Comprehensive Analysis of Pakistan's Economic State and the FY25 Federal Budget
The FY25 budget and economic outlook for Pakistan are characterized by ambitious targets and significant risks. While the government aims to stabilize the economy through increased revenues and controlled spending, the underlying assumptions are highly optimistic. Achieving these targets will require effective implementation of policy measures, structural reforms, and continued support from international financial institutions like the IMF. Without these, the country may face further economic distress, social instability, and erosion of investor confidence. The need for a new fiscal pact with provincial governments and a comprehensive strategy to address the structural challenges in the economy is more critical than ever.