Understanding Pakistan’s Economic Instability: Causes and the Way Forward
Pakistan’s economy has been facing persistent instability for over a decade, but recent years have seen the situation deteriorate at an alarming pace. Inflation, currency devaluation, rising unemployment, and an ever-growing debt burden have made daily life difficult for millions of Pakistanis. While political uncertainty plays a role, the roots of the crisis go much deeper and require serious structural reforms. One of the biggest contributors to Pakistan’s economic troubles is its reliance on foreign loans to maintain fiscal balance. Instead of building a self-sustaining economy, successive governments have depended on loans from the International Monetary Fund (IMF), World Bank, and friendly nations like China and Saudi Arabia. While these inflows temporarily stabilize foreign exchange reserves, they come with strict conditions that often burden the average citizen with higher fuel, electricity, and food prices. Another major issue is poor economic planning and weak governan...