In Pakistan, short-term stability has arrived, courtesy of international lenders, but sustainable development stays out of reach. The specter of ‘failing state’ status looms larger as structural flaws persist.
The rescue package details: IMF’s approval unlocked funds, supplemented by bilateral loans totaling over $5 billion. Reserves climbed back above $9 billion, allowing imports to resume and averting shortages. Stock markets rallied briefly, signaling optimism.
But peel back the layers, and trouble brews. Inflation lingers above 20%, eroding purchasing power for 240 million citizens. Public debt at 90% of GDP devours revenues, leaving little for infrastructure or health. Power outages cripple businesses, a legacy of circular debt plaguing utilities.
Political paralysis hinders progress. Imprisoned former PM Imran Khan galvanizes opposition, while coalition infighting stalls legislation. Military influence, while stabilizing, stifles civilian-led reforms essential for investor confidence.
Hope hinges on execution: digital economy push, regional trade via CPEC revival, and agricultural modernization. Yet, history cautions against complacency – past bailouts yielded cycles of boom and bust. Pakistan must break free to secure a prosperous future.