ISLAMABAD: Pakistan’s Chairman Joint Chiefs of Staff Committee General Sahir Shamshad Mirza this week met Iraq’s Secretary Defense Lt. Gen. Ahmed Dawood Salman to discuss enhancing defense and security cooperation between the two states, the army’s media wing said.
Pakistan’s relations with Iraq have enhanced in the past few years through defense cooperation, with Islamabad providing support to Iraqi security forces in their fight against the militant group Daesh. In 2014, Iraq purchased the Super Mushak trainer aircraft from Pakistan as part of improving defense ties between the two Muslim-majority countries.
Salman called on Mirza at the Joint Staff Headquarters in Pakistan’s garrison city of Rawalpindi on Monday, the Inter-Services Public Relations (ISPR) said in a statement.
“Matters of bilateral interests including emerging security environment and enhancement of security and defense cooperation between the two countries were discussed during the meeting,” the ISPR said.
The army’s media wing said Salman commended the professionalism of Pakistan’s armed forces and acknowledged the sacrifices rendered by the country’s people in its war against militancy.
Pakistan has been fighting religiously motivated militant groups in the country, notably the Tehreek-e-Taliban Pakistan (TTP), or the Pakistani Taliban, since 2007. These militant outfits have carried out some of the deadliest attacks against the South Asian country’s armed forces and civilians, including suicide bombings.
Pakistan has seen a surge in militant attacks in its western provinces of Khyber Pakhtunkhwa and Balochistan since November 2022, after a fragile truce between the state and the TTP broke down.
Pakistan, Iraq discuss enhancing bilateral defense and security cooperation
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Pakistan, Iraq discuss enhancing bilateral defense and security cooperation
- Pakistan’s Chairman Joint Chief of Staff Committee General Sahir Shamshad Mirza meets Iraq’s defense secretary
- Lt. Gen. Ahmed Dawood Salman commended Pakistan’s armed forces for their professionalism, says army’s media wing
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.
