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IMF Review Amidst Escalating Pakistan-Afghanistan Border Conflicts

3/8/2026

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Story summary
  • International Monetary Fund (IMF) inspectors in Islamabad are conducting a third-round review of Pakistan's economic recovery program, a step that could unlock rescue funding.
  • Escalating border conflicts between Pakistan and Afghanistan have included air and drone strikes that have caused casualties and jeopardized talks.
  • Economist Callee Davis said the strikes' timing harms Pakistan's economic recovery.
  • Before the violence, Pakistan's economy improved, with easing inflation and growing investor confidence.