Pakistan Struggles With Economic Collapse And Extremism

BY: MUDASIR DAR

Pakistan faces economic and political deadlock under former PM Imran Khan, posing risks for regional stability.

[{"selector":"#anim-1a022860-a7f0-4cf2-9e34-655cd4629644","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-515326e0-ad6a-4dbb-a800-569c323d5e92","keyframes":{"transform":["translate3d(0px, 124.72369%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-212420c0-6213-4db6-8ecd-3f46f8a5c8e1 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, -1.2175322723897004%) scale(0.9090909090909091)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

Deadlock due to economic collapse, internal security concerns, and extremism destabilizes Pakistan, almost leading to collapse.

[{"selector":"#anim-e3506fa2-3e64-4881-aa6f-330bb50e2af3 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 2.7581644055565207e-7%) scale(0.9090909090909091)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-d153073e-40cd-47d0-8d7f-2dde94c3adff","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-89a006ea-3dff-445c-9341-d614a6eb1cf8","keyframes":{"transform":["translate3d(0px, 101.49872%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

Pakistan's economic crisis stems from instability, unfair capitalism, mismanagement, 2022 disaster, and climate vulnerabilities.

[{"selector":"#anim-1533b915-f257-4e6d-b3a6-ec9732f11575 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 2.7581644055565207e-7%) scale(0.9090909090909091)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-31eee6b8-1716-4ad1-9234-6bab75b7f3c5","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-b2de7d2c-d5eb-4112-8a50-cbf1e1729546","keyframes":{"transform":["translate3d(0px, 120.10337%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

Pakistan's economic model relies on foreign loans, with massive external debt risking bankruptcy from various creditors.

[{"selector":"#anim-164f93a4-5423-4611-b7ce-330cd7e68b05 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 2.7581644055565207e-7%) scale(0.9090909090909091)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-94730061-b6ac-470c-b388-8fc04d8e9b57","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f9bd7ec5-16f9-4995-b3c1-e1f0111122a2","keyframes":{"transform":["translate3d(0px, 115.45222%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

Pakistan owes $45B to multilateral institutions, including the World Bank, Asian Development Bank, IMF, and others.

[{"selector":"#anim-6b9e4b85-0c65-46f7-b63f-923a025f2ea5 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 2.7581644055565207e-7%) scale(0.9090909090909091)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-fa99cc03-dfe2-4b47-9d9e-cd8a42d9fc58","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-85425f09-2d1d-4fe4-8108-7ab77317d4ef","keyframes":{"transform":["translate3d(0px, 123.36334%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

Pakistan's massive debt, though significant, doesn't pose immediate major risks due to small installment repayments over time.

[{"selector":"#anim-b5f9e586-9d77-42e7-a506-c37f9b9af070 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 2.7581644055565207e-7%) scale(0.9090909090909091)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-7e4fd2df-a9b2-42a6-88bd-b0297d497762","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-af71c2f5-9dd5-47f0-99fa-be37d7b7cb3e","keyframes":{"transform":["translate3d(0px, 120.10337%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

Pakistan owes Paris Club $8.5B, repaid over 40 years with low interest rate, mainly to Japan, Germany, France, and US.

[{"selector":"#anim-fc368c77-ea3b-4763-9141-d17eaef78ddb [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0.23162647651814383%, -4.545454545454547%) scale(0.9090909090909091)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-116ad50d-6401-47bd-9bc7-c64454fac392","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-2a2a2710-add7-4ffd-a466-b26bb1d4953b","keyframes":{"transform":["translate3d(0px, 123.36334%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

Pakistan's private debt: $7.8B in Eurobonds, Sukuk bonds. Foreign loans to reach $9B, Chinese institutions involved.

[{"selector":"#anim-0dffa5b7-740e-4898-bfd8-60b9fd6e75fb [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 2.7581644055565207e-7%) scale(0.9090909090909091)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-46c1ef3e-5d49-4814-87c2-3b7abe3987ae","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-8db05c0c-d044-4afa-8b3d-696a3bdf9643","keyframes":{"transform":["translate3d(0px, 128.21472%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

CLICK HERE TO READ

[{"selector":"#anim-de0e369a-ea7c-4bff-9bbb-3e423cba9de1","keyframes":{"transform":["scale(1)","scale(1.5)","scale(0.95)","scale(1)"],"offset":[0,0.33,0.66,1]},"delay":0,"duration":1000,"easing":"ease-in-out","fill":"both","iterations":1}]