By Krishna Dua 
Pakistan Holds High-Level Meeting on Key National Issues
On January 7, 2026, Prime Minister Shehbaz Sharif convened a crucial high-level meeting at the Prime Minister’s Office in Islamabad, bringing together key cabinet ministers, military leaders, and economic advisors to address Pakistan’s multifaceted national challenges. Chaired by Sharif and attended by Finance Minister Muhammad Aurangzeb, Foreign Minister Ishaq Dar, Army Chief General Asim Munir, and Deputy Prime Minister/Foreign Minister Mohammad Ishaq Dar, the session focused on economic recovery, security imperatives, and diplomatic outreach amid a backdrop of global uncertainties. With the economy showing tentative signs of stabilization—GDP growth projected at 2.5% for FY26 and inflation easing to 11.8%—the discussions underscored the government’s commitment to a “unified national agenda” for sustainable progress. The meeting, the first major conclave post the Senate delegation’s US visit announcement, also touched on bilateral ties, including the recent Dhaka handshake signaling potential India-Pakistan dialogue. As Pakistan navigates IMF conditionalities, border tensions, and climate vulnerabilities, Sharif emphasized “collective resolve,” declaring, “2026 must be the year of breakthroughs, not breakdowns.” Outcomes from this huddle, detailed in a post-meeting briefing, signal proactive measures across sectors, positioning the nation for resilience in an era of flux.
Economic Roadmap: IMF Negotiations and Investment Push
The economic segment dominated the agenda, with Finance Minister Aurangzeb presenting updates on the ongoing $7 billion IMF Extended Fund Facility (EFF) talks, now in their advanced stage following the December 2025 staff-level agreement. Sharif directed ministries to fast-track foreign investment proposals, building on the January 2 cabinet nod for streamlined approvals in renewables and IT sectors. “We cannot afford delays; every dollar invested today builds tomorrow’s jobs,” Sharif asserted, targeting $5 billion in FDI inflows by mid-2026.
Aurangzeb highlighted fiscal consolidation efforts: tax collection surged 18% in Q1 FY26 to PKR 2.1 trillion, aided by FBR’s digital invoicing rollout, but circular debt persists at PKR 2.5 trillion in power. The meeting endorsed a “Green Growth Compact,” allocating PKR 800 billion for solar microgrids in flood-hit Sindh and Balochistan, co-funded by the Asian Development Bank. Deputy Chairman Senate Syedal Khan, fresh from prepping the US delegation visit starting January 20, briefed on diaspora remittances—down 5% to $28 billion in 2025—urging incentives like priority banking for overseas Pakistanis.
Challenges loomed large: Aurangzeb flagged rupee volatility at 282/USD, attributing it to global oil spikes, and proposed hedging via Saudi swaps. Sharif approved a PKR 300 billion stimulus for SMEs, emphasizing export diversification beyond textiles to pharma and gems. The consensus: a mid-February budget with 15% revenue hike, avoiding austerity pitfalls that fueled 2023 protests. As Aurangzeb noted, “Stability isn’t just numbers; it’s families thriving.”
Security and Counter-Terrorism: Fortifying the Frontiers
Transitioning to security, Army Chief General Munir delivered a sobering assessment of the Afghan border, where TTP incursions spiked 25% in late 2025, displacing 30,000 in North Waziristan. The NSC sub-group, including Interior Minister Mohsin Naqvi, reviewed Operation Azm-e-Istihkam’s progress—launched in July 2025—which has neutralized 400 militants but strained resources. Munir advocated enhanced drone surveillance along the 2,640 km Durand Line, with Sharif greenlighting PKR 150 billion for FC upgrades and joint patrols with Iran.
Foreign Minister Dar updated on regional dynamics: the January 2 Dhaka handshake between envoys—amid SAARC revival talks—hints at India-Pakistan confidence-building, potentially easing visa regimes by summer. “Dialogue doesn’t mean surrender; it’s strategic strength,” Dar stated, referencing the Right to Self-Determination Day message from Speaker Sardar Ayaz Sadiq on January 4. The meet endorsed backchannel talks with Kabul on TTP safe havens, conditional on Taliban reciprocity.
Internally, Naqvi addressed urban threats: blasphemy-related violence in Jaranwala’s aftermath prompted a PKR 50 billion digital literacy drive to combat misinformation. Munir committed 10,000 troops for CPEC Phase II security, safeguarding $62 billion investments amid Baloch unrest. The resolution: a “National Security Doctrine 2026,” integrating cyber defenses against 2025’s 1.2 million attacks, per PTA data. Sharif’s closing: “Our borders are sacred; our unity, unbreakable.”
Foreign Policy Thrust: US Outreach and Global Alliances
Diplomatic maneuvers took center stage, with the Senate delegation’s US itinerary—led by Syedal Khan from January 20—framed as a “reset button.” Khan outlined engagements with congressional leaders on trade pacts and counter-terror financing, aiming to unlock $2 billion in aid frozen since 2023. Sharif instructed alignment with the delegation’s goals, including pitching Pakistan as a “climate frontline state” for COP31 funding.
Dar reported gains from the January 1 press briefing: strengthened ties with Sierra Leone via the high-level delegation, focusing on mineral exploration in Kono. The meet endorsed a “Neighborhood First Plus” policy, prioritizing Bangladesh and Sri Lanka post-Dhaka thaw, with Sharif eyeing a February Colombo summit. On China, Munir praised CPEC’s $10 billion disbursements in 2025, urging faster Gwadar port ops despite security hiccups.
Global south advocacy featured: Zardari, via video link, pushed for UNSC reform pitches during the US visit. The consensus: elevate Pakistan’s G77 role at the upcoming Non-Aligned Summit, countering India’s Quad maneuvers. As Dar summed, “Diplomacy is our strongest armor—wield it wisely.”
Social and Climate Resilience: People-Centric Priorities
The latter half pivoted to human development, with Planning Minister Ahsan Iqbal unveiling the “Umeed Pakistan 2026” blueprint—a PKR 1.2 trillion package for health and education. Sharif approved expanding Ehsaas to 20 million households, targeting 90% child immunization amid 2025’s polio uptick to 120 cases. Climate Minister Sherry Rehman detailed the National Adaptation Plan’s Phase II: PKR 400 billion for Indus Basin flood barriers, post-2022’s 1,700 deaths.
Women’s empowerment drew focus: Bilawal Bhutto Zardari advocated 33% parliamentary quotas, with Sharif nodding to a January bill. Youth unemployment at 18% prompted a PKR 200 billion skills fund, partnering with Germany for vocational hubs in Punjab. The resolution: quarterly “Janta Darbars” for grievance redress, echoing Sharif’s 2013 model.
Outcomes and Forward Path: A Unified Vision
As the five-hour meet concluded, Sharif announced a 12-point action plan: IMF budget tabling by February 15, Azm-e-Istihkam expansion, and a National Dialogue Forum launch in March. The PM’s address, aired on PTV, rallied: “Pakistan’s story is one of perseverance; 2026 writes the chapter of prosperity.”
Skeptics note execution gaps—2025’s IMF tranche delays—but the conclave’s inclusivity signals maturity. With Senate’s US foray and Dhaka’s olive branch, Pakistan charts a course of calculated confidence, turning trials into triumphs.