Instability and its Effects on Pakistani Politics and Economy

Pakistan, the product of the dissolution of the British Empire, officially became a state in 1947. Although young in age, Pakistan has been plagued by political and economic difficulties that have influenced foreign policy on a regional as well as a global scale. A significant aspect of the political history of Pakistan is the status of Kashmir. Kashmir is a region that borders India and Pakistan. The status of Kashmir remains undetermined to this day since partitioning. The region has been the cause of three conflicts in 1948, 1965 and 1999 with the Kargil Conflict.

Although considered a parliamentary democracy, Pakistan has been heavily influenced historically by the military. The Pakistani military is the 8th largest in the world are well organized. Therefore, military coups are not uncommon in Pakistani history, the most recent occurring in 1999. Pakistan became officially ruled by civilian rulers in 2002 with the occurrence of parliamentary elections and the promotion of Mir Zafarullah Khan Jamalas as prime minister, a civilian. Along with the military there are two other powerful political entities, the Pakistan's People Party (PPP) and the Pakistan Muslim League (PML). The PML is known for its connections with senior generals and bureaucrats while the PPP is noted for its emergence as the largest national party in the National Assembly. The PPP holds 124 seats out of a body of 340. However, the military remains very influential to this day in domestic affairs as well as foreign affairs. Currently, Pakistan is aligned with the US for its war in Afghanistan.

However, the political instability of the area due to the state of Afghanistan, the dispute with Kashmir as well as its own domestic affairs directly affects the state of its economic affairs. Considered a low-income country with a GDP of 166 billion USD, Pakistan experiences high inflation and low levels of international trade. In 2009, Pakistan had 13.6% inflation due to the rise of prices for food, utilities, domestic instability and rise of prices on the global market. 28% of its GDP is Agriculture and Natural Resources while another 25% is Industry. Pakistan is also the recipient of International Aid due to its contribution to counter-terrorism efforts.

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