Publication

This paper sheds light on the background of the IMF's $7.6 billion bailout package to Pakistan, commenting on the economic condition of the country. It asks how an economy like Pakistan's with robust macroeconomic indicators could reach such a critical stage, why its allies ignored calls for urgent help and explores the likely economic and political implications of the IMF arrangement. The author finds that much depends on Islamabad's ability to quell militancy and keep the US and other donors on its side by providing a stable and secure business climate through good governance.