A deep dive into Pakistan’s economy challenges

Writing Bird
2 min readAug 21, 2024
Photo by Syed Bilal Javaid on Unsplash

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…

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Writing Bird
Writing Bird

Written by Writing Bird

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