Pakistan Economic Crisis: Pakistan is passing through a period of severe economic crisis. Poverty and inflation are at its peak in the country. It is becoming difficult for the people to even get bread for June 2. There is a huge shortage of Foreign Exchange Reserves in the country and the economy is in a bad state. The government is raising its hand in importing even basic and essential things.
This big economic shock is pushing a large population of the country towards poverty and starvation. In a report by Asian Light, the support of terrorism and faulty policies have been held responsible for Pakistan’s economic crisis.
Pakistan became poor by supporting terrorism?
The report of Asian Light states that the current economic crisis in Pakistan is the result of its faulty policies of decades. This country is fighting with itself. By supporting and patronizing terrorism in the name of Jihad, Pakistan has brought its economy to ruin. Countries that support terrorism have rarely focused on long-term economic development. Instead of focusing on development, it has displayed short-sightedness in waging a direct or mock war with its neighbour.
no ability to repay the loan
The report cited a statement issued by rating agency Moody’s, which highlighted that Pakistan’s ability to repay its own debt is the weakest among sovereign countries. In 2023, the obligation to repay the debt in Pakistan is 15.5 billion US dollars. The report claimed that Pakistan’s interest payment liability alone accounts for half of the country’s revenue this year, which is 25 per cent more than in 2022.
Pakistan is burdened with foreign debt
According to the Asian Light report, Pakistan’s economy is in bad condition because the external debt has increased a lot. It has increased from $ 66 billion in FY 2017 to more than $ 100 billion today. Asian Light also referred to the report of the United Nations Development Program (UNDP), which said that Pakistan is facing a debt of more than US$ 250 billion, which is much more than Pakistan’s capacity. The fall in the Pakistani rupee against the dollar is adding to the crisis.
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