ISLAMABAD: The year 2025 has proven to be a pivotal and decisive one for Pakistan, marked by significant geopolitical changes, regional tensions, and ongoing internal challenges. From improving relations with the United States to facing a near-war situation with India, Pakistan has adeptly navigated through several crises.
The following report provides a comprehensive review of the key events of 2025, with a focus on Pakistan’s political, diplomatic, and internal security issues.
Improvement in Pak-US Relations
In 2025, Pakistan made notable strides in global diplomacy, particularly during the presidency of Donald Trump. The relationship between Pakistan and the United States saw extraordinary improvement, highlighted by a meeting between President Trump and Pakistan’s Army Chief, Field Marshal Syed Asim Munir, at the White House. This meeting marked a significant thaw in bilateral relations.
The United States praised Pakistan’s role in de-escalating tensions during the air conflict with India in May, which led to Pakistan nominating President Trump for the Nobel Peace Prize. In economic terms, Pakistan secured agreements worth $500 million in the rare earth and refining sectors. Additionally, the US Exim Bank provided $1.25 billion in financing for the Reko Diq project in Balochistan.
Further enhancing Pakistan’s strategic position in the region were an $8.5 billion investment agreement with China, a deal for J-35 fighter jets, the revival of Pakistan Steel Mills in collaboration with Russia, defence cooperation with Saudi Arabia, a $4.6 billion deal for J-17 aircraft with Azerbaijan, and the restoration of relations with Bangladesh. All these elements contributed to establishing a notable edge over India.
India-Pakistan Conflict
In May 2025, tensions escalated dramatically following the Pahalgam attack by India, leading to missile strikes on Pakistan under “Operation Sindoor.” This triggered fierce armed conflict between the two nations. Pakistan executed a robust defensive operation, inflicting substantial losses on India, particularly in the air domain.
The Pakistan Air Force, equipped with advanced J10C aircraft, PL-15 missiles, and HQ-9 air defence systems, claimed to have downed several Indian warplanes, including modern aircraft such as the Rafale, during clashes on May 7 and 8. Additionally, the improved tactics of the Pakistan Army destroyed numerous Indian drones and missiles.
Following this defensive success, India could not make significant advances and agreed to a ceasefire on May 10 after four days of escalating tension. The Pakistani leadership, international observers, and a report by the US Congress recognised Pakistan’s military achievements with the assistance of Chinese weaponry, which was seen as a significant setback for India’s aggressive strategies.
Terrorism and Internal Security Crisis
The year 2025 was the deadliest for Pakistan in the past decade, with over 3,300 casualties resulting from terrorist incidents. This tragic toll included 2,100 terrorists, 664 security personnel, and 580 civilians. The activities of the banned Tehreek-e-Taliban Pakistan (TTP), ongoing insurgency in Balochistan, and more than ten bomb blasts exacerbated the internal security situation.
Prominent incidents included the hijacking of the Jaffar Express in March and the killing of security personnel during protests in Balochistan. Additionally, airstrikes were conducted near Kabul in response to border tensions.
Devastating Floods and Natural Disasters
In 2025, severe floods affected five provinces from June to September, resulting in over 1,000 deaths, causing extensive damage to agriculture and industry, and displacing millions of people. Restoration efforts continued throughout the year, placing additional strain on the economy.
Economic Progress Despite Difficulties
Pakistan’s growth rate in 2025 was recorded at 2.6%, a decline from 2.8% in 2024, primarily attributed to flooding and security issues. Nevertheless, significant progress was made in the digital economy, with retail digital payments reaching $592 billion in the first quarter of FY26. Reforms in the seed sector and foreign investment in the mineral sector were considered positive developments.
Privatisation of PIA
Starting in April 2025, Pakistan International Airlines (PIA) transitioned to new ownership, which led to the resumption of flights to the UK. This move was part of broader reforms in the aviation sector.
Achievements in the World of Sports
The year 2025 was also memorable for Pakistan in sports. The country hosted a major ICC event for the first time since 1996. Pakistan triumphed over India with a 6-0 series victory, and the Lahore Qalandars clinched the PSL title for the third time. Babar Azam’s 32nd century was another highlight of the year. Additionally, Pakistan’s Under-19 and Emerging teams brought honour to the nation by winning both Asia Cups.
