Macroeconomic Problems of Pakistan: Impacts and Way Forward

Abstract

This paper assesses the significant macroeconomic challenges faced by Pakistan amidst its ongoing economic crisis. It identifies major issues that have contributed to the economic meltdown. These issues encompass high inflation/stagflation, low foreign exchange reserves, a substantial fiscal deficit, and mounting public debt. Additionally, Pakistan has experienced sluggish economic growth, marked by low productivity and declining exports. The study further delves into the underlying causes of these problems, attributing them to factors such as poor governance, corruption, and political instability. The study sheds light on the current economic turmoil by employing a descriptive approach with a mix of quantitative and qualitative data analysis. To address these pressing challenges, the paper proposes a comprehensive reform agenda encompassing some vital measures. The article also provides policy recommendations that will help policymakers tackle the economic challenges in theory and practice.