Asia-Pacific - South Asia RegionalPULSE: 12 AUG 2025

Report Summary

• Afghanistan’s humanitarian and press freedom crisis deepens – US and German deportation plans, coupled with Pakistan’s mass expulsions of Afghan nationals, risk fueling border instability and exposing returnees to persecution. The Taliban’s detention of 15 journalists underscores worsening civil liberties.
• Bangladesh sets February 2026 general elections – Interim leader Muhammad Yunus seeks to restore stability after Sheikh Hasina’s 2024 ouster. Political tensions remain possible if pro-Hasina factions mobilize or electoral timelines are perceived as rushed.
• Bhutan advances economic diversification through digital tourism – Launch of a state-backed crypto payment system for visitors and expanded social insurance initiatives signal policy innovation and stability, with opportunities for sustainable investment.
• US-India relations strain under escalating tariff dispute – Washington’s imposition of 50% tariffs over India’s Russian oil trade has frozen bilateral trade talks and could stall defense procurement. Domestic protests on August 13 against tariffs and the India-UK CETA deal are expected to disrupt major cities.
• Pakistan navigates dual security and diplomatic fronts – Continued militant attacks in the northwest and Balochistan, combined with extended Afghan deportations, heighten humanitarian and operational risks. Simultaneously, new agreements with Iran aim to expand trade to $10 billion and enhance border security cooperation.
• Sri Lanka strengthens cyber resilience – Parliamentary dismissal of the police chief for misconduct marks a governance milestone, while large-scale takedowns of fraudulent WhatsApp accounts aim to curb digital fraud risks.
• Maldives moves to stabilize its currency – Central bank withdrawal of MVR 2.1 billion addresses rufiyaa depreciation pressures, signaling proactive monetary policy to preserve investor confidence and social stability.
• Security flashpoints remain across the region – Anti-tariff protests in India, militant violence in Pakistan, and ongoing Afghan deportations pose near-term operational challenges for organizations.
• Emerging economic and governance trends – Bhutan’s tech-driven tourism model, Maldives’ monetary interventions, and Sri Lanka’s digital fraud crackdown reflect diverse approaches to resilience, offering entry points for international engagement.