Pakistan’s economy is at a critical crossroads between growth revival and resurgent inflation. The State Bank of Pakistan’s aggressive monetary easing — slashing the policy rate from 22% to 11% since mid-2024 — helped revive credit and investment, but rising fuel prices and a weakening rupee now threaten to undo those gains. Record remittances of $38.3 billion in FY25 provided a cushion, yet the SBP faces a narrowing window before IMF conditionalities and cost-push inflation forces a reversal of its accommodative stance. Monetary easing and liquidity expansion have likely supported growth indicators, but they may create a risk of renewed inflation if not reined in.