Pakistan basks in fleeting stability, but zero growth propels it toward failing state territory. Economists sound the alarm as band-aid solutions fail to address core vulnerabilities.
Context sets the stage: a perfect storm of COVID aftermath, 2022 floods costing $30 billion, and populist spending triggered the meltdown. Now, with IMF tranche in hand and Gulf funding, the immediate panic subsides. Rupee steadies, imports flow.
Development drought persists. Agriculture, employing 40% of workforce, suffers from water scarcity and outdated practices. Manufacturing squeezed by energy costs and global competition. Services sector, tourism potential untapped amid security fears.
Governance gaps widen the chasm. Elite evasion of taxes – just 2% pay income tax – starves public coffers. Corruption perceptions index ranks Pakistan low, deterring FDI. Demographic dividend risks becoming liability without education overhaul.
Revival blueprint clear: energy sector cleanup, export diversification into IT and renewables, fiscal discipline. External factors like Afghan stability and India relations pivotal. Leadership’s resolve will determine if Pakistan defies the failing state narrative.