Growth anxiety is building within government and establishment circles as the country enters its fourth year of stabilisation, yet growth remains elusive. Without delving into why the traditional growth model is no longer working, it is evident that Pakistan needs external buffers to attract capital.

Without these buffers, the sword will continue to hang, preventing the central bank from allowing a current account deficit beyond one percent, and the dream of exiting the IMF programme will remain unfulfilled.

The government is failing to generate both investment and debt flows from friendly countries. For last two years, the incumbent regime has been making claims of plans to attract US$ 100 billion in investment from friendly nations. Hope continues to rise as geopolitical winds shift in Pakistan’s favour, but so far, there is nothing concrete in the kitty.

According to IMF documents, Pakistan’s average annual gross external financing requirement is US$ 23 billion over the next five years. Of this, US$ 7.5 billion per year is expected to be raised by the private sector. For context, estimated........

© Business Recorder