ISLAMABAD, 27 February 2026 – Pakistan finds itself at a critical geopolitical and economic crossroads this week as the government navigates a formal declaration of “open war” with Afghanistan while simultaneously hosting International Monetary Fund (IMF) officials for a pivotal economic review.
Security Crisis: Declaration of War
In a significant escalation of regional tensions, Pakistan’s Defence Minister announced on Thursday, 26 February 2026, that the country has entered a state of “open war” with Afghanistan. The declaration follows a series of cross-border strikes and what Islamabad describes as a total exhaustion of patience regarding militant sanctuaries in Afghan territory. This development marks the most severe diplomatic and military breakdown between the two neighbours in recent years, raising immediate concerns regarding regional stability and border security.
Economic Outlook and IMF Review
Amidst the security crisis, Prime Minister Shehbaz Sharif is currently engaging with IMF representatives as they arrive for a scheduled review of the nation’s economic performance. The Prime Minister has hinted at potential tax cuts to stimulate growth, though such measures are expected to face intense scrutiny from the IMF, which has historically demanded fiscal discipline and structural reforms.
Economic experts suggest that while the economy showed signs of a fiscal surplus in 2025, it remains heavily reliant on foreign loans. Government projections indicate that with aggressive structural reforms, Pakistan’s economy could reach $1 trillion by 2035; however, current traditional growth rates would only see it reach approximately $600 billion in the same timeframe.
National Profile and Key Facts
Pakistan remains the 33rd largest country by area, characterised by a diverse landscape ranging from the coastal plains of the Arabian Sea to the world’s highest mountain ranges in the north.
| Category | Details |
|---|---|
| Capital | Islamabad |
| Population | Approximately 242.9 million |
| Total Area | 881,913 sq km |
| Official Languages | Urdu, English |
| Major Ethnic Groups | Punjabis, Sindhis, Pashtuns, Balochis, Muhajirs |
| Bordering Countries | Afghanistan, Iran, India, China |
Public Sentiment and Infrastructure
Public insights from the northern regions, particularly near Deosai National Park and Skardu, highlight the daily challenges faced by citizens. Residents report that while water supplies remain steady, electricity is “temperamental,” making solar panels and battery backups a necessity for modern living. Meanwhile, the broader public remains concerned about the “elite capture” of the economy, with reports suggesting corruption may cost the nation up to 6 per cent of its GDP annually.
Frequently Asked Questions
What is the current status of Pakistan’s relationship with Afghanistan?
As of 26 February 2026, Pakistan’s Defence Minister has stated the country is in an “open war” with Afghanistan following repeated cross-border tensions and recent military strikes.
Why is the IMF currently in Pakistan?
The IMF is conducting a review of Pakistan’s economic reforms to determine the release of further funding, including a potential $1.2 billion tranche. The review focuses on fiscal sustainability and the government’s ability to meet structural benchmarks.
What are the primary languages spoken in Pakistan?
Urdu is the national language and English is the official language used in legal and government sectors. Other major regional languages include Punjabi, Sindhi, Pashto, and Balochi.
What is the projected size of the Pakistani economy?
While the economy is currently recovering, the government aims to reach a $1 trillion valuation by 2035 through national cohesion and governance reforms, though current trajectories suggest a more modest $600 billion if reforms are not accelerated.