An unambitious growth path

Over the past three decades, Pakistan’s economic focus, particularly in its dealings with the International Monetary Fund (IMF), has centred on addressing twin deficits — current account and fiscal. Despite concerted efforts, these issues have persisted, signalling the need for a fundamental shift in approach. While managing deficits remains crucial, this writer believes sustainable economic growth, driven by increased foreign direct investment, must become the linchpin of Pakistan’s policy agenda. Only through a comprehensive realignment of all policies towards this goal can Pakistan navigate its way out of the vicious cycle of debt, low growth, inflation, and poverty. The root causes of Pakistan’s low investment and savings rates are deeply entrenched in structural issues, requiring significant political, economic, and social reforms. The recent arrival of an IMF mission for a review underscores the urgency of addressing these challenges.