Pakistan’s recurring dependence on the International Monetary Fund (IMF) has become an enduring feature of its economic history. Every new programme brings temporary relief, helps restore confidence in the country’s ability to meet its external obligations and offers another opportunity to place the economy on a sustainable path. Yet, as one agreement follows another, a fundamental question remains unanswered; why has Pakistan repeatedly needed external assistance to finance its needs and stabilise its economy?

The problem extends beyond the burden of debt. It lies in the structural weaknesses that have made borrowing an almost habitual instrument of economic management. Pakistan’s real challenge is not simply to negotiate another loan or secure the next tranche, but to reform the economic system that repeatedly makes such assistance necessary.

Pakistan’s predicament is particularly instructive because repeated recourse to the Fund has not produced lasting independence from it. Narrow exports, weak revenue collection, persistent fiscal deficits, expensive energy and insufficient investment have contributed to a recurring cycle. Whenever foreign exchange becomes scarce, the government seeks assistance; once immediate pressures ease, the urgency of deeper reforms often diminishes. The result is temporary stability without a durable solution.

The latest IMF programme must be assessed against this history. In October 2026, Pakistan reached a staff-level agreement on reviews under its Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF). Subject to approval by the IMF Executive Board, the agreement could release approximately $1.2 billion in additional financing. While this support may strengthen short-term stability, it cannot guarantee that Pakistan will avoid another programme. That........

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