14 May 2025
The report, released in October 2024, cited investment and productivity declines, as well as governance issues.
The IMF bailed out Pakistan for the 29th time since 1989. It offered an immediate disbursement of USD1 billion under the Extended Fund Facility and approved USD1.4 billion under the Resilience and Sustainability Facility arrangement.
It praised Pakistan’s fiscal progress and steps towards restoring macroeconomic stability and reducing interest rates and inflation. Contrarily, its October 2024 report highlights:
Long-term decline in domestic investment and economic productivity
Stagnant growth compared to peers
Deteriorating capital accumulation
Insufficient investment in human capital and social services, like health, infrastructure, and education
Over 40% of the population lives under the poverty line
Inadequate funding for climate and environmental protection
State domination through State-Owned Enterprises (SOES) and State-led market interventions is undermining the performance of the private sector and worsening inefficiencies in several sectors.
The IMF commended its progress in this report but noted that Pakistan’s recovery remains fragile.
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