Pakistan's Economy: On the Precipice?
This event featured a panel discussion on the state of the Pakistani economy which examined the role of foreign assistance, the implications of Pakistani economic performance for U.S. interests and necessary steps towards a quick economic turnaround.
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
- Learn about USIP's programs in Pakistan