Pakistan's economic recovery faces inflation pressure despite record reserves

Pakistan’s stocks, record $21.5 billion reserves and rating upgrades suggest a recovery, but inflation persists.
The central bank raised rates 50 basis points to 12% last week, as oil topped $100 a barrel and wheat prices rose.
Former finance minister Miftah Ismail said curbing demand protects external finances but hurts growth.
Experts say heavy reliance on IMF and external funding is a risk, with militancy and protests adding to concerns.

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