Pakistan’s 2024 Crisis Politics Economy and Elections

Pakistan is facing a difficult moment as it enters 2024, with political instability and a deepening economic crisis dominating the national landscape. The political environment remains tense, especially following the arrest of former Prime Minister Imran Khan and the subsequent crackdowns on his party PTI.

 

As the military plays a central role in governance, the caretaker administration that took charge in mid-2023 is overseeing a critical election scheduled for February 2024. However, there is skepticism about whether these elections will be free and fair, as political tensions remain high, and opposition parties question the legitimacy of the process.

 

Economically, Pakistan is grappling with a range of challenges, including soaring inflation, a weakening currency, and stagnant growth. The nation’s foreign exchange reserves are dangerously low, while debt continues to spiral, exacerbated by the ongoing reliance on external loans, particularly from the IMF.

 

Key sectors like agriculture and manufacturing are struggling, and the country is experiencing a decline in remittances, which have long been a crucial lifeline. With inflation driving up costs for essentials like food and energy, the economic hardship for ordinary citizens is intensifying​

​

Despite these grim circumstances, there are calls for urgent structural reforms to address the root causes of Pakistan’s economic problems. These include improving tax collection, cutting unnecessary expenditures, and curbing corruption. However, the political climate makes such reforms challenging, as the country faces increasing pressure from both domestic political factions and external creditors. With the possibility of social unrest looming, the coming year will be a critical test for Pakistan’s ability to navigate its crises and set the stage for a more stable future​