Pakistan economic crisis

No number of IMF packages or foreign bailouts will suffice in keeping the Pakistani economy afloat without the country undergoing a multifaceted structural revamp.

Pakistan will now only make interest payments in both years, its finance minister has said.

It will save Pakistan from defaulting on debt, but analysts say the country needs $20 billion in the next two years to return foreign loans with interest.

Elections are looming. There is a risk of politicians forgetting their commitments to the IMF.

The long-awaited package will provide the country, which is in the grip of political and economic crises, with some relief.

The decision is aimed at conserving dollars amid its crippling economic crisis.

China’s foreign minister made an unusually blunt demand for stability during his recent trip. Days later, Pakistan’s political unrest entered a new phase.

Policymakers in Pakistan need to set the country’s house in order and work to convince its youth, its future leaders, that the country is worth staying in and building up.

The country is currently running on foreign loans taken on high rates of interest. It will have to repay $80 billion in the coming three years.

Unpacking Pakistan's economic and political meltdown.

Delaying the IMF program has negatively affected investor confidence, increased inflation, and hindered growth prospects.