Eco Crisis In Pak | India’s Indus Treaty Suspension Triggers Panic In Pakistan, IMF Bailout At Risk

With the Chenab River running dry, Pakistan faces a deeper crisis than ever before. India's suspension of the Indus Water Treaty and strategic dam controls are already choking vital crop cycles. But the water crisis is only part of the picture. Pakistan’s economy is reeling — burdened by $131 billion in debt, surging inflation, and an overreliance on foreign bailouts. India’s moves post-Pahalgam have added fresh stress: a trade ban, diplomatic isolation, and now, a push to block IMF funding. The contrast couldn’t be clearer. India’s $4.2 trillion economy is stable and growing, while Pakistan's $375 billion GDP struggles under the weight of instability. Moody’s latest report warns that prolonged tension with India could cut Pakistan off from critical external financing. With war off the table due to economic fragility, Pakistan is running out of options. This could be the start of a geopolitical and financial unraveling.