New Delhi, March 20: Pakistan is grappling with a severe economic crisis, exacerbated by soaring oil prices and a spike in trade deficits following the conflict between the U.S.-Israel and Iran. According to an article published in the Lahore-based ‘Friday Times’, the country is facing significant instability in terms of per capita income, economic growth rate, declining exports, and low foreign exchange reserves.
The article highlights that Pakistan’s economic instability is reflected in its GDP growth rate of just 3.1% and its ranking of 168 out of 193 countries on the Human Development Index (HDI). With a per capita income of $1,812, a poverty rate of 28.9%, and an adult literacy rate of 60%, the statistics reveal a troubling scenario. Additionally, there are 25.2 million out-of-school children and an unemployment rate of 12.8% among the youth aged 15-24.
These figures are among the worst in South Asia, indicating that the ruling class has failed to mitigate economic instability. Pakistan’s trade deficit exceeds $10 billion, exports are declining, and foreign exchange reserves are inadequate, with the State Bank holding only $16.5 billion.
The repercussions of the ongoing conflicts in the Gulf and West Asia are severely impacting Pakistan’s economy. The recent increase of 55 rupees per liter in oil prices and a 20% rise in gas prices are expected to further escalate inflation and the cost of essential goods. Rising electricity and transportation costs will add to the challenges faced by Pakistan’s 250 million population.
The article also notes that when a country is economically weak and has failed to promote economic and social development over its nearly 80-year existence, it indicates a failure to improve the living standards of its people. This includes access to clean and safe drinking water, better housing, improved education, and healthcare services.
A significant portion of the federal budget is allocated to repaying external debts or defense expenditures. Only about 20% of the budget remains for administrative purposes and distribution to provinces under the 18th Amendment. There is no funding left for developmental expenditures, leading to an increase in both internal and external borrowing.
Arpit Soni has had a passion for journalism since the beginning. Now he has turned this hobby into his profession. Arpit, who is a resident of Udaipur, enjoys editing and writing news related to journalism. He has worked as a Senior Content Producer in several important roles at Bhaskar, Patrika, Pratahkal, Punjab Kesari, and Times. Arpit completed his schooling in Udaipur and Jaipur. He has been working in the media industry for more than 10 years, and his journey is still continuing. ✍️📚
Leave a Comment