30 years of loot is a big time, everyone, every entiry looted the country to the core. Now Pakistan is caught in a vicious cycle of borrowing to pay off past debts and even friendly countries have refused to provide easier financing, thus creating a scenario where the country’s economy spirals out of control. Asian Lite reported subsidized or interest free loans to Islamabad.
Pakistan’s total outstanding debt at the end of last year in June 2022 was 2,523 billion pounds. Pakistan is facing a severe cash shortage, with foreign exchange reserves reaching a record $4.31 billion in the week ending March 3. According to Asian Light Report.
This reduction meant that the Pakistani government no longer had room to finance its external debt without borrowing more from friendly countries. Pakistan’s foreign exchange reserves fell to $5.6 billion. This is the lowest amount in the last 9 years and is enough to cover imports for less than a month. A worsening economic outlook led to the downgrade, forcing officials to announce austerity measures to lower energy prices and save the dollar.
In the past, Pakistan has always relied on friendly countries like Saudi Arabia to survive economic crises, but this time the kingdom has refused to provide easy financial aid or interest-free loans to Pakistan.
Pakistan’s economy continues to struggle as it continues to borrow money to pay off its previous debts. This vicious cycle of debt and partial payments has the economy spiraling out of control and has been in financial ruin for some time, writes Dr. Sekaria Karim in Asian Lite.
Pakistan’s current economic situation is a testament to the persistent problems in its economic structure, with the country’s financial elite threatening to continue growing even as the country stops borrowing more to add to its existing debt. We continue to work to secure various subsidies.
Last month, Saudi Arabia gave Pakistan a $3 billion 4 percent loan last year. But recently, Saudi Arabia has refused to provide simple financial aid or interest-free loans to Pakistan.
