Part 6
By Iqbal Hamza
The sixth major factor pushing Pakistan toward collapse is the deep and continuing instability of its economy. Even if one avoids calling it a full collapse, it is clearly standing at the edge. The country is burdened with more than 137 billion dollars in debt, and the annual interest on this amount already surpasses its economic growth.
Pakistan’s industrial sector has also declined to the point where much of it barely functions. Hundreds of factories have shut down, and many of the remaining ones operate only partially. The International Monetary Fund (IMF) has placed tough conditions on Pakistan, creating serious difficulties for business owners and manufacturers. One of the IMF’s key demands is that Pakistan raise electricity, fuel, and gas prices for the public. This has further weakened industry, since higher production costs force manufacturers to raise their prices, making Pakistani goods uncompetitive in international markets.
Political disorder, heavy taxation, and poor security make the situation worse. These problems discourage new investment, while many who already invested look for ways to move their money out of the country.
Rapid population growth adds additional pressure. Millions of new people are added each year and consumption rises with them, yet new factories are not being built at the same pace and exports show no meaningful increase. Instead, jobs and industrial activity continue to decline. The Pakistani rupee keeps losing value, and the country’s international standing has weakened, dealing another blow to the economy.
Pakistan’s regular reliance on fresh loans only brings the prospect of collapse closer. Climate change has also struck the agricultural sector hard. Yearly floods, drought in several regions, mismanagement, crop diseases, and water restrictions imposed by India have all contributed to its decline. As a result, food prices have risen sharply and the public faces growing hardship.
Corruption in politics, which has strained both ordinary citizens and investors, is another serious problem. For decades, the military regime has mixed political power with economic control, causing investors to lose millions. In doing so, the military has harmed the country’s own economy.
As mentioned earlier, Pakistan’s military and government rely heavily on individuals who essentially work for pay rather than national or religious conviction. For this reason, an economic collapse would also bring down the military regime, since the state would no longer be able to pay its soldiers. At the same time, generals who have grown accustomed to large sums gained through corruption would likely increase pressure on the public and sell off state assets simply to obtain more money.
The military and intelligence systems in Pakistan depend entirely on funding. They cannot operate even for a single day without it. If the money stops, the same people who gather sensitive information for the state today may begin selling those secrets to its enemies tomorrow.
In summary, Pakistan’s government and military are held together solely by financial interests and not by any strong national or religious drive. If the economy collapses and the money disappears, both institutions will collapse with it. There is no one within them who would work for the country even for a single day without pay.
