Pakistan, a vessel perpetually traversing turbulent seas, completed another year of its journey in 2025. The waves it encountered were formidable, testing its structural integrity and the skill of its crew. Examining the year past offers an opportunity to chart a clearer course for the future. The nation contended with complex domestic and international currents, influencing its political framework, economic health, security paradigm, and societal cohesion.
The year 2025 presented a mixed record for political stability. Pakistan’s federal system frequently grapples with the impact of governance team changes on centralisation and decentralisation, a historical pattern observed since its first constitution in 1956. While elected governments pursued their mandates, the influence of non-elected remained a subject of public discourse. Notwithstanding debatable constitutional amendments, especially the 27th amendment, efforts towards strengthening democratic institutions continued, yet policy continuity faced interruptions, hindering long-term development initiatives. The Opposition-Treasury discord intensified. Governance reforms saw some incremental gains, particularly in digital service delivery, with increasing citizen awareness and trust in online platforms. However, the foundational issues of accountability and effective resource management persisted, underscoring a need for deeper structural reforms.
Pakistan’s economy in 2025 continued its delicate balancing act. Foreign debt servicing obligations remained a pressing concern, requiring the mobilisation of foreign exchange. Dependence on the International Monetary Fund (IMF) persisted, with Pakistan seeking support multiple times since 2018 to address chronic economic issues like external debt and structural inefficiencies. The IMF’s reform agenda, focused on tax collection and subsidy removal, encountered resistance due to socio-economic consequences. Despite efforts to stabilise the economy, inflation, fiscal imbalances, and external vulnerabilities endured. The Gulf countries, especially Saudi Arabia, poured in some bromance support courtesy of defence cooperation, though their long-term effects may display more complexity. The China-Pakistan Economic Corridor (CPEC) and Chinese foreign direct investment (CFDI) continued to shape economic prospects, though its full potential realisation faced geopolitical considerations.
Interestingly, the year 2025 underscored a critical dichotomy: the enduring costs of change versus the potential benefits of bold reform.
Security and security institutions remained at the centre stage for Pakistan in 2025. The country continued to confront issues of terrorism, stemming from its policy swing from one end to another, arbitrarily. Cross-border terrorism from Afghanistan posed ongoing challenges to territorial integrity. Fires or friends, nothing seemed to be helping much. The military continued its operations against various extremist groups, maintaining a fragile peace in certain regions. The security establishment also adjusted its strategic focus, signalling a desire to shift from a purely geo-security orientation towards geo-economics. However, the threat of renewed militancy and the need for robust internal security measures remained a constant fixture of the national dialogue.
Societal harmony faced persistent pressures in 2025. While official narratives promoted national cohesion, underlying issues of inequality and religious extremism continued to challenge the social fabric. The impact of poverty on segments of the population, often exacerbated by a reliance on liberal capitalism and the development project, deepened existing disparities. Establishment of the National Minority Commission is a positive step towards redressal of the underrepresented and underprivileged minority. Marginalised communities frequently bear a disproportionate cost of development, leading to segregation and limited opportunities. Social media is full of hate content with no respite in sight, as it’s all unregulated and unchecked. Efforts to counter extremist ideologies were ongoing, but their deep roots within certain societal pockets complicated progress. Leashing TLP can be a potential volcano unless the long-term cultural, educational and societal changes are introduced, particularly regulating the teachings in Madrassahs (Islamic seminaries). Bridging divides and fostering genuine inclusion remained a significant undertaking for the nation.
Pakistan’s foreign policy in 2025 involved navigating a complex web of relationships. The country maintained its strategic partnership with China, particularly through CPEC, which continued to influence regional geopolitics. Simultaneously, Pakistan somehow seemed in the positive tide of its ties with the United States vis-à-vis the US-India frictions over tariffs. Relations with Russia saw increased engagement, reflecting a broader regional alignment as Pakistan positioned itself as a gateway to Eurasian economies. The Strategic Defence agreement with Saudi Arabia is proving a positive omen for Pakistan’s Middle Eastern diplomacy. With immediate neighbours, especially Iran and Afghanistan, diplomatic efforts focused on border management and regional stability. Regional geopolitical competition, particularly in the context of broader Middle Eastern dynamics vis-à-vis the Palestine issue, also influenced Pakistan’s strategic calculations.
Talking of Pakistan-India, their relationship is a roller-coaster and remains a central, volatile aspect of regional and global security in 2025. While the year thankfully avoided outright war, periods of heightened tension and brinkmanship underscored the fragility of peace. The May conflict brought Pakistan to the limelight as it militarily subdued India. Despite intermittent calls for dialogue, substantive breakthroughs in bilateral peace efforts proved elusive. Historically, third-party mediation has yielded more success than direct bilateral talks in resolving differences. The prospect of renewed conflict, though always present, was mitigated by international diplomatic pressure and mutual nuclear deterrence. The May conflict didn’t get off the world’s radar courtesy Mr Trump, whose bromance with FM Asim Munir continues, at least as of now. A cautious approach is the order of the day.
Interestingly, the year 2025 underscored a critical dichotomy: the enduring costs of change versus the potential benefits of bold reform. Economic stability, though partially achieved through IMF programs, did not translate into sustainable, inclusive growth. Structural economic weaknesses, such as low tax collection and persistent deficits, require more than temporary fixes. Political stability, while desirable, often came at the expense of deeper democratic consolidation and accountability. The lack of consistent policy implementation across successive governments hindered progress in crucial sectors. Pakistan’s journey demonstrated that a reluctance to address the root causes of issues, often due to political expediency, leads to recurring challenges rather than lasting solutions. The path forward demands a commitment to difficult, fundamental reforms, prioritising national interest over short-term political gains.
The writer is a Canada-based freelancer who frequently contributes to national affairs, interfaith harmony, international relations, and maritime subjects. He can be reached at sardartshahid @gmail.com