Amidst worldwide uncertainty, the economy of Pakistan tries a subtle balancing act. Following years of catastrophe, some signs point in the direction of stabilisation, however such advancements are tenuous. The very big question in the air now stands thus: can incremental advancements withstand shocks from the effect of floods, outside pressure and political volatility?

In fiscal year 2024-25, Pakistan's economy expanded by 2.7 per cent, up from the year earlier. Inflation, once deep into double digits, has moderated. The State Bank reduced its policy rate from 22 per cent from 11 per cent in the span of a year. Consumer inflation stands now in low single digits, bringing respite after an interval too long of spiralling prices. The current account has surged into surplus and a more stringent import regime.

Stabilisation for most Pakistanis is still an abstract concept. Food and petrol prices are still volatile. Farmers still have expensive inputs. Poor........

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