ISLAMABAD:
The citizens of Pakistan are suffering from a historic economic downswing characterised by low growth rate, high inflation, and rising unemployment. The current economic situation of the country is indeed worrying as growth rate has fallen drastically. Moreover, the rupee has lost a fifth of its value against the US dollar since the beginning of this year. Then there is the issue of ever-increasing debt, which eats up 20% to 40% of the budget each year. Pakistan continues to borrow more loans in order to cover repayments of the past borrowings.
We must not forget that imports and exports also play an important role in altering the state of the economy. While the government did manage to curtail the imports, it failed to increase the exports. Furthermore, authorities have failed to establish an effective tax collection system, as only 1% of the population pays their taxes. The overall situation seems to be continuously deteriorating with no relief in sight. One wonders what the government plans to do next.
Published in The Express Tribune, October 18th, 2021.
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