The court ordered Khan's transfer to Shifa International Hospital and directed that he receive specialist medical care. According to Reuters, the order is to remain in effect until September 16 and requires a medical panel involving specialists including a cardiologist, general physician, ophthalmologist and Khan's personal doctor.

Khan, 73, has been imprisoned since August 2023 following a series of convictions that he and his political movement, Pakistan Tehreek-e-Insaf, say are politically motivated.

The decision has wider implications because Khan remains an influential political figure despite his imprisonment and legal restrictions on his party. PTI-aligned independents won the largest number of seats in Pakistan's 2024 election, although they did not secure enough seats to form a government.

The political significance of Khan's continued detention extends to Pakistan's institutional stability. His arrest in 2023 was followed by widespread unrest, demonstrating the capacity of his supporters to mobilise in response to developments involving him.

For businesses and investors, political stability is closely linked to confidence in economic policy, institutional continuity and the government's ability to implement reforms. Pakistan continues to face significant fiscal and external financing pressures, making political uncertainty an additional variable for investors assessing the country's economic outlook.

The Supreme Court's decision may reduce immediate concerns about Khan's medical condition, but it does not resolve the broader political and legal disputes surrounding his imprisonment.

The government has not publicly responded to the latest court decision, according to Reuters. PTI welcomed the transfer while urging supporters not to gather around the hospital.

What to watch: the government's response, Khan's medical condition, further court proceedings and any political mobilisation surrounding his treatment.

For Pakistan's institutions, the episode remains a test of the relationship between judicial authority, executive power and political opposition.