The world knows Pakistan for its bad reputation for housing terrorists and aiding terrorist organizations which to a greater extent is right. The nation’s economy is crippled and now further deteriorating.
Pakistan is amidst a crisis, with growth rates deteriorating day by day and the nation’s GDP declining there seems like an imminent breakdown of economy about to happen. Pakistan went from a disaster waiting to happen to a disaster that is inevitable and somewhat incurable of its disastrous effects. he growth rate has almost halved, the balance of payments is in poor shape, the Pakistani rupee has depreciated significantly, and external debt is large and rising, according to UNCTAD’s Trade and Development Report 2019. the support from China and Saudi Arabia and a large IMF loan have helped address the immediate problem saving the nation, for now, the crisis has not been averted. The contributing factors to the decline in economic growth are Ever-increasing debt both domestic and international. Islamabad continues to borrow to repay past debt. Ballooning public deficits and losses in state-owned companies. An increase in the trade deficit and the exchange rate is constant. Rising inflation, growth skewed toward consumption, low investment and job creation. Only 1% of Pakistanis pay taxes. The country has one of the lowest tax-to-GDP ratios (11%) in the world.
So, with these factors in play the nation is crippling and there’s no effort seen by the Pakistani government so as to improve their economic status. Maybe Pakistan will be the first Asian nation to go completely bankrupt with a huge outstanding debt in the imminent recession that we all are fearing.