Pakistan enters 2026 at a critical juncture, with several challenges converging to test the resilience of the country's leaders and ordinary citizens alike. But while the path forward is fraught with difficulty, a clear-eyed assessment reveals that it also leads to wide avenues for stability and progress.

The welcome economic stability of recent months remains fragile, as the country still depends on loans and foreign assistance rather than a significant domestic economic turnaround. Foreign exchange reserves are currently about $14.5 billion, but this has been fueled mainly by foreign aid rather than by outstanding export performance. However, growth is projected at 3.2% for the current financial year, and there has been optimism about the industrial sector's performance. But deep-seated structural issues identified by the IMF and local economic experts still threaten to erode the already weak ground on........

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