Skip to main content

Pakistan economic crisis: Country's debts, liabilities exceed the size of its GDP

File photo: Pakistan PM Imran Khan. Photograph:( AFP )


WION Web Team New Delhi Aug 25, 2019, 06.47 PM (IST)

A report by the State Bank of Pakistan has thrown up some very worrying numbers for the Imran khan government

It's been a year since Imran Khan stormed to power promising 'Naya Pakistan'.

But the economy continues to remain in doldrums, and according to experts, it is only getting worse.

In the latest report by the State Bank of Pakistan, for the first time in twenty years, the total debt and liabilities of Pakistan have exceeded the size of its economy.

Pakistan's debt and liability have peaked to a record of 40.2 trillion Pakistani rupees, which is the equivalent of $ 256 billion.

This is a sharp increase of over 34% in just the last 1 year that Imran khan has been in charge.

Watch: No economic turnaround under Imran Khan government

At the time when Imran khan had taken charge, the total debt and liabilities of Pakistan hovered around 30 trillion Pakistani rupees, which was roughly $191 billion.

The last time, when the Pakistani economy was in such dire straits was in the year 2000.

In the month of march earlier in the year, Imran Khan had stated that he would like to reduce the total debt and liabilities from 30 trillion Pakistani rupees to 20 million Pakistani rupees. But exactly, the opposite of this has happened.

Due to the China–Pakistan Economic Corridor (CPEC) project, and increasing investments by china, Pakistan has been in the grip of a debt crisis for almost over a decade. 

All through his campaigning, Imran khan had trained his guns on Nawaz Sharif and the PML(N) for getting Pakistan into the debt trap. 

Imran Khan made all the right noises and started his tenure by auctioning off fancy government cars and buffaloes as an austerity measure

he also has made regular visits to Saudi Arabia, United Arab Emirates, china etc to get investments into his country.

Saudi Arabia has promised $20 billion, the United Arab Emirates has promised $6.2 billion, while Malaysia has promised $900 million of investments into Pakistan.

But none of this has made any improvements into the dwindling finances of Pakistan.

To stress on his point, Imran khan has today tweeted a video of the Nathia Gali rest house which he claims was earlier a symbol of colonialism, which cost the Pakistani exchequer crores of rupees to maintain, has now been turned into a source of income for the people of Pakistan. It has now been turned into a hotel.

Imran Khan


نوآبادیات کی یہ نشانیاں جن کی دیکھ بھال کیلئے ٹیکس کے پیسوں سے سالانہ کروڑوں کے اخراجات اٹھتے، اب حکومت کیلئے آمدن کا ذریعہ بنیں گے۔


1:44 PM - Aug 25, 2019

Twitter Ads info and privacy

5,741 people are talking about this

Imran Khan's tenure has been high on rhetoric, and catchy slogans such as 'Naya Pakistan'. But on the ground for the common people, there has been no economic turnaround. Galloping inflation of essential food items has hit the common man pretty hard.

On the international front, Pakistan has accepted another bailout package of $ 6 billion from the IMF on terms which demand more austerity. 

While the FATF in its plenary session in October will be meeting to decide if Pakistan should be downgraded to the blacklist.


Popular posts from this blog

SSG Commando Muddassir Iqbal of Pakistan Army

“ Commando Muddassir Iqbal was part of the team who conducted Army Public School operation on 16 December 2014. In this video he reveals that he along with other commandos was ordered to kill the innocent children inside school, when asked why should they kill children after killing all the terrorist he was told that it would be a chance to defame Taliban and get nation on the side. He and all other commandos killed children and later Taliban was blamed.
Muddassir Iqbal has deserted the military and now he is  with mujahedeen somewhere in AF PAK border area”
For authenticity of  this tape journalists can easy reach to his home town to interview his family members or   ISPR as he reveals his army service number”
Asalam o Alaikum: My name is Muddassir Iqbal. My father’s name is Naimat Ali. I belong to Sialkot divison (Punjab province), my village is Shamsher Poor and district, tehsil and post office  Narowal. Unfortunately I was working in Pakistan army. I feel embarrassed to tell you …

China's Raise as a Maritime Power

China's Rise as a Maritime PowerOcean Policy from Mao Zedong to Xi JinpingTAKEDA Jun’ichiSenkaku IslandsApr 23, 2014 PDF Download1. IntroductionThe international community has been viewing China's recent moves relating to the seas as representing "maritime expansion," and the Chinese themselves have come to talk about making their country a maritime power. In the political report he delivered in the autumn of 2012 to the eighteenth National Congress of the Communist Party of China, which stands at the top of the country's power structure, General Secretary Hu Jintao declared, "We should enhance our capacity for exploiting marine resources, develop the marine economy, protect the marine ecological environment, resolutely safeguard China's maritime rights and interests, and build China into a maritime power."1 This was Hu's final report as the top leader of the CPC; after delivering it he stepped down from his posts as general secretary and chairm…

Guardians of the Belt and Road

Guardians of the Belt and RoadThe internationalization of China's private security companiesby Helena Legarda and Meia NouwensFollowing the build-up of infrastructure and investment projects along China’s extensive Belt and Road Initiative (BRI), private security companies from China are also increasingly going global – to protect Chinese assets and the growing number of Chinese nationals living and working in countries along the BRI, in sometimes unstable regions. Out of the 5,000 registered Chinese private security companies, 20 provide international services, employing 3,200 security personnel in countries like Iraq, Sudan and Pakistan.The impact of this newly developing Chinese activity abroad is analyzed in this MERICS China Monitor. Chinese private security companies’ international activities pose a challenge to European interests as they are often largely unregulated and their security staff are often inexperienced in dealing with serious conflict situations and combat. EU …