2 weeks Ago
Despite a steady stream of optimistic reports from within Pakistan and from multilateral financial institutions abroad suggesting that the country’s economy is undergoing a remarkable turnaround, the broader reality remains grim. While the current government may have managed to halt the free fall, narrow some gaps, and bring a degree of stability, Pakistan is still deeply entrenched in a prolonged economic crisis—one of its own making, rooted in years of chronic mismanagement. Persistent budget deficits, an import-heavy economy that drains foreign reserves, and an overwhelming debt burden continue to weigh heavily on the nation.
A substantial portion of this debt is owed to bilateral partners, but a significant share lies with international financial institutions such as the International Monetary Fund, the World Bank, and the Asian Development Bank. It was in this context that Federal Finance Minister Muhammad Aurangzeb recently met with the President of the World Bank Group in Washington, assuring stakeholders of Pakistan’s commitment to sustainable economic reforms. Yet, such meetings only underscore an uncomfortable truth: the levers of Pakistan’s economy are no longer in Islamabad, but in the power corridors of Washington, London, and other Western capitals.
Dangerous Doctors The IMF’s recent downgrade of Pakistan’s projected growth to 2.6%—a sluggish pace for a country in dire need of momentum—further illustrates the tightrope the nation walks. Factors such as a volatile global economy and punitive 29% American tariffs compound the challenge.
It serves as a harsh reminder that Pakistan’s economic fate, for now, remains largely out of its own control. Perhaps this sobering reality should prompt a moment of national reflection. The foremost objective must be unity—a collective will to prioritise economic reform, enforce fiscal discipline, and chart a sovereign economic path.
Until Pakistan reclaims control of its economic destiny, it will remain a nation steered from afar, struggling to find its way back to firm ground. Tags: financial sovereignty.
