Economy: Pakistan’s Story of Debt

Article Type

Article

Description

Pakistan’s economic history is closely tied to debt, starting soon after independence and continuing through 22 IMF programmes. Unlike India and Bangladesh, which reformed their economies, Pakistan has remained in repeated cycles of fiscal imbalance, inflation, and external borrowing. Structural issues such as overspending, political patronage, subsidies for elites, and neglect of agriculture have weakened growth. Despite occasional periods of progress, the economy remains unstable, with poor rankings in ease of doing business and innovation. Agriculture, once a strength, has been sidelined, forcing imports of wheat and cotton that strain foreign reserves. Rising debt servicing and persistent trade deficits highlight the urgent need for reforms. Sustainable growth requires investment in agriculture, innovation, and productive economic policies instead of reliance on external lenders.

Publication Source

Dawn

Publication Date

12-18-2022

Notes

Nadeem Hussain , Non-resident Visiting Research Fellow

Link to Full Text

Share

COinS