Iran War Exposes Pakistan's Deep Economic Fault Lines
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News18•18-03-2026, 15:42
Iran War Exposes Pakistan's Deep Economic Fault Lines
•Pakistan implements wartime austerity measures, including reduced workweeks and vehicle grounding, triggered by the US-Israel-Iran conflict and Strait of Hormuz disruption.
•These measures highlight Pakistan's fragile economic foundations, imposed in anticipation of external shocks rather than direct conflict.
•Pakistan's economy has historically relied on external financial lifelines, receiving over two dozen IMF bailout packages since 1958.
•The military establishment, led by Army Chief Asim Munir, controls a parallel economic system worth an estimated $20 billion, diverting resources and hindering civilian economic planning.
•Persistent governance issues, corruption, and fatigue from traditional financial supporters like Gulf states and China further exacerbate Pakistan's economic vulnerability.
