Pakistan craved for every grain, now oil has exhausted itself! The treasury is empty; Is the neighboring country on the path of Sri Lanka?

Pakistan Economic Crisis 2026: Pakistan’s economic instability has reached a critical level due to the sharp rise in oil prices and surge in trade deficit following the war between America, Israel and Iran. Lahore-based ‘Friday Times’ According to an article published in, Pakistan is in serious crisis in terms of per capita income, economic growth rate, declining exports and low foreign exchange reserves.

The article further states that Pakistan’s economic instability is compounded by its GDP growth rate of 3.1 percent and its ranking at 168th among 193 countries on the Human Development Index (HDI). Pakistan has a per capita income of $1,812, a 28.9 percent poverty rate, a 60 percent adult literacy rate, 25.2 million out-of-school children and a 12.8 percent unemployment rate in the 15-24 age group.

Worst figures in South Asia

These figures are the worst in South Asia and demonstrate that the ruling class has failed to reduce economic instability. Pakistan’s trade deficit is more than 10 billion dollars, exports are declining and foreign exchange reserves is also not satisfactory, with the State Bank having only $16.5 billion.

Oil and gas prices made me cry

The war in the Persian Gulf and its after-effects in West Asia economy of pakistan But are serious. An increase of Rs 55 per liter in oil price and 20 per cent increase in gas price will lead to further increase in inflation and prices of essential commodities. The increasing cost of electricity and transportation will further increase the problems of Pakistan’s 250 million population.

Lack of basic facilities also

The article also states that when a country is economically weak and has failed to increase economic and social development in its nearly 80 years of existence, it means that it has failed to improve the standard of living of its people. This includes availability of clean and safe drinking water, better housing, better education and health facilities.

Also read: Dollar vs Rupee: Rupee burnt in the fire of crude oil! Reached record low level of 93.71 against dollar

Budget being spent to repay debt

A large portion of the federal budget goes to repaying external debt or defense spending. Only about 20 percent of the amount is left to run the administration and give it to the provinces under the 18th Amendment. There is no money left for developmental expenses, leading to increasing internal and external borrowings.