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Pakistan Eyes 3% Growth Amid $22 Billion Debt Crisis

2/7/2025

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Summary

Story summary

Pakistan is on a path to economic recovery, with Fitch Ratings forecasting a 3% growth for FY25. Yet, the nation grapples with a daunting $22 billion in maturing debt. To bolster its credit rating, currently at CCC+, and secure vital IMF support, Pakistan must embrace ongoing structural reforms.

History

Historical Context

Pakistan's current economic recovery effort echoes past crises, notably the 1970s stagflation following East Pakistan's secession. Structural reforms then aimed to stabilize the economy, yet led to severe debt and inflation. Today, with $22 billion in maturing debt, Pakistan faces similar challenges, needing decisive reforms to secure IMF support.

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Story summary

Pakistan is on a path to economic recovery, with Fitch Ratings forecasting a 3% growth for FY25. Yet, the nation grapples with a daunting $22 billion in maturing debt. To bolster its credit rating, currently at CCC+, and secure vital IMF support, Pakistan must embrace ongoing structural reforms.

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