Pakistan and the global economic crisis

 Pakistan's elite groups, such as the corporate sector, feudal landlords, and the country's powerful military, enjoy economic privileges worth an estimated $17.4 billion, or roughly 6% of the economy, as stated in the PAKISTAN Human Development Report, which was published by the United Nations in 2021.

Since the end of February, Pakistan's central bank's foreign exchange cash reserves, with the exception of gold, have decreased by nearly 50% to just $6.5 billion, barely enough to cover imports for a few weeks. The currency has lost 6% this year, indicating that it is under pressure.

Pakistan, a nuclear-armed nation with the world's fifth-largest population and one of the fastest rates of urbanization, is currently experiencing its worst economic crisis since 1998, when it frozen foreign currency bank accounts to avoid default. The country has experienced double-digit inflation and ranks third among major economies worldwide, with 34% of the population living on just $3.2 per day.

Pakistan is rife with internal and external conflicts. Intolerant of diversity and dissent has become so widespread over the past few decades as a result of terrorism and extremism that it has blurred Pakistan's national identity and reduced our chances of social cohesion and stability.

Due to the weakening of state institutions and their inability to resolve public complaints, a number of groups have turned to violence. Both the 2013 and 2018 power shifts had gone off without a hitch. We face a faltering economy and growing polarization within the nation as we prepare for elections in 2023. During that time, the nation was severely impacted by devastating floods that harmed our health care and agriculture.

Extremist groups are returning along our border with Afghanistan, which has led to a new wave of terrorism coming from Afghanistan, where the Taliban rule. In addition, the declared cease-fire on the Line of Control in Kashmir in 2021 has exacerbated military tensions with India. As a result, our national security is now in jeopardy once more.

"Instability is being engendered by rising geopolitical tensions, and global economic volatility" in our domestic politics, as Dr. Maliha Lodhi observed in her most recent column. At our front, some people thought that the ethnic dominance of Punjabi Muslims was to blame for the military coups, while others said that the Army's religious zeal for political leadership was to blame. However, there was neither an adequate amount of public opposition nor any serious consideration of the actual justifications for military intervention in civil matters. However, India's retired senior military commanders were secretly questioned, and they all agreed that the lower formations had nothing to do with politics and that only senior officers were responsible for staging coups, according to a report in the Indian press.

António Guterres, the UN Secretary General, emphasized the urgent need for cooperation in a fragmented world in his speech at the World Economic Forum. This was also the theme of the annual Davos gathering earlier this month. "It was a perfect storm that was raging on several fronts, especially economic, with an unfolding cost-of-living crisis, rising inequality, looming recession, energy crunch, soaring inflation, and supply chain disruptions among its many aspects," the United Nations Secretary General reiterated categorically. Geopolitical divides and the widening North-South divide, on the other hand, were undermining efforts to address global challenges at a time when international solidarity was most needed.

Another significant factor contributing to global instability is the tumultuous relationship that exists between the United States of America and China. Fears of a new Cold War are spreading across the globe as their relationships have deteriorated to an all-time low. Numerous nations are experiencing severe tensions as a result of the United States' policy of containing China's rise and Beijing's assertive response. The United States wants to reduce its reliance on Chinese goods and supply chains in order to separate its economy from China's. Consequently, a trade dispute with Beijing has been fought. The UN Secretary General claims that the decoupling of the world's two largest economies is likely to cause a "Great Fracture" that both major powers must avoid at all costs. The efforts of the leaders of the major powers up until this point have not resulted in any relief because of their divergent positions regarding Taiwan and other technological restrictions. To maintain its technological dominance over China, the United States imposed a broad ban on American companies exporting advanced chip equipment in an effort to cripple China's semiconductor industry.

Only seven nations are responsible for ninety percent of all terrorist attacks and fatalities: Nigeria, Pakistan, Somalia, Yemen, Iraq, Afghanistan, Nigeria, and Syria. In today's irregular wars fought by developing nations, terrorism is primarily used as a battle strategy. A form of warfare that arises from political exclusion and unequal governance is terrorism. Sensations of inequality, marginalization, and humiliation are the root causes of anger and resentment. Additionally, the situation is frequently made worse by state violence. According to a UN study, complaints about violent state repression 71% of the time led to terrorist violence.