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Pakistan has stabilised, but that is not the same as succeeding.
The International Monetary Fund programme has restored a measure of credibility, and reserves are healthier than they were 18 months ago. While these are real hard-won gains, stabilisation alone isn’t enough. The question now is whether Pakistan can turn this period of relief into lasting gains in investment, jobs, exports, and rising incomes, or whether we cycle again into the next crisis.
Pakistan’s investment-to-GDP ratio has averaged roughly 14 per cent over the past few years — the lowest in five decades. Countries like India invest about 35pc, Bangladesh 29pc, and Vietnam 31pc.
The gap is the divergence between the countries that invest and build.
