Will Pakistan’s economy collapse? And why does it matter to us? – Sndp

People in Pakistan are fighting for food and wheat flour, and they are running behind trucks.

Pakistan is running out of food. Pakistan is going through the worst economic crisis in 50 years. The entire country only has enough money for three weeks of imports. Then comes THE END. Pakistan has been behaving like a beggar for the past 75 years. We are not saying this, but Pakistan’s Prime Minister says so.

Why is Pakistan begging for help? 

A few months ago, Pakistan’s minister asked people to reduce tea consumption. because Pakistan imports tea, and today even for tea imports they don’t have any money. In Pakistan, the price of essential commodities is increasing day by day. Inflation, which is usually 4–6%, has reached 30% in some places. things which were priced at Rs.100 last years, today the same things cost at Rs.130, common things like onion are 5 times expensive today. Shopping malls and markets are instructed to switch off their lights by 8:30 p.m. because electricity is going to be over. Pakistan’s embassy has property in Washington, which Pakistan wants to sell now. so that some money comes, which can be used by the people. In short, Pakistan is saving money, and as a result, Pakistan’s Prime Minister is asking for help from the United Nations. But how did we reach here? 

Reasons for economic crisis 

Pakistan is facing disasters back-to-back. political disasters, economic disasters, and climate disasters too. Let’s understand all three points. Pakistan’s political history is completely like “Game of Thrones,” which is so interesting. Pakistan gained independence alongside us in 1947. but its first democratic election happened in 1970. After 23 years of independence from 1947 until today, Pakistan has seen 29 prime ministers, and no prime minister has completed his full term of five years. Their Prime Ministers were removed from office 18 times, each time due to corruption or a military coup. Imran Khan was forced to resign last year. Imran Khan was a World Cup-winning national hero, which came with the hope of building a new Pakistan. But, in the end, Shehbaz Sharif and seven other parties filed a no-confidence motion. and brought their government down. Shehbaz Sharif is nicknamed “Punjab speed” because for four times he has been its chief minister and he has worked there efficiently. People have hope that he will make a new Pakistan. This new Pakistani concept creates new economic problems. because when the government is changed, the financial policy also changes. to prove the ineffectiveness of the previous government. Exact opposite decisions are made, resulting in economic disasters. 

Let’s come to economic disasters. Pakistan’s economy has been deteriorating in recent years, and their debts have only increased. Even today, the blank world predicts that their economy will grow by 2% and inflation will rise by 23%. Let’s talk about their exports and imports. Pakistan’s exports are around $30 billion and its imports are around $90 billion. This means that Pakistan receives between 30 and 90 billion dollars per year on average. Due to this huge gap, forex reserves are reducing rapidly. Pakistan’s GDP is $376 billion, and their loans are $274 billion. This loan was not given by anyone’s father. Interest keeps on increasing on the loan, and 1/3 of Pakistan’s budget goes for loan repayments. That means Pakistan is trapped in a debt trap, and the only way out is to take more loans. Around $8 billion in loans are due to be returned in the next three months. and Pakistan’s foreign reserves only have $5.8 billion. The government knows that food prices are increasing, but to initiate a scheme for providing food at cheaper rates requires money, and where will that come from? Due to the continuous change of governments, Pakistan’s image is spoiled globally.

The third point is climate disaster, which is very tragic. Last year there were droughts in many areas of Pakistan, and the loss is worth 30 billion dollars for an already struggling country. This is a big amount. In terms of global emissions, Pakistan contributes less than 1%. but still suffered terribly from this heavy rainfall. Pakistan is in a perfect storm situation. due to these problems coming from three different directions. Pakistan is struggling, and Pakistan is in danger from the Taliban too. Pakistan can be cut into four different pieces. Pakistan’s grip on its citizens may be slipping. 

Impact on India 

The story of Pakistan is far from over. Pakistan is in trouble today, but there are many institutes in many countries that support Pakistan. which want Pakistan’s goods. Different countries and world institutes have donated $10 billion to Pakistan. This is not a loan; it is just help and a hope that this money won’t be used for corruption or military activity but for flood relief and rehabilitation. Recently, there was news out of Washington that even America would help Pakistan build its economy. and you know very well that America is never loyal to anyone. Now protests are happening in POK. People from that side of the LOC are saying that they want to become part of India. This is a sign for our foreign policy, and a gesture is enough for a smart person. To handle things diplomatically, not much trade happens between India and Pakistan. That’s why its economic impact is negligible; having said that, an unstable country in the neighborhood is not good for any country. Now Sri Lanka and Pakistan, both neighbors, are going through an economic crisis together. 

Look at this image carefully, even China is helping. We have warned repeatedly about China’s debt trap strategy. that how China in the garb of help, and establishes control over the whole country. In this situation, if Pakistan doesn’t get help from the IMF on time, then China will help Pakistan in a heroic manner. and in return will ask for such Favors which may cause loss to India. Pakistan is in an interesting situation, and in this situation, how will Pakistan’s future look like? Only time will tell.