Well historically Pakistan debt was much worse
Pakistan surely has a governance problem but looking at numbers not a debt trap
Though I will add the word "yet"
80% debt to GDP ratio and 40% ext debt isn't a trap in growing population
Lack of taxation structural reforms and bleeding state emprises are !!
Pakistan has more a state enterprise, corruption and bad governance trap rather then a debt trap
But it easy to blame the debt and wash your hands rather than fix/privitize state enterprises and raise taxation
Not really
Nawaz sharif is coming back and he will make sure we get there
After all he did a splendid job in 1999 we were at 70% ext debt twice of what we are now
With few more metros and extra power plants and some here there projects he would get us there and add a few more Bentley for bubloo in London
Historically Pakistan always had the option of getting financed from either US or China for fighting against India and USSR or supporting military action in Afghanistan and Ruling elites always used those finance received for building their own muscle power & business empire, so Pakistan never had debt issues.
But now situation is different Afghanistan lost its value due to Ukraine conflict and US turned toward India to contain China so strategic dept once Pakistan has diminished, but in future it may return but as far as now it is nowhere to seen. Due to loss of importance, finance part has got major hit and those empire built on funding from abroad are struggling to hold on their own.
Pakistan’s Debt to GDP ration might be not got out of hand but capacity to refinance and repayment has been seriously hampered, due to that burden on common man is steadily increasing.
Pakistan has got lot of economic & reform problems eg. Birth control, taxation, agricultural & industrial reforms and under utilization of power capacity, for that you need a strong elected government which should have welded powers to cut down expenses and create job opportunity and thereby increase peoples capacity for repayment of debts.
Biggest elephant in the room is reforms in Military i.e, cutting it down the size and second one is restructuring Power sector by renegotiating & closing unnecessary projects might solve 80% of Pakistan’s debt problem but who is going to bell the cat, NS, BB or IK ? all of them are tried, tested and dusted.
None of the above have the capacity to guide Pakistan get out of this mess as all of them want only one thing i.e, power. If everyone sit across the table then create a road map for revival of Pakistan but who will sacrifice their hunger power ? Establishment, Judiciary, Politicians, Elites or Media Managers ?
You are extra optimistic .
Pakistan's always over optimistic, he thinks NS, who is accused of corruption, will come and solve his problems, whereas he is coming back to close in court cases and become PM.
