Pakistan frequently turns to the International Monetary Fund (IMF) for financial assistance whenever its economy nears crisis. Over the years, it has received 26 IMF financial packages under various Stand By Agreements and the Extended Fund Facilities. However, despite these efforts, the outcomes have generally been insufficient, deepening economic pressures.

Since Pakistan first sought IMF assistance in 1958, it has become a recurring debtor. It currently ranks as the fifth-largest IMF borrower, with around $7 billion in IMF obligations. Its external debt has surged past $131 billion, with much owed to international bodies and bilateral lenders. This growing debt raises concerns over Pakistan’s economic independence as the country struggles to implement the fiscal reforms demanded by the IMF and faces persistent fiscal deficits.

According to a report by Mian Ahmad Naeem Salik, a research fellow at the Institute of Strategic Studies Islamabad, the federal budget for 2024-2025 has been set at PKR 18 trillion to meet the IMF’s requirements and move toward stability. This budget targets tax revenue of PKR 13 trillion—about 40% higher than the previous fiscal year—with a 64% rise in non-tax revenue. Inflation is projected to hit 12%, and the fiscal deficit stands at PKR 7.283 trillion, with a significant portion of funds allocated for debt servicing and a 17% increase in defense spending. However, this budget lacks substantial measures to bolster Pakistan’s agricultural and manufacturing sectors, two critical areas for sustainable economic growth.

Pakistan’s economic challenges trace back to its early years post-independence. Initially relying on an agrarian economy, the country depended on agricultural exports while its industrial base remained underdeveloped, increasing demand for imports. This economic imbalance, alongside the strain from a large migration of refugees, put immense pressure on Pakistan’s resources. The industrialization policies and the Green........

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