Pakistan’s Economic Turnaround Dubbed a ‘Miracle’ by Leading Global Financial Journal

Islamabad: A top-tier global financial publication has termed Pakistan’s recent economic performance as a “miracle,” highlighting a significant turnaround that has defied expectations. According to a report published by Barron’s, a sister organization of The Wall Street Journal, Pakistan has achieved remarkable economic progress in the past two years, making it an attractive, yet often overlooked, destination for investors.
The report states that Pakistan, with a population of 255 million, has transformed from a state of near-economic collapse in 2022–2023 to a stabilized economy in 2024–2025. Inflation, which had soared to 40% annually, has now dropped to nearly zero. The country’s Eurobonds maturing in 2031 have doubled in value from 40 cents to 80 cents on the dollar, while the Karachi Stock Exchange Index has tripled.
Barron’s credits the turnaround in part to the Shehbaz Sharif-led government, which secured a $7 billion stabilization agreement with the International Monetary Fund (IMF) in September. Over $2 billion has already been disbursed under this agreement.
Jeana Lososki, Head of Investment at Sandglass Capital Management, remarked, “Pakistan is a good story.”
Economist Khalid Salami added that geopolitical tensions with India are unlikely to derail Pakistan’s recovery, though the country’s fragile economic foundations could pose internal challenges.
The report further notes that the State Bank of Pakistan raised interest rates from 10% to 22%, pushing the country into recession but successfully curbing inflation. According to Alison Graham, Chief Investment Officer at Walden Capital Management, the country has returned to a 2.5% GDP growth rate, boasts a primary fiscal surplus, a positive current account, and overall balanced financial accounts—indicators not seen in years.
However, experts warn that major reforms are still needed, including a 50% increase in tax revenues and reductions in electricity subsidies.
Barron’s concluded that the crisis gave Prime Minister Shehbaz Sharif and his military allies a much-needed push toward decisive economic reforms, offering hope for sustained recovery and investor confidence.