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Amid some uncertainty about a bailout from the International Monetary Fund (IMF), the government hopes the Fund’s executive board will meet in September to approve a $7 billion loan package for Pakistan. Finance Minister Mohammed Aurangzeb had earlier expected this to take place in August. The delay is attributable to the need for the government to first secure around $2 billion in additional financing and confirm $12 billion of debt rollovers from China, Saudi Arabia and UAE.

The government is confident that the larger, longer duration Fund program will be approved as all other conditions have been met. Once this happens it will of course help to stabilize the economy, that has been in the critical ward, and restore some confidence. But while the bailout is necessary to meet the country’s immediate financing requirements, it is not sufficient to drive a sustained economic recovery. External support is a fire fighting response that cannot fix the economy’s structural weaknesses. IMF programs help to create the conditions for economic recovery. But policies to grow the economy, promote investment and build business confidence are for the country to evolve, own and implement through structural reforms.

This requires an economic vision and a comprehensive plan. So far, a........

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