IMPACT OF DECLINING MACROECONOMIC INDICATORS ON THE NATIONAL SECURITY OF PAKISTAN

Abstract

National Security is one of the prime concerns of every nation, as its performance
level dictates the sovereignty of the state. National Security is significantly dependent on
economic sovereignty; hence promoting economic development becomes the core priorities
for every government. In this article, a relationship between National Security and
macroeconomic indicators of Pakistan has been discussed. In case of Pakistan, these
indicators are in declining state due to expanding trade deficit, volatile exchange rate,
appreciating inflation, declining remittances, decreasing forex reserves, escalating external
debt from international lending agencies, International Monetary Fund (IMF) & World Bank
(WB) supported by poor governance parameter. These all have resulted in weak budgetary
statistics, which poses a serious concern to the National Security of Pakistan. This paper
identifies salient forthcoming looming threats to Pakistan’s National Security like becoming
prone to the sanctions of Financial Action Task Force (FATF), non-availability of desired
funding to our nuclear and defense program etc. Lastly, the article suggests way forward to
ward-off these likely coercions as a result of declining macroeconomic indicators.