An overnight exchange of fire along the Afghan-Pakistan border killed five Afghan civilians and injured eight people on both sides, with each country blaming the other for starting the clash. The incident occurred despite a fragile two-month ceasefire and comes amid heightened tensions linked to recent militant attacks and cross-border accusations. The renewed violence follows Pakistan’s decision to allow UN aid supplies into Afghanistan and coincides with Pakistan’s security

The IMF projects that inflation in Pakistan will rise in the coming years, potentially reaching nearly 9% by mid-2026, increasing pressure on households and businesses. While GDP growth is expected to remain moderate at just over 3%, high public debt and fiscal constraints continue to limit economic stability. The IMF warns that careful monetary and fiscal management will be necessary to control prices while sustaining growth.

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