Archive · 2 Jun 2025

Pakistan Faces Water, Economic Crisis Amidst India's Actions

Pakistan Faces Water, Economic Crisis Amidst India's Actions

Pakistan's economy is struggling and is under an IMF program with strict rules.

Key dams have low water levels and the Chenab river flow from India has decreased.

This impacts agriculture in Punjab and Sindh.

Pakistan aims to secure external funding but is facing challenges due to India's actions, including potentially restricting funds and seeking Pakistan's return to the FATF grey list, making it difficult for investment.

The IMF has set additional conditions for Pakistan's bailout package, including budget and tax reforms, putting more pressure on the economy.

Sources