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In Focus
IMF approves USD 1.32 billion financing for Pakistan?
Pakistan reportedly accepts a dozen additional conditions as Executive Board urges fiscal discipline and exchange rate flexibility
On 08 May, Dawn, The Express Tribune and The News International reported that the International Monetary Fund’s (IMF) Executive Board approved the latest review of Pakistan’s economic reform programme, paving the way for the release of USD 1.32 billion in financing under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF). The approval allows Pakistan to immediately access around USD 1.1 billion under the EFF and about USD 220 million under the RSF, bringing total disbursements under both programmes to approximately USD 4.8 billion. Finance Minister Muhammad Aurangzeb said the decision reflected Pakistan’s progress on “difficult but necessary” reforms, while the IMF said the country had met key structural benchmarks related to taxation, energy pricing and macroeconomic stability.
The IMF noted that Pakistan’s economic performance had improved under the programme, citing accelerating GDP growth, a broadly balanced current account and rising foreign exchange reserves, which increased to USD 16 billion by the end of December 2025. However, the Fund warned that external risks remained elevated due to the ongoing Middle East conflict and volatile global commodity prices, which had contributed to higher domestic inflation and energy costs. IMF Deputy Managing Director Nigel Clarke stressed that Pakistan must maintain strong macroeconomic policies, fiscal discipline and exchange-rate flexibility while continuing structural reforms to withstand future shocks.
Pakistani authorities also reportedly accepted nearly a dozen additional IMF conditions, including commitments to maintain primary budget surplus targets, broaden the tax base, continue energy-sector reforms and align the 2026-27 federal budget with IMF programme targets. The programme further requires reforms to special economic zones, privatisation efforts and measures aimed at improving governance and anti-corruption institutions. Officials said the latest tranche would help strengthen Pakistan’s external position, potentially lifting central bank reserves above USD 17 billion, while an IMF mission is expected to visit Islamabad later this month for talks on the upcoming federal budget and broader reform agenda. (“Pakistan secures $1.32bn IMF support as executive board approves programme review,” The News International, 08 May; “IMF approves $1.2b tranche for Pakistan amid reform commitments,” The Express Tribune, 08 May 2026; “IMF's Executive Board approves $1.3bn financing for Pakistan's reform programme, flags heightened risks from Middle East war,” Dawn, 08 May 2026)
In Brief
EXTERNAL
Australia sanctions Balochistan Liberation Army and its senior leaders
On 08 May, Dawn reported that Australia imposed sanctions on the banned Balochistan Liberation Army (BLA) and three of its senior leaders over their involvement in terrorist attacks in Pakistan. The Australian government said the group was responsible for attacks targeting civilians, infrastructure, foreign nationals and Pakistani security forces. Australian Foreign Minister Penny Wong said the sanctions were aimed at stopping support for terrorism. Australia said the sanctions would make it harder for the group to raise money, recruit members and continue its activities. Under Australian law, dealing with the assets of sanctioned individuals or organisations can lead to heavy fines and prison sentences. Pakistan has also been asking other countries and the United Nations to officially recognise the BLA as a terrorist organisation. This development highlights increasing international cooperation against militant groups and growing global support for counterterrorism efforts in Pakistan. (“Australia sanctions BLA, three senior leaders for engagement in and support of terrorist attacks,” Dawn, 08 May 2026)
Pakistan denies reports of targeted deportations from UAE
On 08 May, Dawn reported that Pakistan’s Interior Ministry denied reports claiming that Pakistanis were being specially targeted for deportation from the United Arab Emirates (UAE). The ministry said there were no “country or sect specific” deportations and also called such reports false and misleading. The statement came after reports suggested that some Pakistani workers, including members of the Shia community, had been arrested, detained and deported from the UAE. Pakistan’s Interior Ministry said that any deportations were part of normal immigration procedures related to visa violations, overstaying or incomplete documents. The ministry also said Pakistanis who meet visa and work requirements continue to travel to the UAE without discrimination. These developments highlight concerns about misinformation, the rights of migrant workers and the importance of maintaining stable relations between Pakistan and the UAE, especially where a large Pakistani community lives and works. (“Interior ministry denies reports of ‘country or sect-specific’ deportation of Pakistanis from UAE,” Dawn, 08 May 2026)
Pakistan seeks Singapore's help to bring back nationals from US-seized vessels
On 08 May, Dawn reported that Pakistan asked Singapore for support in bringing back 11 Pakistani and 20 Iranian seafarers who were on vessels seized by US authorities near Singaporean waters. Deputy Prime Minister and Foreign Minister Ishaq Dar said Pakistan was working closely with Singapore, Iran and the United States to ensure the safety and early return of the affected people. Dar also spoke with Iranian Foreign Minister Abbas Araghchi and said Pakistan was ready to help Iranian nationals return safely if needed. The issue comes during rising tensions linked to the US-Iran conflict and increased US maritime security operations in the region. This development highlights the importance of diplomatic cooperation to ensure the safety and repatriation of seafarers affected by regional tensions and maritime security operations. (“Pakistan seeks Singapore’s support in repatriating nationals, Iranians aboard vessels seized by US,” Dawn, 08 May 2026)
ECONOMY
Short-term inflation surges for the 39th consecutive month
On 09 May, Dawn reported that short-term inflation surged by 15.16 per cent year on year in the week ending 07 May. It is measured by the Sensitive Price Index, comprising 51 items collected from 50 markets in 17 cities, and is computed weekly to assess the prices of essential commodities and services at shorter intervals. Short-term inflation continued to rise for the 39th consecutive month. Data showed that the prices of 22 items increased, 14 decreased, and 15 remained stable compared to the previous week. However, on a week-on-week basis, the index increased by 0.79 per cent compared to the previous week, as per the Pakistan Bureau of Statistics. It is largely driven by higher retail prices of petroleum products and eatables, with the sharpest annual increase in petrol by 58.3 per cent, diesel by 55.8 per cent, electricity charges by 52.6 per cent, wheat flour by 50.7 per cent and LPG by 48.8 per cent. (“Inflation surges 15.16pc on costly fuel,” Dawn, 09 May 2026)
Govt raises fuel prices amid Strait of Hormuz crisis
On 08 May, Dawn reported that the federal government hiked the price of petrol by PKR 14.92 and that of high-speed diesel (HSD) by PKR 15 for the next week amid the fuel crisis triggered by the blockade of the Strait of Hormuz. The new petrol price is PKR 414.78, and the new HSD price is PKR 414.58 per litre. This is the second consecutive increase since 30 April, when the government raised petrol prices by PKR 6.51 per litre and high-speed diesel (HSD) prices by PKR 19.39 per litre amid the ongoing fuel crisis caused by the blockade of the Strait of Hormuz. Earlier this month, the government raised the petrol price by PKR 137 per litre, taking it to a record PKR 458.4. However, a few days later, the prime minister, in a televised address, announced a PKR 80 per litre reduction in the petroleum levy on petrol, bringing its price down to PKR 378 per litre. (“Govt hikes petrol price by Rs14.92, high-speed diesel by Rs15,” Dawn, 08 May 2026)
POLITICS & GOVERNANCE
Pakistan senators raise alarm over rising violence against women, low conviction rates
On 08 May, Dawn reported that senators on Friday voiced concern over rising violence against women, particularly so-called “honour killings”, after the murder of Rubina Chandio in Sindh’s Khairpur district. Senator Naseema Ehsan said Chandio was allegedly killed in front of a crowd in a suspected karo-kari case and denied both a funeral and burial rites, with the incident gaining attention after videos circulated online. Presiding officer and PPP Vice President Sherry Rehman described the situation as “deeply distressing”, warning of a surge in honour killings, rape and gender-based violence, while noting that the conviction rate for such crimes stood at only five per cent despite the 2016 anti-honour killing law removing the option of family pardons. She rejected claims that such violence was confined to poor or rural communities, arguing that influential households often protected perpetrators through “networks of silence”. The case was referred to the Senate Human Rights Committee for review, while government representatives pledged institutional support for efforts to strengthen accountability and justice mechanisms. (“Senators alarmed by ‘surge’ in violence against women; 5pc conviction rate termed ‘systemic failure’,” Dawn, 08 May 2026)
SECURITY
Quetta: City on high alert after 150 threat alerts received in April, says DIG
On 9 May, Dawn reported that Quetta DIG Imran Shoukat said the city remained on high alert following around 150 threat alerts received in April, prompting the deployment of additional security personnel and the revision of counter-terrorism strategies across the provincial capital. Shoukat noted that terrorists were changing their tactics, requiring corresponding adjustments by law enforcement. He said 23 murders were reported in April, of which 21 were linked to personal enmities. In separate incidents, three police personnel were arrested after opening fire on a vehicle near Podgali Chowk, killing a young student identified as Safeer Bajwa, and three Eagle Squad officials were arrested following a bribery complaint. The DIG emphasised that action against corruption and misuse of authority within the police force would continue without exception. ("Quetta on high alert amid rising security threats," Dawn, 9 May 2026)
KP: Security forces kill five militants in intelligence-based operations in Tank and Dera Ismail Khan
On 08 May, Dawn reported that security forces killed five militants in two separate intelligence-based operations in Khyber Pakhtunkhwa's Tank and Dera Ismail Khan districts conducted on 07 and 08 May. Four militants were killed in Tank district after troops engaged a TTP position during an intense exchange of fire, with weapons and ammunition recovered from the site. A fifth militant was killed in a separate firefight in Dera Ismail Khan. Inter-Services Public Relations (ISPR) described those killed as belonging to "Indian-sponsored Fitna-al-Khawarij". They said a sanitisation operation was underway to eliminate any remaining militants in the area. ("Security forces kill five terrorists in Tank, DI Khan in IBOs: ISPR," Dawn, 08 May 2026)
Bannu: Eight civilians injured, some critically, in quadcopter explosion
On 08 May, Dawn reported that eight people, including women, were injured when a quadcopter drone flew into a residential area in Bannu district, Khyber Pakhtunkhwa, and exploded. Some of the injured were said to be in critical condition at the District Headquarters Hospital. Security agencies launched an investigation to determine the drone's origin and possible motives. The incident follows a suspected cross-border quadcopter strike from Afghanistan that wounded two Pakistani security personnel in Mohmand district the previous week, and is the latest in a series of security incidents in Bannu, which has seen repeated attacks on civilians and security forces in recent months. ("Quadcopter attack in KP's Bannu injures 8, including women," Dawn, 08 May 2026)
AF-PAK
Militant killed in Bannu operation identified as Afghan Taliban special forces member
On 08 May, Dawn reported that a militant killed in an intelligence-based operation near Bannu's Baka Khel Airport on 9 April was identified as Fatehullah alias Mudassir, an active member of the Afghan Taliban regime's Yarmook 60 Special Forces Battalion, operating under the Taliban's Ministry of Interior Affairs. Security sources said Fatehullah, from Zarmat district in Afghanistan's Paktia province, was involved in facilitating cross-border terrorist networks and planning militant operations alongside the TTP inside Pakistan. Sources said the revelation raised serious questions over repeated Afghan Taliban claims that their soil would not be used against neighbouring countries. Separately, eight TikTokers across the Swabi district were arrested for displaying weapons on social media, with district police warning that the crackdown would continue against anyone promoting gun culture among youth. ("High-profile terrorist killed in Bannu was Afghan special forces member: security sources," Dawn, 08 May 2026)
Afghan Taliban leadership contacts Fazlur Rehman, expresses condolences over JUI-F cleric's killing as protests spread
On 09 May, Dawn reported that senior Afghan Taliban leaders, including Defence Minister Mullah Yaqoob, Interior Minister Sirajuddin Haqqani, Foreign Minister Amir Khan Muttaqi, and spokesman Zabihullah Mujahid, separately contacted JUI-F chief Maulana Fazlur Rehman to express condolences over the killing of senior JUI-F member Maulana Idris, who was shot dead by armed motorcyclists in the Utmanzai area of Charsadda on 5 May while travelling to a madressah. The Islamic State Khorasan Province (ISKP) claimed responsibility, with initial findings suggesting the attack was planned in Afghanistan. JUI-F's Islamabad chapter held a protest demanding the immediate arrest of those responsible, with central spokesperson Aslam Ghauri warning that the government would be held responsible until the killers were apprehended. The contacts from Kabul come amid growing anger within JUI-F over the killing and protests announced across the country. ("Afghan Taliban leaders reach out to Fazl, express condolences over cleric's killing in Charsadda," Dawn, 09 May 2026)
Pakistan and the US-Iran War
US-Iran talks could resume in Islamabad next week, according to The Wall Street Journal?
Key issues remain unresolved as US and Iran work on MoU; Defense Minister Khawaja Asif expresses optimism over prospective agreement
On 09 May, The News International and The Express Tribune reported that talks between the United States and Iran could resume as early as next week in Islamabad as mediators work on a one-page, 14-point memorandum of understanding aimed at creating a framework for the month-long negotiations to end the conflict. According to The Wall Street Journal, the draft proposal includes discussions on Iran’s nuclear programme, tensions in the Strait of Hormuz and the possible transfer of Iran’s highly enriched uranium stockpiles to another country. However, key issues - particularly the extent of sanctions relief for Tehran - reportedly remain unresolved and could still derail the process. The renewed diplomatic push comes after weeks of conflict following joint US-Israeli strikes on Iran and subsequent regional escalation that threatened a fragile ceasefire.
In parallel, speaking on television, Pakistani Defence Minister Khawaja Asif expressed optimism about the prospects of a US-Iran agreement, arguing that Pakistan would be among the major beneficiaries of a peace settlement. He said improved ties with Iran and the lifting of sanctions could allow Pakistan to import commodities such as oil and gas directly through land routes while also helping stabilise the Pakistan-Iran border, which he described as vulnerable to militant infiltration. Asif further said Pakistan had successfully persuaded Washington to support a ceasefire and restore diplomacy, highlighting Islamabad’s growing role as a mediator in the Gulf crisis alongside regional actors including China and Saudi Arabia. (“US-IRAN WAR: CEASEFIRE AMID HOPES FOR PEACE,” The News International, 09 May 2026; “Khawaja Asif hopeful of US-Iran deal, says Pakistan to be major beneficiary of peace,” The Express Tribune, 08 May 2026)
Editorials/Opinions
Islamabad Talks
Editorial, "Time for peace talks," The Express Tribune, 09 May 2026
"Pakistan has yet again exhibited utmost responsibility in its relations with archrival India by calling for looking beyond an era of confrontation. On the first anniversary of Marka-e-Haq, the four-day war last year wherein India went over the brink to launch an offensive on Pakistan and had to retreat after a befitting response, Pakistan's Foreign Office has called for doable efforts to "shape the future"."
https://tribune.com.pk/story/2607065/time-for-peace-talks
Judiciary
Hassan Kamal Wattoo, "Supreme in name only," Dawn, 09 May 2026
"The Supreme Court of Pakistan (SC) is a hollow shell of what it once was. The 27th Amendment has butchered it so thoroughly; ripped off so much of the flesh that made up its stature, authority and means to exercise independence, that the faint twitches of what’s left evoke a sense of pity. It exists now in the shadow of its replacement — the Federal Constitutional Court (FCC), consisting entirely of judges hand-picked by the executive (this writer’s last column has already detailed how this was a terrible idea)."
https://www.dawn.com/news/1998807/supreme-in-name-only
Society
Haris Gazdar & Sara Malkani, "Recognising women’s unpaid labour," Dawn, 09 May 2026
"It is a well-established ethical principle that the work someone does must be recognised and valued. The dignity of a person cannot be separated from the idea that they have the right to deploy their physical and mental faculties how they will, and that they have the right to the fruit of that effort. One of the reasons we find slavery abhorrent is that its institution violates these fundamental premises of what it is to be human. So how is it that for a huge segment of the population these ethical principles and standards can be set aside as a matter of routine without provoking concern let alone outrage? And how do we challenge and change this situation?"
https://www.dawn.com/news/1998808/recognising-womens-unpaid-labour
External
Imtiaz Gul, "Australia, China and Pakistan," The Express Tribune, 09 May 2026
"A recent visit to Canberra, Melbourne and Sydney entailed interesting perspectives on how the middle power Australia, like Pakistan, is caught between two big powers, i.e. China and the United States, for maintaining a balance in relations with the two global rivals. Whatever way you look at it, an intrinsic tilt to the US is unmistakable. Secondly, the Pakistan-Australia ties also stand at an interesting juncture in the context of the former's role in the mediation between the US and Iran."
https://tribune.com.pk/story/2607070/australia-china-and-pakistan
Migration
Editorial, "Making migration accessible," The Express Tribune, 07 May 2026
"Restricting migration does not inadvertently reduce its demand. Instead, it increases the demand for illegal routes. While on the other hand, offering citizens structural and opportunity-based exits reduce their desperation to leave. These exits, including financial assistance and skills-based training, make migration accessible for the poor but also create opportunities for them at home, where they can build livelihoods without the need to rely on risky international routes. Making migration accessible is the only effective migration policy that does both: makes it safe and makes it optional."
https://tribune.com.pk/story/2606878/making-migration-accessible
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