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Pakistan Clinches IMF Staff-Level Deal as Punjab Seeks Ban on Extremist Party and KP Gets New Chief Minister

The agreement would unlock $1.2 billion upon IMF Board approval, signaling momentum on stabilization as authorities tighten internal security measures.

Overview

  • An IMF staff-level accord would provide $1.0 billion under the EFF and $0.2 billion via the RSF once the Executive Board signs off, with the mission chief citing improved inflation, reserves and fiscal performance despite flood-hit growth now projected near 3.25%–3.5%.
  • Punjab decided to recommend a federal ban on a named extremist party, move leaders to anti-terror schedules, freeze assets and bank accounts, block posters and social media, and tighten weapons registration and penalties.
  • Sohail Afridi was sworn in as Khyber Pakhtunkhwa chief minister as the Peshawar High Court dismissed a challenge to his election, and he later said police prevented his requested meeting with the jailed PTI founder.
  • Pakistan and Vietnam formally launched negotiations on a preferential trade agreement to deepen commerce and investment, with officials also discussing travel facilitation including potential direct flights.
  • The military’s media wing condemned Indian military statements and labeled India the face of cross-border terrorism, warning any aggression would draw a rapid and decisive response.