Pakistan’s economy continues to teeter on the edge of collapse, heavily reliant on repeated International Monetary Fund (IMF) bailouts to stave off sovereign default, while deep-seated military corruption exacerbates the crisis.
As of 2025, the country has secured multiple IMF packages, including a $3 billion Stand-By Arrangement in 2023 and subsequent reviews approving disbursements under the Extended Fund Facility (EFF), aimed at addressing fiscal imbalances and external vulnerabilities. However, critics argue these lifelines merely fund the military’s expansive interests rather than fostering genuine reform, with the armed forces controlling vast business conglomerates that drain national resources.
Exiled journalist Adil Raja has highlighted this “rent-seeking attitude,” accusing the military junta under Army Chief Asim Munir of prioritizing self-enrichment over economic health, as seen in ventures like the Reko Diq mining project, where transparency is lacking despite billions in public stakes.
The IMF’s involvement has been contentious, with programs conditioning aid on anti-corruption measures and governance reforms, yet systemic issues persist. A 2025 Governance and Corruption Diagnostic Assessment (GCDA) by the IMF identified risks in public procurement and institutional weaknesses, recommending stronger transparency to combat graft.
Despite this, military-backed entities evade scrutiny, contributing to a cycle of dependency where bailouts cover debt servicing but fail to address root causes like elite capture and inefficiency.
Analysts warn that without curbing the military’s economic dominance—estimated to control up to 10% of GDP through foundations like Fauji and Army Welfare Trust—Pakistan risks perpetual instability.
Raja’s exposés further allege that the military’s “deceitful” strategies, such as leveraging geopolitical rivalries for aid, undermine investor confidence and perpetuate poverty.
Political instability compounds the problem, with corruption scandals and military interference deterring foreign investment.
The Observer Research Foundation notes Pakistan’s commitments to the IMF include bolstering anti-corruption institutions, but progress is slow amid military influence over policy.
In 2025, amid regional tensions, some speculate that IMF funds indirectly support military operations, raising ethical concerns about aid enabling terrorism or suppression.
Raja’s detailed critique from 2023, revisited in recent posts, describes a “fascist” economic plan under the Special Investment Facilitation Council (SIFC), which he claims copies CPEC blueprints without innovation, prioritizing control over reforms and ignoring IMF prerequisites.
The June 2023 publication quoted below presented a critical view of an economic revival plan orchestrated by the Pakistani military establishment under General Asim Munir. The core allegations were:
1. Non-Expert Formulation: The plan was created by the ISI’s “Economic Division”… https://t.co/BYaGf930dB— Adil Raja (@soldierspeaks) October 4, 2025
This has led to eroded public trust, high inflation, and rising poverty, with the World Bank estimating millions pushed into destitution. Breaking this cycle requires genuine structural changes, including military divestment from businesses and enhanced civilian oversight. Until then, Pakistan remains trapped in bailout dependency, with corruption at its core threatening long-term viability.
