Pakistan's Economy: On the Precipice?

Pakistan most often makes the headlines for its role in the Global War on Terror, but the country's citizens persistently rate Pakistan's economic problems as their biggest concern, ahead of the war and domestic terror attacks. Despite macroeconomic gains from 2004-2007 under the Shaukat Aziz government, Pakistan's economy over the past two years registered growth rates of a mere two percent alongside record levels of inflation. The global financial recession, and more recently Pakistan's devastating floods dealt severe blows to the already weak economy. To add to its woes, the country is facing a severe energy crisis which has further dampened economic activity.

Realizing the importance of Pakistan's stability for global security, the international community has pledged long-term economic support. The U.S. approved a $7.5 billion five-year economic assistance package and Pakistan is also receiving assistance from the International Monetary Fund under an unprecedented $11.3 billion package in addition to other bilateral aid.

But is this support enough to ensure economic recovery in Pakistan? USIP held a panel discussion on the Pakistani economy which addressed the role of this aid, the potential political repercussions if Pakistan's government fails to manage a recovery, and the implications of Pakistani economic performance for U.S. interests.

Speakers

• Dr. Sohail J. Malik
  Chairman
  Innovative Development Strategies, Pakistan
• Dr. Zubair Iqbal
  Scholar
  Middle East Institute
• Dr. Paula Newberg
  Director
  Georgetown University Institute for the Study of Diplomacy
• Moeed Yusuf, Moderator
  South Asia Adviser
  U.S. Institute of Peace

Explore Further

• Listen to an audio recording of the event.
• Learn about USIP's programs in Pakistan