Pakistan.

A country report for Pakistan as of August 2008 is presented. It expects worsening of the country's political stability as cracks in the governing coalition deepen and its security problems remain unresolved. Other developments in the domestic political scene include the disagreement over the reinstatement of dismissed Supreme Court judges, continued militancy problem, and deterioration in U.S.-Pakistan relations. Predictions on economic policy directions are presented, along with domestic economic trends such as real wages and consumer spending.