Islamabad’s latest reports paint a grim picture for Pakistan’s economic future as escalating violence engulfs Khyber Pakhtunkhwa (KP) and Balochistan, two provinces brimming with untapped resources. KP stands as a powerhouse for hydropower, cross-border energy corridors, and emerging critical minerals, while Balochistan boasts vast reserves of copper, gold, coal, and coastal energy infrastructure. Yet, relentless attacks are undermining these assets, casting long shadows over investment and development prospects.
According to data from security think tanks, 2025 emerged as Pakistan’s deadliest year in over a decade, with a staggering 34% surge in violence compared to 2024. Fatalities jumped from 2,555 to 3,417, a trend persisting for five straight years since the Taliban’s return in Afghanistan. This isn’t fleeting unrest; it’s a structural security crisis eroding the foundations of growth.
The numbers are stark: Over 96% of 2025’s deaths and 93% of incidents occurred in KP and Balochistan. KP bore the brunt, with fatalities rising 44% to 2,331 from 1,620. Balochistan saw a 22% increase to 956. Security forces suffered heavily, losing 374 military personnel—including 22 officers—and 216 police officers.
Terror groups like Tehrik-e-Taliban Pakistan (TTP), Balochistan Liberation Army (BLA), Baloch Liberation Front (BLF), and ISIS affiliates dominate the violence, repeatedly targeting strategic infrastructure, Chinese-backed projects, and state symbols. Despite heavy counterterrorism efforts, their resilience signals potential shifts to high-value economic targets, jeopardizing Pakistan’s ambitious development agenda.
Investors beware: This deteriorating security landscape demands more than risk premiums or bolstered guards. Without decisive action, Pakistan’s resource wealth risks remaining buried under conflict’s rubble, stalling national progress and regional stability.