Pakistan Economy: News & Discussion

UnderFingy

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very nice

The Pakistanis are now facing a perfect storm. The country is drowning in debt, which is almost doubling every five years. Servicing the debt takes nearly 80 per cent of the total revenue of the federal government. Next fiscal it is feared that almost the entire revenue will go in servicing debt. Even defence expenditure will be financed from borrowed funds, as will every other expenditure of the state. To tide over the problem, Pakistan will take more debt—a classic debt trap situation. The currency is weakening by the day and has lost almost 40 per cent of its value in last three years, around 20 per cent in last three months. The fiscal and current account balances are all negative. The current account deficit could reach an unsustainable 5 per cent this year.

Growth remains anaemic and dependent on imports. Cut imports to control the current account deficit and growth will plummet. Meanwhile, money supply is growing at an alarming rate and fuelling inflation. Essential everyday goods are clocking an inflation rate of 18 per cent and could go up to 25 per cent as per the calculations of some economists. Pakistan is now importing food. Tariffs on fuel, power and gas are expected to rise and could become unaffordable. Amidst all this, Pakistan’s hand-picked (by the Pakistan Army) handsome Prime Minister is busy preaching Islamic morals to the people, trying to make them more Muslim than they already are.
It is worse than I thought it was.
 

Knowitall

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If Indian politicians had the brain of a 5 year old they would have understood that this would be the perfect opportunity to scarp the Indus water treaty and regulate the supply through dams thus creating a sure shot condition of crop failures in pakistan thus destroying the last functioning sector of pakistan.
 

Tshering22

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Is it real?? Or the tweeter is hacked by evil yindos.

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You guys are so evil... :rofl:

The official statement is that it was hacked:

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On a serious note, I didn't realize that Pakistan had an embassy in Serbia. I mean, Pakistan recognizes Kosovo as a separate country and my assumption was that Serbia would have cut all diplomatic relations with them in response.
 

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