Pakistan's government under Shehbaz Sharif is in a difficult situation as the nation is unwilling to comply with the IMF's requirements, which could result in a default on its sovereign debt if the financing program expires at the end of June.

In Pakistan, the inflation rate is at its highest level since records began in 1957, which adds to the strain on the government. With a rate of 38% in May 2023, Pakistan actually has the highest inflation rate in Asia, overtaking Sri Lanka. However, once Pakistan passed Sri Lanka in April 2023, the country's inflation rate dropped to 25.2%.

Despite Pakistan's attempts to compare itself to India and its historical reliance on backing from the US and now China, India's inflation rate is at 4.7%, the lowest it has been since October 2021. In addition, India's food inflation rate is only 3.8%. Pakistan's food inflation rate, in comparison, rose from 48.1% in April to 48.7% in May.

The InternationAl Monetary Fund mission chief, Nathan Porter, expressed his hope that the ongoing political situation in Pakistan would be handled in accordance with the nation's Constitution and the rule of law, which has hampered the talks between the Pakistani government and the IMF. 

Porter's words were strongly criticised by Pakistan's defence minister, Khawaja Asif, who saw them as meddling in Pakistan's domestic politics. Instead of concentrating on providing Pakistan with the desperately needed USD 1.1 billion credit, Minister Asif found it offensive that Porter made comments about Pakistan's domestic issues.

Pakistan is currently divided due to the unrest and violence that Imran Khan Niazi's (the PTI party's leader) followers stoked on May 9. There is growing public pessimism about the capability of the Rawalpindi GHQ (General Headquarters) to successfully resolve the deep-seated flaws within the institution as a result of Imran Khan Niazi's relentless attacks on the Pakistani Army structure.

On May 9, supporters of the PTI party set fire to the home of the powerful Lahore Corps Commander, further undermining public confidence and showing internal split within the Army itself. Lack of coordination between the Army, political leadership, and judiciary in Pakistan exacerbates the issue and makes the country vulnerable.

Tehreek-e-Taliban, Balochistan, and other insurgencies are getting worse, and there have been attacks on the armed forces in Punjab and Khyber-Pakhtunkhwa provinces.

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