This report forecasts key economic variables for Pakistan in 2025. It evaluates GDP Growth, Inflation, Demographics, Investment, and Debt levels, among other factors, thereby offering insights into the nation’s short- and long-term economic trajectory amidst global turbulence. The report proceeds while keeping Pakistan’s economic performance over the past decade in mind, noting that the twin disruptions of Covid-19 (2020-21) and Global Inflation (2022-24), have heightened economic volatility. Additionally, the austerity measures tied to Pakistan’s 2024 International Monetary Fund Agreement are examined critically. As such, the report provides a nuanced perspective on navigating economic recovery and resilience in an increasingly unpredictable global landscape.
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The Extraction Trap
Trump’s declaration to “run Venezuela” after Maduro’s capture is a seeming promise of a sudden cure to Venezuela’s ills. However, it ignores the nation’s terminal diagnosis of a century of plunder. The rhetoric of imminent revival on the basis of the speedy return of international oil capital and the promise of 100 billion US dollars in reconstruction funds made the intervention seem like a unique opportunity.
Future Shield: The Saudi-Pakistan Security Partnership
Although the SDMA does not identify an adversary, effectively functioning as a deterrent, it cannot be viewed in isolation from the Israeli belligerence in the Middle East. Israel’s war against Hamas has expanded beyond the genocide of Gaza; it has bombed the West Bank, Lebanon, Syria, Yemen, Iran, and recently Qatar. Tel Aviv’s campaign under the banners of ‘anti-Semitism’ and ‘terrorism’ has engulfed the whole Middle East in a war-like situation, which has generated new enemies and has deepened the instability of the region.
The Trilateral Shift
On 15 January 2026, the Pakistani defence production minister confirmed that an agreement for a new trilateral defence deal between Pakistan, Saudi Arabia, and Türkiye is in the pipeline, other than the Pakistan-Saudi bilateral deal announced last year.
