Finance: Foresight amid global shocks

Pakistan’s external economy is walking a tightrope. Despite temporary relief from a surge in remittances and renewed International Monetary Fund (IMF) support, the structural vulnerabilities of the country’s external sector have only deepened. Mounting debt, low reserves, record-high profit repatriation, and geopolitical aftershocks are coalescing into a volatile mix as fiscal year 2024-25 draws to a close. In the first eleven months of FY25 (July 2024–May 2025), overseas Pakistanis sent home $34.9 billion, according to the State Bank of Pakistan (SBP) — a remarkable 28.8 per cent increase from the previous year. This remittance windfall has been pivotal in covering the growing trade deficit and defending the rupee.