As in the scenario of economy on international platforms big bul s like China are playing cats and mouse burdening small nations with heavy interest based funding. Small countries like Namibia, Ghana and Pakistan are trapped.
Pakistan is a developing country with a semi industrial economy. GDP of Pakistan is 299 bil ion USD as per June 2021 records. Its GDP rank is 46th as per 2020 records. Despite al efforts for fiscal consolidation Pakistan’s deficit is projected to remain high at 7% of GDP and is going to grow due to pre-election spending. Major issue of concern and risk includes delays and stalling of the IMF
– EFF program and the consequent external financing difficulties, exceedingly
high domestic demand leading to unsustainable external pressure. World Bank estimates basic growth for FY 2021 is 3.9% only.
Huge commitments to the tune of 3.7 bil ion USD are outstanding to international
institutions including IBRD and IDA.
As per reports Pakistan’s debt has increased by USD 37 billion in one year. The total debt estimated in June 2021 is 253 billion USD.
The ripple effect of the economy has started to impact the social condition of Pakistan. High inflation and shortage of products is triggering political discontent. Th Pakistan Army indirectly leads the nation and rules the economy. Their interest only lies in how to get maximum funds for Army creating an imbalance in the society.
Emergence of different ethnic groups with guns on their shoulders has made the
socio-economic conditions worse. Pakistani Prime Minister and his team are unable to cope with the situation.
Internal conflict and rise of dissatisfaction among communities specially different
provinces seems to be high on cards. Wil it lead disintegration of the nation called Pakistan.
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