Pakistan calls for Iran-Israel ceasefire as deputy PM heads to OIC talks 

Prime Minister Muhammad Shehbaz Sharif addresses a federal cabinet in Islamabad, Pakistan on July 10, 2024. (PID/File)
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Updated 18 June 2025
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Pakistan calls for Iran-Israel ceasefire as deputy PM heads to OIC talks 

  • Meeting in Turkiye will focus on coordinated diplomacy to de-escalate Iran-Israel standoff, address aid crisis in Gaza
  • For Pakistan, a direct neighbor of Iran, prolonged clash threatens border security, could aggravate sectarian tensions

ISLAMABAD: Pakistani Prime Minister Shehbaz Sharif on Wednesday urged global powers to broker a ceasefire between Iran and Israel, as Deputy Prime Minister Ishaq Dar prepares to attend a meeting of foreign ministers of member states of the Organization of Islamic Cooperation (OIC).

The meeting in Turkiye from June 21-22 is expected to focus on coordinated diplomatic steps to de-escalate the Iran-Israel standoff and address the continuing humanitarian crisis in Gaza.

Thousands of people were fleeing Tehran on Wednesday after Israeli warplanes bombed the city overnight and the air fight between the two Middle Eastern powers entered the sixth day amid media reports US President Donald Trump was considering options that include joining Israel in attacking Iranian nuclear sites.

“I feel that ... global countries should try hard for a ceasefire,” Sharif told a federal cabinet meeting, calling the escalation “regrettable” and condemning what he described as Israel’s aggression against Pakistan’s neighboring “brotherly” country of Iran. 

Iran launched retaliatory strikes last week after Israeli forces attacked sites linked to Iran’s nuclear and military infrastructure on June 13. Iranian officials say at least 224 people, mostly civilians, have been killed, while Israel has reported over 20 deaths.

The latest escalation follows months of hostilities between Israel and Iranian-backed groups in Lebanon, Syria and Yemen, which intensified after the war in Gaza was launched late in 2023. Regional powers fear a direct confrontation could spiral into a broader conflict involving major oil shipping lanes and global energy supplies.

For Pakistan, a close Iranian neighbor and a longtime opponent of Israel, a prolonged conflict risks disrupting border security, inflaming sectarian tensions at home, and possibly putting it in a tight spot with other Arab allies and the West.

Pakistan does not recognize Israel and has historically aligned itself with the Palestinian cause of an independent state. 


IMF Executive Board to review $1.2 billion loan disbursement for Pakistan today

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IMF Executive Board to review $1.2 billion loan disbursement for Pakistan today

  • Pakistan, IMF reached a Staff-Level Agreement in October for second review of $7 billion Extended Fund, climate fund program
  • Economists view IMF bailout packages as essential for cash-strapped Pakistan grappling with a prolonged macroeconomic crisis

ISLAMABAD: The Executive Board of the International Monetary Fund (IMF) is set to meet in Washington today to review a $1.2 billion loan disbursement for Pakistan, state media reported on Monday.

Pakistan and the IMF reached a Staff-Level Agreement (SLA) in October for the second review of a $7 billion Extended Fund Facility (EFF) and the first review of its $1.4 billion Resilience and Sustainability Facility (RSF). 

The agreement between the two sides took place after an IMF mission, led by the international lender’s representative Iva Petrova, held discussions with Pakistani authorities during a Sept. 24–Oct. 8 visit to Karachi, Islamabad and Washington D.C.

“The International Monetary Fund’s (IMF) Executive Board is set to meet in Washington today to review and approve $1.2 billion in loan for Pakistan,” state broadcaster Pakistan TV reported. 

Pakistan has been grappling with a prolonged macroeconomic crisis that has drained its financial resources and triggered a balance of payments crisis for the past couple of years. Islamabad, however, has reported some financial gains since 2022, which include recording a surplus in its current account and bringing inflation down considerably.

Economists view the IMF’s bailout packages as crucial for cash-strapped Pakistan, which has relied heavily on financing from bilateral partners such as Saudi Arabia, China and the United Arab Emirates, as well as multilateral lenders including the IMF, World Bank, Asian Development Bank and Islamic Development Bank. 

Speaking to Arab News last month, Pakistan’s former finance adviser Khaqan Najeeb said the $1.2 billion disbursement will further stabilize Pakistan’s near-term external position and unlock additional official inflows.

“Continued engagement also reinforces macro stability, as reflected in recent improvements in inflation, the current account, and reserve buffers,” Najeeb said.

Pakistan came close to sovereign default in mid-2023, when foreign exchange reserves fell below three weeks of import cover, inflation surged to a record 38% in May, and the country struggled to secure external financing after delays in its IMF program. Fuel shortages, import restrictions, and a rapidly depreciating rupee added to the pressure, while ratings agencies downgraded Pakistan’s debt and warned of heightened default risk.

The crisis eased only after Pakistan reached a last-minute Stand-By Arrangement with the IMF in June 2023, unlocking emergency support and preventing an immediate default.