The country is largely impoverished and prone to earthquakes, floods, and crop failure.

The economy suffers from large budgetary and trade deficits and high inflation and a high rate of unemployment (estimated to be 7.5% in 2007). Child labour is widespread.

Pakistan's turbulent political system is destabilised by corruption, assassination, and frequent interventions by the military.

Swamped by the recent global crisis, Pakistan is on the verge of bankruptcy and it has approached the International Monetary Fund for aid.

Image: Pakistani Rangers guard the national flag during a ceremony to celebrate Pakistan's Independence Day at the Indo-Pak Wagah border on August 14, 2008. | Photograph: Narinder Nanu/AFP/Getty Images

Also read: Pakistan on the verge of bankruptcy

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