Top US Magazine Calls Pakistan’s Recovery a ‘Macroeconomic Miracle’

Barron’s has described Pakistan’s recent economic turnaround as a “macroeconomic miracle of sorts,” after sharp improvements in key indicators, but warned of continued structural weaknesses. In its latest report, the US publication appreciated how inflation in Pakistan dropped from 38 percent in May 2023 to just 0.3 percent in April 2025. Eurobonds maturing in 2031 doubled in value, and the Pakistan Stock Exchange index tripled. Meanwhile, the government’s $7 billion IMF deal has already disbursed over $2 billion. It acknowledged how the State Bank of Pakistan’s aggressive tightening was credited with stabilizing inflation. Since June 2024, it has cut the policy rate by 1,100 basis points to 11 percent. Barron’s said Pakistan’s GDP growth rebounded to 2.5 percent in 2024. The current account moved into surplus, and the primary fiscal balance turned positive. Loans from China, Saudi Arabia, and the UAE were rolled over, though no new funding was provided. Despite gains, Barron’s warned about unresolved challenges. The IMF program requires steep tax increases and subsidy cuts. Exports remain concentrated in low-value goods, with IT exports rising to $3 billion, far below India’s $200 billion. The report warned that without structural reforms, Pakistan remains exposed to external shocks. Barron’s concluded that while Pakistan has avoided default and achieved short-term stability, sustaining progress will require disciplined fiscal management and deeper economic restructuring.