Economic Challenges In Pakistan: A Comparative Analysis of Political Regimes and Policy Implications
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2025
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Abstract
Pakistan's economy has faced continuous challenges due to political instability, governance failures and external shocks. This study does a comparative analysis of economic performance under various political rule (PTI: 2018–2022; PDM: 2022-present; and historical PML-N/PPP governments) to identify systemic weaknesses and policy effects. Using mixed-method research (quantitative economy and qualitative governance analysis), we test five hypotheses: H₀ (PTI responsibility), h₁ (PDM accountability), h3 (external factor), h4 (structural governance failures), and h₅ (political instability). Results suggest that Stark contradiction: PTI received an current account surplus ($ 959m in 2021), record remittance ($ 32B), and GDP growth (5.8% in 2022), while inflation in PDM's tenure saw an increase of 43%, which increases $ 7B (2023), and industrial contraception. The regression analysis confirms the quality of governance (β = 0.81, p <0.001) and political instability (Granger causes: p <0.05) as primary drivers of the crisis. 2022 floods ($ 45B loss) and Covid-19 increased the decline, but deepening the upheaval by policy discrepancies (eg, IMF under PDM). Major findings include: coalition governments (PDMs) by reducing single-party regime (PTI) due to conflicting policies. Corruption (Transparency International Score: 140/180) and debt accumulation ($ $ 92B) are structural obstacles. Public mistrust in PDM (64% rejection, Galp 2022) is correlated with economic decline. We recommend: to ensure institutional reforms to curb corruption and continuity of policy, energy field overhaul to address $ 247m annual deficit, and a cross-party economic charter to stabilize the regime. This study underlines that Pakistan's crisis has arisen for decades of rule, worsened by recent regime incompetence, necessitating systemic, not partisan, solutions
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| Authors | Al-Harath Ateik |
| Journal | Social Sciences & Humanity Research Review |
| Year | 2025 |
| DOI |
10.63468/sshrr.047
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| URL | |
| Keywords | Keywords not found |
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