Ineffective Mitigation
The Punjab Environmental Protection Agency has confirmed that a privately constructed “smog tower” in Lahore has failed to reduce air pollution. It states the tower has an inadequate filtration system and poor voltage regulation, hampering its effectiveness. The government has given the private company three months to improve its technology before wrapping up the project.
Another Looming Crisis
The All Pakistan Petroleum Dealers Association has warned of a nationwide strike if the government proceeds with plans to deregulate oil prices. The association argues free-market principles cannot work in a country like Pakistan, which lacks sufficient oil stockpiles to ensure supply chain stability. It also claims deregulation will fuel inflation, weaken the exchange rate, and damage the economy.
Pak-Afghan Tensions
Authorities have shuttered the Torkham border crossing linking Pakistan’s Khyber district with Afghanistan’s Nangarhar province over a dispute arising from Kabul’s construction of a new post near the border in violation of an earlier agreement. A key trade and transit route, the crossing’s closure has severely disrupted commercial activities and passenger movement, triggering calls for a swift resolution.
Inching Forward
The Pakistan Tehreek-e-Insaf’s attempts to mount a joint opposition alliance continue to inch forward, with the party claiming it will stage a “grand political meeting” in Islamabad this week. The party has claimed it is not seeking any “deal,” adding the ultimate goal is for the country to function as per the Constitution. The party had tried a similar—and ineffective—opposition moot last year.
Poor Show
The Pakistan cricket team’s second consecutive loss in the ICC Champions Trophy 2025—this time to India—has all but ensured it will not advance to the tournament’s semifinals. The only way the host nation can proceed is if it defeats Bangladesh in their upcoming match; India defeats New Zealand; and New Zealand loses both its remaining matches by substantial margins.
Suspended No More
The Trump administration has released $5.3 billion in previously frozen foreign aid, mostly for security and counter-narcotics programs. Among the exemptions to the freeze is $397 million for a U.S.-backed program in Pakistan that monitors Islamabad’s use of American-made F-16 fighter jets to ensure their use for counterterrorism operations and not against rival India.
Increasing Trade
Bangladesh High Commissioner for Pakistan Muhammad Iqbal Hussain Khan has said the trade volume between Islamabad and Dhaka has surpassed $1 billion, with hopes for further expansion. Trade ties between the two nations have been restored after 15 years. Khan claims there is great demand for many Pakistani products in Bangladesh and Pakistan is a beneficial market for Bangladeshi products.
Circular Debt
The federal government hopes to address the country’s Rs. 2.381 trillion circular debt in the power sector by borrowing Rs. 1.242 trillion from banks for 6-7 years. The borrowed sum will be repaid by electricity consumers through a servicing surcharge of Rs. 3.23/unit in their bills. The plan stands in stark contrast to the government’s claims of reducing bills for consumers to encourage consumption.
Promises of Relief
Finance Minister Muhammad Aurangzeb has announced plans to reduce the tax burden on the salaried class in the budget for FY2025-26. Claiming improving macroeconomic indicators and tax collection have reduced the burden on the national treasury, he has claimed this will be passed on to the general public, adding the government is aware of the issues facing the salaried class.
Brink of War—Again
A ceasefire between Hamas and Israel appears on the brink of collapse, as Tel Aviv blocks access to the occupied West Bank and closes all checkpoints. Hamas has similarly said it will not engage in any more talks until 620 Palestinian prisoners are freed as was committed by Israel in exchange for the release of hostages. The simmering situation risks derailing the fragile peace achieved by the ceasefire last month.