An Economic Impact of Political Instability: An Evidence from Pakistan


  • Abdul Rehman Nawaz School of Economics, University of the Punjab, Lahore 54590, Pakistan
  • Usama Anwar School of Economics, University of the Punjab, Lahore 54590, Pakistan
  • Fizza Aquil School of Economics, University of the Punjab, Lahore 54590, Pakistan



Corruption, Democracy, Economy, Instability, Investment, Terrorism


The economy of Pakistan has been badly damaged by the political instability in the country. Despite its enormous economic resources, Pakistan’s economy remained under dark shadows during most of its historical discourse. The economic indicators describe a significant relationship between politics and the economy of Pakistan. The following study, by reviewing previous studies, concludes that there is a negative relationship between political instability and economic growth in Pakistan from 2000 to 2019. Political instability flourished corruption and reduced the economic growth of the country. Moreover, a weak political system and government institutions could not resist the political tension in the country. The study finally concludes that political instability reduces economic growth in the country and economic growth reinforces political stability in the country.


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How to Cite

Nawaz, A. R., Anwar, U. and Aquil, F. (2021) “An Economic Impact of Political Instability: An Evidence from Pakistan”, Journal of Economic Impact, 3(1), pp. 47–54. doi: 10.52223/jei3012106.



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