Global endorsement is signalling a new economic chapter for Pakistan, as international institutions and financial markets respond positively to the country’s recent reforms and economic progress. The prestigious American investment newspaper Barron's has referred to Pakistan's economic recovery as a “Macroeconomic Miracle”, a startling endorsement from the world's financial media.
This strong endorsement underscores a discernible change in the perception of Pakistan, attributing the country's financial trajectory to recent reforms, international support, and economic stabilisation.
IMF Programme: A $7 Billion Anchor of Stability
A $7 billion Extended Fund Facility (EFF) from the International Monetary Fund (IMF) was obtained by Pakistan in October 2024. This lifeline not only relieved short-term financial strains but also set the stage for long-term transformation. To date, over $2 billion has already been disbursed, enabling macroeconomic adjustments, strengthening foreign reserves, and restoring market confidence.
GDP Growth Rebounds to 2.4%
After a period of contraction, Pakistan’s GDP growth rebounded to 2.4% in 2024, signalling renewed economic activity and improving investor sentiment. This growth is most likely expected to continue into FY2025, reflecting the positive impact of financial discipline and policy continuity.
Stock Market Surges The Highest
The Pakistan Stock Exchange (PSX) has demonstrated remarkable growth, with the benchmark KSE-100 index reaching an all-time high of 120796.67 points. This surge reflects renewed investor confidence and a robust financial market. This rally, one of the strongest globally in the past year, mirrors confidence in macroeconomic stability and structural reform.
Inflation Control and Monetary Policy
Inflation, which once hovered near 38% in May 2023, dropped to 0.3% in April 2025, marking the lowest level since August 1968. This sharp decline followed aggressive monetary tightening, with the State Bank of Pakistan reducing its policy rate by 1,100 basis points to 11%.
Fiscal Prudence and Global Support
Pakistan’s primary fiscal balance turned positive, showcasing improved monetary management. Simultaneously, bilateral financial support from nations including China, Saudi Arabia, and the UAE has been rolled over, reinforcing foreign reserves and alleviating external pressure.
Pakistan’s Revival Has Global Backing
Barron’s calling it a “Mini-Miracle” isn’t just praise — it’s a signal that Pakistan’s macroeconomic reset is gaining international credibility. For overseas Pakistanis and global investors alike, the signs are clear: Pakistan is transitioning from uncertainty to opportunity. With ongoing reforms, strong international partnerships, and rising investor interest, the comeback is real. And it’s just getting started.
