Pakistan's economic crisis result of extremist ideology, wrong policies, terrorism: Report

The breakdown of Pakistan's economy is the result of its extremist ideology and, government-sponsored terrorism, claimed a report by Asian Lite. The country has never been interested in growth and development and has shown utter disregard for the well-being of its citizens, leading the nation to witness its worst crisis, ANI reported, citing the Asian Lite report. 

Notably, the present situation in Pakistan is a culmination of decades of wrong policies eventually resulting in an internal crisis. 

State-sponsored terrorism, faulty policies have led to Pakistan's economic crisis: Report

There's no denying that Pakistan has always supported and patronised extremism and militancy in the name of jihad, never paid attention to long-term economic growth, and instead portrayed shortsightedness in waging war, direct or indirect, on its neighbour, the report claimed. Now, Pakistan is seeking a $7 billion bailout package from the IMF to bridge the collapse of the state, which is in a do-or-die situation.

The report said, "Pakistan's ability to afford its own debt is one of the weakest among the sovereigns." Pakistan's debt servicing obligations are US 15.5 billion this year, the report further underscored, and explained that the interest payment obligation of Pakistan alone is half its revenue this year which is 25% higher than last year. Notably, the external debt of Pakistan has increased from USD 66 billion in FY17 to more than USD 100 billion today.

Citing UNDP's report, Asian Lite claimed that the country is facing a debt of over USD 250 billion, much more than the carrying capacity of the Pakistani state, wherein it is liable to pay a debt of USD 33 billion by 2023. The continued dip is further worsening the crisis in the Pakistani rupee, which has now reached its all-time record low of 267.48 dollars.

The current situation in Pakistan is forcing millions of its people into poverty and starvation and disabling the country from importing basic and essential items. However, several other factors like faltering GDP growth, the global economic slowdown, Ukraine, and rising global inflation have contributed to its worsening situation. Furthermore, the growing terrorism in the country and its wrong policies that have state-sponsored terrorism have contributed to the country's economic collapse, it said.

Image: PTI