Economic Crisis Pakistan

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Sri Lanka’s economic collapse rapidly transformed into a political crisis marked by inflation, fuel shortages, depleted foreign-exchange reserves, debt distress and mass protests in Colombo. This article examines the major causes of the Sri Lankan crisis, the fall of the Rajapaksa political establishment, similarities with Pakistan’s economic vulnerabilities and key lessons for Islamabad.
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Political and economic instability has slowed Pakistan’s ability to fully realise CPEC’s potential, particularly its second phase focused on industrialisation, Special Economic Zones, agriculture and technology. The article examines how policy inconsistency, security risks, bureaucratic hurdles, weak investor confidence and political uncertainty affect CPEC and Pakistan-China relations.
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