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The Current Situation in Pakistan

A USIP Fact Sheet

Monday, January 23, 2023

Publication Type: Fact Sheet

Pakistan continues to face multiple sources of internal and external conflict. Extremism and intolerance of diversity and dissent have grown, fuelled by a narrow vision of Pakistan’s national identity, and are threatening the country’s prospects for social cohesion and stability.   

The inability of state institutions to reliably provide peaceful ways to resolve grievances has encouraged groups to seek violence as an alternative. The country saw peaceful political transitions after the 2013 and 2018 elections. However, as the country prepares for anticipated elections in 2023, it continues to face a fragile economy along with deepening domestic polarization. Meanwhile, devastating flooding across Pakistan in 2022 has caused billions in damage, strained the country’s agriculture and health sectors, and also laid bare Pakistan’s vulnerability to climate disasters and troubling weaknesses in governance and economic stability.

Regionally, Pakistan faces a resurgence of extremist groups along its border with Afghanistan, which has raised tensions with Taliban-led Afghanistan. Despite a declared ceasefire on the Line of Control in Kashmir in 2021, relations with India remain stagnant and vulnerable to crises that pose a threat to regional and international security. The presence and influence of China, as a great power and close ally of Pakistan, has both the potential to ameliorate and exacerbate various internal and external conflicts in the region.

USIP Pakistan program "by the numbers"

USIP’S Work

The U.S. Institute of Peace has conducted research and analysis and promoted dialogue in Pakistan since the 1990s, with a presence in the country since 2013. The Institute works to help reverse Pakistan’s growing intolerance of diversity and to increase social cohesion. USIP supports local organizations that develop innovative ways to build peace and promote narratives of inclusion using media, arts, technology, dialogues and education.

USIP works with state institutions in their efforts to be more responsive to citizens’ needs, which can reduce the use of violence to resolve grievances. The Institute supports work to improve police-community relations, promote greater access to justice and strengthen inclusive democratic institutions and governance. USIP also conducts and supports research in Pakistan to better understand drivers of peace and conflict and informs international policies and programs that promote peace and tolerance within Pakistan, between Pakistan and its neighbors, and between Pakistan and the United States.

USIP’s Work in Pakistan Includes:

Improving police-community relations for effective law enforcement

The Pakistani police have struggled with a poor relationship with the public, characterized by mistrust and mistreatment, which has hindered effective policing. USIP has partnered with national and provincial police departments to aid in building police-community relationships and strengthening policing in Pakistan through training, capacity building and social media engagement.

Building sustainable mechanisms for dialogue, critical thinking and peace education.

Nearly two-thirds of Pakistan’s population is under the age of 30. Youth with access to higher education carry disproportionate influence in society. However, Pakistan’s siloed education system does not allow interactions across diverse groups or campuses, leading to intolerance, and in some cases, radicalization. To tackle growing intolerance of diversity on university campuses, USIP has partnered with civil society and state institutions to support programs that establish sustainable mechanisms for dialogue, critical thinking and peace education.

Helping Pakistanis rebuild traditions of tolerance to counter extremists’ demands for violence

USIP supports local cultural leaders, civil society organizations, artists and others in reviving local traditions and discourses that encourage acceptance of diversity, promote dialogue and address social change. USIP also supports media production — including theater, documentaries and collections of short stories — which offer counter narratives to extremism and religious fundamentalism.

Support for acceptance and inclusion of religious minorities

Relations between religious communities in Pakistan have deteriorated, with some instances of intercommunal violence or other forms of exclusion. USIP supports the efforts of local peacebuilders, including religious scholars and leaders, to promote interfaith harmony, peaceful coexistence and equitable inclusion of minorities (gender, ethnic and religious) in all spheres of public life.

Supporting inclusive and democratic institutions

To help democratic institutions be more responsive to citizens, USIP supports technical assistance to state institutions and efforts to empower local governments, along with helping relevant civil society actors advocate for greater inclusion of marginalized groups. Gender has been a major theme of this effort and across USIP’s programming in Pakistan. These programs empower women in peacebuilding and democratic processes through research, advocacy and capacity building.

In a September 2022 visit to Washington DC, Pakistan’s Foreign Minister Bilawal Bhutto Zardari speaks to an audience of U.S. officials and policy experts. In his speech, Bhutto Zardari discussed the 2022 flooding that displaced 33 million in Pakistan and resulted in one-third of the country being underwater. The foreign minister called for a global response to the flooding that could build a system that would support the developing countries most vulnerable to climate disasters.

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Pakistan: Five major issues to watch in 2023

Subscribe to the center for middle east policy newsletter, madiha afzal madiha afzal fellow - foreign policy , center for middle east policy , strobe talbott center for security, strategy, and technology , center for asia policy studies.

January 13, 2023

1. Political instability, polarization, and an election year

Politics will likely consume much of Pakistan’s time and attention in 2023, as it did in 2022. The country’s turn to political instability last spring did not end with a dramatic no-confidence vote in parliament last April that ousted then Pakistani Prime Minister Imran Khan from office. Instability and polarization have only heightened since then: Khan has led a popular opposition movement against the incumbent coalition government and the military, staging a series of large rallies across the country through the year.

The struggle for power in Pakistan continues into 2023. While the incumbent government has not ceded to Khan’s demand for early elections, country-wide elections are constitutionally mandated to be held by October this year. It benefits the government politically to hold them off as long as it possibly can as it tries to dig itself out of Pakistan’s urgent economic crisis and its lackluster domestic performance (its diplomatic foreign policy approach has fared better, but that may not matter for elections). The last year has cost it precious political capital, and Khan’s party did very well in a set of by-elections held in July and October. The state has tried to mire Khan and his party in legal cases, relying on a familiar playbook used against opposition politicians in Pakistan, albeit to limited effect, with the courts’ involvement.

Khan’s party still controls two of Pakistan’s four provinces, Punjab and Khyber Pakhtunkhwa (KP), and the incumbent federal government’s (extra-legal) efforts to try to wrest power from it in Punjab, the largest province, have been unsuccessful (thanks to the courts). The year is off to a dramatic start, with Khan’s party initiating the process to dissolve the Punjab and KP assemblies this month to pressure the federal government into early elections.

For politics-obsessed Pakistan, the biggest question remains who will win the next general election. Will former Prime Minister Nawaz Sharif (brother of current Prime Minister Shehbaz Sharif) return to Pakistan to run as the head of his party, the PML-N? Can Imran Khan win on the strength of his popular support, despite his confrontation with the military? Regardless of the outcome, we can say this much given the histories of the main contenders: The direction of the country is unlikely to change.

2. A precarious economic situation

Pakistan’s economy has been in crisis for months, predating the summer’s catastrophic floods. Inflation is backbreaking, the rupee’s value has fallen sharply, and its foreign reserves have now dropped to the precariously low level of $4.3 billion, enough to cover only one month’s worth of imports, raising the possibility of default.

An economic crisis comes around every few years in Pakistan, borne out of an economy that doesn’t produce enough and spends too much, and is thus reliant on external debt. Every successive crisis is worse as the debt bill gets larger and payments become due. This year, internal political instability and the flooding catastrophe have worsened it. There is a significant external element to the crisis as well, with rising global food and fuel prices in the wake of Russia’s war in Ukraine. The combination of all these factors has spelled perhaps the greatest economic challenge Pakistan has ever seen. Yet the government has been mired in politicking, and the release of a $1.1 billion loan tranche from the International Monetary Fund (IMF) remains stalled as Islamabad has pushed back on the IMF’s conditions. The government has now resorted to limiting imports and shutting down malls and wedding halls early, small measures that fail to adequately address the problem.

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Pakistan may end up avoiding default for the time being with IMF help and loans from friendly countries, especially Saudi Arabia and other Gulf nations. But those won’t address the clear underlying malaise of the economy – and the fact that something fundamentally will need to change, in terms of how much the economy produces versus how much it spends, to avoid default down the road. But none of Pakistan’s political parties seem to have the political will or ability to bring about such change.

Pakistan must reportedly pay back $73 billion by 2025; it won’t be able to do so without debt restructuring.

3. Flood recovery

A “ monsoon on steroids ” – directly linked to climate change – caused a summer of flooding in Pakistan so catastrophic that it has repeatedly been described as biblical. It left a third of the country under water – submerging entire villages – killed more than 1,700, destroyed homes, infrastructure, and vast cropland, and left millions displaced.

More than four months after the worst of the flooding, nearly 90,000 people are still displaced from their homes, and the floodwater is still standing in some areas. It would be enormously difficult for any country to recover from such a disaster and rebuild lost infrastructure, including roads and schools, let alone a government dealing with a cash crunch like Pakistan’s.

But the Pakistani government – in particular the foreign minister Bilawal Bhutto Zardari, who has visited the United States twice since the summer, and the minister for climate change, Sherry Rehman – has done an admirable job bringing awareness of the flooding catastrophe to the world stage. A donors’ conference Sharif co-hosted with the United Nations Secretary General Antonio Guterres in Geneva this month raised pledges for more than $9 billion for flood recovery over the next three years (the money is mostly in the form of project loans). Pakistan has also played an important role in discussions about the devastating effects of climate change on developing nations, spearheading the effort to place loss and damage on the agenda at COP27 for the first time, and pushing for COP delegates in Egypt to agree to a loss and damage fund.

With billions of dollars in help promised, the government has passed one hurdle. But the road for recovery ahead will be tough: Displaced people are still sleeping under open skies in Sindh province. Implementing a sustainable recovery will require enormous capacity, resources, and transparency in a country already mired in other troubles.

4. Mounting insecurity

The Pakistani Taliban (or TTP), the terrorist group responsible for killing tens of thousands of Pakistanis from 2007 to 2014, have been emboldened – predictably so – by a Taliban-ruled Afghanistan, and once again pose a threat to Pakistan, albeit in a geographically limited region (for now). The group engaged in at least 150 attacks in Pakistan last year, mostly in the northwest. Because the TTP have sanctuary in Afghanistan, the Pakistani state increasingly finds itself out of options when it comes to dealing effectively with the group. The state’s negotiations with the TTP have failed repeatedly, as they are bound to, because the group is fundamentally opposed to the notion of the Pakistani state and constitution as it exists today. The Afghan Taliban have, unsurprisingly, also not proved to be of help in dealing with the TTP – and Pakistan’s relations with the Afghan Taliban have deteriorated significantly at the same time over other issues, including the border dividing the two countries.

At this point, Pakistan’s first preference will be to strike kinetically at TTP targets within its borders, but that will be limited by TTP movement across the border into Afghanistan. That movement is what leaves Pakistan with the difficult-to-resolve TTP issue and complicates things beyond the military operation it launched against the group in 2014. Still, the Pakistani Taliban at this point is not the biggest threat Pakistan faces, given the country’s major political and economic challenges – but left unchecked, it could morph into a significant crisis.

5. Civil-military relations

Pakistan has a new chief of army staff as of November 29 last year. General Asim Munir replaced General Qamar Javed Bajwa, who had held the all-powerful post for six years (due to a three-year extension). The appointment of the army chief was a subject of considerable political contention last year; a major part of the reason Khan was ousted from power was his falling out with the military on questions over the appointments of top army officials.

All eyes are now on how civil-military relations shape up under Munir. Under Bajwa, the military solidified its control over all manner of policy behind the scenes. Bajwa presided over a close “same-page” relationship with Khan; when that frayed, the PML-N was eager to take Khan’s place as the military’s ally and head of the civilian government. Bajwa left office saying the army would no longer be involved in political matters; few in Pakistan believe him. With politics set to dominate the agenda this year and an election imminent, Munir has a chance to show the country whether he will follow in his predecessor’s footsteps, or chart a new course for civil-military relations in Pakistan. Pakistan’s history indicates the former.

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