Liputan6.com, Islamabad – The Pakistanese economy often demonstrates fluctuating dynamics. Each time this country records the impressive period of macroeconomic growth, these achievements are often closely related to an increase in the geostrategic significance of the Pakistanis in the eyes of the world, and not just the results of deep economic reforms.
Behind short -term growth, the Economic Fund of Pakistan is actually still fragile. It is believed that the country has long been using its strategic geographical location – at the intersection of South Asia, Central Asia and the Middle East – as important capital of international diplomacy.
This position makes it the center of attention of various global security interests, as well as a source of external support to support its economic stability indicated from European timesFriday (7/7/2025).
Pakistani relations with large countries are reflected in how Islamabad is positioned: as a security partner for the West, a strategic neighbor for China, as well as reliable allies for several countries in the Middle East.
This cooperation is not only symbolic, but also really in the form of financial assistance, especially during an increase in geopolitical tension. However, this approach presents its own problems in the long term.
Instead of encouraging the structural transformations necessary to strengthen economic grounds, Pakistan often replaces the needs of internal reforms with external support, which comes thanks to geopolitical urgency.
One of the most obvious illustrations can be seen from his long relationship with the International Monetary Fund (IMF). Since he first provided assistance in 1958, Pakistan gained access to the IMF program 24 times.
Most of these programs are given not only from their economic fundamental power, but also from the importance of the country’s strategic situation. In 2024, Pakistan even received a funding package of 5.32 billion US dollars through an expanded fund to help to confront the inflation level, suppress debt loads and stimulate a slowdown in growth.
Dependence on this kind of help indirectly forms the habits of thinking and politicians, which suggest that global support will always be present to maintain the stability of the region. As a result, complex, but important structural reforms are often postponed, while the economy continues to work on external support without optimal internal responsibility.
International donors, which, as a rule, arrange priorities in their strategic interests, often do not provide sufficient pressure related to the efficiency of using assistance, thereby strengthening the dominance of the internal elite in the management of the economy.
The influence of this state is obvious. Most resources are absorbed in less productive sectors, high tax evasion and informal economies are rapidly developing without adequate supervision. As a result, the economic growth of Pakistan was widely supported by a certain group consumption and import of demand, and not innovation or diversification of the industrial sector.
This is based on the belief that the country’s strategic value always guarantees a stream of assistance, although the direction of global geopolitics may change.
A number of demonstrators in Lahore, Pakistan, conducted a demonstration against the burning of the Koran in Sweden on Sunday (2/7/2023).
