equipment and technology. Today, however, the state whose actions prompted the creation of the NSG, India, seeks permanent membership despite remaining outside the Nuclear Non-Proliferation Treaty (NPT). An important question is whether and how the NSG can maintain its credibility if it is to make an exception for a non-NPT state. The chances of the international nonproliferation regime becoming inconsistent and losing its legitimacy increase if it starts to be decided based on political rather than established principles. The first question is whether a non-signatory state should be a full member of the NSG. While the NSG does not explicitly make NPT membership a legal requirement, its guidelines and practice have always been closely linked to the treaty. All existing members of the NSG are also signatories to the NPT. Therefore, India’s application is an important one, as it deviates from the norm. India has come forward with its arguments that the export restrictions it has in place, and its civilian safeguards, justify its membership. But these steps do not recognize the reality that India decided not to join the main international agreement on nuclear non-proliferation while building a nuclear weapons arsenal. Additionally, there are many cases of nuclear theft and illicit trade in India, making it an irresponsible nuclear state. If India’s inclusion is done, it would imply that international rules are ignored by some major powers, such as the USA, for “strategically important” states like India against China. The follow-up is the second aspect– would India’s inclusion make the international non-proliferation system less robust? The answer is related to the international rules used and whether they are applied consistently or selectively. The basic structure of nonproliferation today is the NPT. If India were an exception, it would be a sign that geopolitical
Dedicated to the legacy of late Hameed Nizami
Arif Nizami (Late) Founding Editor
Pakistan’s Tomato price surge M. A. Niazi
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Editor Pakistan Today
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considerations are valued more than traditional norms. This selective treatment could undermine trust in the rule of law and the NSG. Thirdly, should India be treated as the five NPT-recognized nuclear weapon states as it does not belong in the treaty? India has always faulted the NPT for its discriminatory nature but at the same time wants to enjoy many of the advantages of the creation of institutions based on this treaty. To refuse to accept the rule of law but to demand privileges that come with it, demonstrates a selective attitude toward international obligations. The more common the exception, the less likely states are to abide by international agreements. Supporters argue that India is now ready to be a full member, as the NSG granted it a waiver in 2008. But the waiver itself is controversial as it opened the door to civilian nuclear commerce with a non-NPT country. India already has access to nuclear commerce with the rest of the world without being a part of the NSG. Rather than nuclear trade, it seems its ongoing bid for membership has more to do with gaining international legitimacy without the same legal obligations as other states. Giving additional exceptions would add to the instability of the non-proliferation regime. The strategic drivers for the rationale behind supporting India’s membership are far from inconsequential either. The USA has been India’s biggest cheerleader, in part for geopolitical reasons— such as counterbalancing China’s influence in the Indo-Pacific— attributed to the presence of the US military in India. This approach has been embraced by some Western partners as well. This brings up a problematic question: whether the NSG follows non-proliferation policies or geopolitical interests? In that case, the NSG may come to rely on strategic partnerships for membership, which is likely to erode the credibility of the NSG’s standards. Admission would also be a precedent for India. If India can be a member of the club without signing the NPT, what are the grounds for excluding other countries, including the non-NPT nuclear states like Pakistan? Pakistan has always insisted on determining membership in the NSG by objective, non-discriminatory terms and conditions and not exceptions in favor of countries. An India-centric strategy would make it much tougher for the NSG to uphold the uniformity of its
Editor’s mail
Eco-friendly fix
ity is becoming a permanent feature of Pakistan’s food economy, alongside increasingly erratic monsoons. Three things would help. First, close the seasonal gap through staggered, off-season cultivation and short-duration varieties in Punjab and KP, so no single province carries the country alone. Second, invest in cold storage and pack-houses at the key production clusters, like in Quetta, Swat, Thatta and so on, so that a bumper harvest in one season can smooth over a shortfall in the next, and produce survives a few days of road disruption rather than rotting at the first landslide. Building an effective coldstorage system can also help the country to experiment with a buffer-stock mechanism for the most shock-prone vegetables. Third, replace reaction with forecasting: pair PBS’s Sensitive Price Indicator with PMD’s rainfall outlooks and NDMA’s flood maps into a standing watchlist of which vegetables, in which districts, are exposed each season, so price committees and import channels act before the shock, not after the headlines. Pakistan’s tomato crisis is not bad luck. It is what a thin supply chain looks like when it meets its recurring stress test. The only real question is whether the next one finds the country better prepared.
The writer is a Chief of Research & Director Centre for Agriculture, Climate Change and Rural Economy at the Pakistan Institute of Development Economics. He can be reached at Email: inayat@pide.org.pk
Pakistan’s tomato crisis is not bad luck. It is what a thin supply chain looks like when it meets its recurring stress test. The only real question is whether the next one finds the country better prepared.
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Ms. Nomeen Kassi is a Research Assistant at Balochistan Think Tank Network (BTTN), Quetta. She is also an MS-IR scholar with keen Interest in emerging technologies, AI and South Asian politics especially India-Pakistan affairs.
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iNayat Ullah
hike. High-speed diesel prices surged to a record Rs 520 per litre in early April. They eased to around Rs 311 per litre by late June following a temporary ceasefire, only to climb back to Rs 375–390 per litre by late July as hostilities resumed. A swing of more than Rs 150 per litre within just three months makes it almost impossible for transporters carrying perishable produce to plan their routes, costs, or profits with any confidence. None of this suggests that fuel prices and extreme weather are the only drivers of the tomato price surge. The gap between wholesale and retail prices tells another part of the story. In late July, for example, wholesale tomato prices in several parts of the country averaged around Rs 150 per kg, while consumers in the same cities were paying Rs 300–400 per kg at retail markets. Such a wide margin cannot be explained by transportation and handling costs alone. Instead, it suggests that supply disruptions and rising costs created the conditions for prices to spike, while weak market oversight and inefficient retail supply chains allowed those increases to be amplified before they reached consumers. The more challenging question is what comes next. Unfortunately, there is little reason to believe this year’s turmoil will be shortlived. Major international forecasts suggest that global oil markets are likely to remain volatile. The World Bank expects crude oil prices to stay elevated through 2026, while disruptions to shipping through the Strait of Hormuz could continue until the end of the year. This volatil-
membership requirements. Moreover, the regional impacts are also important. India’s accession would bolster its status in the international arena and would give further fuel to the fire of the international nonproliferation regime being selective towards the nuclear club. These perceptions will drive strategic actions. If it is not treated equally, it can lead to mistrust, increase strategic competition, and make an already complex and vulnerable deterrence situation in South Asia more difficult. Supporters also say that India’s export control record is favorable for it to be a member, ignoring India’s nuclear black market. However, export control regimes are not responsible for replacing the legal system that serves as the backbone of the global nonproliferation regime. The difference between legal commitments and political assurances becomes more blurred if voluntary compliance is equated with treaty obligations, while ignoring India’s status as an irresponsible nuclear state. This has the potential of undermining the legitimacy of international institutions established on mutual rules and commitments. The NSG bid is thus a challenge to international institutions to stand up for their own principles or to let geopolitics shape them. In the short term, an exception for India will serve India’s strategic needs but will undermine the credibility of the NSG and the entire non-proliferation regime. The NSG was created to enhance nuclear governance on the international level by a level playing field, not by exceptions. The organization may well be compromising its core values in the name of strategic interests to the extent that the rules are bent.
The NSG bid is thus a challenge to international institutions to stand up for their own principles or to let geopolitics shape them. In the short term, an exception for India will serve India’s strategic needs but will undermine the credibility of the NSG and the entire non-proliferation regime.
A pattern, not an accident
AST year in July, a kilogram of tomatoes cost around Rs 100. Even in April this year, the price had barely changed, still averaging around Rs 90. Then, within a few weeks, the prices skyrocketed. By late July, the same kilogram was selling for Rs 400 to Rs 550. In Peshawar, tomatoes that sold for Rs 60 in early June had touched Rs 300 before the month was out. In Islamabad and Karachi, the prices were even higher. These numbers are more than just an economist’s curiosity; they reveal fragility in Pakistan’s food system that needs a lasting solution. What makes this year noteworthy is not that it happened, but that it keeps happening in a strikingly similar way. Look closely, and 2026 reads less like a one-off accident and more like the latest turn of a pattern: a thin, seasonal supply gap meeting a climate shock and an energy shock at once, just as it did in 2022 and again in 2025. Tomatoes cannot be stored like wheat; they must be picked, moved, and sold within days, so the market depends on a relay of harvests from different regions. Balochistan supplies roughly 40 percent of national output, Sindh the largest cultivated area, and Khyber Pakhtunkhwa, led by Swat, over half its province’s crop. But these regions do not harvest together. Sindh’s crop winds down by April; the KP/Punjab crop is mostly consumed locally. That leaves a narrow window, roughly June to early September, when Balochistan alone carries the national supply before Sindh’s new crop arrives. Normally, stored supply and a trickle of imports bridge this quietly; this year, the bridge collapsed under three shocks at once. This is not new. In 2022, monsoon floods destroyed roughly 80 percent of the tomato crop, pushing prices up 300 percent, just as a domestic fuel-subsidy withdrawal pushed petrol up 40 percent in a week. In late 2025, closure of the Torkham and Chaman crossings with Afghanistan cut off supply and was blamed for a roughly 400 percent tomato price surge. July 2013 saw tomato prices rise 247 percent, again amid weather and fuel disruption. Across all four episodes, the supply chain has almost no slack left once any one of three things goes wrong: a bad monsoon in KP or Balochistan, a closed border, or a diesel spike. This year, all three hit together. Traders and growers this year have been explicit that Balochistan’s crop alone was insufficient to meet national demand, and that imports from Iran have done little to close the gap. This challenge was compounded by frequent road closures and the deteriorating law-and-order situation in Balochistan, echoing last autumn’s Afghan border closures., an episode that cost traders an estimated $200 million in the first 24 days alone. The recurring US–Iran conflict and the closure of the Strait of Hormuz has pushed Pakistan onto a weekly, and then daily, fuel price
Thursday, 13 August, 2026
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SINCE the planet has already suffered a lot at the hands of plastic pollution, it is imperative to recognise the significance of biodegradation as one of the most promising solutions to curb the plastic menace. As a bioremediation strategy, biodegradation of plastic simply means the use of microorganisms, including bacteria, fungi and other such organisms, that have the capability of degrading petroleum-based plastic in a manner that would render the synthetic plastic degraded in the environment. Such microbial strains are present ubiquitously in those environments where plastics are dumped, such as landfills. And, with overflowing landfills littered across Pakistan, we really need to take biodegradation seriously. Researchers have not only isolated such strains, but also managed to produce genetically modified bacteria/fungi capable of easily degrading synthetic plastics. Even the microbial enzymes of such microorganisms have been employed for purposes like studying the intricacies of the biodegradation process to make it more effective in the future. Pakistan is among the countries where the use and misuse of plastic allow the environment to host microbial strains that are capable of decomposing plastic. Having a keen and professional interest in this field, I myself have isolated and identified several bacterial and fungal strains in my research. The optimisation of biodegradation process, I think, can be exploited in an industrial setup where synthetic plastics would be degraded in the same manner as biological and micro-biological systems are used to treat industrial wastewater. The dearth of resources and government’s assistance are the only hindrances, otherwise Pakistan surely has the potential to streamline an effective plastic waste management plan pivoted around bio-degradation, and become a global leader in this regard. Of all plastic waste management tech-niques, including incineration, landfilling and recycling, biodegradation is the most eco-friendly process of getting rid of hazardous plastics. The government should encourage research to explore plastic degrading microorganisms, and optimise the process of biodegradation to get effective outcomes. SAMAN AFTAB LAHORE
Merit lost in workplaces
IT has been nearly seven years since I graduated from one of the leading academic institutions in the country. As a student, I often believed that the concepts we studied would be directly applied in practical life. However, after six years in my career, I realise that the real world is vastly different from the world of theory. People often emphasise that hard work is the key to achieving top positions in reputable companies. In my experience, however, merit often holds little value in Pakistan’s corporate world. Despite all your efforts and qualifications, chance are you may still find yourself surrounded by individuals not having even the basic knowledge of the industry. Their understanding is so flawed that it makes one question the very foundation of the organisation that hired them. The competent lost suffers in such an organisational culture. Rather than being rewarded for improving operations, you are burdened with even more work, while others merely coast along, passing time and enjoying the benefits. The major issue in Pakistan is not just lack of education. In fact, more people are educated holding academic degrees today than ever before — many even having PhDs. The real problem is a lack of moral upbringing, ethical grounding and proper guidance; the values that are critical to personal and professional integrity. It is also quite troubling to observe the prevalence of nepotism in public-sector organisations, where entire families are employed. While family-owned enterprises are a recognised concept, it is alarming to see similar practices in public-sector organisations. With things being what they are, how can we hope to move forward? OMAR MASOOD KHAN ISLAMABAD
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Thursday, 13 August, 2026
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COMMENT 05
Pakistan’s low equilibrium trap Change the game, not just the players
azhar Dogar
N 1956, American economist Richard Nelson described what he called the “low level equilibrium trap”: a condition in which poor economies remain stuck because the forces keeping income, investment and productivity low reinforce one another. Since independence in 1947, Pakistan appears to be caught in a broader and more complicated version of Nelson’s problem. Its trap is not merely economic. It is simultaneously political, institutional and behavioural. And game theory may help explain why it has proved so difficult to escape. Pakistan’s predicament can be described as a self-reinforcing cycle. Weak institutions produce inconsistent policies, inconsistent policies discourage investment, low investment suppresses productivity and exports, weak productivity limits incomes and fiscal capacity, external imbalances eventually produce crisis. Crisis in turn forces stabilization, external assistance provides breathing space and when the immediate danger passes, reform momentum fades. Another political or economic cycle then begins and much of the policy clock is reset. Pakistan repeatedly obtains stabilization without transformation. This matters because Pakistan’s fundamental problem has rarely been a shortage of economic prescriptions. Governments, economists, commissions, the IMF, World Bank and private sector have broadly identified the same reforms for decades that include broaden taxation, control fiscal deficits, restructure or privatize failing state enterprises, improve energy markets, raise exports, attract investment, strengthen education and health, professionalize the bureaucracy, improve rule of law and increase productivity. Pakistan broadly knows what it needs to do. What it has consistently failed to create is a mechanism capable of sustaining those objectives through changes of government, prime minister, army chief, finance minister, political coalition and economic cycle. This is where game theory adds an important dimension to Nelson’s idea. Game theory examines how rational actors behave when their choices depend on what other actors are expected to do. An equilibrium can emerge in which no major player has sufficient incentive to change its behaviour unilaterally, even though virtually everyone would be better off if the rules and incentives were different. In other words, a bad equilibrium can be perfectly stable. Pakistan increasingly resembles such a system.
Consider its principal institutional players, political parties, the military establishment, bureaucracy, judiciary, provincial elites, business groups, landed interests, state owned enterprises and other organized constituencies. Each knows, at least broadly, that Pakistan would benefit from stronger institutions, predictable rules, wider taxation, greater competition and sustained economic reform. But each also asks a rational question: why should I surrender my advantage if others retain theirs? A political party that abandons patronage while its rivals continue using it may weaken itself. A business that pays every tax while competitors obtain exemptions or evade taxation may become less competitive. A politician who voluntarily accepts institutional restraint may fear that opponents will not reciprocate. A bureaucracy that gives up discretionary authority loses influence. Protected industries may collectively favour a stronger economy but individually prefer tariffs, subsidies and regulatory protection. Provinces want greater fiscal autonomy but may resist greater revenue responsibility. The military may recognize the costs of political involvement while simultaneously fearing that withdrawing influence leaves national interests exposed to actors it distrusts. Thus, behaviour that is damaging collectively may remain rational individually. This helps explain why Pakistan repeatedly changes governments without fundamentally changing outcomes. The problem is not simply that the wrong people keep occupying the right institutions. The deeper problem is that the existing incentive structure can induce different people to behave in remarkably similar ways once they enter the system. Pakistan’s political history reinforces the equilibrium. Military takeovers, premature civilian dismissals, hybrid arrangements and uncertain governmental tenures have repeatedly shortened decision makers’ time horizons. Between 1988 and 2000, governments changed repeatedly before completing normal terms. In such an environment, political actors naturally discount the future. The return from a difficult reform that pays off in ten years is less attractive when a government is uncertain it will survive two. Pakistan also suffers from a distinctive separation between power and accountability. Influence has historically been dispersed among elected governments, military leadership, bureaucracy, judiciary, provinces and entrenched economic interests, while formal responsibility for economic performance usually falls upon the government of the day. When actors possessing significant influence cannot easily be held accountable for outcomes, and those accountable do not necessarily possess full authority, reform becomes harder. Yet Pakistan’s relationship with China demonstrates the opposite possibility
where major centres of national power agree on an objective, policy continuity can survive changes in government. The economic consequences are visible. Pakistan’s exports have fallen from roughly 16 percent of GDP in the 1990s to around 10 percent in 2024, while investment and productivity remain chronically weak. Growth has too often depended on consumption, imports, borrowing, remittances or temporary external inflows rather than sustained productivity increases. When growth accelerates, imports rise, external imbalances reappear, reserves fall and Pakistan eventually returns to stabilization. Yet Pakistan has repeatedly reached the edge without falling over it. This is partly because Pakistan possesses something many economically fragile states do not, and that is its extraordinary strategic relevance. It borders India and Afghanistan, sits near the Gulf, maintains a deep strategic relationship with China, possesses nuclear weapons and has longstanding relationships with the USA and the Gulf states. During the Cold War, Pakistan’s geography made it valuable to Western strategy. After the Soviet invasion of Afghanistan, it became a frontline state. After September 11, its location again became critical to US operations in Afghanistan. More recently, China, Saudi Arabia, the UAE and international financial institutions have repeatedly provided financing, deposits, rollovers or other support. None of this guarantees Pakistan a bailout. Assistance carries conditions and geopolitical relationships change. But Pakistan’s size, strategic location and nuclear status mean that severe instability carries consequences far beyond its borders. The international system therefore has strong incentives to prevent disorderly collapse. Paradoxically, this creates a form of moral hazard. Pakistan is important enough that others repeatedly have reasons to help stabilize it, but that very breathing space can weaken the urgency to undertake reforms to rescue unnecessary. Geography repeatedly buys Pakistan time. Pakistan repeatedly spends the time rather than transforming itself. Game theory therefore reveals the central weakness in conventional reform programmes. Asking everyone simply to behave better is unlikely to work when the payoff structure rewards something else. The solution is not merely to persuade players to cooperate within the existing game. It is to change the game itself. Pakistan must first change economic incentives. Tax evasion should become more expensive than compliance. Investment in productivity should become more profitable than lobbying for protection. Professional management of state enterprises should be rewarded, abd persistent losses punished. Regulatory discretion should shrink and transparent rules should expand. Political
success should increasingly depend upon measurable delivery rather than patronage. Second, Pakistan must change expectations about the future. Game theory shows that cooperation becomes easier in repeated interactions when actors believe the rules will endure. Pakistan therefore needs a 15to 20-year National Transformation Compact that defines perhaps 10 to 15 national outcomes and not hundreds of disparate policies. These should include sustainable debt and taxation, exports and investment, productivity, energy reform, learning outcomes, health, technology, human capital management and institutional performance. Governments must remain free to disagree about how those targets are achieved. One may prefer privatization, another public private partnerships. That is legitimate politics. But governments should not repeatedly reverse the national destination. Third Pakistan must build an execution state with a national operating and delivery system that actually works. Every national objective should have one accountable owner, a baseline, measurable annual targets, quarterly milestones and independently verifiable data. The operating chain should be simple, including policy, owner, target, data, accountability and correction. A small professional delivery architecture should monitor outcomes while ministries, provinces and local governments execute them. The centre should not attempt to run every school, hospital or municipality, responsibility should move downward together with financing and accountability. The most difficult question remains who can move Pakistan from its existing equilibrium to a better one. Here Pakistan cannot ignore political reality and lack of options for now. The military remains its most powerful and organizationally cohesive institution. It could therefore play an important role in coordinating the shift from one equilibrium to another by helping convene and guarantee a national transformation compact. But that role has to be carefully defined. The military should be a catalyst and strategic guarantor, not the permanent manager of the economy. If it merely imposes reform on politicians, bureaucrats and businesses while remaining the same, Pakistan will not have changed the game, it will simply have changed the dominant player. Herein lies Pakistan’s institutional Catch 22. The military may be the only institution powerful and cohesive enough to help break the existing equilibrium, yet its disproportionate role in politics is itself one of the factors preventing stronger civilian institutions from emerging. If it uses its power merely to assume greater control, it reinforces the very equilibrium it seeks to change. The challenge, therefore, is for the military to use its influence to help create a rules based system that ultimately reduces the need for its own political role. The more consequential bargain would be different. The military would use its in-
fluence to support a national agreement binding all major actors including itself to institutional continuity, meritocratic appointments, long term economic policies, regulatory stability and measurable national objectives. Execution would then remain with institutions capable of being held accountable including the federal government, provinces, ministries, regulators and professional agencies. Pakistan can borrow something valuable from military organization without militarizing government: long range planning, institutional memory, clear responsibility, logistics, measurable performance, periodic review and continuity despite personnel changes. The principle should be to import the discipline, not the command structure. For decades, Pakistan has treated defence, nuclear deterrence and relations with China as strategic interests that survive governments. Economic transformation deserves exactly the same continuity. In the 21st century, national security is not merely military capability. It is also fiscal strength, technological competence, educational attainment, energy security, exports, productivity and institutional capacity. Nelson’s low-equilibrium trap explains how an economy can become stuck. Game theory helps explain why Pakistan’s political economy keeps returning to that equilibrium. The players may change, governments may change and programmes may change, but if the underlying incentives remain intact, remarkably similar outcomes will continue to emerge. The politician must gain more from delivering than manipulating. The businessman must gain more from competing than lobbying. The bureaucrat must advance through performance rather than patronage. Provinces must gain resources alongside responsibility. The military must derive institutional strength from Pakistan’s economic success rather than political management. And citizens must be able to judge all of them through transparent outcomes. Pakistan’s deepest challenge is therefore not simply to find better players. It is to change the game so that what is rational for Pakistan’s powerful actors increasingly becomes what is good for Pakistan itself. Only then will the country move from repeated stabilization to genuine transformation and finally escape its low equilibrium trap.
The author is a senior international banker, with degrees in economics and political science from University of Pennsylvania and Brown University
Oman and the political economy of the Strait of Hormuz
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Oman’s dealings with Israel are the least understood part of this, and the most exaggerated
Staying neutral does not keep a Oman is not safe because it is well defended. It is safe because hitting it country safe; it only limits the damage serves nobody. No amount of Emirati spending on air defence buys that
MIDDLE EAST MONITOR Nouroz KhaN BijaraNi
ULF states have answered Iranian pressure in two very different ways. Saudi Arabia and the United Arab Emirates bought protection: air defence systems, advanced fighter jets, protected air bases. Oman bought access instead. It refused to join the Saudi-led war in Yemen, refused to join the 2017 blockade of Qatar, and kept an open line to Tehran throughout. Commentators sum this up with one label: Oman as the Switzerland of the Gulf. The label is wrong in one important way. Switzerland was never bombed by a country it was mediating with. Oman has been. Even so, Oman has come out of the worst year in modern Gulf history with stronger public finances, an intact diplomatic role, and a legal position that means the Strait of Hormuz cannot be settled without its agreement. This is design, not luck. It rests on three supports, and all three are under more pressure now than at any time since 1970. The numbers set out the first support. The International Monetary Fund has raised its 2026 growth forecast for Oman to 3.7 per cent, up from 2.4 per cent in 2025. It expects a budget surplus of 4.5 per cent of GDP, and it put government debt at 34.7 per cent at the end of 2025. The reason matters more than the figures. Omani oil and gas facilities came through the war largely undamaged, so Muscat could raise production and exports at the very moment supply elsewhere collapsed. The Emirates show the contrast. The chief executive of ADNOC has estimated that the closure has cost more than one billion barrels, with roughly 100 million more lost every week, and that flows will not be normal until 2027. Abu Dhabi has answered with construction rather than diplomacy. The West-East pipeline to Fujairah is about half built, and it is meant to push total Emirati bypass capacity past 5.5 million barrels a day. Oman’s ports sit somewhere different. Duqm, roughly 500 kilometres beyond the strait, has drawn about $30 billion in committed investment, and Iraq has revived plans for a Basra-Duqm pipeline able to carry 2.5 million barrels a day. The common claim that Duqm has taken business from Emirati ports does not hold up, however. Jebel Ali sits inside the Gulf and is no bypass at all, and Fujairah, the real bypass, remains far larger. Duqm gives Oman an option, not an edge over its neighbours, and that option grows more valuable every time the strait looks unsafe. Oman’s second support is its near-monopoly on talking to both sides. Muscat hosted the secret AmericanIranian meetings of 2013 that led to the 2015 nuclear deal. It arranged the 2023 swap of five American detainees for Iranian access to $6 billion in frozen funds. It did much of the preparatory work before Saudi Arabia and Iran restored relations, and it ran the main channel to the Houthi leadership during the Yemen war. Five rounds of American-Iranian nuclear talks were held in Oman from April 2025, with further rounds in Muscat in February 2026.
Oman’s dealings with Israel are the least understood part of this, and the most exaggerated. Benjamin Netanyahu did visit Sultan Qaboos in October 2018, travelling with Mossad director Yossi Cohen, and Oman did open its airspace to Israeli airlines in February 2023. Neither step was normalisation, and neither was meant to be. Muscat told the Palestinian Authority at the same time that formal ties would not follow, and academic work on Omani policy treats that refusal as permanent rather than tactical. The Israeli channel is kept deliberately below the level of recognition. It buys American patience without costing Oman Iranian trust. Leaving it unfinished is the whole point. Geography and maritime law supply the third support. At its narrowest, the Strait of Hormuz is 21 nautical miles wide, between the Iranian island of Qeshm and Oman’s Musandam exclave. The shipping scheme set by the International Maritime Organization has two lanes, each two nautical miles wide, with a two-mile buffer between them. All of it lies inside Omani waters, because the 1968 Iran-Oman seabed agreement drew the boundary so that the deep-water channels fall on Oman’s side. This explains the current talks. Tehran and Muscat have agreed coordinates for a system in which ships enter through Iranian waters and leave through Omani waters, with Oman managing the outbound traffic. Neither an American blockade nor an Iranian closure can be resolved without Oman. Security works the same way. The Strategic Framework Agreement of March 2019 gave American forces access to Duqm and Salalah. Oman signed a military memorandum with Iran within weeks. There is a cost to this arrangement. Iranian drones hit Duqm on 1 and 3 March 2026, damaging a fuel tank and a workers’ housing unit, and the Revolutionary
Guard said it was aiming at American logistics facilities. Salalah was hit too, and a projectile later struck a house at Bukha in Musandam. The same asset that buys American goodwill is what exposes Oman to Iranian fire. Chatham House drew the right lesson from Oman’s position in eastern Yemen. Staying neutral does not keep a country safe; it only limits the damage. Two things limit this strategy in the short term. American patience is running out: President Trump warned on 27 May 2026 that Oman would fall into line over the strait or be attacked, and the Treasury Secretary threatened heavy sanctions the next day. The model also depends on trouble. Calling Oman a conflict profiteer would be unfair, given the effort it has spent trying to end the war, but Duqm’s value and Muscat’s diplomatic weight both rise when the region is unstable and fall when it calms. Neither limit is as serious as it looks, for three reasons. The first is the record of the war itself. ACLED counted more than 660 Iranian retaliatory attacks across the Gulf, killing at least 41 people. The Emirates were hit hardest, Kuwait lost the most lives, and Oman was hit least, which ACLED puts down to its channels to Tehran. The financial damage followed the physical damage. Fitch placed Qatar’s AA rating on negative watch after the strikes on Ras Laffan, and marine warrisk premiums for Gulf voyages roughly tripled. IMF figures from April show Oman growing alongside Saudi Arabia and the Emirates, while Bahrain, Kuwait and Qatar contract. Insurers and investors are now pricing the next decade of Gulf risk, and the war has just shown them which Gulf state is least worth attacking. Oman is not safe because it is well defended. It is safe because
hitting it serves nobody. No amount of Emirati spending on air defence buys that. The second is American posture. The United States had already started shifting towards more dispersed basing along the Red Sea and the Mediterranean, because fixed Gulf bases sit inside Iranian missile range. Kuwait is reportedly under review, and the President has declined to say whether American forces will stay there or in Bahrain. A thinner American presence leaves Israel and the Emirates as the region’s preferred instruments, backed from a distance rather than garrisoned. Oman has never sought that role and could not take it. Its position is simpler and more permanent. Iran will still be 21 nautical miles away long after the last carrier leaves. The third is the nature of the channel. Muscat answers a structural problem rather than a political one: every American government eventually needs to talk to Tehran without appearing to talk to Tehran. Obama used Oman in 2013, Biden in 2023, and the present administration in 2025, before deciding to bomb instead. It leaves office in January 2029. Its successor will inherit the same problem and the same very short list of capitals able to help with it. Oman’s difficulty is therefore one of timing, not of design. It has to survive an administration that has lost patience with it, and it has to manage a neighbour it can neither deter nor escape. But the two assets underneath the strategy are not in anyone’s gift to remove: a coastline without which the strait cannot be settled, and a working relationship with Tehran that neither side has reason to break. Muscat’s problem is the next two years. Its position after that is stronger than that of any other capital in the Gulf.
MELANIA TRUMP DISCOVERED TO BE RUSSIAN LISTENING DEVICE SATIRE
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Kremlin spies on president with microphone disguised as tall Slavic woman THE ONION
N what is being described as a major breach of White House security protocol, the National Security Agency reportedly uncovered evidence Friday that first lady Melania Trump was a Russian listening device. “A sweep by intelligence officials has revealed that Mrs. Trump is in fact an espionage tool deployed by Russia to record President Trump while blending in seamlessly among his inner circle,” said NSA director Joshua Rudd, explaining that the surveillance apparatus disguised through the years as
a Slovenian model and, later, the first lady was exposed only after sparks caused by improper wiring in her speaker were observed flying from her mouth. “The hidden microphone codenamed FLOTUS appears to have been used by the Kremlin to continually transmit audio data ever since being gifted to Donald Trump in 1998. We first suspected she might be part of a Russian monitoring effort due to the antennae protruding from her head and occasional disrupted speech patterns that sounded like interference from Moscow radio stations.” Rudd added that they were still trying to determine what the Russians intended to do with the 5,000 hours of voice recordings of an American president berating his wife to lose weight.
06 NEWS
COLOMBIA EARTHQUAKE DEATH TOLL HITS 254, WITH THOUSANDS LEFT HOMELESS
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Thursday, 13 August 2026 | ISLAMABAD
PEREIRA/CALI AGENICES
HE death toll from Colombia's powerful earthquake rose to 254 on Tuesday as rescuers raced against time to pull survivors from collapsed buildings across the country's western region. The 7.4-magnitude quake, the most devastating to strike Colombia this century, tore through its coffee-growing heartland early on Monday, leaving apartment blocks, homes, schools and health centres cracked, leaning or flattened. Separate reports from affected cities put the death toll at 254 on Tuesday morning, with 101 people killed in Pereira, deep in coffee country, and 95 in Cali, the country's third-biggest city. Many Indigenous communities in the forested Pacific-facing region of Choco close to the quake epicentre are still without power or basic services, complicating rescue efforts. The earthquake struck just days after the inauguration of new President Abelardo De La Espriella, who travelled to the affected regions and promised economic support to people who lost their homes. The National Coffee Federation was
working on the ground with families to assess damage to farms and rural infrastructure, its chief German Bahamon said on social media. Meanwhile, rescuers worked through Monday night and Tuesday with cranes, excavators and their bare hands, creating human chains and passing buckets filled with debris as they searched for people still trapped. NIGHTMARE SCENES Rosa Gonzalez described how she escaped the guest house she ran in Pereira with her husband and 10-month-old baby. "The structure started creaking and just as we ran outside the building collapsed," she said, speaking to Reuters as she stroked her cat, who was rescued during the night. She said that out of a couple of dozen people inside the house eight had made it out alive. An elderly man was trapped on a terrace, and she feared he may be among the dead. Social media influencer Jose Gallego had just arrived at Pereira airport when the earthquake struck. He was recording a live video, capturing footage of violent shaking as he crouched under a table and parts of the ceiling fell. "There were people injured, bleeding, screaming and trying to reach their families," he said. Gallego was unable to sleep and said
he was staying in open spaces in case of aftershocks. Nearly 100 aftershocks had been recorded as of early Tuesday morning. "I crossed the city on foot; it took two hours and the scenes were devastating," he told Reuters. "It was like a nightmare come to life." Thousands of people were left homeless as the earthquake brought down residential complexes and left deep cracks in others. Families were waiting for local authorities to assess whether the buildings were safe to re-enter. Dog and cat shelters also put out calls for food, medicine and helping hands. CHEERS FOR RESCUES In Cali, residents cooked on the streets and salvaged what they could from the wreckage. Rescue workers, civilian volunteers and local officials gathered outside the destroyed Torres del Limonar apartment complex, once a pair of multi-storey towers in a genteel, tree-lined neighbourhood. Crowds cheered as rescuers pulled a woman alive from the rubble and she was taken away on a stretcher. Others were less fortunate. Cali's public health secretary German Escobar said the city's morgue was now full and authorities were bringing more bodies off the streets. The earthquake also knocked out vital
infrastructure. Civil aviation authorities closed six airports — Quibdo, Pereira, Manizales, Armenia, Cartago and Buenaventura — due to damage, while dozens of roads were reported to be affected. Electricity, water, healthcare and phone service remained disrupted in several areas, especially in Choco. "The physical damages at the moment are unquantifiable," Choco governor Nubia Cordoba told local TV.
The US said it had allocated $15.5 million for emergency shelter, food, protection and damage assessments, while the Inter-American Development Bank said it had made $50 million immediately available for reconstruction support if requested. UN representatives said they were working to increase ground presence in the coffee-growing region and had stockpiles of food ready to help people made homeless.
Former Chinese premier Zhu Rongji dies at 97, remembered for transforming China's economy BEIJING
STAFF REPORT
Former Chinese premier Zhu Rongji, whose market-oriented reforms played a major role in accelerating China’s economic transformation and global integration, died in Beijing on Wednesday at the age of 97, Chinese state media reported. Zhu died late Wednesday morning after medical treatment failed to save him, according to the state-run Xinhua news agency. A joint obituary issued by China’s top political bodies described his life as one dedicated to the Communist Party of China (CPC), the country and public service. Zhu served as premier from 1998 to 2003 and became known for his tough approach to economic reform and restructuring. His tenure saw an extensive
programme to reform and privatise lossmaking state-owned enterprises, the privatisation of urban housing and policies promoting home ownership. His reforms helped fuel a prolonged
boom in China’s property and construction sectors and accelerated the transition towards a more market-oriented economy. Zhu also played a central role in steering China through the 1997 Asian financial crisis, helping the country maintain economic stability at a time when several regional economies were facing severe financial turmoil. One of his most significant achievements was his role in negotiations that paved the way for China’s accession to the World Trade Organisation (WTO) in 2001. The move further integrated China into global trade and investment networks and strengthened its emergence as a major manufacturing and trading power. Prime Minister Shehbaz Sharif expressed deep sorrow over Zhu’s death and conveyed condolences to Chinese President Xi Jinping, Premier Li Qiang, Zhu’s family and the Chinese people. “Deeply saddened by the passing of former Chinese premier Zhu Rongji, a great leader and a good friend of Pakistan,” the prime minister said, adding that Pakistan shared the grief of
its “iron brother” China. ‘OUTSTANDING LEADER’ A joint obituary hailed Zhu as an “outstanding member” of the Communist Party of China and a “long-tested and loyal communist fighter”, describing him as an outstanding leader of the Party and state. Zhu’s reform agenda lifted millions of people as China experienced rapid economic expansion, although it also contributed to widening economic inequalities and a property-driven growth model that later generated significant financial vulnerabilities. Under President Xi Jinping, China has sought a more balanced development model, with greater emphasis on reducing financial risks, addressing inequality and ensuring that private enterprise operates within broader national economic priorities. The official obituary called on the Chinese people to draw strength from Zhu’s revolutionary spirit, character and public service while rallying around the CPC Central Committee with Xi Jinping at its core.
Peace at borders 'pre-requisite for normal ties', India tells China MANILA
AGENCIES
Indian Foreign Minister S Jaishankar said on Wednesday that he told his Chinese counterpart Wang Yi that the neighbours should tackle key aspects of relations, such as fair market access and trade balance, in New Delhi's effort to repair ties with Beijing. The remarks came during a meeting with his Chinese counterpart in the Philippine capital of Manila, which is hosting the Association of Southeast Asian Nations (ASEAN) Foreign Ministers' Meeting and related meetings through Friday. "We believe that a stable and cooperative relationship can best be developed based on mutual respect, mutual interest and mutual sensitivity. Such a relationship can make a valuable contribution to a multi-polar Asia and a multi-polar world," he said. Relations between the nuclear-
armed nations improved in 2024, ending years of friction dating from a border clash in 2020, after talks between Prime Minister Narendra Modi and Chinese President Xi Jinping in October 2024. "There are also concerns about predictability of supply chains ... We also need to agree on the meetings of various mechanisms and platforms as per our mutual priorities," Jaishankar said on X. "Peace and tranquillity in the border areas is obviously the prerequisite for normal ties," Jaishankar added after the meeting, held on the sidelines of a regional gathering in the Philippine capital of Manila. "Since October 2024, both sides have engaged to ensure that important objective. This will continue to need our constant attention." India and China have resumed direct flights, and New Delhi has cut red tape to speed up approvals of business visas for Chinese professionals since October 2024.
Trump says his plane faced 'greater risk' in secret flight change ANKARA
US President Donald Trump said on Wednesday he secretly switched planes in Turkey last month at the direction of the US Secret Service, but that the plane he ultimately flew on was still more vulnerable than Air Force One. Following a Nato summit in Ankara, Trump was transferred from Air Force One to a military plane via a catering truck in an extraordinary deception prompted by an Iranian assassination threat, US media reported. The White House did not disclose the change and it remained a secret until the Washington Post first reported it on Monday. Some media commentators questioned whether the operation left Trump's aides and journalists travelling with him at risk aboard the plane presumed to be carrying the president. "I think actually the plane that I flew on was at greater risk," Trump told reporters on Tuesday. "I think it was at greater risk because that would be the plane I think that they would be more likely to go for." After a day of social media memes portraying Trump as hiding out in the catering truck, the image-conscious president, who often promotes memes of himself as a bold and courageous leader, said he was following the direction of the Secret Service, the agency that protects the president. "Well, it's only up to the Secret Service. I just follow what they'd like to do, so I go by Secret Service and the military," Trump said. "I guess there was a threat out there. I didn't really ask too much about it. I get a lot of threats," Trump said. The White House said at the time that the president was flying aboard Air Force One from Turkey to Britain. But moments after Trump boarded the plane, he left it in secret via the catering truck and boarded another aircraft for the flight to Britain, the Post said on Monday, quoting unnamed sources. Trump had taken a newly renovated Qatari-donated jet to Ankara for the Nato summit but unexpectedly announced he would use an older Air Force One when departing the country, a move that prompted questions about the newer plane's security.
Trump says US has 'total control' over Strait of Hormuz WASHINGTON AGENCIES
US President Donald Trump on Wednesday said that American forces will likely maintain their presence in the Strait of Hormuz, adding that Washington maintains absolute authority over the strategic waterway. “The USA has total control over the Strait of Hormuz. I think we will keep it,” Trump wrote on his social media platform Truth Social. Trump characterised the ongoing naval blockade as a “wall of steel,” adding that "there is nothing Iran can do about it.” He alleged that Iran's military capabilities had been neutralised, with the Islamic Revolutionary Guard Corps (IRGC) "decimated and fleeing." Trump described Iran’s economy as being in a state of collapse. “All they have is fake news and 300% inflation, and getting worse! Iran is all talk and no action, the bully of the Middle East no longer,” he said.
Iran says no progress on reviving interim peace deal with US Iran and the United States remain at loggerheads over efforts to agree a permanent end to the war in the Gulf, according to a senior Iranian source who said there had been no progress in talks to revive the interim deal agreed in June and define a timeframe to implement it. The comments were a further blow to hopes of a swift resolution to the crisis, following attacks on shipping in the region on Tuesday that pushed oil prices higher.
AGENCIES
The deal agreed in June declared an "immediate and permanent termination of military operations on all fronts", but quickly unravelled, with US President Donald Trump saying it was "over" on July 7 and Iran's foreign ministry declaring it "suspended" a week later. The US accuses Iran of failing to honour an agreement under the deal to reopen the vital Strait of Hormuz shipping route. Tehran says Washington has reneged on its commitments, including lifting a blockade of
Iranian ports and releasing frozen Iranian assets. "One of the issues that is being discussed via mediators is the US returning to the interim agreement and defining a timeframe for implementing the commitments. There has been absolutely no progress on this issue," the Iranian source said. There was no immediate comment from Washington. Thousands of people have been killed in the conflict, mainly in Iran and Lebanon, since the US and Israel launched attacks on Iran on February 28. Iran has struck US assets and infrastructure in countries including Oman, Jordan, Kuwait, Israel, the United Arab Emirates and Saudi Arabia. BOTH SIDES STEP UP RHETORIC The June interim ceasefire agreement set a 60-day period, extendable by mutual consent, within which Iran and the US were expected to reach a final deal limiting Tehran's nuclear programme and lifting US sanctions.
NEWS 07
Thursday, 13 August, 2026 | ISLAMABAD
PUNJAB, US MOVE TO DEEPEN COOPERATION IN SECURITY, AI, ENERGY, INVESTMENT
CORPORATE CORNER
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CUI brings researchers, policymakers together to examine solar radiation modification ISLAMABAD
STAFF REPORT
COMSATS University Islamabad (CUI) brought together senior policymakers, scientists, public health experts and international partners at a oneday workshop to examine emerging research on Solar Radiation Modification (SRM) and its possible implications for climate, health and policymaking in Pakistan. The workshop, titled “Dissemination of SRM Research Findings and Sensitisation of Policymakers in Pakistan,” was graced by Prof. Dr. Raheel Qamar, T.I., Rector, CUI. Among the distinguished participants were Ms. Mowmita Basak Mow of The Degrees Initiative, UK; Ambassador Shafqat Kakakhel, Chairperson, SDPI; Ms. Zakya Rubab, Ministry of Climate Change and Environmental Coordination; Dr. Zaheer Ahmed Babar, Director General, Pakistan Meteorological Department; and Prof. Dr. Azra Yasmin, Pro-Vice Chancellor, Fatima Jinnah Women University, besides representatives of major national institutions and universities. Organized by the Department of Meteorology, CUI, with support from The Degrees Initiative, the workshop presented findings from Pakistan-based research on climate responses and drought under SRM, malaria transmission and vector-borne diseases.
Daikin makes history in Pakistan with world-first CKD Assembly Initiative ISLAMABAD
STAFF REPORT
A new chapter in Pakistan’s air-conditioning industry has begun as MIA Industries Pvt. Ltd., the assembly arm of MIA Group of Companies, announces the commencement of local assembly of Daikin residential air conditioners on a Completely Knocked Down (CKD) basis. The landmark initiative was unveiled at Daikin ReConnect 2026 in Islamabad, bringing together Daikin’s senior leadership, MIA’s nationwide dealer network, business partners and industry leaders. The event was attended by Mr. Toshiharu Tsurumaru, Chief Operating Officer, Daikin Malaysia, along with senior Daikin officials. Mr. Yousaf Hassan, President, HVACR Society of Pakistan, attended as Chief Guest, while H.E. Ambassador Dato’ Mohammad Azhar Mazlan, High Commissioner of Malaysia to Pakistan, graced the occasion as Guest of Honor. For MIA, the initiative marks the next chapter in a longstanding relationship with Daikin built on trust, performance and a shared commitment to quality.
PSW, Sindh Board of Revenue sign service level agreement for Digital Collection of Stamp Duty KARACHI
STAFF REPORT
Pakistan Single Window (PSW) signed a Service Level Agreement (SLA) with the Board of Revenue Sindh (BoRS), formalizing arrangements for the digital collection of Sindh Stamp Duty through the PSW platform. The SLA was signed by Mr. Naveed Abbas Memon, Chief Domain Officer PSW, and Mr. Nazir Ahmed Qureshi, Member RS&EP Board of Revenue Sindh. Senior officials from the BoRS and PSW also attended the signing ceremony held in Karachi. The signing ceremony was graced by Mr. Khalid Haider Shah, Senior Member, Board of Revenue. The agreement marks the transition of the existing electronic stamp duty collection arrangement from Pakistan Revenue Automation Limited (PRAL) to PSW, with the service now being supported through PSW's modern digital infrastructure.
CM MARYAM, US ENVOY NATALIE BAKER AGREE TO ENGAGE AMERICAN EXPERTS TO TACKLE FLOODS, SMOG LAHORE
SALEEM JADOON
S Chargé d’Affaires Natalie Baker called on Punjab Chief Minister Maryam Nawaz on Wednesday and discussed strengthening cooperation in education, security and investment, with both sides reaffirming their shared commitment to expanding collaboration in key areas, including security, artificial intelligence (AI), digital assets and energy. The two sides also agreed to engage US experts to help Punjab address major environmental challenges, particularly floods and smog, while reviewing a proposal to hold a Punjab-US Business and Investment Forum in Lahore, according to a statement issued by the Chief Minister’s Office (CMO). During the meeting, the US envoy paid tribute to Chief Minister Maryam Nawaz for her initiatives aimed at women’s empowerment and appreciated the holding of the Basant festival in Lahore, particularly the Punjab government’s measures to ensure a safe
celebration. “I like Pakistan very much, particularly the people of Punjab and Lahore, who are very lively,” the CMO said quoting the US Chargé d’Affaires as saying. Speaking on the occasion, Chief Minister Maryam Nawaz said the Basant festival would be further expanded next year. “We are taking legal measures to empower women in Punjab,” she said, adding that the provincial government was formulating policies for development while also taking measures to address environmental challenges. The chief minister said around one million overseas Pakistanis from Punjab living in the United States were a valuable asset for the country, the statement said. “Advance measures during the monsoon and the establishment of district WASAs have made it possible to drain rainwater quickly,” she said. “Punjab is changing, and its cities and villages are being reformed,” the chief minister said. As Pakistan’s first woman chief minister, she said she had transformed women’s empowerment from a symbolic commitment into practical measures.
She said an electric scooter scheme and electrobus service had been launched to facilitate women’s mobility across Punjab.“Interest-free loans are being provided for small businesses to help women move towards financial independence. The Direct Pink Button and Virtual Police Station are pioneering initiatives for women’s protection,” she said. Meanwhile, Chief Minister Maryam Nawaz, in her message on International Youth Day, reiterated her resolve to address the issues confronting young people and equip them with education and skills to help them contribute positively to the country and the world. The chief minister urged young peo-
More Than Half of Tobacco Leaf May Be Going to the Illicit Market
Greater transparency in tobacco procurement, documentation and movement could help authorities identify gaps in the supply chain and determine whether tobacco is being diverted into channels that remain outside the formal tax system”, said Osama Siddiqui, a macroeconomic analyst. Addressing this gap will require stronger enforcement across the tobacco supply chain during the threshing season. This includes effective deployment of enforcement personnel at Green Leaf Threshing Units (GLTUs), closer monitoring of advance withholding tax compliance, intensified action against illicit manufacturers and coordinated action by provincial police against unstamped cigarette packs. A coordinated approach across federal and provincial authorities could help strengthen oversight from the point of tobacco procurement to the final sale of cigarettes. He added that given the size of the formal tobacco market and the continued scale of illicit trade, stronger enforcement could unlock significant additional revenue for the government.
Khushhali Microfinance Bank Celebrates 26th Anniversary
Matnsaz launches on android, bringing a modern urdu typing experience to millions more users
Pakistan and China agree to develop world-class skills for CPEC jobs
Punjab launches biggest-ever shrimp farming project to drive exports
STAFF REPORT
STAFF REPORT
STAFF REPORT
ISLAMABAD
STAFF REPORT
Pakistan’s tobacco sector is among the country’s most closely regulated industries, yet the illicit market has continued to expand in recent years. The illicit market share is now estimated at more than 53%, resulting in annual economic losses of over Rs300 billion. Tobacco is an important cash crop in Pakistan, particularly in Khyber Pakhtunkhwa, including the districts of Mardan and Swabi etc. Farmers cultivate millions of kilograms of tobacco each year. In 2025, total tobacco production stood at around 140 million kg. According to the Pakistan Tobacco Board (PTB), tobacco companies declared a combined requirement of 74.58 million kg for 2025. Of this, two multinational companies procured around 68 million kg for cigarette manufacturing and exports, including surplus tobacco procured on the direction of the PTB. The companies had initially declared a requirement of around 47 million kg but subsequently purchased additional quantities within their
permitted buying capacity following the PTB’s direction. This raises questions about the destination of the remaining tobacco produced in the country. More than 50% of the quantity is procured by local manufacturers, where concerns have been raised regarding the documentation of purchases, payments to farmers and the subsequent use of the tobacco. Where such transactions remain outside the formal system, the tobacco can enter cigarette manufacturing or other channels without being fully reflected in official records or generating the corresponding tax revenues. Recently, FBR data revealed that the tobacco sector contributed around Rs357 billion in Federal Excise Duty (FED), sales tax and income tax during 2025-26. Of this, the two multinational companies collectively contributed around Rs313 billion, while the remaining amount was paid by more than 70 local companies. “The disparity in tax contributions, when viewed alongside the scale of tobacco procurement, warrants closer scrutiny of the local manufacturing segment.
LAHORE
Matnsaz, the innovative Urdu keyboard, is now officially available on Android, bringing its modern Urdu typing experience to the world's largest mobile platform. Originally launched on iOS following years of research and development, Matnsaz was created to rethink how Urdu is typed on digital devices. By redesigning the keyboard around the structure of the Urdu script itself, Matnsaz makes typing faster, more intuitive and better suited to modern mobile devices. "Urdu software today is deeply unsatisfactory, it relies on English paradigms and is not designed for users that have never used computers in English" said Zeerak Ahmed. "More Urdu speakers are now using phones and the internet than ever before. Relying on Western paradigms for how we design software in our own language is not enough. We need to rethink everything natively. With our Android release, we are proud to bring this work to so many more Urdu speakers." Matnsaz utilizes a simple, shape-based keyboard.
ISLAMABAD
Pakistan and China have agreed to provide Pakistani youth with world-class technical skills in line with the requirements of Chinese investment under the next phase of the China-Pakistan Economic Corridor (CPEC). The understanding was reached during a meeting between former Chairperson of the National Vocational and Technical Training Commission (NAVTTC) Gulmina Bilal Ahmad and PowerChina Pakistan Country Director for PowerChina Eurasia Mr Su Dong and Commercial Manager of PowerChina International Group Limited Ms Sun Kai. During the meeting, Gulmina Bilal Ahmad stressed the need to introduce industry-driven training and certification programmes based on the workforce requirements of Chinese companies operating in Pakistan and international markets. She said Pakistan should focus on developing technical skills and certification pathways that enable Pakistani youth to meet international standards and secure employment opportunities both in Pakistan and abroad.
KARACHI: Mövenpick Hotel Karachi successfully launched its Grand Pan Asian Food Festival Chinese Food on 7th August 2026 at Lotus Restaurant. H.E Surashete Boontinand (Consul General of Thailand), Sikandar Mahmood (CEO Movenpick), Muhammed Khurram Awan (GM Movenpick) and others are seen in the picture.
KARACHI
STAFF REPORT
Khushhali Microfinance Bank celebrated its 26th Anniversary with a cake-cutting ceremony held at its Corporate Office. The ceremony was led by Aameer Karachiwalla, President & CEO, Khushhali Microfinance Bank, along with the Bank’s senior leadership and Heads of Departments. The ceremony was attended by Saleem Akhtar Bhatti, Group Head Finance & CFO ; Muhammad Aftab Alam, Group Head & Chief Business Officer; Ali Imran Bokhari, Group Head & Chief Risk Officer; Khawaja Shoaib Hassan, Chief SAM; Aqeel Ahmed, Chief Compliance Officer; Farhad Zulfiqar Ali, Chief Human Resources Officer; Muhammad Mustqim Rao, Chief Banking Services; Tariq Mahmood, Chief Internal Auditor, and other Heads of Departments. The celebration marked 26 years of Khushhali’s journey of financial inclusion, empowerment and sustainable growth, while recognizing the collective efforts of its employees and leadership in advancing the Bank’s mission.
LAHORE
Punjab Chief Minister Maryam Nawaz has launched the province’s largest-ever seafood and shrimp farming project aimed at transforming barren land into productive aquaculture zones, promoting the blue economy, creating employment opportunities and boosting shrimp exports. The initiative marks the beginning of large-scale shrimp infrastructure development in Punjab following successful trials of state-of-the-art, AIoperated machinery for shrimp farming, with the provincial government planning to bring 30,000 acres under shrimp cultivation in phases. A special meeting chaired by Chief Minister Maryam Nawaz Sharif was given a detailed briefing on the province’s shrimp aquaculture programme, during which the chief minister accorded in-principle approval for preparing a plan to develop shrimp farms over 30,000 acres across Punjab, including Bahawalpur. She directed the authorities to expedite the launch of technology-based shrimp farming in Sargodha following successful trials in Muzaffargarh and ordered the phased inclusion of the private sector in the project.
CBD Punjab Brings Times Square-Style 3D Experience to Lahore LAHORE STAF REPORT
The Punjab Central Business District Development Authority (PCBDDA), also known as Central Business District Punjab (CBD Punjab), has unveiled Pakistan’s first and largest 3D anamorphic screen at CBD Vertex, located in Lahore Prime CBD Quaid District, bringing an internationalstandard digital advertising experience to Pakistan. Titled “The Big One,” the state-ofthe-art curved 3D anamorphic screen
ple to stay away from the politics of abusive language and remain committed to love for the country. She also appealed to the youth to shun drugs for the sake of their physical and mental health. In her special message, Maryam Nawaz said 65 per cent of Pakistan’s population comprised young people, describing them as a valuable national asset. She said that by equipping the youth with education and skills, they could play a positive role in the world. The Punjab government, she said, was for the first time becoming a source of support for young people, with agricultural internships, laptops, e-Tax, the Asaan Finance Scheme and the Asaan Karobar Scheme introduced for them.
measures an impressive 122 feet by 70 feet and has been designed to deliver high-impact visual experiences. The screen will display static images, videos and immersive 3D animations, creating a dynamic digital canvas that will replicate the iconic visual appeal of New York’s Times Square. CBD Punjab has introduced The Big One as a premium advertising platform, providing brands with an opportunity to achieve greater visibility and connect with audiences on an unprecedented scale. The massive digital screen is
designed to transform the skyline of CBD Vertex into a vibrant destination for high-impact brand communication and advertising. CEO CBD Punjab Imran Amin said, “CBD Punjab has always believed in creating landmarks that introduce Pakistan to the future. From developing Pakistan’s first Central Business District and Pakistan’s first IT City to introducing Asia’s first Blue Road, CBD Punjab has consistently pioneered innovation. With The Big One, we are once again introducing a first for Pakistan. Our philosophy
is simple: big brands don’t whisper, they own The Big One. This screen will provide brands with a largerthan-life platform to showcase their identity, products and stories.” The Big One further strengthens CBD Punjab’s vision of developing Lahore Prime CBD Quaid District as a modern, technology-driven and internationally competitive business destination. The screen will primarily be utilized for commercial advertising, offering businesses and leading brands a landmark platform for digital visibility.
PTI CANNOT ESCAPE RESPONSIBILITY OVER MALL ROAD SHOOTING: GOVT NEWS
M
ISLAMABAD
staff report
INISTER of State for Interior Tallal Chaudhry on Wednesday said the PTI could not “absolve itself of responsibility” for Tuesday’s shooting on Rawalpindi’s Mall Road, in which a man was killed by law enforcement officials after allegedly opening fire on security personnel. Speaking at a press conference in Islamabad, Chaudhry said the incident was a consequence of what he described as the PTI leadership’s continued promotion of “hatred and anarchy”, while stressing that a fair and transparent investigation was under way. The minister’s remarks came a day after the shooting, when police said Muhammad Hussain opened fire on security forces, injuring an official before being killed in retaliatory fire. State media, citing
security sources, identified him as an “active PTI member” from Khyber district. The PTI has rejected any connection with the incident, saying it had nothing to do with terrorism and accusing the government of attempting to link the party to the shooting. Chaudhry, however, said the party
Karachi medico-legal officer removed after flaws found in Mir Raza Ali autopsy KARACHI
staff report
Authorities have removed Dr Osama from his post as medico-legal officer after an inquiry found serious lapses in the initial post-mortem examination of businessman Mir Raza Ali, as the investigation into the case continues to widen. The move comes after a local court allowed the exhumation of Ali’s body at the request of his father, who had sought a fresh medical examination amid controversy over alleged loopholes in the first medico-legal report. Jibran Nasir, counsel for the family, had told the court, "No X-ray was done; the cause of the death has not been determined." Officials said Dr Osama would now appear before the relevant authorities for further inquiry. A fresh autopsy carried out after the exhumation on Saturday found that Ali had been shot in the back. The examination noted two gunshot holes in his shirt, one on the back and a larger one on the front. The medical findings also recorded marks of violence on the body, including black marks, injuries on the feet, blood-stained tissues in the lower part of the body, a fracture and an injury of about 12 centimetres on the right thigh, and evidence of a deep injury and fracture in the jaw area.
CHEMICAL FINDINGS AND TORTURE CLAIMS: A chemical examination report in the murder case found acid particles on Ali’s shirt and signs of torture. The examination stated that attempts were made to conceal his identity and that no fingerprints were present on the victim’s hands. It also detected elements associated with gunshot residue on the shirt. Nasir said at a press conference in Karachi that CCTV footage of the deceased emerged on July 28 and that the body was found the following day. He said Ali’s face had not been disfigured by decomposition but by acid burns, and added that the body was between 20 and 22 hours old, suggesting he may have remained in captivity for up to 12 hours. The lawyer also said Ali’s smartwatch was taken from the family on the third day of funeral rites, while the mobile phone had been sent to the Counter Terrorism Department (CTD). He alleged that the SHO had kept moving around with a guesthouse’s DVR, claimed the killers knew where cameras had not been installed, and said the mobile phone may have been hacked. He further said bottles of acid had been found near the Water Board office and that the family had repeatedly asked police to record statements from relatives.
leadership could not simply distance itself from the alleged attacker. “For years, the PTI leadership has been told not to perpetuate the politics of hatred and anarchy,” he said, alleging that the party had influenced young people with ideas that could eventually manifest themselves in violent acts. “When a young person fills his mind with such hatred and anarchy, he expresses it somewhere in his own way. Yesterday’s incident is an example of this,” he added. The minister questioned the PTI’s claim that the alleged shooter suffered from an unstable mental condition, asking why he had targeted security personnel rather than his family, party members or himself. He said a PTI flag and other information had allegedly been recovered from the man, while videos showing him attacking police personnel had also appeared on social media. Chaudhry accused PTI leaders, social
media influencers and YouTubers of contributing to an environment of political hostility and violence. He linked the alleged trend to the incidents of May 9 and November 26, as well as previous confrontations between PTI supporters and security personnel. He also criticised what he described as the party’s alleged ridicule of martyrs on social media, saying soldiers and law enforcement personnel were sacrificing their lives while performing their duties. “This was not an attack on a worker of any political party; it was an attack on a soldier of Pakistan who was performing his duty to maintain law and order,” he said, questioning whether such conduct could be described as politics. The minister challenged the PTI to pursue politics through governance and performance, particularly in Khyber Pakhtunkhwa, where he said the party had been in government for 17 years.
18 terrorists killed in Balochistan's Surab district RAWALPINDI
staff Correspondent
At least 18 terrorists were killed in separate incidents during a security operation in Balochistan’s Surab district, including eight who died when an explosive-laden vehicle detonated prematurely, the military’s media wing said on Wednesday. According to the Inter-Services Public Relations (ISPR), a vehicleborne improvised explosive device (VBIED) exploded while terrorists affiliated with Fitna Al Hindustan were preparing it for an attack. “An under-preparation vehicleborne improvised explosive device (VBIED) detonated while being prepared by terrorists,” the ISPR said, adding that several other terrorists were injured in the blast. The explosion also caused a secondary detonation involving explosives stored at the site, resulting in the deaths of three civilians, the military’s media wing said. Following the incident, security
forces and police launched a joint clearance operation to track down the terrorists and their facilitators. The ISPR said security personnel detected the movement of fleeing terrorists and engaged them, killing 10 more during an exchange of fire. Two soldiers were also injured. “With a total of 18 terrorists affiliated with Fitna Al Hindustan eliminated in these incidents so far,” the ISPR said, adding that sanitisation operations were continuing to eliminate any remaining threats. The military said security forces and law enforcement agencies would continue their counterterrorism campaign under the “Azm-eIstehkam” framework approved by the Federal Apex Committee of the National Action Plan. The latest operation comes amid intensified counterterrorism activity across Balochistan, where security forces have conducted a series of intelligence-based operations against militant networks. Last week, security forces killed 15
terrorists in separate operations across Mastung, Bolan, Washuk, Awaran, Sibi, Khuzdar, Harnai and Nushki under Operation Radd-ul-Fitna 3, according to state media. Weapons and ammunition were also recovered from the militants. The operations have taken place against a backdrop of worsening security conditions in Balochistan. According to a monthly security assessment released by the Pakistan Institute for Conflict and Security Studies (PICSS), the province witnessed a sharp rise in fatalities in July. The overall death toll increased from 109 in June to 372 in July, representing a 241 per cent increase. Deaths among security personnel rose from six to 62, while terrorist fatalities increased from 75 to 238. Civilian deaths also climbed from 28 to 54 during the month. The report said 18 members of peace committees were also killed in Balochistan during July, underscoring the growing security challenges confronting the province.
Fresh monsoon spell to lash upper, central Pakistan from Aug 13-15 ISLAMABAD
staff report
A fresh spell of monsoon rains is expected to hit upper and central parts of the country from August 13 to 15, with the Pakistan Meteorological Department (PMD) warning of urban flooding and landslides in vulnerable areas. According to a weather advisory issued on Wednesday, monsoon currents were penetrating the upper parts of the country in combination with a westerly wave. Rain accompanied by strong winds and thundershowers is expected in Kashmir, Gilgit-Baltistan and upper Khyber Pakhtunkhwa, including Neelum Valley, Muzaffarabad, Rawalakot, Bagh, Mirpur, Diamir, Astore, Skardu, Hunza, Gilgit, Dir, Chitral, Swat, Kohistan, Mansehra and Abbottabad. In northeastern Punjab, rainfall is forecast in Murree, Sialkot, Narowal, Gujrat, Gujranwala, Lahore, Kasur,
Sheikhupura and adjoining areas from the night of August 12 through August 15, with intermittent breaks. Islamabad, Rawalpindi and the Pothohar region are likely to receive rain, wind and thundershowers, including isolated heavy falls, from the night of August 13 to August 15. Rain is also expected in several districts of central and southern Punjab, including Sargodha, Faisalabad, Jhang, Sahiwal, Ba-
hawalpur and Dera Ghazi Khan, as well as parts of Balochistan including Zhob, Barkhan and Musakhel. In Sindh, partly cloudy to cloudy conditions are expected in southeastern and coastal areas, with rain and thundershowers likely in Tharparkar, Umerkot and Sanghar on August 12 and 13. Hot and humid weather will persist elsewhere in the province. The PMD warned of urban flooding in low-lying areas of Islamabad, Rawalpindi, Mardan, Swabi, Gujranwala, Gujrat, Sialkot and Lahore during the forecast period. It also cautioned about possible landslides in vulnerable mountainous areas of upper KP, Gilgit-Baltistan, Murree, Galiyat and Kashmir. The Met Office advised tourists to remain cautious while travelling through vulnerable areas and urged farmers to plan agricultural activities according to prevailing weather conditions.
Published by Asad Nizami at Plot # 7, Al-Baber Centre, F/8 Markaz, Islamabad, for PT Print (Pvt) Limited. Ph: 051-2204545. Email: newsroom@pakistantoday.com.pk
Thursday, 13 August, 2026
prayer timings
Pakistan remains far from welfare state, PM says at youth event FAJR SUNRISE
ZUHR
ASR MAGHRIB ISHA
5:26
1:30
5:20
4:45
7:00
8:50
ISLAMABAD
staff report
Prime Minister Shehbaz Sharif said on Wednesday that Pakistan was “still far” from becoming a social welfare state, describing that goal as central to the country’s founding vision as he addressed an event in Islamabad marking International Youth Day 2026. At the ceremony, observed on August 12, the prime minister launched a set of youthfocused initiatives, including the Power Sector Innovation Programme, the National Youth Employment Policy and the Skills Ambassador Programme. Shehbaz said Daanish schools were part of an effort to build a country in which young people could progress regardless of their financial background. Recalling his tenure as Punjab chief minister, he said he had set up Daanish schools to widen access to quality education for poor students. He contrasted the opportunities available to affluent children with the disadvantages faced by others, saying, “How unfortunate is it that, on the one hand, there is a Pakistan for the children of the elite, who not only receive the best education in Pakistan but also attend the best inte”
Norwegian Foreign Minister to visit Pakistan to expand trade, investment ties ISLAMABAD
staff report
Norwegian Foreign Minister Espen Barth Eide will undertake an official visit to Pakistan on August 13-14 to explore new avenues for strengthening bilateral cooperation, particularly in trade and investment, the Foreign Office said on Wednesday. The visit, being made at the invitation of Deputy Prime Minister and Foreign Minister Ishaq Dar, will be the first by a Norwegian foreign minister to Pakistan in a decade, according to the FO. During the visit, Dar and Eide will hold delegation-level talks covering the entire spectrum of Pakistan-Norway relations. The two sides are expected to focus on expanding cooperation in trade, investment, climate change, renewable energy, education and people-topeople contacts, while also exchanging views on key regional and international developments. The Foreign Office said Eide’s visit would provide an opportunity to further strengthen the longstanding and cordial relations between the two countries and identify new areas of mutually beneficial cooperation. The Norwegian foreign minister has previously acknowledged Pakistan’s diplomatic efforts to help de-escalate regional tensions through mediation during the USIsraeli conflict with Iran. The visit also follows Dar’s trip to Norway in May, when he held discussions with Norway’s deputy foreign minister on bilateral relations and the regional situation. The upcoming talks are expected to provide fresh momentum to Pakistan-Norway economic engagement, particularly in areas such as green energy, climate cooperation and investment.