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Pakistan Touts Economic Gains as Watchdog Cites Democratic Strains and Security-Linked Delays

PILDAT’s year-end review challenges the prime minister’s upbeat economic claims by noting the growing reach of security institutions.

Overview

  • Prime Minister Shehbaz Sharif highlighted falling inflation to 4.5%, foreign-exchange reserves above $21.2 billion, a current account swing to surplus, higher tax-to-GDP, and completed privatizations.
  • PILDAT’s 2025 assessment reported weakened practical power of democratic institutions, entrenchment of hybrid governance, and greater security establishment influence following regional tensions.
  • Chief of Defence Forces Field Marshal Asim Munir warned of Indian-sponsored proxies stoking violence in Balochistan and vowed a decisive response to any breach of Pakistan’s territorial integrity.
  • DS Railways postponed the IslamabadTehranIstanbul freight service launch after the planned start failed to receive required security clearance.
  • NEPRA completed a public hearing on November’s fuel cost adjustment as CPPA-G sought about a Rs0.72 per unit reduction, with the regulator set to issue a decision after data review.