Скачать или смотреть Pakistan’s Collapse and Why The World Should Worry

Today’s video discuss about why the world should worry about the collapse of Pakistan.

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Pakistanis are currently running short of food as a result of its economic hardship. Politicians are out of options, and money is losing its value.

The only country in Asia with higher inflation than Pakistan is already bankrupt: Sri Lanka. However, Pakistan has experienced economic suffering more than once in its brief history.

After gaining independence in 1947, Pakistan swiftly overtook China as Asia's country with the fastest growth rate. However, due to the weak political administrative history, the growth didn't persist very long during its 75-year lifespan.

Pakistan's history has unluckily included periods of political turmoil. There have been 29 prime ministers of Pakistan, however none of them have served a full term. Every administration prioritizes short-term initiatives over long-term advancements in order to appease the public. Foreign investment has always been the most crucial tool for emerging countries to experience rapid economic progress. Unfortunately, given the turbulent past, it is difficult to draw in this investment without political stability. Because of Pakistan's inconsistent economic growth, the country has earned the nickname "the sick man of Asia."

Most of Pakistan's growth was financed by debt. China, a friendly ally of Pakistan, is one of those creditors, although it wasn't so kind when negotiating the terms. Pakistan currently owes China approximately $14.5 billion in loans. However, there are additional loan kinds that are not included in budget records, including $11.4 billion from China's state banks.

These Chinese loans are distinct from those provided by the World Bank, the International Monetary Fund (IMF), or any other nation.

Pakistan has a history of spending more than it has budgeted for. Every time it has difficulties, the nation has contacted the IMF more than 30 times to request assistance.

As a developing country, Pakistan relies heavily on imports to maintain its residents' well-being. Energy, medicine, and even a sizable amount of the nation's food were all imported. Russia's invasion of Ukraine had an adverse economic impact on the wider Middle East aside from Europe. Pakistan, whose economy is already weak because of decades of corruption, incompetence, and unstable governance, has been particularly vulnerable. Pakistan needs both foreign energy imports and Ukrainian or Russian wheat, unlike many other nations.

Pakistan's trade deficit was close to $50 billion dollars at the conclusion of its fiscal year on June 30, 2022, a 57 percent rise from the previous year. The number might have been considerably higher if the Shehbaz Sharif administration had not prohibited the import of more than 800 non-essential luxury goods in May 2022.

Pakistan spends about 600 million dollars annually importing tea, thus the government is urging people to consume less of it. To conserve gasoline, officials are urging people to work from home, while local governments are reducing the usage of street lighting and public transportation.

The government is now anticipating a $2 billion dollars bailout from the IMF in August, but the country's political unrest and China's refusal to modify earlier loan terms are delaying further aid.

Unfortunately, providing even more aid won't help Pakistan's economy in the long run. Political stability is necessary for both structural tax policy change and proactive action against the nation's pervasive corruption.

According to the World Bank, Pakistan may soon experience "macroeconomic instability." Instability in society would soon follow. To utilize the labor pool, Pakistan's private sector has not produced enough jobs. The level of anger is rising, and rising crime raises concerns about society breakdown.

The collapse of Pakistan should worry the world. State failure in Pakistan has been a worst-case scenario for decades. As violence, extremism, and poverty overtake the former capital and commercial hub of Karachi, and as Pakistani authorities lose control over many regions along the Afghan border, both Pakistan and the rest of the world would experience that scenario. Moreover, the security of Pakistan's nuclear arsenal is a legitimate concern for the United States, India, and Iran, especially as military personnel find it increasingly difficult to make ends meet.

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