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Pakistan is in talks to release of $1.1bn (£890m) of cash from the International Monetary Fund (IMF) to help ease its financial crisis.

Pakistan’s economic woes are a culmination of years of political turmoil, a financial crisis and last year’s catastrophic floods, with its reserves only able to cover three weeks – rather than the required three months.

Inflation is also thought to stand at around 24% to 26%, according to the country’s finance ministry, and the currency has been devalued against the dollar.

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The IMF delegation will be encouraging the Pakistani government to implement bold cost-cutting measures to help it bridge its financial gap, with mission chief Nathan Porter saying: “You don’t have any other option.”

In 2019, Pakistan secured a $6bn (£4.9bn) bailout from the IMF. It got another $1bn (£811m) last year to help overcome the devastating floods, but in November the IMF suspended payments, saying the government failed to make progress on its fiscal consolidation.

In response, Ishaq Dar, the country’s finance minister, told the IMF it had made some efforts to bring its crisis under control, including increasing taxes on petrol and natural gas, and increased prices for electricity.

If released, the cash from the IMF would go towards paying its external debt to the tune of $8bn, which has to be paid by the end of June.

Backlogs at ports, factories closed and electricity blackouts

The government has stopped issuing lines of credit, causing a backlog of container ships at the port of Karachi, while industry has been battered by the currency devaluation and imports block.

Domestic investment has dried up, with textile factories partially closing due to demand, and construction projects have been delayed due to lack of investment.

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Communities flee flooding

There has also been severe energy shortages, which has hindered remaining economic activity, while companies that generate and supply energy struggle with the high costs of fuel and turn off the electricity grid to save money.

Last week the country of 243 million people was plunged into darkness after a major breakdown of the national grid, which lasted several hours – the impact was felt on schools, hospitals, businesses and industry further hindering economic activity.

The country’s economy has been faltering for many years, with the floods in 2022 pushing it over the edge.

Pakistan’s floods impacted a third of the country and wiped out millions of hectares of crops. Almost 2,000 people were killed, and around 33 million people were displaced, with damage thought to cost around $40bn (£32.4bn).

Successive governments have been accused of making little effort to widening the tax net and increasing sources of revenue, while loans from allies such as China, Saudi Arabia and the United Arab Emirates kept its economy afloat.

FILE PHOTO: People wait their turn to get fuel at a petrol station, in Karachi, Pakistan June 2, 2022. Picture taken June 2, 2022. REUTERS/Akhtar Soomro/File Photo
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Fuel taxes have been increased. File pic: Reuters

Some blame former PM Imran Khan

Former prime minister Imran Khan, and his government, have been accused of contributing to the immediate crisis. A year into his premiership, the fiscal deficit shot to a record high of $25.3bn (£20.5bn) and by the time he was ousted early last year, inflation was over 12%.

Mr Khan delayed approaching the IMF, despite economists recommending it, saying he wants to shun the practice of approaching foreign entities with a “begging bowl”.

However, his government was unable to bear the costs of a slew of welfare schemes it rolled out – though it helped his popularity.

His government’s reluctance to increase fuel costs, even in early 2022 when international crude rates had breached the $100 mark due to the war in Ukraine war, meant the state exchequer lost precious dollars.

People warm themselves by a fire beside a solar panel, a day after a country-wide power breakdown, in Peshawar, Pakistan, January 24, 2023. REUTERS/Fayaz Aziz

Is Pakistan going the same way as Sri Lanka?

There is comparison of what is taking place in Pakistan with the collapse of the Sri Lankan economy last year.

But this is unlikely, as almost half of Sri Lanka’s external debt was owed to private creditors while for Pakistan, this is only about 8% of what it owes.

Pakistan’s large bilateral loan payments are to friendly countries like Saudi Arabia, the UAE, and China, which will be rolled over.

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With the present government starting to implement changes that would satisfy the IMF and a release of the $1.1bn tranche, this will pave the way for the release of the loan and other bilateral assistances.

But more importantly, Pakistan is a nuclear nation and a geostrategic country, and its allies, and the world, would prevent its economy from collapsing.

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Two dead and hundreds of arrests across France after PSG’s Champions League win

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Two dead and hundreds of arrests across France after PSG's Champions League win

Two people are dead and nearly 560 people were arrested after disorder broke out in France following Paris Saint-Germain’s victory in the Champions League final, the French interior ministry has said.

The ministry added 192 people were injured and there were 692 fires, including 264 involving vehicles.

A 17-year-old boy was stabbed to death in the city of Dax during a PSG street party after Saturday night’s final in Munich, the national police service said.

The second person killed was a man who was hit by a car while riding a scooter during PSG celebrations, the interior minister’s office said.

Paris police chief Laurent Nuñez has said the man was in his 20s and although the incident is still being investigated, it appears his death was linked to the disorder.

Meanwhile, French authorities have reported that a police officer is in a coma following the clashes.

Soccer Football - Champions League - Final - Paris St Germain fans gather in Paris - Paris, France - May 31, 2025 A burning bike is seen on
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A burning bike on the Champs Elysees during the disorder. Pic: Reuters

The officer had been hit by a firecracker that emerged from a crowd of supporters in Coutances in the Manche department of northwestern France, according to reports in the country.

Initial investigations reportedly suggest the incident was accidental and the police officer was not deliberately targeted.

The perpetrator has not been identified.

A man walks past teargas during incidents after the Champions League final soccer match between Paris Saint-Germain and Inter Milan. Pic: AP
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A man walks past teargas during incidents after the Champions League final soccer match between Paris Saint-Germain and Inter Milan. Pic: AP

Soccer Football - Champions League - Final - Paris St Germain fans gather in Paris - Paris, France - May 31, 2025 A burning bike is seen on
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A burning bike on the Champs Elysees during the disorder. Pic: Reuters

The interior ministry earlier said 22 security forces workers were injured during the chaos – including 18 who were injured in Paris, along with seven firefighters.

In a news conference today, Mr Nuñez said only nine of the force’s officers had been injured in the French capital.

He added that fireworks were directed at police and firefighters were attacked while responding to car fires.

There were 559 arrests across the country during the disorder, including 491 in Paris. Of those detained across the country, 320 were taken into police custody – with 254 in the French capital.

Mr Nuñez said although most people wanted to celebrate PSG’s win, some only wanted to get involved in fights with police.

He also said the force is only at “half-time” in its response because the PSG team will be celebrating their Champions League victory on the Champs Élysées later today.

Soccer Football - Champions League - Final - Paris St Germain fans gather in Paris - Paris, France - May 31, 2025 Riot police on the Champs
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Police in Paris during the disorder. Pic: Reuters

Soccer Football - Champions League - Final - Paris St Germain fans gather in Paris - Paris, France - May 31, 2025 Riot police on the Champs
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Police in Paris during the disorder. Pic: Reuters

Mr Nuñez said that the police presence and military presence in Paris will be increased on the ground for the parade.

It comes after flares and fireworks were set off in the French capital after PSG beat Inter Milan 5-0 in Munich – the biggest ever victory in a Champions League final.

Around 5,400 police were deployed across Paris after the game, with officers using tear gas and pepper spray on the Champs Élysées.

A man runs away from teargas during incidents on the Champs Elysees avenue after PSG won the Champions League. Pic: AP
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Pic: AP

Fireworks explode over police in Paris after PSG win the Champions League. Pic: AP
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Pic: AP

At the top of the Champs Élysées, a water cannon was used to protect the Place de l’Etoile, near the landmark Arc de Triomphe.

Police said a large crowd not watching the match tried to push through a barrier to make contact with officers.

Some 131 arrests were made, including 30 who broke into a shoe shop on the Champs Élysées.

Police have said a total of four shops, including a car dealership and a barbers, were targeted during the disorder in Paris.

Two cars were set alight close to Parc des Princes, police said.

PSG forward Ousmane Dembélé appealed for calm in a post-match interview with Canal+, saying: “Let’s celebrate this but not tear everything up in Paris.”

A PSG supporter on a traffic sign in Paris while red flares are set off after the team won the Champions League. Pic: AP
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Pics: AP

PSG supporters invade a street in Paris after the team won the Champions League. Pic: AP

After the final played at the Allianz Arena in Munich, Germany, thousands of supporters also tried to rush the field.

Police lined up in front of the PSG end of the stadium at the final whistle, but struggled to contain the fans for several minutes when they came down from the stands following the trophy presentation.

PSG fans rush the field at Allianz Arena in Munich after the team win the Champions League. Pic: AP
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Pics: AP

Police try to contain PSG fans on the field at Allianz Arena in Munich. Pic: AP

Désiré Doué, the 19-year-old who scored two goals and assisted one in the final, said after the game: “I don’t have words. But what I can say is, ‘Thank you Paris,’ we did it.”

Despite being a supporter of PSG’s rivals Olympique de Marseille, French President Emmanuel Macron also said on social media: “A glorious day for PSG!

“Bravo, we are all proud. Paris, the capital of Europe this evening.”

Mr Macron’s office said the president would receive the players at the Elysee Palace on Sunday.

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Hamburg hospital fire kills three as people call for help from windows

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Hamburg hospital fire kills three as people call for help from windows

Three patients have been killed and dozens of other people were reportedly injured after a fire at a hospital in Germany.

The blaze broke out in a room in the geriatric ward of the Marienkrankenhaus early on Sunday.

It started on the ground floor and spread to the level above, with smoke affecting much of the four-storey building in the city of Hamburg.

Firefighters were alerted soon after midnight.

They said they found several patients calling for help from windows, and some people were rescued using ladders.

Fire at the Marienkrankenhaus hospital. Pic: AP
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Pic: AP

Hospital fire. Pic: Reuters
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Pic: Reuters

Three adults died and more than 30 were injured in the fire, the German news agency dpa said.

One of the injured is in a life-threatening condition, while 18 have serious injuries and 15 have minor injuries, the agency added.

Read more from Sky News:
Two dead and hundreds of arrests in France after PSG win
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Part of the building had to be evacuated, though the wounded were mostly treated at the hospital.

Two injured people were taken to other nearby clinics.

The blaze was put out within about 20 minutes. The cause is not yet known.

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At least 26 people killed in Israeli attack near aid distribution site, Gaza health ministry says

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At least 26 people killed in Israeli attack near aid distribution site, Gaza health ministry says

At least 26 people have been killed near an aid distribution centre in the Rafah area of southern Gaza, according to the Hamas-run Palestinian health ministry.

Earlier, a nearby hospital run by the Red Cross reported that at least 21 people had been killed. The hospital, which has been receiving bodies and the wounded, also said another 175 people had been injured.

Witnesses said the deaths came after Israeli forces opened fire at a roundabout near the Gaza Humanitarian Foundation hub, a new aid organisation backed by Israel and the US.

However, Palestinian and Hamas-linked media have attributed the deaths it has reported on to an Israeli airstrike.

It is not yet clear if eyewitnesses and Hamas-affiliated media are giving different accounts of the same incident.

Sky News has contacted the Israel Defence Forces (IDF) for comment.

Witnesses tell of shooting

The area where the reported shooting took place is controlled by Israeli forces.

Ibrahim Abu Saoud, an eyewitness, said Israeli forces opened fire at people moving toward the aid distribution centre.

“There were many martyrs, including women,” the 40-year-old man said. “We were about 300 metres away from the military.”

Abu Saoud said he saw many people with gunshot wounds, including a young man who he said had died at the scene. “We weren’t able to help him,” he said.

Mohammed Abu Teaima, 33, said he saw Israeli forces open fire and kill his cousin and another woman as they were heading to the hub.

He said his cousin was shot in his chest and died at the scene. Many others were wounded, including his brother-in-law, he said.

“They opened heavy fire directly toward us,” he said as he was waiting outside the Red Cross field hospital for word on his wounded relative.

Palestinians arrived to collect aid from a Gaza Humanitarian Foundation hub in Rafah last week. File pic: Reuters
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Palestinians arrived to collect aid from a Gaza Humanitarian Foundation hub in Rafah last week. File pic: Reuters

Controversial new aid system

The Gaza Humanitarian Foundation (GHF) operates as part of a controversial aid system which Israel and the US says is aimed at preventing Hamas from siphoning off assistance.

Israel has not provided any evidence of systematic diversion, and the UN denies it has occurred.

The foundation’s distribution of aid has been marred by chaos, and multiple witnesses have said Israeli troops fired on crowds near the delivery sites.

UN agencies and major aid groups have refused to work with the new system, saying it violates humanitarian principles because it allows Israel to control who receives aid and forces people to relocate to distribution sites, risking yet more mass displacement in the territory.

Before Sunday, at least six people had been killed and more than 50 wounded, according to local health officials.

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From 31 May: Moment Israeli warplane strikes Gaza

GHF says aid distributed ‘without incident’

The foundation says the private security contractors guarding its sites did not fire on the crowds, while the Israeli military has acknowledged firing warning shots on previous occasions.

The foundation did not immediately respond to a request for comment following the hospital’s claims.

In an earlier statement, it said it distributed 16 truckloads of aid early on Sunday “without incident”. It dismissed what it referred to as “false reporting about deaths, mass injuries and chaos”.

Meanwhile, the UN’s aid system has struggled to bring in aid after Israel slightly eased its total blockade of the territory last month.

Those groups say Israeli restrictions, the breakdown of law and order, and widespread looting make it extremely difficult to deliver aid to Gaza’s roughly two million Palestinians.

Experts have warned that the Palestinian territory is at risk of famine if more aid is not brought in.

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From 29 May: Meet Gaza’s paramedics

The war in Gaza began when Hamas-led militants stormed into southern Israel on 7 October 2023, killing some 1,200 people, mostly civilians, and abducting 251.

They are still holding 58 hostages, around a third of them believed to be alive, after most of the rest were released in ceasefire agreements or other deals.

Israel’s military campaign has killed more than 54,000 people, mostly women and children, according to Gaza’s Health Ministry, which does not say how many of the dead were civilians or combatants.

The offensive has destroyed vast areas of the territory, displaced around 90% of Gaza’s population and left people almost completely reliant on international aid.

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