SUMMARY of the Article “Mixed Developments” by Khurram Husain, Dawn, October 3rd, 2024
The article discusses Pakistan’s current economic situation, which, though not entirely bleak, remains challenging. The government is nearing the end of the stabilisation phase in economic management, with encouraging steps like the debt buyback plan aimed at reducing the burden of maturing Treasury bills. Domestic debt, now nearly 50% of the country’s GDP, remains a significant concern. Inflation has fallen to below 7%, earlier than projected, due to a tightly controlled money supply, validating the State Bank’s high-interest rates strategy. Despite the improvement in some macroeconomic indicators, such as higher-than-expected revenue grants and a better primary balance, uncertainties persist. The latest IMF projections show some improvements compared to May 2024 forecasts, but the economy’s debt burden and external vulnerabilities remain issues that need long-term resolution. » Read More…