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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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Russia sought to blackmail US using intelligence to Iran, Zelenskiy says

Zelenskiy, who said on Monday that Ukraine’s military intelligence has “irrefutable” evidence that Russia is continuing to provide intelligence to Iran.

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Russia sought to blackmail the United States by offering to stop sharing military intelligence with Iran if, in return, Washington ​would cut off Ukraine from its intelligence data, President ‌Volodymyr Zelenskiy said on Wednesday.

Zelenskiy, who said on Monday that Ukraine’s military intelligence has “irrefutable” evidence that Russia is continuing to provide intelligence to Iran, ​told Reuters he had seen the data but provided ​no further details, Reuters reported.

Speaking in his presidential compound in Kyiv, Zelenskiy ⁠said that some Iranian drones, used to attack U.S. military ​assets and its allies during the war in the Middle East, ​contained Russian components.

“I have reports from our intelligence services showing that Russia is doing this and saying: ‘I will not pass on intelligence to Iran if ​America stops passing intelligence to Ukraine.’ Isn’t that blackmail? Absolutely,” ​Zelenskiy said.

He did not say who, according to the reports, Russia was addressing ‌the ⁠comments to. Russia has denied assisting Iran in its month-old conflict with the United States and Israel – a denial that Washington said earlier this month that it had also received directly from ​Moscow when the issue ​was discussed.

Ukraine, ⁠which has faced sustained attacks by Iranian-designed Shahed drones since Russia launched its invasion in 2022, is ​helping several Gulf states – including Saudi Arabia, the United ​Arab ⁠Emirates, and Qatar – to counter drone attacks on their territory, the president said.

Zelenskiy said he hoped that Ukraine would be able to ⁠reach long-term ​deals with some Gulf countries that ​would raise funds for the production of Ukrainian drone interceptors or receiving much-needed air-defence ​missiles, read the report.

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Israel strikes Tehran as Trump says US negotiating to end war

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Israel struck the Iranian capital Tehran on Wednesday, Israeli military and Iranian media said, as President Donald Trump said the ​U.S. was making progress in its efforts to negotiate an end to the war, with reports of a 15-point plan sent to Tehran.

The Israeli Defense ‌Forces said in a Telegram post it had launched a wave of strikes targeting infrastructure across Tehran. The semi-official Iranian SNN News Agency said the strikes hit a residential area in the city, with rescuers searching the rubble, Reuters reported.

Kuwait and Saudi Arabia said on Wednesday they had repelled fresh drone attacks, without stating where they originated. Drones targeted a fuel tank at Kuwait International Airport, ​causing a fire but no casualties, Kuwait’s Civil Aviation Authority said.

Iran’s Revolutionary Guards said it had launched a new wave of attacks against locations ​in Israel including Tel Aviv and Kiryat Shmona, as well as U.S. bases in Kuwait, Jordan and Bahrain, Iranian state media ⁠reported.

Trump said on Tuesday the U.S. was in “negotiations” to end the war, which has already killed thousands and created the worst energy shock in history, leading ​to global fuel shortages and roiling markets.

Stocks rose and oil prices fell on Wednesday on reports the U.S. is seeking a month-long ceasefire and had sent a 15-point ​plan to Iran for discussion, raising hopes for a resumption of oil exports out of the Persian Gulf.

Trump told reporters at the White House the U.S. was talking to “the right people” in Iran to end hostilities, adding the Iranians wanted to reach a deal very badly.

Iran’s powerful parliament speaker Mohammad Baqer Qalibaf on Monday dismissed such reports as “fake news.”

15 POINT PLAN SENT TO IRAN

The New ​York Times reported on Tuesday that Washington sent Iran a 15-point plan to end the war in the Middle East. Israel’s Channel 12, quoting three sources, ​said the U.S. was seeking a month-long ceasefire to discuss the 15-point plan.

A source familiar with the matter confirmed that the U.S. had sent a plan to Iran but provided no ‌further details.

The ⁠Israeli media outlet said the plan would include the dismantling of Iran’s nuclear programme, ceasing support for proxy groups, such as Lebanon’s Hezbollah, and the reopening of the Strait of Hormuz.

The U.S. and Israel launched strikes on Iran on February 28 after saying they had failed to make enough headway in talks aimed at ending Iran’s nuclear programme, although mediator Oman said significant progress had been made.

Since then, Iran has attacked countries that host U.S. bases, struck Gulf energy infrastructure and effectively closed the Strait ​of Hormuz, conduit for a fifth of ​the world’s oil and liquefied natural ⁠gas.

Iran has told the United Nations Security Council and the International Maritime Organization that “non-hostile vessels” may transit the Strait of Hormuz if they coordinate with Iranian authorities, according to a note seen by Reuters on Tuesday.

The effective closure of the waterway, ​where 20% of the world’s oil and gas normally transits, has created the worst energy supply shock in history, ​sent fuel prices soaring, ⁠and disrupted global aviation.

PAKKISTAN OFFERS TO HOLD US-IRAN TALKS

Pakistan’s Prime Minister Shehbaz Sharif said on Tuesday he was willing to host talks between the U.S. and Iran on ending the war, a day after Trump postponed threats to bomb Iranian power plants after what he called “productive” talks.

Pakistan has long-standing ties to neighbouring Iran’s Islamic Republic and has been building ⁠a relationship ​with Trump.

Despite reports of negotiations, the Pentagon is expected to send thousands of soldiers from the U.S. ​Army’s elite 82nd Airborne Division to the Middle East, two people familiar with the matter told Reuters on Tuesday, adding to a massive U.S. military buildup.

The forces will add to the 50,000 U.S. troops ​already in the region and accelerate Washington’s massive U.S. military buildup there, fuelling fears of a longer conflict.

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US allies in Middle East ‘edging closer’ to joining conflict

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Key U.S. allies in the Middle East are moving closer to direct involvement in the conflict with Iran, as sustained attacks on Gulf infrastructure intensify pressure on regional governments, according to a report by The Wall Street Journal.

Both Saudi Arabia and the United Arab Emirates are reportedly weighing deeper coordination with the United States and Israel, following repeated Iranian missile and drone strikes that have disrupted their economies and threatened regional energy security.

While neither country has formally committed troops, recent developments suggest a shift toward more active participation. The report indicates that Gulf support is already enhancing U.S. operational capabilities, including facilitating airstrike logistics and potentially opening new avenues to target Iran’s financial networks.

Saudi Arabia signals shift in stance

Saudi Arabia appears to be reassessing its position as attacks on critical infrastructure continue. Riyadh has reportedly allowed U.S. forces access to the King Fahd Air Base, a move that could support expanded military operations.

Foreign Minister Faisal bin Farhan warned that the kingdom’s tolerance for Iranian attacks is limited. “Any belief that Gulf countries are incapable of responding is a miscalculation,” he said following recent strikes on energy facilities.

Crown Prince Mohammed bin Salman is said to be considering stronger action to restore deterrence, with officials suggesting it may be only a matter of time before Saudi Arabia takes a more direct role in the conflict.

According to the WSJ report, one source said that “it is only a matter of time before the kingdom enters the war.”

UAE ramps up pressure on Tehran

The United Arab Emirates has also taken steps to increase pressure on Tehran, particularly through economic measures. Authorities in Dubai have shut down Iranian-linked institutions, including the Iranian Hospital and Iranian Club, citing violations of national laws and alleged links to state-backed activities.

Officials warned that further action could include freezing billions of dollars in Iranian assets held within the UAE, a move that could significantly impact Iran’s already strained economy.

Long regarded as a key financial hub for Iranian businesses, the UAE’s shift signals a notable escalation in its stance, even as it continues to deliberate over potential military involvement.

Regional tensions and strategic stakes

The growing alignment among Gulf states follows a series of attacks on energy facilities across Saudi Arabia, Kuwait, the UAE, and Qatar. Doha has condemned the strikes as a dangerous escalation and a direct threat to regional stability.

At the center of the war remains control over the Strait of Hormuz, a critical artery for global oil shipments. Iran’s ability to disrupt traffic through the strait continues to give it significant strategic leverage.

Risk of wider regional war

As the conflict approaches the one-month mark, Gulf states are maintaining close coordination with Washington over next steps. However, analysts warn that continued Iranian strikes could force regional powers into open confrontation.

With economic, security, and geopolitical stakes rising, the prospect of a broader regional war is becoming increasingly likely unless tensions are quickly contained through diplomatic efforts.

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