Why Pakistan’s military spending may derail its economic rescue

Rajesh Sharma & Jairaj SinghTIMESOFINDIA.COM

May 26, 2025 | 19:00 IST

After four days of military escalation with India, Pakistan secured yet another IMF bailout. But with growth slowing, conditions tightening, and India abstaining, this rescue may be different — and far more precarious

On May 17, five days after a fragile ceasefire ended four days of intense military exchanges with India, Pakistan secured a staff-level agreement with the International Monetary Fund (IMF).

The new bailout, packaged under the Extended Fund Facility, is just the latest instalment in a 70-year saga of external support and short-term fixes that have kept Pakistan afloat amidst long-term economic stagnation.

TOI

TOI

Why Pakistan’s military spending may derail its economic rescue

After four days of military escalation with India, Pakistan secured yet another IMF bailout. But with growth slowing, conditions tightening, and India abstaining, this rescue may be different — and far more precarious

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TOI

Why Pakistan’s military spending may derail its economic rescue

After four days of military escalation with India, Pakistan secured yet another IMF bailout. But with growth slowing, conditions tightening, and India abstaining, this rescue may be different — and far more precarious

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