South Asia Monitor: Pakistan: Avoiding Economic Disaster - November 1, 2009

Pakistan is at an economic crossroads. The global financial crisis and the terrorist insurgency, coupled with long-term underfunding of the social sectors, reduced Pakistan's economic growth to 2 percent in 2008-2009. Rising food prices and electricity shortages have made economic problems a major focus for popular discontent. U.S. efforts to deploy large-scale economic assistance have run into a political storm over congressionally imposed conditions. The U.S. and Pakistani governments are focusing intently on creating short-term benefits. They need to keep their eye on the need for longer-term investment as well.