Overview

• Prime Minister Shehbaz Sharif has publicly acknowledged the severity of the financial crisis and warned against the country becoming overly reliant on external aid.
• Islamabad struggles to meet tightened IMF bailout conditions after repeated loans, raising fears of further fiscal deterioration.
• India’s suspension of the Indus Waters Treaty following the Pahalgam terror attack has worsened Pakistan’s water shortages.
• Key reservoir levels at Mangla and Tarbela have plunged to around half capacity, jeopardizing the upcoming Kharif planting season.
• Declining exports of rice, cotton, and sugar threaten to further undermine Pakistan’s foreign exchange inflows and economic stability.