Pakistan's army chief undertook two trips to Tehran and accompanied the Prime Minister to Beijing in May 2026, signaling significant diplomatic and strategic engagements. The Punjab wheat procurement model collapsed, with private aggregators securing less than a fifth of their revised target. Inflation was projected to hit 11.0 to 11.5 percent year-on-year, a 23-month high.
The IMF Executive Board completed its third review, disbursing funds but cutting Pakistan’s FY27 growth forecast from 4.1 percent to 3.5 percent and raising inflation projections. FDI for the first ten months of FY2026 declined 31 percent to $1.409 billion. The HRCP documented 1,272 terrorist attacks resulting in 3,417 deaths, 1,696 police encounter killings, and a severe contraction of civic space. Enforced disappearances persisted in Balochistan, and Imran Khan reached approximately 1,000 days in Adiala Jail. PM Shehbaz Sharif's Beijing visit solidified pledges to advance CPEC 2.0 and establish Gwadar as a regional connectivity hub, with the Torkham crossing remaining closed for a seventh consecutive month.
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