Pakistan stands at a crossroads, facing economic hurdles, internal unrest, and threats from global turmoil and climate change. Supported by an IMF programme and tight monetary policies, the economy has shown signs of stability.

Reports from the State Bank of Pakistan and the ADB (Asian Development Bank) highlight a projected GDP growth of around 2.5 percent to 3.0 percent for FY2025 and a reduction in the current account deficit, which briefly ran a surplus. A significant moderation in the inflation rate has occurred compared to previous record highs. International rating agencies have also upgraded the country’s sovereign ratings, reflecting a reduction in default risk.

While government efforts are starting to bear fruit for citizens, the path to recovery remains precarious. Against this fragile backdrop, new waves of political and security crises threaten to unravel progress and throw daily life into disarray.

These instabilities became starkly evident during the TLP protests that swept across Pakistan in October 2025, bringing the country’s main transport arteries, such as GT Road, to a standstill. Wholesalers and retailers faced swift financial blows, essentials vanished from shelves, and daily wage earners lost their livelihoods overnight. The digital economy also came to a halt as mobile internet suspensions left gig workers without income.

Rising tensions with Afghanistan and the return of the banned TTP group have thrown trade and transport into chaos. Border closures have caused heavy losses for businesses and crippling the trucking industry. The economy is highly sensitive to global........

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