The ceasefire between India and Pakistan, brokered after a period of intense cross-border military strikes, appears to be holding, though tensions remain. The agreement, reached on May 10, 2025, followed days of escalating conflict, including accusations of "violations" from both sides shortly after the deal was made. The US President Donald Trump had praised the leaders of both nations for agreeing to the ceasefire, stating that millions of lives could have been at risk without it.
Details of the Ceasefire Agreement Indian government sources have stated that the Director Generals of Military Operations (DGMOs) of India and Pakistan reached a mutual understanding to cease all firing and military actions across land, air, and sea with immediate effect. These sources emphasized that no third party was involved in brokering the agreement. In contrast, Pakistan's foreign minister indicated that several countries, including Saudi Arabia, the US, Turkey, and the UK, played active roles in achieving the ceasefire.
Despite the agreement, challenges persist. Sporadic violence has been reported, and India expelled a Pakistani diplomat accused of "activities not in keeping with his official status". Pakistan has also expelled an Indian High Commission staffer in Islamabad. These actions underscore the fragility of the ceasefire and the continued underlying tensions between the two nations.
Bangladesh Secures $1.3 Billion IMF Bailout In other news, Bangladesh is set to receive $1.3 billion from the International Monetary Fund (IMF) in June, following an agreement on key reforms. The funds represent the fourth and fifth tranches of a $4.7 billion loan program. The IMF had previously withheld the funds, pressing for greater exchange rate flexibility, particularly the adoption of a crawling peg mechanism.
The Bangladesh Bank governor announced a market-based exchange rate to meet IMF conditions. This move signifies a key breakthrough in talks between Bangladesh and the IMF. The IMF's insistence on a truly flexible exchange rate aimed to eliminate multiple exchange rate windows and move beyond minor adjustments. While the central bank remains cautious, citing potential inflationary shocks and political pushback, the agreement paves the way for the release of the much-needed funds. Bangladesh had turned to the IMF in 2023 for the bailout due to the pressure on its foreign reserves from a global surge in commodity prices, which strained its ability to pay for essential imports. Bangladesh has already received $2.3 billion across the first three tranches.
This financial support arrives as the IMF projects a slowdown in Bangladesh's export-dependent economy, forecasting a growth of 3.8% this year. The IMF has also suggested that "fiscal consolidation should focus on the prompt implementation of additional revenue measures — such as streamlining of tax exemptions — while containing non-essential expenditures."
