Despite increased tensions with India, Pakistan has achieved a unique “macroeconomic miracle” in the last two years that has caught the interest of international investors, according to a report by the US journal Barron’s.
The article claims that while Pakistan’s 2031 Eurobonds have doubled in value, going from 40 cents on the dollar to 80 cents, inflation has fallen from a peak of about 40% to almost nil. During this time, the benchmark KSE-100 index has also tripled.
In September 2023, the government and the International Monetary Fund (IMF) negotiated a $7 billion “stabilization agreement,” of which over $2 billion has already been paid out. Since 1950, when it joined the IMF, Pakistan has participated in 24 different bailout programs.
