akistan’s close relationship with the International Monetary Fund began in 1950. Over the decades, governments have frequently turned to the IMF for assistance in meeting economic challenges. This has fostered a cycle of dependency on the lender of the last resort.

Since joining the IMF and signing its first Stand-By Arrangement in 1958—despite not drawing any funds—Pakistan is now engaged in its 25th extended fund facility (EFF) programme, involving SDR 5,320 million (approximately $7 billion). The IMF Executive Board approved the agreement on September 27, following a staff level agreement on July 12. Pakistan is currently the IMF member that has signed the highest number of agreements with the Fund.

The frequent engagements and perpetual dependency on the IMF highlights a persistent crisis facing Pakistan’s economy, riddled with fiscal deficits, high inflation and balance of payments issues.

Occasionally, the financial assistance from the IMF has been crucial for stabilising the economy. It has enabled the respective governments to address pressing economic issues. As Pakistan has embarked on yet another EFF programme, now is a pivotal moment to leverage the opportunity to build a more resilient and sustainable economy.

By implementing necessary reforms and addressing structural weaknesses, Pakistan can break free from its historical cycle of reliance on the IMF. This involves not only adhering to the programme’s stipulations but also fostering an environment conducive to growth, enhancing public sector efficienc, and promoting private sector development. Pakistan has a unique chance to transform its economic landscape and establish a foundation for lasting stability.

The programme’s approval, accompanied by an immediate disbursement of SDR 760 million (about $1 billion), was confirmed by the State Bank of Pakistan on September 27. In its press release, the IMF acknowledged the steps taken by Pakistan to restore economic stability through consistent policy implementation under the 9-month SBA. The statement highlighted improvements in terms of a contained current account, stable foreign........

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