Posted 12/30/2023, 7:00:08 AM
Pakistan Navigates Economic Crisis With IMF Deal and Difficult Reforms Ahead
- Pakistan narrowly avoided default multiple times in 2023 via loans from China and other countries as IMF negotiations stalled
- Inflation and poverty reached historic highs, with over 39% of the population falling below the poverty line
- Pakistan's debt servicing burden became untenable, with over $77.5 billion owed over the next 3 years
- The IMF deal unlocked funding from other sources, but Pakistan must still implement difficult fiscal reforms
- Experts recommend reforms in energy, broadening the tax base, public sector enterprises, and boosting exports to avoid future default risk
