- Recent protests erupted in Pakistan Occupied Kashmir (PoK), particularly in Muzaffarabad, triggered by rising living costs and economic hardships exacerbated by Pakistan’s ongoing economic crisis.
- Economic factors for protests –
- Inflation: Pakistan has been grappling with severe inflation, with rates soaring above 20% since May 2022, peaking at 38% in May 2023.
- Energy Crisis: There’s a specific grievance in PoK about unequal power distribution, particularly concerning the 2,600MW generated by the Neelum-Jhelum hydropower project.
- Trade Impact: The situation worsened after India raised customs duties on Pakistani goods post-Pulwama attack in February 2019, drastically reducing Pakistan’s exports to India.
- Foreign Exchange and Trade: Pakistan’s foreign exchange reserves plummeted to just $2.9 billion in February 2023. The cessation of trade with India following constitutional changes in Jammu and Kashmir in August 2019 severely impacted the bilateral trade.
Dig Deeper: Know about the China-Pakistan Economic Corridor (CPEC)
