Pakistan's Economy Faces 'Danger Zone' in 2026 Despite IMF Relief

• Pakistan's economy is projected to face a major crisis in 2026 due to low growth, political instability, and climate change.
• Despite a $7 billion IMF bailout in 2024, no concrete economic improvement is visible, warns a Nikkei Asia report.
• Economic growth at 3% barely exceeds population growth, failing to improve living standards for the 40% living in extreme poverty.
• Political infighting erodes investor confidence, limiting crucial long-term investments needed to escape low-growth cycle.
• Climate change, with projected 20% higher rainfall in 2026, and widespread malnutrition pose further severe risks.

Why It Matters: Pakistan faces a severe economic crisis in 2026 without urgent reforms and political stability.