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Pakistan PM Sharif welcomes IMF’s $7 billion funding agreement

The IMF said the new program will require “sound policies and reforms” to strengthen macroeconomic stability and address structural challenges alongside “continued strong financial support from Pakistan’s development and bilateral partners.”

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Pakistan’s Prime Minister Shehbaz Sharif welcomed the International Monetary Fund’s decision to approve a $7 billion funding agreement for the country, his office said on Wednesday.

Islamabad had been working on implementing conditions that Sharif had previously called “strict” from the IMF to complete the 37-month loan programme agreed to in July, which the country hopes will be its last, Reuters reported.

The IMF said the new program will require “sound policies and reforms” to strengthen macroeconomic stability and address structural challenges alongside “continued strong financial support from Pakistan’s development and bilateral partners.”

An immediate disbursement of about $1 billion will take place.

Sharif, on the sidelines of the United Nations General Assembly, told Pakistani media this week that Pakistan had fulfilled all of the lender’s conditions, with help from China and Saudi Arabia.

“Without their support, this would not have been possible,” he said, without elaborating on what assistance Beijing and Riyadh had provided to get the deal over the line.

Rollovers or disbursements of loans from Pakistan’s long-time allies, in addition to financing from the IMF, have helped the country meet its external financing needs in the past.

The government had also vowed to increase its tax intake, in line with IMF requirements, despite protests in recent months by retailers and some opposition parties over the new tax scheme and high electricity rates.

Pakistan has been struggling with boom-and-bust economic cycles for decades, leading to 22 IMF bailouts since 1958. Currently the country is the IMF’s fifth-largest debtor, owing the Fund $6.28 billion as of July 11, according to the lender’s data.

The latest economic crisis has been the most prolonged and has seen Pakistan facing its highest-ever inflation, pushing the country to the brink of a sovereign default last summer before an IMF bailout.

Inflation has since eased and credit ratings agency Moody’s has upgraded Pakistan’s local and foreign currency issuer and senior unsecured debt ratings to ‘Caa2’ from ‘Caa3’, citing improving macroeconomic conditions and moderately better government liquidity and external positions.

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Iran arrests at least four reform front politicians

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The Islamic Iran Nation’s Union Party sought the release of secretary-general Azar Mansouri, the Shargh newspaper said on Monday, after her arrest along with other members of the Reform Front, an umbrella body of Iranian reformists and moderates.

A campaign of mass arrests and intimidation has led to the arrests of thousands as authorities seek to deter further protests after last month’s crackdown on the bloodiest unrest since the 1979 Islamic Revolution.

On Sunday, state media said three senior figures from Iran’s Reform Front were arrested, among them Ebrahim Asgharzadeh, Mohsen Aminzadeh, and Azar Mansouri, who acts as the front’s head, according to Reuters.

Shargh said at least two more Reform Front members were asked to report to the prosecutor’s office in Tehran’s Evin prison on Tuesday.

The Reform Front’s spokesperson, Javad Emam, was also arrested, Mansouri’s lawyer, Hojjat Kermani, said on Monday, adding that it was unclear what charges faced those detained.

“We basically don’t know what caused these arrests, because the Reform Front has not yet issued a statement about the recent events (protests),” Kermani told the Iranian Labour News Agency (ILNA). “Individuals may have commented on their own.”

On Sunday, the judiciary’s media outlet Mizan said “four important political elements supporting the Zionist (regime) and the United States” were indicted, but gave no details.

Tehran has blamed unrest-related violence on “rioters and armed terrorists” it says were backed by its key enemies, Israel and the United States.

Past Reform Front statements have been highly critical of authorities. After the 12-day war against Israel, its members warned that “incremental collapse” awaited the country if it did not adopt fundamental reforms.

Kermani said the recent arrests were not related to a judicial case launched against the Front after that statement, however.

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Eight killed in explosion in northern China, state media says

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An explosion at a small biotech company in northern China early Saturday killed eight people, China’s state media reported on Sunday.

The explosion occurred in Shuoyang in the Shanxi province in the early morning of Saturday, state media reported, according to Reuters.

The legal representative of Jiapeng Biotechnology has been detained and the city has set up an accident investigation team, Xinhua News Agency reported.

The firm is located in a mountain hollow and dark yellow smoke was seen billowing from the accident site, Xinhua said.

Reuters was not able to contact the company, which does not maintain a website. The cause of the reported explosion was not immediately clear.

Founded in June 2025, Jiapeng Biotechnology conducts research on animal feed, coal products and building materials, according to its corporate registration.

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Iran’s FM calls Oman-mediated talks with US ‘good start’

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Iran’s foreign minister on Friday described talks with the United States in Oman as a “good start,” saying the negotiations “can also have a good continuation,” Iranian state media reported.

The discussions, mediated by Oman, marked a resumption of nuclear diplomacy between Tehran and Washington. Iranian state media said the current round of talks concluded on Friday, with both delegations returning to their respective capitals.

Speaking to state media reporters in Muscat, Iranian Foreign Minister Abbas Araghchi said the talks’ progress depends on the U.S. and on decisions made in Tehran.

Araghchi said a “significant challenge” remains, citing a prevailing atmosphere of distrust. He said Iran’s priority is to overcome this distrust and then establish an agreed framework for the talks and the issues on the table.

He described the talks as a fresh round of dialogue after eight turbulent months that included a war, saying the accumulated distrust presents a major obstacle to negotiations.

“If this same approach and perspective are maintained by the other side, we can reach an agreed framework in future sessions,” Araghchi said, adding that he did not want to judge prematurely.

Iranian Foreign Ministry spokesman Esmaeil Baqaei also confirmed on the social media platform X that both sides agreed to continue talks and would decide the next round in consultation with their capitals.

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