Overview
- Pakistan projected greater diplomatic reach, with coverage noting a UN Security Council presidency, Gaza ceasefire engagement, deeper ties with China, Saudi Arabia and the UAE, and reported warming with Washington including public praise by President Donald Trump and a White House invite for the army chief.
- Strategic restraint prevailed during the May crisis with India, with officials and analysts crediting disciplined deterrence for avoiding wider conflict while preserving stability.
- Macro indicators improved late in the year as inflation fell to low single digits, foreign exchange reserves rose above $15 billion, and Pakistan posted its first current account surplus in 14 years, though growth and investment remained subdued.
- The government completed the long-delayed privatization of Pakistan International Airlines, transferring majority control to a private consortium in a move seen as a signal that broader state‑owned enterprise reform is back on the agenda.
- Internal pressures persisted with militant attacks by the TTP and a BLA train hijacking, political polarization around the 27th amendment, flood damage across provinces, and social indicators that lagged peers, reinforcing calls to turn stabilization into broad-based welfare gains.