19.9 C
Athens
Παρασκευή, 1 Νοεμβρίου, 2024

Pakistan’s economic crisis result of supporting terrorism, faulty policies: Report

Περισσότερα Νέα

- Advertisement -

Pakistan has become a textbook lesson in the political economy of how nations that rear extremism, indulge in state-sponsored terrorism, have no growth and development strategy and have utter disregard for the welfare of their common citizens, eventually collapse.

The current economic crisis in Pakistan is a culmination of decades of its faulty policies. It has become a state at war with itself. By supporting and patronising extremism and militancy in the name of jihad, it has hardly ever focused on long-term economic growth, and instead showcased short-sightedness in waging a war, direct or proxy with its neighbour, reported Asian Lite.

With bankruptcy looming around, Pakistan is seeking a $7 billion bailout package from the IMF to prevent the collapse of the state seeking help in a do-or-die situation. While the IMF delegation is visiting Pakistan, tough times are ahead for Pakistan. To secure this loan, Pakistan will have to undertake very unpopular austerity measures including cutting subsidies drastically and bringing in market reforms, the report.

The report quoted a statement issued by rating agency Moody’s which highlighted “country’s ability to afford its own debt is one of the weakest among the sovereigns.”

The debt servicing obligations in Pakistan is USD 15.5 billion in 2023. The report claimed that the interest payment obligation of Pakistan alone is half the country’s revenue this year which is 25 per cent higher than in 2022. The condition is such that the external debt rose from USD 66 billion in FY17 to over USD 100 billion today, according to the Asian Lite report.

- Advertisement -

Also Read: Pakistan unlikely to host Asia Cup 2023 as UAE emerges as alternate venue; ACC to finalise decision in March

The United Nations Development Programme (UNDP) report was cited by Asian Lite which said that Pakistan is facing a debt of over USD 250 billion, much more than the carrying capacity of the Pakistani state, wherein it has to pay back a debt of USD 33 billion by 2023. The continued slump of the Pakistani Rupee (PKR), reaching a record low of 267.48 per dollar, is further worsening the crisis.

This major economic setback is pushing millions of people from the country’s population into poverty and starvation and disabling the country from importing basic and essential items. The country’s forex reserves are depleting at an alarming pace Now it has just USD 3.67 billion, the lowest since 2014 which can cover its imports for just three weeks.

The crisis in Pakistan worsened due to a combination of many factors including its faltering GDP growth, global economic slowdown, rising global inflation owing to the Ukraine war, plunging Pakistani rupee making imports costlier, compounded by a catastrophic flood which caused massive destruction affecting over 33 million people, the report by Asian Lite claimed.

The report claimed that the current slump in the economy of the country is because of its own. Due to the culmination of decades of faulty policies and supporting extremism and terrorism. It has hardly ever focused on long-term economic growth and showcased short-sightedness in waging a war, direct or proxy, with India.

The rise of terrorist groups such as Tehreek-e-Taliban Pakistan, which was backed by Pakistan’s army and intelligence agency ISI, is now waging war against the Pakistani state itself killing innocent civilians and law enforcers.

The current economic crisis is attributed to its myopic policy decision resulting in excessive spending on non-developmental and economically unviable projects.

Pakistan was not bringing structural and economic reforms in the country’s fiscal and monetary policies, and the economy has also been filled with corruption and nepotism.

- Advertisement -

ΑΠΑΝΤΗΣΤΕ

εισάγετε το σχόλιό σας!
παρακαλώ εισάγετε το όνομά σας εδώ

The reCAPTCHA verification period has expired. Please reload the page.

Ροή ειδήσεων

ΣΧΕΤΙΚΑ ΑΡΘΡΑ

China Tries to Blot out Tibetan Criticism of Mining Firm’s Damage to the Environment 

Chinese censors are trying to prevent people from viewing posts that allege severe environmental damage in Tibet caused by sand mining. A young Tibetan man...

Protests erupt in Balochistan as citizens demand justice amid rising violence

Amid ongoing atrocities and lawlessness in Balochistan, a protest took place in Buleda as residents rallied for the immediate arrest of the killers of...

Chinese armed forces are not as strong as they seem, according to experts

China is seen as a formidable power due to its robust economic growth and military expansion in recent decades, but if experts are to...

Evolving Chinese Ransomware Attacks: Serious Threat to Global Cyberspace Ecosystem

Ransomware is a type of malware that blackmails users for ransom by blocking access to devices or data. In general ransomware can be categorized...

ΔΗΜΟΦΙΛΗ ΑΡΘΡΑ

Αποκλειστικό-Τουρκικά ΜΜΕ: ”Η Ελλάδα λαμβάνει μέτρα για την ενίσχυση της αμυντικής της βιομηχανίας και τον εκσυγχρονισμό των ΕΔ”

Τι αναφέρει τουρκικό ΜΜΕ: ''Η Ελλάδα συνέχισε να προσελκύει την προσοχή με τις μεγάλες επενδύσεις της στην αμυντική βιομηχανία τα τελευταία χρόνια. Αυτή η αύξηση...

Αποκλειστικό: ”Επίθεση” Τούρκων σε Κύπρο-ΗΠΑ-Ο Μπάιντεν στηρίζει την Λευκωσία, συμφωνία κατά της Τουρκίας!”

Τι αναφέρει τουρκικό ΜΜΕ: ''Ο Λευκός Οίκος φιλοξένησε τον Ελληνοκύπριο ηγέτη μετά από 28 χρόνια: Πλήρης συμφωνία κατά της Τουρκίας. Ο πρόεδρος των ΗΠΑ...

Αποκλειστικό-Απίστευτη τουρκική πρόκληση κατά Ισραήλ!-Η Τουρκική Κυβέρνηση δημιούργησε πλατφόρμα & θα κάνει προπαγάνδα κατά Ισραήλ σε 7 διαφορετικές γλώσσες!

Τι αναφέρει τουρκικό ΜΜΕ: ''Η Διεύθυνση Επικοινωνιών έκανε ένα πολύ σημαντικό βήμα -πέρα από αυτό που έχει κάνει- και δημιούργησε μια πλατφόρμα που θα κάνει...

Αποκλειστικό-Λαβρόφ: Τουρκικά όπλα χρησιμοποιούνται από την Ουκρανία για να σκοτώσουν Ρώσους!”

Σημαντικές δηλώσεις του Ρώσου υπουργού Λαβρόφ! "Τουρκικά όπλα χρησιμοποιούνται από την Ουκρανία για να σκοτώσουν Ρώσους!" Τι αναφέρει τουρκικό ΜΜΕ: ''Δύο σημαντικά ζητήματα που επηρεάζουν...