Across key sectors, the country has been adopting reforms that focus on stability, institutional strengthening, and service delivery. These reforms may not always dominate headlines, yet they are laying the groundwork for long-term improvement. Rather than a dramatic overnight change, Pakistan is increasingly moving toward gradual, practical reform-an approach that has worked for many countries […]
Public Debt Opportunity
Pakistan today faces a serious fiscal test as the weight of public debt continues to shape its economic trajectory. What was once a manageable obligation has now expanded into a structural challenge, consuming a large share of national resources and limiting the space for growth. Yet within this challenge lies an opportunity: if addressed with […]
Pakistan’s Energy Circular Debt
Few issues embody Pakistan’s fiscal dysfunction as starkly as the country’s ballooning circular debt in the energy sector. What began as a temporary mismatch between costs and tariffs has now spiraled into a structural crisis, draining the national exchequer, crippling energy companies, and undermining the credibility of governance. Today, circular debt stands as one of […]
Trump Tariff and Water Crisis
In 2025, Pakistan is struggling to avert a full-blown trade crisis with the United States while simultaneously facing the politically combustible terrain of water resource tensions at home. At stake is not just foreign currency inflow or agricultural output, but the delicate social fabric and institutional integrity of the nation. These two seemingly disparate developments-Pakistan’s […]
WB Partnership, AI Policy and Crypto Leap
The country is laying the groundwork for a profound long-term transformation. Moving beyond reactive fiscal tightening and short-term IMF stabilisation programs, Pakistan is now making strategic bets on structural modernisation. This includes a 10-year, $20 billion development partnership with the World Bank, a bold foray into blockchain regulation through the newly formed Pakistan Crypto Council, […]
Iran-Israel Conflict and Pakistan
The recently concluded war between Iran and Israel has left a trail of questions and lessons for Pakistan as its ripple effects are already reverberating through global oil markets, regional security dynamics and the economic calculus of countries. The escalation, marked by Israeli strikes on Iranian military and nuclear sites and threats of retaliation, created […]
Agenda with IMF, WB
In 2025, Pakistan’s economic blueprint is being redefined under the weight of conditions tied to its $7 billion IMF Extended Fund Facility and concurrent World Bank engagement. Central to these are four intertwined reforms: tax-base expansion (notably Agricultural Income Tax), GST harmonization, State-Owned Enterprises (SOE) restructuring, and public spending discipline. The success or failure of […]
Record Remittances
Pakistan witnessed a historic economic milestone in FY 2024-25, with workers’ remittances reaching an unprecedented $34.9 billion-a remarkable 28.8 percent increase over the previous fiscal year. The month of May 2025 alone saw inflows of $3.7 billion, marking a 13.7 percent year-on-year rise. More than mere numbers, these remittances signal a resurgent confidence by overseas […]
Interest Rate Cut and Its Economic Implications
On May 5, 2025, the State Bank of Pakistan (SBP) announced a highly anticipated move: the reduction of its benchmark interest rate by 100 basis points, bringing it down to 11% from 12%. This marks a significant pivot in Pakistan’s monetary policy strategy after nearly two years of aggressive tightening. The central bank’s decision, which […]
Economic Ties with China
As Pakistan faces a challenging economic situation marked by persistent balance of payments pressures, rising debt obligations, and geopolitical uncertainties, the country is actively exploring new financial strategies to stabilize its economy and diversify funding sources. Two major initiatives currently underway are the expansion of its currency swap line with China and the issuance of […]