Celebrating the “success” of IMF discussions, Pakistan’s Prime Minister has tried to paint an optimistic picture of the economy—claiming a return to stability and promising a shift from austerity to growth. But these assertions appear to ignore a complex reality.
In May 2025, the IMF completed the first review of Pakistan’s Extended Fund Facility (EFF), allowing disbursement of roughly $1 billion, and simultaneously approved a new $1.4 billion under the Resilience and Sustainability Facility (RSF). These approvals came with stringent conditions—eleven new conditions reportedly added before the next tranche, including agricultural income tax legislation and a published governance action plan. Headline inflation hit a historic low of 0.3% in April 2025, and forex reserves have recovered to $10.3 billion, but GDP growth of 2.7% is still far below what is needed to absorb the economy’s structural pressures.
Read the full article on Business Recorder (Published 19 June 2025).