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Pakistan continues to face multiple sources of internal and external conflict. Extremism and intolerance of diversity and dissent have grown, fueled by a narrow vision of Pakistan’s national identity, and are threatening the country’s prospects for social cohesion and stability. The inability of state institutions to reliably provide peaceful ways to resolve grievances has encouraged groups to seek violence as an alternative. The country saw peaceful political transitions after the 2013 and 2018 elections. However, as the country prepares for anticipated elections in 2023, it continues to face a fragile economy along with deepening domestic polarization. Meanwhile, devastating flooding across Pakistan in 2022 has caused billions in damage, strained the country’s agriculture and health sectors, and also laid bare Pakistan’s vulnerability to climate disasters and troubling weaknesses in governance and economic stability. Regionally, Pakistan faces a resurgence of extremist groups along its border with Afghanistan, which has raised tensions with Taliban-led Afghanistan. Despite a declared ceasefire on the Line of Control in Kashmir in 2021, relations with India remain stagnant and vulnerable to crises that pose a threat to regional and international security. The presence and influence of China, as a great power and close ally of Pakistan, has both the potential to ameliorate and exacerbate various internal and external conflicts in the region. Pakistan has experienced an economic crisis as part of the 2022 political unrest. It has caused severe financial challenges for months due to rising food, gas, and oil prices. The Russian invasion of Ukraine has caused fuel prices to rise worldwide. Critical constraints, including persistent fiscal and current account deficits, protectionist trade policies, unproductive agriculture, a difficult business environment, a heavy state presence in the economy, and a financially unsustainable energy sector, have remained unaddressed, leading to slow and volatile growth. Pakistan’s economy nowadays going down and down, and the poor community even richer communities facing too many issues. Texas on every item applied, prices have gone high, and even transportation for traveling city to city or even going out of cities have become so high level. Now due to severe issues, people cannot even afford the expenditure of many household items, and even the fees of children are also going high. Pakistan made significant progress towards reducing poverty between 2001 and 2018 with the expansion of off-farm economic opportunities and increased inflow of remittances. However, rapid poverty reduction has not fully translated into improved socio-economic conditions, as human capital outcomes have remained poor, with high levels of stunting at 38 percent and learning poverty at 78 percent. Critical constraints, including persistent fiscal and current account deficits, protectionist trade policies, unproductive agriculture, a difficult business environment, a heavy state presence in the economy, and a financially unsustainable energy sector, have remained unaddressed, leading to slow and volatile growth. Progress with poverty reduction has recently slowed amid macroeconomic instability, the COVID-19 pandemic, and the catastrophic 2022 floods.