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Pakistan’s economic woes continue: Country’s GDP growth to fall behind Nepal, Maldives this year

Akshay Narang by Akshay Narang
9 April 2019
in Trending
Pakistan, economy
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It seems that the Pakistan economy is in a free fall and its government isn’t really able to revive itself. In a development which clearly suggests that Pakistan’s economic woes are all set to continue, Dawn, Pakistani media outlet, has reported that the annual Economic and Social Survey of Asia and the Pacific 2019 has forecasted that Pakistan’s GDP growth is going to remain lowest in the region. Its GDP will grow at a rate of 4.2 percent. Pakistan’s GDP growth rate has now fallen behind the GDP growth rate of Maldives and Nepal. These two countries will witness a GDP growth rate of 6.5 percent. As per the forecast, Pakistan’s GDP growth rate will drop further to 4 percent in the year 2020.

What is important to note here is the fact that while the entire region is set to experience a healthy growth rate, it is only Pakistan which is going to lag behind. India and Bangladesh are going to grow at 7.5 percent and 7.3 percent respectively. The Survey report also mentions that Pakistan’s economy is undergoing a severe Balance of Payment (BoP) crisis which is coupled with large fiscal and current account deficits, mounting the pressure on the Pakistan economy.

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It has been reported several times in the past that the Pakistan economy is going through a very rough phase with all its economic indicators virtually going out of control. Last month, it was reported that inflation in Pakistan had risen to 8.2 percent in February from 7.2 percent in January. This turned out to be the highest inflation rate in the country in last four and a half years. Last time Pakistan registered consumer inflation at 8.2 percent in June 2014. Inflation in Pakistan had witnessed such steep rise even though lending rate in the counter has been increased to 10.25 percent. Pakistan’s currency was also reported to have experienced a drastic decline. The Pakistani rupee had shed 26 pc value in last one year. The value of Pakistani currency against dollar had fallen sharply in last one year from 110.76 rupees in February 2018 to 139.66 at the end of last month.

Over the recent past, Pakistan has emerged as a country desperate to secure financial assistance from other countries. The terrorist country has been literally begging for help as it is a matter of survival for Pakistan now. In the month of January this year, Foreign Direct Investment (FDI) in the country touched a six month low of 132.2 million dollars. It meant a 59 percent drop from the 319.2 billion dollars received in the previous month.

It is clear that Pakistan’s pro-terror policies have only turned out to be counter-productive for the terrorist country. While the entire region is set to experience healthy grow in the near future led by India, Pakistan is fighting hard for survival.

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