INTRODUCTION
Pakistan is experiencing severe economic conditions as a result of a confluence of multiple crises. The
economy has elevated external financing needs well into the medium term, and requires deep
restructuring, both structurally as well as institutionally. Resolving these challenges is necessary for a
sustained economic recovery. However, the fact that Pakistan is entering a “debt workout” phase that is
likely to last several years, will influence the outlook for the economy over the medium term. The need
for debt restructuring or re-profiling will be accompanied by a requirement for substantial fiscal
consolidation that will presage a period of suppressed growth, restrictive financial conditions, and a
degree of economic uncertainty. Read More