Pakistan’s economy is currently navigating through one of its most challenging periods, marked by severe economic vulnerabilities, political instability, and external pressures. The country's economic landscape has been characterized by recurring cycles of boom and bust, with periods of recovery quickly followed by downturns. Presently, Pakistan faces a series of critical challenges, including a depreciating currency, soaring inflation, and a growing debt burden. The Pakistani rupee has sharply depreciated against major currencies, particularly the US dollar, which has significantly increased the cost of imports. This depreciation has led to a rise in prices for essential goods and services, further exacerbating inflation and eroding the purchasing power of the population. The soaring inflation has had a profound impact on the cost of living, making basic necessities such as food, fuel, and medicine increasingly unaffordable for many Pakistanis. The high inflation rate has placed additional strain on the country’s already vulnerable population, deepening poverty and contributing to widespread social discontent. Concurrently, Pakistan is grappling with a growing debt burden, which is compounded by chronic fiscal deficits and a persistent current account deficit. These deficits are a result of years of structural imbalances, including inadequate revenue generation, inefficient public sector enterprises, and a reliance on external borrowing to finance budgetary shortfalls.
