A deep dive into Pakistan’s economy challenges
A Deeper Dive into Pakistan’s Economic Challenges
Pakistan’s economic problems are multifaceted and deeply intertwined. Here’s a more in-depth look at some of the key issues:
Excessive government spending: Pakistan’s government has historically spent more than it has earned, leading to a persistent fiscal deficit.
Rising public debt: This deficit has resulted in a significant accumulation of public debt, both domestic and external.
Debt servicing burden: The interest payments on this debt consume a substantial portion of the government’s revenue, limiting its ability to invest in essential sectors.
Supply-demand imbalance: Pakistan has struggled to meet its growing energy demand, leading to frequent power outages and energy shortages.
Inefficient power generation: The country’s energy mix is heavily reliant on fossil fuels, which are both expensive and environmentally harmful.
Circular debt: The power sector is plagued by circular debt, where power distribution companies owe generation companies, and generation companies owe fuel suppliers.
Imports exceeding exports: Pakistan’s imports consistently outpace its exports, leading to a persistent current…
