Editorial: Pakistan’s Economic Crises.

Pakistan’s Economic Crises

The story of Pakistan’s economy is incomplete without the character of its debt. Pakistan’s economic challenge began following Independence in August 1947, as it had to seek financial help. According to Dawn newspaper, The structural diagnosis of Pakistan’s debt requires a deep understanding of policy interventions, which put the country on a debt trajectory, and an investigation of how certain groups pushed the country into debt to protect their vested interests.

Pakistan is in the midst of perhaps the most serious crisis it has faced since 1971. The political economy has been ripped to shreds through self-inflicted wounds, its international stature is down in the dumps, and if the country was listed in the stock market, its stock would be categorized as a penny stock.

The current debt on Pakistan is around 247 billion dollars (97% of the GDP). The 6 billion dollar package from the IMF would not be sufficient for Pakistan as the country still needs to repay at-least 8 billion in 2023 to save its credit standing and escape from bankruptcy.