What's wrong with #Pakistan ? A thread ๐งต๐
Pakistan is going through its worst economic crisis in the last 50 years. To get a dollar a Pakistani had to spend 121 rupees in 2018 - now, it crossed 300! Pakistani rupee is falling. At the same time, inflation is at all time high.
Pakistan is on a verge of bankruptcy. It has gone to the IMF 23 times for a bailout. The most by any country in the history. China and UAE, frequent helpers of Pakistan are taking a step back. The reason - how Pakistan uses the money.
Let's talk numbers
32% of Pakistan's GDP comes from external receipts
Loans/bailouts/gifts/investments etc
That's okay
But the next figure is troubling
28% of their expenses are just to meet the repayments of these loans
Pakistan in stuck in a vicious cycle of borrowing
32% of Pakistan's GDP comes from external receipts
Loans/bailouts/gifts/investments etc
That's okay
But the next figure is troubling
28% of their expenses are just to meet the repayments of these loans
Pakistan in stuck in a vicious cycle of borrowing
Not to mention, Pak lacks political stability.
Not a single prime minister has completed a full term in office
The military controls every single decision
But all hope is not lost for Pakistan
Not a single prime minister has completed a full term in office
The military controls every single decision
But all hope is not lost for Pakistan
Recently the Crown Prince of Saudi Arabia has promised to invest $25 Billion in Pakistan. Giving our Pakistani brothers a moment to breathe.
This relief can delay but not prevent the inevitable unless Pakistan solves some core problems
This relief can delay but not prevent the inevitable unless Pakistan solves some core problems
Current account deficit, falling Rupee, rising inflation - these problems are not unique to Pakistan. The whole objective of making videos about Pakistan is to reflect on our economy as well. India suffers from some of these issues too.
India, as a country has a current account deficit of $266 Billion
That means our IMPORTS outweigh our EXPORTS
Slowly and steadily, there will be an outflow of precious dollars and INR will keep falling against USD.
It's not pessimism - it's realism.
That means our IMPORTS outweigh our EXPORTS
Slowly and steadily, there will be an outflow of precious dollars and INR will keep falling against USD.
It's not pessimism - it's realism.
India and Pakistan - both countries need to pull up their socks and focus on fixing the macro economic problems. We have explained this in detail in our latest video about #PakistanExplained
youtu.be
youtu.be
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