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Pakistan faces political , security and economic pressures that could spill over : Report

Pakistan's military-backed federal government imposed emergency rule and Governor's rule in Khyber Pakhtunkhwa, removing the PTI-led provincial government after protests demanding Imran Khan's release, and detained Chief Minister Sohail Afridi along with other PTI leaders. The government said the province had failed to combat militancy, while PTI called the move a 'coup disguised as emergency'. Army chief Asim Munir has been appointed Chief of Defence Forces and now has operational command over the army, navy and air force, according to the report. Pakistan was ranked the world's most terrorism-affected country in the Global Terrorism Index 2026 based on 2025 data, with over 1,000 incidents and more than 1,100 deaths, and one research centre reported an 83% quarter-on-quarter rise in fatalities in the third quarter of 2026. An IMF staff-level agreement in early October 2026 cleared about USD 1.2 billion in disbursements pending board approval, while growth is projected at 3.5–3.6% and inflation near 9.9%.

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