Priyanka Tiwari
Share
Pakistan's western border remains volatile, with state control over Balochistan weakening further. Last week, Baloch separatists hijacked the Jaffar Express, killing 21 hostages before security forces intervened. The attack, claimed by the Baloch Liberation Army (BLA), highlights the growing intensity of separatist movements, fueled by grievances over resource exploitation and Chinese investments in Gwadar.
The Pakistani military, which manages national security instead of Prime Minister Shehbaz Sharif’s civilian government, has blamed the Afghan Taliban for sheltering the BLA. This has further strained relations between Islamabad and Kabul, which were already deteriorating due to rising cross-border militancy.
Rising Terrorism Across Pakistan
Pakistan is experiencing a surge in militant violence. The Pakistani Taliban (TTP) was responsible for 558 deaths in 2024, nearly double the previous year. Similarly, Baloch separatists killed over 500 people, a sharp increase from 116 in 2023. The security situation is worsening, making it difficult for the government to focus solely on economic recovery.
The resurgence of terrorism complicates Prime Minister Sharif’s priorities. While his main focus is stabilizing Pakistan’s economy, ongoing insurgencies in Balochistan and the threat from extremist groups demand urgent political solutions.
Economic Stability Amid Security Challenges
Despite security threats, Pakistan’s economy shows signs of recovery. Inflation has dropped to 1.5% from nearly 40% two years ago. The Karachi Stock Exchange saw an 84% return in 2023, with expectations of 40% in 2024. Foreign investors are regaining confidence, and Moody’s recently upgraded Pakistan’s banking system outlook from stable to positive.
Much of this progress is due to the civilian government’s fiscal reforms. Privatization efforts, new taxation policies, and China’s decision to roll over its $2 billion loan have strengthened Pakistan’s financial position. Additionally, the country has become a major market for solar energy, with significant growth in panel imports in 2024.
Political Unrest and Economic Risks
Despite economic improvements, Pakistan remains politically unstable. Opposition leader Imran Khan, currently imprisoned, attempted to undermine the economy by urging overseas Pakistanis to halt remittances. However, remittances grew by 29.3% in 2024, ensuring Pakistan had enough foreign reserves for essential imports.
The TTP has also targeted military-linked businesses, posing a direct threat to Pakistan’s economic infrastructure. If terrorist activities expand beyond the tribal border regions into urban centers, economic growth could be derailed, as seen in previous years.
A Fragile Political-Military Compact
The current political arrangement in Pakistan is fragile: the civilian government focuses on economic revival, while the military handles security. However, the growing insurgencies in Balochistan and beyond prove this approach is unsustainable.
Pakistan’s security issues are not just military challenges; they require political solutions. The government must engage with disgruntled factions, whether in Balochistan, opposition politics, or international relations. Similarly, the military must allow political leaders to take bold steps toward reconciliation.
Sharif’s efforts to stabilize Pakistan’s economy have been commendable, but true leadership requires more than economic management. He must assert himself as a prime minister, addressing the country’s broader political and security crises, not just acting as a finance minister. Only then can Pakistan hope to balance economic growth with national stability.
Read More: Former South Korean Defence Minister Defends Martial Law Decision Amid Insurrection Charges
