Pakistan’s Cycle of IMF Dependence and Structural Challenges

Pakistan has recently secured another loan from the International Monetary Fund (IMF), highlighting the nation’s ongoing economic instability and reliance on external bailouts. The staff-level agreement for a $7 billion extended fund arrangement (EFF) over 37 months marks Pakistan’s 24th IMF program. This recurring dependence underscores the persistent challenges in managing the country’s economy. The latest IMF lifeline comes as Pakistan faces dwindling foreign exchange reserves and looming external debt payments.