In the complex terrain of the present day governance, economic stability has quite certainly become a mainstay of national security. An extraordinary turnaround in the country occurred when Pakistan became caught in an unparalleled economic meltdown in 2022, with the help of the shrewd guide of FM Syed Asim Munir and the Pakistani government. Their visionary approach was supported by the radical economic restructuring, active foreign policy, and the policy of sustainable development, which resulted in boosting the economic climate in Pakistan, recovering not only national but also strengthening national security.

Upon entering 2022, Pakistan faced a phenomenal inflation, with inflation hitting 27.3, and the masses were no longer able to afford basic products and services. The major cause of this inflation boom was the high soaring fuel costs, the supply chain and the weakening of the Pakistani Rupee. Inflation was however slowly being put under control to 3% by the year 2025. This decrease in inflation brought a great relief to the people and stabilized the prices and overall buying power of the average consumer, which created an optimism in the future of the economics in the country.

An alarming rate of depreciation of the Pakistani Rupee (PKR), which had been falling against the US Dollar, fell to Rs. 240 per the US Dollar in 2022. This drastic drop was a great danger to the Pakistani economy that relies on imports. Nevertheless, due to specific fiscal and monetary policies, the PKR recovered some of its stability, and after three years, the exchange rate was fixed to the US Dollar at 255, which is a 5 percent improvement in three years in global inflationary pressures. This stabilization of the currency was one of the great indications of regained investor confidence and economic control.

The increase in Foreign Direct Investment (FDI) was one of the biggest accomplishments. In the year 2022, the amount of funds in FDI inflows were insignificant at just $1.6 billion, and investor confidence was at an all time low. However, the inflows of FDI went through the roof in 2025 to record at $3.5 billion which was a 118 percent growth in three years. This boom could be blamed on the formation of Special Investment Facilitation Council (SIFC), which has simplified the procedures of investing in Pakistan and also enhanced regulatory standards and opened the doors of foreign investors into the major sectors of the Pakistan economy.

Another area of concern was the foreign exchange reserves. In 2022, Pakistani reserves dropped down to a deplorable 9.7 billion, which is barely enough to finance two months of imports. But, the reserves increased tremendously to up to 16 billion by the year 2025 by 65 percent within the three years. This revival was enabled by well-timed financial alliances, international lending, and more remittances making sure that Pakistan can meet the demands of its foreign financial obligations and refraining from macroeconomic instability.

Pakistan has always had a trade deficit which reached its highest point in 2022 with a total deficit of 45 billion dollars with imports always surpassing exports. Nonetheless, with aggressive export-oriented reformation, better production within the country, and diversification of the export market, Pakistan was able to reduce this deficit to as little as $2.9 billion by 2025. This decline in the trade deficit was an indicator of achievement in the developmentof a more balanced and sustainable economic model.

The Pakistan Stock Exchange (PSX) that had experienced severe volatility in 2022 came back to the scene in spectacular style. By 2025, the PSX had surpassed the 170,000-point level, which is 42 percent of growth in three years. Such increase in the performance of the stock markets was reflective of a wider macroeconomic stability, and investor friendly policies and an expanding business environment in the country.

Another remarkable growth during this period was the growth in defence exports. In 2022, the defence exports were worth $2.6 billion and by 2025, the defence exports had increased to 16 and the export was worth 3.1 billion. This increase was not merely indicative of the increased military-industrial potential of Pakistan but it also indicated that the country could use the potential of defence strength to boost its economy. The decision to export more defence products not only made Pakistan stronger in terms of its military economy, but also enhanced its foreign exchange.

The Green Pakistan Initiative, created by Pakistan to solve the ecological issues and achieve economic sustainability, has attracted more than 1 billion investments in the country by 2025. The national energy mix increased by 300 per cent in 3 years moving up to 15 per cent of the country being dependent on renewable energy sources, mainly solar and wind power. The positive result of this increase in the production of green energy was not only the reduction of the environmental impact but the establishment of new employment and economic growth in the clean energy sector.

The military diplomacy of Pakistan also enjoyed a tremendous growth. Its tactical emphasis on establishing defense relations especially with the major regional powers assisted Pakistan in getting new defense pacts, military assistance and increased collaboration. The exports and foreign direct assistance in the defense sector improved by 2025, making Pakistan a prime player in regional security and may use the influence to have an economic diplomacy.

International Monetary Fund (IMF) was core in helping Pakistan to recover its economy. Pakistan is one country that signed a 7 billion loan agreement with the IMF in 2023, which would come with a complete reform agenda of fiscal austerity, energy sector restructuring, and tax restructuring. Pakistan cut its budget deficit among GDP by 46 per cent in three years, decreasing its budget deficit by 6.5-3.5 percent in 2022. This resulted in an economic stabilization of Pakistan and was able to settle its debts, both internal and international, in a better way.

The credit rating was also improved significantly in this period in Pakistan. The credit rating of Pakistan as of 2022 is B-, which is an indicator of a risk of debt sustainability and fiscal health. In 2025, the credit rating of Pakistan however improved to B as investors are increasing their confidence on investment and the economic reforms being made have been effective. This upgrade brought out the better management of the country in terms of debts, economic growth and stability of the foreign exchange.

Conclusively, the leadership has played a critical role in the impressive economic recovery and transformation in Pakistan. It has managed to keep the inflation down, stabilize its currency and encourage foreign investment in the country. The increase in foreign reserves, decrease in the trade deficit and the development in the performance in the stock market all depict the success of the Pakistani economic reforms. Having a solid ground based on economic stability and sustainability, Pakistan is set to grow, as it will become a strong and self sustaining country in the international arena. The leadership is an embodiment of the significance of the economic stability and national security, and the lasting peace and national security are built on the prosperity as the corner stone.