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Country Analysis Report: Edition 69 – What is happening to Islamabad?

Pakistan enters 2026 in a condition best described as managed stability amid deep structural strain. While headline indicators suggest moderation after successive crises, underlying trends across governance, politics, economy, urban life, and security point to a system under persistent stress, with costs increasingly borne by citizens rather than institutions. The analysis highlights a country stabilising tactically but drifting strategically, with weakening social contracts, eroding institutional credibility, and limited pathways for inclusive, sustainable recovery.
 
At the urban level, Islamabad exemplifies the broader governance malaise. Once designed as a lowdensity, green, and orderly capital, the city is experiencing environmental degradation, mobility breakdowns, deteriorating air quality, and routine security disruptions. Rapid population growth, uncoordinated development, selective enforcement of planning rules, and frequent VIP-driven lockdowns have transformed daily life into one defined by uncertainty rather than predictability. These changes are not merely infrastructural; they reflect fragmented authority, weak accountability, and the marginalisation of citizens in urban decision-making.