The whole world is in recession.
The fact that Pakistan has to deal with the accumulated mess of the last 8 years makes the situation even worse
Pakistan facing bankruptcy - Telegraph
The government is engulfed by crises left behind by Pervez Musharraf, the military ruler who resigned the presidency in August. High oil prices have combined with endemic corruption and mismanagement to inflict huge damage on the economy.
While Mr Musharraf’s prime minister, Shaukat Aziz, frequently likened Pakistan to a “Tiger economy”, the former government left an economy on the brink of ruin without any durable base.