Reforms & governance: unlocking Pakistan\'s growth potential

Pakistan's economic trajectory in late 2025 is defined by a rigorous yet essential framework of discipline imposed by the IMF. Following the approval of the $7 billion Extended Fund Facility (EFF) in September 2024, the country embarked on a 37-month journey of stabilisation that has begun to reshape the fundamental contours of the national economy. While early indicators such as the reduction of the policy rate to 11% and a projected inflation rate of 4.1% suggest a macroeconomic turnaround, the core of the challenge lies beyond mere fiscal arithmetic. It rests on governance. As the IMF's November 2025 Governance and Corruption Diagnostic Assessment highlights, Pakistan's ability to unlock its true growth potential depends not just on balancing the books but on dismantling the systemic inefficiencies that have long stifled competition and innovation