Debt Ridden and Deficit Afflicted Economic Turmoil of Pakistan

Abstract

Pakistan economy lost out steam during pandemic turbulence. The total external debt burden of Pakistan reached excessive high. As per IMF data of February 2022, current account deficit of Pakistan increased substantially, inflation remained stubbornly high and local currency rupee weakened significantly. As export prospect dimmed in 2020, current account deficit aggrandized in the wake of strong import demand. Import bill went spiraling high amidst hike in global commodity prices although export growth remained meagre for the south Asian nation. Annual growth rate of Pakistan was on declining trend since 2018 and aggravated further during COVID inflicted period when economy registered negative growth rate. Unemployment level remained intractably high and poverty became pervasive. Pakistan appealed IMF since 2019 to provide much needed funds which would be 22nd assistance from the same institution to bail out dwindling economy. Indebtedness to China on account of financing infrastructural project and Afghanistan refugee influx after Taliban reoccupation further added worry and stress to beleaguered nation.