Pakistani Prime Minister Shehbaz Sharif has indirectly admitted the country’s ongoing financial crisis, by citing three critical structural flaws in the country that have prevented its so-called economic growth. “This one (latest economic crisis) is born out of the most challenging global policy environment of our lifetime, characterised by a commodity supercycle, historic monetary tightening at America’s Federal Reserve and a conflict in Europe that is tearing apart the post-war global order,” he stated.
“But it also stems from home-grown weaknesses: weaknesses that have been left unaddressed for the better part of five decades; weaknesses that have forced us to approach the International Monetary Fund (IMF) multiple times during that time. This is not how successful nations are built.” Shehbaz then cited three critical structural flaws that stand out in the country, Geo News reported.
“These have prevented economic take-off, stunted our growth and led to repeated boom-bust cycles since the late 1980s,” he said in the article “We have turned inwards in a way that has prevented us from reaping the benefits of globalisation through the free exchange of people, goods, capital and ideas. Our ability to make? and keep? friends on the international stage has significantly weakened over time.”
As Pakistan turned 75 on Sunday, he said that as the country turned 75, the moment merits serious introspection. Shehbaz said that the fifth-largest country in the world, where two out of every three people are below the age of 30 and full of aspirations, finds itself stuck with an income level of just $1,798.
“Every third person lives on less than $3.20 a day. And less than a quarter of our women work outside the home; more than a third of our people can neither read nor write.” Pakistan is dealing with a severe economic crisis. Due to huge currency depreciation and faulty policies of the Shehbaz Sharif-led Pakistan government, the country’s debt jumps to a record high of Pakistani Rupee (PKR) 60 trillion.
The increase in public debt was PKR 9.3 trillion in the past one fiscal year but it swelled up to a record PKR 49.2 trillion by end-June 2022, according to the State Bank of Pakistan (SBP), the Express Tribune reported.