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Pakistan Pivots From Aid to Trade Following IMF Review and Ratings Upgrades

Finance Minister Muhammad Aurangzeb says an 18‑month stabilisation drive restored confidence.

Overview

  • Inflation has fallen to single digits from a 38% peak, with the exchange rate described as stabilised.
  • Officials report primary fiscal surpluses, a current account deficit within targets, and reserves at roughly 2.5 months of imports.
  • All three global rating agencies upgraded Pakistan’s rating and outlook this year, and the IMF Executive Board approved the EFF second review.
  • The tax-to-GDP ratio rose to 10.3% from 8.8%, with a roadmap to reach 11% through base broadening and tighter compliance.
  • Pakistan is courting GCC investment across priority sectors and says FTA talks with the bloc are at an advanced stage, while remittances are projected at $41–42 billion with more than half from the GCC.