Pakistan’s economy on ventilator! Debt increased to Rs 81.9 trillion, how will PM Shahbaz Sharif save the country?

Pakistan Economic Crisis Huge Debt: Huge debt has badly shaken the entire economy of Pakistan. In the month of April, the debt of the country’s central government increased by a huge increase of Rs 1.4 trillion to Rs 81.93 trillion. This figure is the largest debt burden ever in the history of Pakistan. This debt clearly shows the weakening structure of the economy and the failure of the government.

The present Shahbaz Sharif government had made many big claims of bringing economic stability which are now proving to be false. The ever-increasing debt dependence is completely hollowing out the financial structure of the country. The pace of taking loans has increased very rapidly both on the domestic and foreign fronts. Experts have warned the government that if this continues, the country will go bankrupt.

Country trapped in heavy debt trap

Pakistan government’s debt has increased by more than Rs 4 trillion in the first 10 months of the current financial year. In this, domestic debt was Rs 3.6 trillion and foreign debt was more than Rs 400 billion. To meet the budget deficit, the government has to take new loans again and again. This bad habit of constantly taking on debt has created a dangerous cycle that is difficult to reverse.

severe shortage of economic resources

Like the previous governments, the current government is also continuously taking new loans to repay the old loans. The country’s revenue is not increasing and fiscal deficit continues to be a big and serious problem. Due to increase in debt, important investments like education, healthcare and infrastructure have also stopped. All the government money is being spent only on repaying the loan and its huge interest.

Impact of global tension on the economy

The ongoing geopolitical tension in West Asia has also created new uncertainties and difficulties for Pakistan. The cost of oil imports has increased significantly due to rising energy prices around the world. Due to expensive oil, Pakistan’s foreign accounts are under increasing pressure. Apart from this, international financial institutions have also repeatedly warned the country.

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the only way out of the crisis

Economic experts clearly believe that there is a strong need for tough structural reforms to come out of this crisis. The government will have to control public expenditure and quickly find new ways to increase revenue. If Pakistan does not solve these basic problems in time, the situation will worsen. The country may face even more serious financial challenges in the coming years.