Pakistan's Economy on the Brink: 18-Hour Power Cuts, 8% Unemployment Fuel Crisis

International News: Pakistan's economy is currently in a very critical state. In the last few years, there has been a steady decline in Pakistan's economic condition, and now its situation has started to be questioned. On social media, Pakistani citizens commenting on the critical condition of their country say, "We do not have money to repay the debt, but are increasing the defense budget." Another comment wrote, "If there is a war, do it before 9 o'clock, because the gas goes away by 9:15 pm." Such jokes are now showing the real situation of Pakistan, where people are struggling for everyday basic things.

Deep gap of economic crisis

To understand Pakistan's economic status, it is necessary to look at the data of IMF and World Bank. The IMF has reduced Pakistan's GDP Growth from 3% to 2.6%. At the same time, the World Bank says that the fiscal deficit is going to reach 6.7%. Pakistan's foreign exchange reserves have definitely improved, but this is due to foreign debt, and these improvements are completely unstable.

Now the price of one dollar has reached 280 Pakistani rupees. There is a tremendous increase in the rate of inflation, unemployment and poverty. Inflation fell from a record 38% to 0.7% in March 2025, but Pakistan is expected to increase inflation again in April. The price of basic foods like rice has reached Rs 350 per kg.

Poverty and unemployment level

Pakistan's poverty rate is now more than 40%, which has created the biggest challenge in front of the government of Pakistan and its citizens. Apart from this, the unemployment rate has also increased by 8%. As such, Pakistan's economic condition is getting worse even before.

Experts say that Pakistan's economic policies are unstable despite the help given by the International Monetary Fund (IMF). The promises made by Saudi Arabia and Qatar are still at the MoU level. Employment opportunities in Pakistan are also decreasing rapidly, which is a danger bell for the development of the country.

Education and health services condition bad

According to the World Bank report, 36.4% Labor Force in Pakistan works in agriculture, but the level of education and health services in the country is continuously falling. By 2024, it is estimated that a third of Pakistani children are not going to school, and most of those children are also backward in education.

Divisive debt and defense spending

Pakistan's defense budget is increasing day by day, while the economic situation is continuously deteriorating. The Pakistani defense budget has been increased by 17.6% in 2024-25. This is the situation when Pakistan is facing a huge crisis in repaying foreign debt. Such a huge expenditure on defense can increase Pakistan's economic instability even further.

Question of coming danger and future

If there is no improvement in Pakistan's economic condition, then the rate of unemployment and poverty may increase further, and with this the country's foreign debt may increase even more. There is no clear direction in Pakistan's economic policy, which can support the development of the country. In the coming days, Pakistan is expected to improve its condition only when the bailout package is received from the IMF, but despite this package, its stability is being questioned.

Dependence on foreign debt and heavy spending on defense

The situation in Pakistan is worse today than ever. Agriculture, industry and trade obstacles, inflation, unemployment and poverty have eliminated the economic stream of Pakistan. Dependence on foreign debt and huge expenditure on defense are preventing Pakistan's entire economy from being empowered. Pakistan's future is unstable, and now it will be interesting to see if IMF's debt package and foreign investment improves the country's economy or Pakistan will fall even deeper into the gap.