menu_open Columnists
We use cookies to provide some features and experiences in QOSHE

More information  .  Close

The economic test of stability

37 0
20.10.2026

PAKISTAN’S economy has been through difficult times. High inflation, rising living costs, weak investment and pressure on public finances have affected businesses and households alike. There are signs of improvement, but the recovery remains fragile. For most Pakistanis, what matters is not simply better economic figures, but whether they can find work, earn a reasonable income and manage their daily expenses.

The International Monetary Fund’s April 2026 assessment projected economic growth of around 3.5 percent for FY2026–27, with average inflation expected at 8.4 percent. These figures point towards a gradual recovery, but also show how little room the economy has for another setback. With household budgets already stretched, maintaining economic activity is just as important as introducing new reforms.

One of the biggest challenges is restoring business confidence. Investors need more than attractive policies and government assurances. They want a stable environment where........

© Pakistan Observer