{"id":22065,"date":"2026-01-09T19:59:29","date_gmt":"2026-01-09T14:59:29","guid":{"rendered":"https:\/\/dailyrapidnews.com\/eng\/?p=22065"},"modified":"2026-01-09T19:59:33","modified_gmt":"2026-01-09T14:59:33","slug":"pakistans-economy-from-crisis-to-stabilisation-under-the-hybrid-government","status":"publish","type":"post","link":"https:\/\/dailyrapidnews.com\/eng\/2026\/01\/09\/pakistans-economy-from-crisis-to-stabilisation-under-the-hybrid-government\/","title":{"rendered":"Pakistan\u2019s Economy: From Crisis to Stabilisation under the Hybrid Government"},"content":{"rendered":"\n

By Dr Ashraf Chohan
Chief Editor Daily Rapid Lahore<\/strong><\/p>\n\n\n\n

Pakistan entered the mid-2020s facing one of the most severe economic crises in its history\u2014soaring inflation, depleted foreign exchange reserves, a weakening currency, and an erosion of investor confidence. Against this backdrop, the current hybrid governance structure\u2014combining civilian leadership with strong institutional support\u2014has focused primarily on economic stabilisation rather than short-term populism.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

One of the most visible achievements has been the sharp decline in inflation, which had crossed unbearable levels during 2022\u201323. Through tighter fiscal discipline, controlled monetary policy, and restoration of confidence via international engagement, inflation has gradually eased to manageable levels. This has allowed the State Bank of Pakistan to reduce interest rates, offering some breathing space to businesses and consumers alike.<\/p>\n\n\n\n

Equally significant has been the stabilisation of Pakistan\u2019s external account. The country has moved away from persistent current-account deficits to a position of near balance, helped by disciplined imports, steady remittance flows, and controlled exchange-rate management. Foreign exchange reserves, once at critically low levels, have gradually recovered\u2014removing the immediate risk of sovereign default that loomed only a few years ago.<\/p>\n\n\n\n

The government\u2019s engagement with international financial institutions, particularly the IMF Extended Fund Facility, has acted as an anchor of credibility. While politically unpopular, the programme restored confidence among multilateral lenders, friendly countries, and global markets. This stability was reflected in the relative calm of the currency market and renewed activity in the Pakistan Stock Exchange.<\/p>\n\n\n\n

Another important step has been the revival of the privatisation agenda, including efforts to reduce the financial burden of loss-making state-owned enterprises. Alongside this, the government has attempted reforms in the energy sector, adjusting tariffs and addressing inefficiencies to curb long-term fiscal leakages.<\/p>\n\n\n\n

In summary, the hybrid government\u2019s key economic success lies not in spectacular growth figures but in pulling Pakistan back from the brink. Stability, once lost, is difficult to regain\u2014and in that respect, the government has laid a foundation without which no sustainable growth would be possible.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Dr Ashraf ChohanChief Editor Daily Rapid Lahore Pakistan entered the mid-2020s facing one of<\/p>\n","protected":false},"author":1,"featured_media":22067,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[24,20],"tags":[],"class_list":["post-22065","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blogs","category-opinion"],"yoast_head":"\nPakistan\u2019s Economy: From Crisis to Stabilisation under the Hybrid Government - Rapid News<\/title>\n<meta name=\"description\" content=\"By Dr Ashraf Chohan | Chief Editor Daily Rapid Lahore\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/dailyrapidnews.com\/eng\/2026\/01\/09\/pakistans-economy-from-crisis-to-stabilisation-under-the-hybrid-government\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Pakistan\u2019s Economy: From Crisis to Stabilisation under the Hybrid Government - 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