Pakistan economy

With domestic politics gravely polarized, security increasingly fragile, and the economy barely stable, there is little sign of an end to Pakistan’s chronic dysfunction.

Most of the public markets across Pakistan were closed on Wednesday to protest a rise in electricity costs and new taxes imposed on shop owners.

Pakistan could look to South Korea as a blueprint for economic development by emphasizing efforts to nurture the private sector.

With the EU and U.S. increasingly using climate targets as trade barriers, Pakistan risks being left behind in the global trend toward sustainability. But it can also be an opportunity for Pakistan to build climate resilience.

It is politics, not economics, that is preventing a wholesale turnaround of Pakistan’s broader trajectory.

India-Pakistan trade has been especially difficult since 2019. What would it take for the neighbors to overcome present barriers to trade?

Among other reforms, it is considering privatizing dozens of loss-making state-owned enterprises.

Implementing a proactive strategic policy for Pakistani SMEs is imperative, as the performance of domestic industries is the biggest advertisement for outsiders to follow suit and invest in the country. 

But the country’s aggressive posturing against India will make it difficult for the government to take the process forward.

Key ministries have been assigned to those the establishment deems reliable.

Meanwhile, former Prime Minister Imran Khan has asked the Fund not to extend a loan to Pakistan unless an audit of the controversial election is done.

People on the street say they don't believe things will be different after this election.

Informal trade in oil and other goods, which previously provided people in border villages with income, has been halted without putting alternative means of livelihood in place.

Pakistan’s IT exports nearly doubled over the past five years, but that rate of growth is not sustainable – unless the government takes drastic action.

Inflation and taxes have sent Pakistani electric bills soaring, leading to protests, shuttered businesses, and a wave of suicides.

Since elections are unlikely to be held as constitutionally mandated within 90 days, the interim administration is here to stay for some time.

The SFIC has to strike a balance between including military decision-makers to raise investor confidence and upholding democratic governance.

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

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.

Amid stalled negotiations over restarting a bailout package, the IMF has criticized the government for failing to implement a more fair tax system.

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

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

To address food inflation, the government should increase agricultural productivity, improve supply chain mechanisms, and implement price stabilization measures.

The black market flow of U.S. dollars across the Afghanistan-Pakistan border is unifying the two countries' economic crises.