The Latest: According to media reports, the Indian Air Force launched airstrikes on February 26 targeting what it claims to be a camp near Balakot, Pakistan, supposedly harbouring Pakistan-based terrorists, with India claiming to have killed up to 350 militants in the attack. India’s airstrikes were in response to the February 14 attack in the

Key View

• We maintain our view that Pakistan and the IMF will reach an agreement over a bailout soon, with a potential bailout size of about USD12bn.
• We expect to see a bailout package that focuses on fiscal consolidation, a review of monetary and exchange rate policy, financial reforms, and structural reforms, similar to measures implemented in

Key View

• Revenue generating opportunities for local pharmaceutical companies in Pakistan will improve following the decision by the government to increase the prices of medicines. 
• Drugmakers will also benefit from a more stable medicine pricing system linked to the consumer price index.
• However, the government’s plan to increase medicine

Key View

• We maintain our forecast for Pakistan’s real GDP growth to slow to 4.4% in FY2018/19 and 4.1% in FY2019/20, from 5.4% in the previous fiscal year, despite the windfall from the decline in oil prices.
• This will likely be triggered by a non-oil import crunch, which in our view, is looking increasingly likely over the coming months.
• The

Key View

• Reforms in Pakistan’s pharmaceutical and health sector are likely to be implemented over a longer timeframe, supporting the sector on its growth trajectory. 
• The country’s pharmaceutical market was valued at PKR301bn (USD2.86bn) in 2017, and we forecast an increase in expenditure to PKR973bn (USD5.36bn) by 2027.
• Opportunities for

Key View

• Pakistan's healthcare sector will continue to suffer.
• Opportunities for multinational drugmakers will be marred by underlying issues within the healthcare system.
• Healthcare reforms will take time to deliver

Forecasts

Pakistan's healthcare market was valued at PKR878bn (USD8.3bn) in 2017, and we forecast an increase in healthcare

Despite significant efforts over the past three years to offload ailing public sector enterprises, the main loss-making PSEs continue to pose a major fiscal burden to the Pakistani economy. While continued support from the ADB may help to gradually improve corporate governance, the prospect for big bang reforms seems limited given that the ideal