Pakistan's economic recovery is a 'mini-miracle'

KARACHI:

Pakistan's economic recovery in the recent times was a mini-miracle, a leading American financial weekly, said in a recent report, stressing that the international investors might regret not having looked at the South Asian country sooner.

Writing in Baron's – a sister publication to The Wall Street Journal, award-winning financial journalist Craig Mellow says that Pakistan was not risky anymore, adding that for the markets like Pakistan, it could take a threat of war to capture the world's attention.

"Pakistan isn't that risky anymore. Its economy is a mini-miracle," the article said. "For markets like Pakistan, it can take a threat of war to capture the world's attention. Investors may regret not having looked sooner," it added.

The report published on Tuesday highlighted key economic indicators, suggesting macroeconomic stability, including a significant decline in the inflation rate from a record 38% in May 2023 to 0.3% in April 2025.

Citing the latest economic data, the report said that 40% annual inflation had now plummeted to almost zero, the Pakistan Stock Exchange (PSX) index had tripled, while the price of Pakistani Eurobonds, maturing in 2031, had increased from 40 cents per dollar to 80 cents.

"The country of 255 million has pulled off a macroeconomic miracle of sorts over the past two years," read the report. "Pakistan is a good story. So good it's not risky enough for us anymore," Genna Lozovsky, Chief Investment Officer at Sandglass Capital Management told Barron's.

The report suggested that the latest armed conflict with the India "won't likely knock Pakistan's recovery off course", underscoring the sentiment shared by Finance Minister Muhammad Aurangzeb that the skirmish was a "short duration escalation" with minimal fiscal impact.

However, experts cited in the report, noted that Pakistan largely remained dependent on international creditors, especially the International Monetary Fund (IMF), and under its bailout programme.