Political Instability and Its Impacts on Economic Development of Pakistan (2018-2022)

Abstract

Economic progress is frequently severely hampered by political instability, particularly in developing countries like Pakistan. This study looks at how political instability affected Pakistan's economic performance between 2018 and 2022, a time marked by internal turbulence, government changes, inconsistent policies, and the global COVID-19 epidemic. During this period, Pakistan's economy was hit by a number of shocks, including a significant devaluation of the Pakistani rupee, growing inflation, and a decline in foreign direct investment (FDI). In order to evaluate the impact of political instability on economic development, the study uses a qualitative methodology and secondary sources, including official documents, scholarly journals, and foreign reports. To comprehend how governance crises, affect macroeconomic variables like foreign commerce, currency stability, and public sector performance, a theoretical framework with roots in political economy is used. In order to promote sustained economic growth in Pakistan, this study emphasizes the necessity of stable government and policy continuity. The report also contends that Pakistan's economic growth trajectory would continue to be unstable unless political instability is addressed and long-term policy planning is ensured. In order to improve governance, foster political stability, and lessen the economic risks associated with political unpredictability, the article ends with policy proposals.