Opinion | Crippling Pakistan’s Economy and Its Implications on Pakistan-Occupied Kashmir

Pakistan’s economic turmoil has reached alarming levels, affecting every corner of the nation. The consequences are especially severe for the people living in Pakistan-occupied Kashmir, an area heavily dependent on financial aid from Islamabad. Years of mismanagement, rising debt, and political instability have left Pakistan struggling to sustain its economy, and the ripple effects are profoundly visible in these distant and neglected areas. The roots of Pakistan’s economic collapse lie in its longstanding reliance on external financial support. For decades, the government has depended on loans from the IMF and allied nations to manage its expenditures. These bailouts, however, come with stringent conditions that often worsen the plight of ordinary citizens. The removal of subsidies, higher taxes, and currency devaluation have led to unprecedented inflation. Prices of essential commodities like food, fuel, and electricity have skyrocketed, leaving people scrambling to meet their basic needs.

This economic meltdown has hit Pakistan-occupied Kashmir particularly hard. The area relies almost entirely on Islamabad for its developmental needs. With the central government struggling to manage its own finances, funds meant for this territory have dried up. Basic infrastructure, including roads, schools, and hospitals, has been neglected. Promised projects remain incomplete, leaving communities disillusioned and angry.Unemployment in the area is at an all-time high. The already limited industries are facing shutdowns due to the economic downturn, leaving thousands jobless. For the youth, there is little hope of finding employment locally. Many are forced to migrate to other parts of Pakistan or even abroad, creating a void in the social fabric of their communities. Families left behind struggle to survive, with little to no financial support from breadwinners who are often far away. The rising cost of living has further deepened the crisis. Families can no longer afford basic necessities, let alone a decent standard of living. Electricity outages have become a daily struggle, with frequent protests erupting in towns and villages. People demand better services, but their cries often fall on deaf ears. The local administration, caught between the demands of the population and the inability of Islamabad to provide resources, is increasingly viewed as ineffective.

Education and healthcare systems in the region are also collapsing under the weight of neglect. Schools lack proper facilities, teachers are underpaid or absent, and students are left with no means to pursue a quality education. Many children drop out altogether, as families can no longer afford even the minimal costs associated with schooling. This deprives the next generation of any hope for upward mobility or a better future.The healthcare situation is equally dire. Hospitals are poorly equipped, understaffed, and running out of essential medicines. People have to travel long distances for even basic treatments, which imposes additional financial burdens on already struggling families. This neglect has left the population vulnerable to diseases and health crises, further exacerbating the hardships they face.

Amid this bleak scenario, discontent is growing. Protests against the lack of basic services have become a regular occurrence. People are not just angry at the economic hardships but also at the sense of neglect they feel from Islamabad. The disconnect between the central government and the population in these areas is widening, with many feeling abandoned in their time of need. Pakistan’s worsening economy has also left a vacuum that external elements are quick to exploit. In such a fragile environment, extremist narratives and influences find fertile ground, adding another layer of complexity to the challenges faced by the local population. The lack of governance, combined with economic despair, creates conditions where divisive ideologies can thrive.

As Pakistan struggles to address its economic crisis, the plight of the people in Pakistan-occupied Kashmir continues to worsen. The economic collapse is not just a financial issue; it is a humanitarian crisis for the people who depend on Islamabad for their survival. Without immediate attention and meaningful action, the situation is likely to deteriorate further, pushing the people into deeper despair and sowing the seeds for long-term instability.The central government must acknowledge the gravity of the situation and take decisive steps to mitigate the impact of its economic woes on these vulnerable areas. Economic recovery will require not only financial restructuring but also a renewed focus on governance and accountability. It is time for Islamabad to prioritize the needs of its people, especially those living in marginalized and underserved areas, and restore their faith in leadership. If ignored, the situation in Pakistan-occupied Kashmir could become a lasting scar on the nation’s already fragile state.
Writer can be reached at syedjahanzeeb2@gmail.com)