South Asia stands on the brink of a severe downturn unless its leaders act decisively to stabilise the region’s economies as they face unrelenting global headwinds and US president-elect Donald Trump’s protectionist trade measures.
One of the poorest regions in the world, South Asia has experienced numerous incidents of political violence, which have hampered its development and economic growth.
Pakistan recently launched air strikes on Afghanistan apparently to thwart militants even as doubts linger over the political legitimacy of the country’s elected government. Supporters of jailed former prime minister Imran Khan have clashed with the police to demand his release.
The situation is also grim in Bangladesh, where the interim government has been struggling to restore law and order with a depleted police force since a mass student-led uprising in August deposed then-prime minister Sheikh Hasina.
The political unrest has dented investor confidence and support from multilateral institutions such as the International Monetary Fund (IMF) and the World Bank.
On the economic front, Sri Lanka was on the verge of collapse in 2022 and is still on a knife-edge with its massive debts, even though its political situation is improving after President Aruna Kumara Dissanayake took office in September.