ABSTRACT
After experiencing considerable macroeconomic stress (high inflation, high fiscal deficits, low growth and declining reserves) in the wake of the global financial and economic crisis during 2009–13, Pakistan’s economy stabilized and recovered, growing by more than 4.5 per cent on average during 2014–17. However, some aspects of the recovery warrant concern. In particular, large imbalances remain in the fiscal and external accounts. Rather than moving smoothly onto a trajectory of sustained high economic growth and macroeconomic stability, in 2018 the economy was characterized by much uncertainty.
