Asia-Pacific - South Asia RegionalPULSE: 01 JUL 2025

Report Summary

• Bangladesh faces growing political unrest as a nationwide strike by National Board of Revenue (NBR) staff disrupted port operations, halting container movement at Chittagong and threatening the garment sector—an export pillar of the national economy.
• Security risks are intensifying in Pakistan, where a deadly suicide bombing near the Afghan border killed 13 soldiers. Islamabad accused Indian-backed militants operating from Afghanistan, escalating regional tension amid ongoing cross-border instability.
• Afghanistan sees rising internal resistance as the Afghanistan Freedom Front (AFF) increases attacks in Kabul, while mass deportations from Iran and border closures with Pakistan strain humanitarian conditions and operational continuity.
• India maintains a hardline regional stance, declining a joint SCO security declaration over the exclusion of the Pahalgam attack and emphasizing terrorism in Balochistan. Domestically, the early arrival of the monsoon boosted agricultural output and rural economic prospects.
• Ethnic and diplomatic tensions escalate between India and Bangladesh due to the deportation of Bengali-speaking Muslims, raising legal and humanitarian concerns while straining bilateral ties.
• Nepal entered regional energy markets, launching its first-ever electricity exports to Bangladesh and India—a milestone for cross-border cooperation and economic diversification.
• Bhutan quietly emerged as a major crypto holder, with bitcoin reserves reaching 40% of GDP. The government now positions digital assets as a strategic buffer amid global financial volatility.
• Sri Lanka faces a dual track of recovery and risk, with a major dengue outbreak affecting public health across multiple provinces, while the Supreme Court’s land rights ruling and World Bank education financing signal institutional resilience and developmental support.