Pakistan is experiencing a fragile calm after years of economic turbulence, but experts warn this is no sign of recovery. The nation teeters on the edge of becoming a full-fledged failing state, burdened by crippling debt, rampant inflation, and political instability.
Recent IMF bailouts have provided temporary relief, injecting much-needed foreign exchange into the depleted reserves. Yet, these measures come with stringent conditions that demand painful reforms. Austerity bites hard, with fuel prices soaring and electricity tariffs hiked, fueling public discontent across urban centers and rural heartlands alike.
Growth remains elusive. The latest figures paint a grim picture: GDP expansion barely scraping 0.3% last fiscal year, far below the 7% needed to create jobs for the burgeoning youth population. Unemployment stalks the streets, and remittances – once a lifeline – are faltering amid global slowdowns.
Corruption scandals continue to erode trust in institutions. High-profile cases involving political elites highlight systemic rot, while the military’s outsized role in governance raises questions about democratic viability. Border tensions with India and Afghanistan exacerbate security costs, diverting scarce resources from development.
Analysts argue that without bold structural changes – diversifying beyond agriculture and textiles, investing in education, and curbing fiscal deficits – Pakistan risks irreversible decline. International partners watch warily, their aid increasingly tied to verifiable progress. For now, the bandage holds, but the wound festers.