Pioglitazone improves insulin sensitivity by activating peroxisome proliferator-activated receptor gamma (PPAR-γ), which regulates gene expression involved in glucose and lipid metabolism. This enhances peripheral glucose uptake and reduces hepatic glucose production. Glimepiride stimulates pancreatic β-cells to release insulin by closing ATP-sensitive potassium channels, leading to cell depolarization and increased calcium influx, triggering insulin secretion. The combination provides complementary glucose-lowering effects through increased insulin availability and improved insulin sensitivity.