Rebounding inflation, fiscal pressures threaten recovery

Pakistan's fragile economic recovery is at risk due to escalating inflation and increased government borrowing, which is crowding out private investment. The think tank calls for a shift to more economic freedom rather than the IMF's reactive stabilization measures. This situation is critical as it affects the livelihoods of the majority of Pakistan's labor force, which operates outside the formal economy, potentially reversing years of slow progress and threatening broader economic stability.