Despite being the metaphorical ‘epicentre of world terrorism’ and ‘mothership of all terror activities’ Pakistan continues to get economic support from major powers. India’s efforts to expose and isolate Pakistan have not prevented pakistan from building trade and commercial ties with other nations, including china and Russia
Not only the country will become unstable but also terrorist will get freehand to do whatever they want. Once Pakistan is declared terror state, no country will be willing to do business with them so, they will be left on their own. So, either they would pick themselves up to be like Iran or end up being North Korea.