THERE is no doubt that the first few years of this third decade of the 21st century have been filled by unexpected calamities across the continents. Covid-19 dealt such a blow to the world’s economy that even some wealthy countries faced recessionary conditions. The less wealthy, naturally, were beset by even more troubled times when the pandemic knocked on their door. Many had to close down factories. Slowly, however, such countries are recovering, or at least have plans in place to strengthen their economy. In other words, they have acknowledged the truth that things cannot continue as they have been and some new approaches are required.

In Pakistan, in the aftermath of a contentious election — and even before — such plans and acknowledgement seem to be missing. The aftermath of the general elections has thrown the country into a greater miasma of uncertainty and fear, as a split verdict has emerged. Last month, the State Bank confirmed receiving $700 million from the IMF — a part of the Fund’s ongoing Stand-by Arrangement of $3 billion. However, following the turmoil over the country’s political future and skyrocketing debt, the international credit rating agency Fitch has warned that uncertainty may hinder Pakistan’s efforts to conclude a deal with the Fund for securing further funding once the current bailout package expires next month. While the agency acknowledged that the country’s external position had improved, with the central bank’s reserves going up from $2.9bn on Feb 3, 2023 to $8bn on Feb 9, 2024, it also warned that the increase was “low relative to........

© Dawn