Pakistan’s fragile stability amid regional turmoil

THE recent approval of nearly $1.3 billion along with additional support under the IMF’s Resilience and Sustainability Facility (RSF) has temporarily strengthened confidence in Pakistan’s fragile economy. The development has provided short-term financial breathing space despite growing tensions in the Middle East, particularly the sea skirmishes between America and Iran amid hopes of an intact ceasefire. However, Pakistan’s economic gains remain highly vulnerable to global volatility, rising geopolitical tensions and the persistent threat of instability on both its eastern and western borders. It is an admitted fact that receiving IMF loans and providing real relief to the masses are two entirely different matters. IMF assistance often comes with stringent conditionalities that increase inflationary pressure through higher taxation, withdrawal of subsidies and increases in petroleum levies and utility tariffs. In Pakistan, the benefits of such financial arrangements are often enjoyed by the elite class, while the burden is transferred to the middle and lower-income segments of society. Past and present IMF programmes have rarely translated into meaningful relief for the marginalized population. Pakistan, being a heavily populated country, has repeatedly withdrawn subsidies under IMF conditions. A pertinent example is the petroleum levy, which reportedly reaches nearly Rs100 per litre, generating approximately Rs12 trillion in revenue for the government, according to media reports. Yet the common citizen continues to struggle with rising prices of food, medicine, transport and electricity. The phrase “changing the system” is frequently heard in political and public discourse. In reality, this refers to deep structural reforms in Pakistan’s political, economic, judicial and administrative systems. The prevailing perception is that the rule of law is applied differently to the powerful elite and ordinary citizens. A small political and business class continues to enjoy