Ceasefire Extended
The U.S. has extended by a day the two-week ceasefire inked with Iran, though President Trump has warned it is “highly unlikely” it would be extended any further. The move comes amidst uncertainty over a second round of peace talks between the two sides, set to take place in Islamabad this week, as Iran has said it is unwilling to participate unless the U.S. ends its naval blockade of the Strait of Hormuz.
New Deal
U.S. President Donald Trump has claimed the new deal between Iran and the U.S. will be “far better” than the previous one—achieved by then-president Barack Obama—he had reneged on in his first term in office. He has also reiterated that the deal is coming “relatively quickly,” adding the U.S. Navy would continue its blockade of the Strait of Hormuz until it is finalized.
Dampened Growth
Planning Minister Ahsan Iqbal has warned that higher oil prices resulting from the Middle East conflict pose risks to Pakistan’s economy and put pressure on its external sector. He told media that the national economy had demonstrated remarkable stabilization in the first eight months of FY26 despite challenging global conditions, but the conflict impacted both global growth and inflation.
Raising Funds
The federal government has increased its Eurobond issuance from $500 million to $750 million through the Green Shoe option, citing “stronger-than-expected” investor demand. The country’s initial Eurobond issuance had marked its return to the international capital markets after four years and follows the country repaying a previous $1.3 billion Eurobond.
Change of Venue
The Khyber-Pakhtunkhwa Assembly will convene a session outside the assembly premises for the first time, with proceedings to take place at Imran Khan Cricket Stadium. According to KP Assembly Speaker Babar Saleem Swati, the move aims to provide the public with a direct opportunity to observe the performance of their elected representatives and to strengthen transparency in the democratic process.
Eroding Rights
Amnesty International, in its annual report, has noted eroding civil rights in Pakistan, pointing to changes to online speech and anti-terrorism laws as impacting freedom of expression and peaceful assembly. It has also noted that violence against women continues unabated, adding PECA frequently targets journalists and human rights defenders.
Electricity Reform
The Power Division and the International Finance Corporation have signed an agreement aimed at modernizing Pakistan’s electricity distribution system through large-scale smart metering. Under the plan, around 10 million electricity consumers across the country will be equipped with smart meters, with an aim to attract both local and foreign investment and support transition to digital power system.
Parliamentary Supremacy
The Punjab Assembly has declared government notifications revising agricultural income tax rates “illegal, unconstitutional and void ab initio,” opening the path for affected taxpayers to seek relief from courts. In his declaration, the Punjab Assembly speaker said the government’s omission was a breach of parliamentary privilege and bypassing it was an unconstitutional usurpation of authority.
More Conditions
The IMF has added 11 new conditions to Pakistan’s ongoing $7 billion bailout package, including a new process to approve the budget by the National Assembly and amending laws governing special economic and technology zones. Overall, since the program started two years ago, the IMF has imposed 75 conditions on Pakistan to continue unlocking new tranches of the bailout.
Zero Tolerance
The Karachi Police have arrested four members of an alleged organized network involved in leaking matric and intermediate board exam papers in exchange for millions of rupees from students. According to police, the network comprised 10 groups. It would forward the leaked papers to students via WhatsApp a night before the examinations.