Behind IMF’s thumbs-up for Pakistan’s program lies a troubling surge in poverty and inequality, per Dawn’s latest insights. Macro fixes yield fiscal and external gains, but at steep social expense for millions.
From chronic deficits and forex crunch, a primary surplus signals discipline; current account mends via lower imports, remittances, rollovers—not exports. Fiscal pressures from low revenues persist, super tax relief notwithstanding. Long-view stability requires tax widening, not patches.
Structural IMF goals lag, pivotal for growth transition. Governance report flags institutions’ centrality. New figures stun: 70 million subsist below 8,484 rupees poverty mark, failing basic needs. Poverty ratio at 29%, per Minister Iqbal’s data—highest in over a decade from 22% in 2019.
Gini at 32.7 marks 30-year inequality peak amid inflation, recession hitting real earnings, spending. Labor market deteriorates with 7.1% unemployment. Experts highlight skewed burden on poorer strata; sustainability demands growth-jobs-safety net synergy.