ISLAMABAD: Pakistan expressed solidarity with Turkey in its row with the US over Ankara’s refusal to extradite a US preacher imprisoned in the country.
Turkey’s dispute with the US has centered on the detention of American pastor Andrew Brunson, who is on trial for espionage and terror-related charges.
Washington imposed sanctions on Turkey’s Interior Minister Suleyman Soylu and Justice Minister Abdulhamit Gul for not releasing the pastor.
Also, on Aug. 10, President Donald Trump doubled US tariffs on Turkish aluminum and steel imports to 20 percent and 50 percent respectively.
Pakistan’s Foreign Office said in a statement on Monday that Islamabad in principle is opposed to the imposition of unilateral sanctions against any country.
“The solution to any and all issues should lie in dialogue, mutual understanding and goodwill. Any steps or actions to the contrary only undermine peace and stability and make the solution to a problem more difficult and intractable,” the Foreign Office said.
Pakistan acknowledged and appreciated “Turkey’s invaluable role toward regional and international peace and stability” in the statement. “It is also a vital member and engine of the global economy,” the ministry said.
“The people and the Government of Pakistan reiterate their strong support for the Government and the people of Turkey in their quest for peace and prosperity and, as always, will continue to stand by them toward the achievement of these shared goals,” the Foreign Office said.
Pakistan opposes unilateral sanctions against Turkey by US
Pakistan opposes unilateral sanctions against Turkey by US
- Pakistan Foreign Ministry reiterates “strong support” for the government and people of Turkey
- The solution to any and all issues should lie in dialogue, mutual understanding and goodwill, Islamabad maintains
IMF warns against policy slippage amid weak recovery as it clears $1.2 billion for Pakistan
- Pakistan rebuilt reserves, cut its deficit and slowed inflation sharply over the past one year
- Fund says climate shocks, energy debt, stalled reforms threaten stability despite recent gains
ISLAMABAD: Pakistan’s economic recovery remains fragile despite a year of painful stabilization measures that helped pull the country back from the brink of default, the International Monetary Fund (IMF) warned on Thursday, after it approved a fresh $1.2 billion disbursement under its ongoing loan program.
The approval covers the second review of Pakistan’s Extended Fund Facility (EFF) and the first review of its climate-focused Resilience and Sustainability Facility (RSF), bringing total disbursements since last year to about $3.3 billion.
Pakistan entered the IMF program in September 2024 after years of weak revenues, soaring fiscal deficits, import controls, currency depletion and repeated climate shocks left the economy close to external default. A smaller stopgap arrangement earlier that year helped avert immediate default, but the current 37-month program was designed to restore macroeconomic stability through strict monetary tightening, currency adjustments, subsidy rationalization and aggressive revenue measures.
The IMF’s new review shows that Pakistan has delivered significant gains since then. Growth recovered to 3 percent last year after shrinking the year before. Inflation fell from over 23 percent to low single digits before rising again after this year’s floods. The current account posted its first surplus in 14 years, helped by stronger remittances and a sharp reduction in imports. And the government delivered a primary budget surplus of 1.3 percent of GDP, a key program requirement. Foreign exchange reserves, which had dropped dangerously low in 2023, rose from US$9.4 billion to US$14.5 billion by June.
“Pakistan’s reform implementation under the EFF arrangement has helped preserve macroeconomic stability in the face of several recent shocks,” IMF Deputy Managing Director Nigel Clarke said in a statement after the Board meeting.
But he warned that Islamabad must “maintain prudent policies” and accelerate reforms needed for private-sector-led and sustainable growth.
The Fund noted that the 2025 monsoon floods, affecting nearly seven million people, damaging housing, livestock and key crops, and displacing more than four million, have set back the recovery. The IMF now expects GDP growth in FY26 to be slightly lower and forecasts inflation to rise to 8–10 percent in the coming months as food prices adjust.
The review warns Pakistan against relaxing monetary or fiscal discipline prematurely. It urges the State Bank to keep policy “appropriately tight,” allow exchange-rate flexibility and improve communication. Islamabad must also continue raising revenues, broadening the tax base and protecting social spending, the Fund said.
Despite the progress, Pakistan’s structural weaknesses remain severe.
Power-sector circular debt stands at about $5.7 billion, and gas-sector arrears have climbed to $11.3 billion despite tariff adjustments. Reform of state-owned enterprises has slowed, including delays in privatizing loss-making electricity distributors and Pakistan International Airlines. Key governance and anti-corruption reforms have also been pushed back.
The IMF welcomed Pakistan’s expansion of its flagship Benazir Income Support Program, which raises cash transfers for low-income families and expands coverage, saying social protection is essential as climate shocks intensify. But it warned that high public debt, about 72 percent of GDP, thin external buffers and climate exposure leave the country vulnerable if reform momentum weakens.
The Fund said Pakistan’s challenge now is to convert short-term stabilization into sustained recovery after years of economic volatility, with its ability to maintain discipline, rather than the size of external financing alone, determining the durability of its gains.
