A diary of (near) default — Pakistan’s journey to avoid insolvency in 2023

Despite having little in common, even our political parties could agree on one thing: Pakistan’s economic situation was dire in 2023. The year saw Pakistan go through a long and rocky road to finding some semblance of economic stability — if it can even be called that — while weathering political and social turmoil. Pakistanis also experienced a double whammy this year: the one-two punches of the worst economic crisis in decades and all-time high inflation. Add to that the gut punch of the aftermath of the catastrophic floods of 2022 began to settle in. Flood victims receive boiled rice from relief workers, after taking refuge on a motorway, following rains and floods during the monsoon season in Charsadda, Pakistan on August 27, 2022 — Reuters In 2023, according to the World Bank, over 39.4 per cent of the population fell below the poverty line, which means over 12.5 million people are living in meagre conditions. Additionally, 8.5 million people face acute food insecurity due to high inflation and the balance of payments crisis, effectively making the country one of the worst in terms of food security on the Global Hunger Index.