While tightening requirements for the release of the upcoming tranches of its ongoing loan program, the International Monetary Fund (IMF) has identified a number of economic, geopolitical, and environmental risks that Pakistan faces.
The IMF has emphasized the need for immediate structural reforms, more tax collection, and responsible fiscal management as policy-level discussions between the Pakistani government and the Fund continue for the next fiscal budget.
Growing economic and geopolitical risks
The IMF voiced grave concerns about the ongoing tensions between India and Pakistan, stating that they pose an increasing risk to the nation’s business and economic stability if they worsen or remain. Additionally, it noted that Pakistan’s already precarious foreign industry could be negatively impacted by further US tariffs.
