Preamble: For Pakistan, 2018 marked by economic instability. From lows of 2012 to record breaking performance graduated over last five years, it is under pressure again chiefly due to widening trade deficit owing to huge import bills, resulting mounting of current account deficit (“CAD”) and devaluation of Pak Rupee. The economy did not fare well in 2018. Acceleration halted and the economic challenges were aggravated in the second half. The PTI government’s negotiated bilateral inflows averted a sovereign default and offered space for maneuverability to fix disruptive factors. As end of 2018, all global economic forecasters have revised down the expected economic performance of the country citing shrinking foreign exchange reserves and a high debt burden among other factors. The World Bank, International Monetary Fund (IMF) and the Asian Development Bank have brought down the GDP growth forecast by two to three per cent. Reputable credit rating agencies Moody’s and Fitch Ratings...
