Factors responsible for present economic crisis in Pakistan

There are several factors that are responsible for the current economic crisis in Pakistan, including:

High fiscal deficit: The government has been running large budget deficits in recent years, which has led to an increase in public debt.

High inflation: Inflation has been on the rise in Pakistan, which has led to a decline in purchasing power and an increase in the cost of living.

Lack of foreign investment: Pakistan has struggled to attract foreign investment due to a lack of political stability, poor infrastructure, and security issues.

Current account deficit: Pakistan has been running a large current account deficit, which has led to a shortage of foreign exchange reserves.

Energy crisis: Pakistan has been facing a severe energy crisis, which has led to power shortages, blackouts, and a decline in industrial production.

Political instability: Political instability, corruption and lack of proper governance have also been a major factor responsible for the economic crisis in Pakistan. 

COVID-19 pandemic: The COVID-19 pandemic has had a significant impact on the Pakistani economy, leading to a decline in exports, remittances, and tourism.

Failure of Government policies: Government policies like over-regulation, lack of transparency and inefficiency have also resulted in the present economic crisis in Pakistan