Pakistan Economic Crisis Shehbaz Sharif Government Inflation Outcome of Support for Terrorism

Pakistan Economic Crisis: Pakistan is going through a period of severe economic crisis. Poverty and inflation are at their peak in the country. It’s getting hard for people to even get bread for June 2nd. There is a severe shortage of foreign exchange reserves in the country and the economy is in bad shape. The government is raising its hand to import even basic and essential things.

This great economic shock is pushing a large population of the country towards poverty and hunger. In an Asian Light report, support for terrorism and flawed policies have been held responsible for Pakistan’s economic crisis.

Was Pakistan impoverished by supporting terrorism?

The Asian Light report claims that the current economic crisis in Pakistan is the result of its flawed policies over decades. This country is fighting with itself. By supporting and sponsoring terrorism in the name of jihad, Pakistan has ruined its economy. Countries that support terrorism have rarely focused on long-term economic development. Instead of focusing on development, it has shown myopia by waging direct or simulated war with its neighbor.

unable to repay the loan

The report cited a statement issued by ratings agency Moody’s, which noted that Pakistan’s ability to service its own debt is the weakest among sovereign countries. In 2023, Pakistan’s debt repayment obligation is US$15.5 billion. The report claims that Pakistan’s interest payment obligation alone accounts for half of the country’s revenue this year, which is 25 percent more than in 2022.

Pakistan is saddled with foreign debt

According to the Asian Light report, Pakistan’s economy is in poor condition because the foreign debt has increased a lot. It has grown from $66 billion in fiscal 2017 to over $100 billion today. Asian Light also referred to the United Nations Development Program (UNDP) report, which said that Pakistan faces a debt of more than US$250 billion, which is far more than Pakistan’s capacity. The fall of the Pakistani rupee against the dollar adds to the crisis.

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