Pakistan’s economy is on the brink of collapse. Meanwhile, massive power outages across Pakistan have further damaged the economy, mismanagement and insufficient investment in infrastructure are frequently cited as the primary causes of Pakistan’s recurring power cuts.

Why Pakistan is struggling in economy?

Pakistan is essentially running on foreign loans, an economic model that only leads to borrowing more, which eventually results in bankruptcy. Between February 2023 and June 2026, Pakistan will have to repay around $80 billion in foreign debt.

What are the reasons for the slowdown of Pakistan economy?

A reduction of industrial output caused by government restrictions on the imports of many raw materials, since it doesn’t have the funds to make those purchases, is largely responsible for the slowdown in Pakistan’s economic conditions.

How much debt is Pakistan in?

Pakistan External Debt reached 125.7 USD bn in Mar 2023, compared with 126.9 USD bn in the previous quarter. Pakistan External Debt: USD mn data is updated quarterly, available from Jun 2006 to Mar 2023. The data reached an all-time high of 130.6 USD bn in Dec 2021 and a record low of 37.2 USD bn in Jun 2006.

Which country is poorer India or Pakistan?

However, over the years, India has not only surpassed Pakistan’s per capita GDP but taken a commanding lead on almost every economic
front.

The economy of Pakistan is in danger of failing. The government has requested a rescue from an upcoming default from the International Monetary Fund. Pakistan has received 13 IMF bailouts since the late 1980s. Numerous blackouts, out-of-control inflation, currency depreciation, and declining foreign exchange reserves are all issues it is now dealing with.Following the disastrous floods last year, its economic problems have gotten worse. Retail inflation climbed to a 48-year high of 27.6% in January 2023. While food inflation in rural areas soared to 45.2%, it was just 39% in cities. For more than ten months, food inflation in both urban and rural areas has been above ten percent.

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