The Influence of Pakistan's Political Unrest on the Country's Rate of Economic Growth

Abstract

This study explores how political instability, influences economic performance. Pakistan's recent two decades have seen the overthrow of democratic governments, the installation of dictatorships, and conflicts between politicians, bureaucrats, the military, and the judiciary. The researcher used primary and secondary data. Political instability statistics came from questionnaires and political instability indexes, whereas economic growth metrics including inflation, public debt, and GDP came from IMF, World Bank, Asian Development, Ministry of Finance, Government of Pakistan, and State Bank of Pakistan databases. We collected data for 20 years (from 2000-2020). Descriptive and inferential statistics tested hypotheses. Thus, assumptions were tested using Pearson Product Moment Correlation, Linear, and Multiple Regression. This study found that political instability affected the economic growth of Pakistan. Political instability decreases economic growth statistically and economically.