Pakistan nears IMF deal, deepens Saudi ties amid unrest
ISLAMABAD — Pakistan said talks with the International Monetary Fund (IMF) made “significant progress” toward a staff-level agreement as a high-powered Saudi delegation explored deeper investment and trade ties in Islamabad this week, even as a deadly militant ambush and sharp rhetoric with India underscored rising security tensions.
IMF reviews advance, reforms accelerate
An IMF mission and Pakistani authorities reported “significant progress” in reviews of the country’s $8.4 billion program, with further discussions planned before a staff-level agreement is finalized, the lender and local officials said on Wednesday. Multiple outlets reported that a draft Memorandum of Economic and Financial Policies (MEFP) has been shared as talks near conclusion, though no deal has yet been reached. The IMF’s remarks were echoed by Pakistan’s finance team and business press, which noted progress under the Extended Fund Facility and Resilience and Sustainability Facility (Sources: Arab News PK, Business Recorder, Mettis Global, ProPakistani, samaa tv, Profit by Pakistan Today).
In parallel, Islamabad moved ahead on privatization and restructuring steps. Authorities announced plans to sell an 82% stake in First Women Bank to a UAE investor, part of efforts to streamline state holdings and attract foreign capital (Profit by Pakistan Today). Updated estimates showed the economy’s size at $407.2 billion for FY2024-25, while a new digital panel survey put the national poverty rate at 30.5%, rising to 36.6% in rural areas (The Nation, Profit by Pakistan Today).
Saudi outreach intensifies across trade and parliament
Economic diplomacy took center stage as Pakistan hosted the Saudi–Pakistan Joint Business Council (JBC). Deputy Prime Minister/Foreign Minister Senator Mohammad Ishaq Dar met His Highness Prince Mansour bin Mohammad Al Saud and the Saudi JBC delegation on October 8 to discuss investment, trade and sectoral cooperation (Ministry of Foreign Affairs). A high-level Saudi trade delegation also participated in JBC meetings and explored opportunities in Islamabad, with both sides pledging to boost commercial ties (The Nation, Mettis Global, The Express Tribune, Dunya News). Separately, the Speaker of the Saudi Shura Council met Pakistan’s prime minister to advance parliamentary cooperation (Arab News PK).
Security: 11 soldiers killed in Khyber Pakhtunkhwa
At least 11 Pakistani soldiers, including a lieutenant colonel, were martyred in clashes with militants near the Afghan border in Khyber Pakhtunkhwa, while security forces killed 19 terrorists in ensuing operations, the military said in statements carried by local media (Business Recorder, Daily Sabah, Gulf News, Times of India, The Express Tribune). Top commanders vowed to “crush Indian-sponsored terror proxies,” and the army’s senior leadership warned of a “new normal of swift retributive response” to aggression (Business Recorder, Asia News Network).
Amid heightened tensions, Defence Minister Khawaja Asif told reporters the “chances of war with India are real,” remarks widely covered by regional media (Firstpost, Tribune India, Deccan Herald, Financial Express). The U.S. meanwhile approved the sale of advanced AMRAAM air-to-air missiles to Pakistan—valued at about $41 million—potentially bolstering the country’s F-16 fleet, according to defense-focused outlets (Gulf News, The Economic Times, Quwa, Business Standard).
Political strains and governance moves
Within Pakistan’s ruling coalition, Pakistan Peoples Party Chairman Bilawal Bhutto-Zardari convened a key party meeting as frictions surfaced over policy and power-sharing (Arab News PK). In Khyber Pakhtunkhwa, the provincial chief minister resigned on the orders of jailed ex-premier Imran Khan, with Khan’s party naming a replacement amid a surge in militancy (Arab News PK, Anadolu Agency, The Hindu).
Aviation and state assets
Pakistan International Airlines (PIA) will resume services to the United Kingdom from October 25 after a prolonged hiatus (TravelMole), even as authorities blocked a bailout for the national carrier’s Roosevelt Hotel asset in New York (ch-aviation).
Humanitarian and public health updates
Relief coordination around seasonal flooding continued, with a Situation Report issued on October 8 detailing response measures and needs across affected areas (ReliefWeb). Separately, Pakistan’s HPV immunization introduction campaign sustained momentum despite misinformation challenges, public health partners said (Gavi, the Vaccine Alliance).
Cricket: Australia routs Pakistan at Women’s World Cup
On the field, Australia defeated Pakistan by 107 runs to go top of the ICC Women’s Cricket World Cup 2025 table. Beth Mooney’s 109 anchored Australia to 221 before Pakistan were bowled out for 114, suffering their third straight loss (AP, ICC, PCB, Times of India, The Nation). Pakistan captain Fatima Sana said batters “must play long knocks” after the defeat, urging more application at the crease in upcoming fixtures (Geo Super). The match also drew scrutiny following earlier controversies in the tournament, as Pakistan seek a turnaround to keep semifinal hopes alive (News18, ESPNcricinfo).
Outlook
With the IMF saying talks have inched closer to a staff-level agreement, and Saudi investment overtures gathering pace, Islamabad is betting on external support and reforms to stabilize the economy. The security situation and regional tensions, however, continue to pose risks as authorities juggle fiscal consolidation, privatization, and a crowded diplomatic agenda.