The agreement of a loan deal between Pakistan and the IMF today should put the economy back on a more secure footing and limit the biggest downside risks. However, past experience suggests that the government will struggle to stick to the tough spending promises it has agreed to. There is a high risk that Pakistan reneges on the deal once the immediate crisis has passed.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services