Pakistan Economic Crisis/Problem-Why NOBODY is ready to help Pakistan

Pakistan Economic Crisis 

There must be some such person in your school group, who would say that brother, give 20 today, I will return it tomorrow, and this tomorrow never comes. Change the name of that friend on your phone to Pakistan. Because Pakistan's economy also runs like this.

 

                        Pakistan           

 Every year a loan is taken, then the interest of the loan increases,there's no money to pay this, then another loan is taken to pay the interest of that loan, and the general public suffers in this because it doesn't benefit the general public.Pakistan is addicted to aid and that's the core issue. First of all, let us see how Pakistan earns money.

 

Let's see their budget.

Revenue Receipts are 9,40,000 crores. Capital receipts are 2,37,000 crores.

And external receipts are 5,54,000 crores. And where do the expenses take place?

 28.5% share of Pakistan's total budget goes to repaying its foreign loans.

That is 3,93,000 crores, and the military gets 1,50,000 crores. In just these two things, Pakistan spends 40% of its entire budget. So, will there be money left for other tasks?

 No way! Pakistan takes new loans to repay these loan installments. Now IMF knows this thing very well, and despite knowing this thing, now IMF is going to help Pakistan for the 23rd time. But how does the IMF decide whom to help and whom not? There are two parts to this bailout. One is technical review and the other is staff-level review.

 

Pakistan has already passed in the technical review. In 2019, former PM Imran Khahad sought a bailout of $6 billion from the IMF, and out of this, $1.1 billion has already been released. But whenever IMF gives money, then it starts to interfere in your system. Brings some conditions. IMF gave money to Pakistan, but on one condition, that you should not use this money in "revdi politics." Revdi politics means subsidies, freebies.

Often the government

gives subsidies to control the prices of important things. As long as inflation is under control, people are happy, and Imran Khan did the same thing with IMF money.Took money from IMF and wanted to become popular by giving subsidy to people. But here we cannot blame only Imran Khan. Because when Shehbaz Sharif became the PM, he continued the same schemes. Now IMF lost its cool.

                    Pakistan Economic

 They started saying that using our money for politics won't be entertained.Now IMF has become strict. Now it said that if bailout is needed, then first accept all these conditions. Money shall be given only if the condition is accepted.

 

Is the condition acceptable? You can read all these terms by pausing the video. Plus IMF has said that brother increase the tax base.

You have very few people who pay tax, so from where will the money come to pay the next year's loan installments? You will come again to take loan,

at the same time IMF has also said that inflation should be kept at 5-7% only.

The same inflation which has reached 35% today. If seen from Pakistan's point of view, there is a well here and a ditch there. To reduce inflation, subsidies will have to be given, which is not acceptable to IMF, and if existing subsidies are canceled to increase their income, people will go mad, and IMF knows all this, but they are playing very smartly. It is not refusing to give money,

but is definitely delaying. Is keeping such conditions which may be unacceptable for Pakistan. Because they know that Pakistan does not have much time. After a passage of time, they will have to accept all these conditions.

 

 We shall never break this friendship. Some of Pakistan's friends are very rich.Like Saudi Arabia, UAE, Qatar and they have also helped pakistan previously.

 Let's see how much. I mean how much? Let's start with Saudi.

In 2018, they gave $6.2 billion just like that in the name of financial support, brother have it. On top of that, oil worth $3 billion was given as a loan.

 In 2021 also another loan of $3 billion was given. In 2022, Saudi approved a $8-billion package. Qatar gave a loan of $2 billion in August last year.

 In 2018, UAE also gave $200 million to Pakistan as an aid. Said to promote small businesses in our country, then in the next year 2019, gave a loan of $2 billion.

 Even UAE has made such an offer to Pakistan that we are ready to buy the shares of all your government companies, but how can any sovereign country sell the important companies of its country to any other country? From these 3 countries, Pakistan received a total of $24.4 billion in loans and gifts,

that too in the last 5 years alone. There are also some friends of Pakistanwho not in the form of money, but in some other form have shown their support. But now even they want to stay away from Pakistan.

 

 The talks of establishing a gas pipeline between Iran and Pakistanhas been going on since the 1950s. The Iran-Pakistan Pipeline Project started in 1999 and Iran built its side of the pipeline long ago? But Pakistan never built its own pipeline. Now Iran has said that before 2024, finish the pipeline work on your side, otherwise pay the damages. Iran is going to collect a fine

of $18 billion from Pakistan which is already going to be bankrupt.The funny part is that India too was going to become a part of this pipeline project, but India got paranoid.

 

It felt what if terrorists came through this pipeline instead of gas? So we got out of this deal and in a way it was good. Otherwise, we too would have got stuck today.But all these countries fade away when we talk about Pakistan's elder brother China.

  The Biggest Goon. The goon of this video has helped Pakistan the most, i.e. China. Pakistan has taken maximum loans from China's commercial bank. If we talk in numbers, Pakistan has taken a loan of $30 billion from China. Out of this, a major portion was for the projects of CPEC

 

i.e. China-Pakistan Economic Corridor. But China is super smart. They gave money to Pakistan, but said that all these contracts should be given to a Chinese company only.

Only Chinese workers will work here. In fact, keep all the money you use for CPEC in a Chinese bank only.

Means China's all-out advantage. Their company gets profit from their money.

Jobs are created for their people and our presence also increases in another country. A fully dedicated video will definitely be made on this.

 

So What's the Problem?

 

Now the different parties which have helped Pakistan in the past, did so because of three broad reasons. One is on humanitarian grounds, such as the IMF, so that there is regional stability in Pakistan, and a civil war doesn't erupt.

 

The second reason is common interest. Saudi, Qatar, Turkey, UAE, Iran are Muslim countries and Pakistan too, so naturally they want to help their brothers.

         pakistanproblem

And the third reason is pure economic reasons. This is what China does, seeing profit, invests money. The biggest problem for Pakistan is that all these reasons are getting erased. China is slowing down its CPEC operations. After the pandemic, the whole world has lost faith in China. And its impact is also happening on China's economy.

 

So China is not giving more money to Pakistan in the name of CPEC. Turkey and Iran no longer trust Pakistan. And Saudi is upset with Pakistan. Pakistan did a stunt under Imran Khan. Qatar, Turkey, Malaysia and Pakistan

tried to form Avengers by joining four such countries. Means tried to form a new alliance. But they kept Saudi out of this. Brother, Saudi did not like this thing at all.Now Saudi has said that earlier we used to give loans and aids without conditions. But now the time has come that the countries which take money from us should first start fulfilling their promises. This is a warning for Pakistan.

 

Due to non-fulfillment of previous promises, now even the IMF is hesitating to give money. Recently news came that IMF approved a loan of $15.6 billion for Ukraine.America printed $300 billion overnight to save Silicon Valley Bank.The IMF and the Western countries have different priorities which we've now understood.And countries like Pakistan and Sri Lanka do not come in these priorities.

 

Lessons for India.

 

Now we come to the most important point of this video, what lesson India needs to learn from Pakistan? The first lesson is there are no free gifts.Looking at the economic condition of Pakistan there is absolutely no need for us to laugh. In fact, we should focus on improving our own economy. If we look at our budget,

 

                        India-Pakistan

we cannot even meet our expenses with tax revenue. We are short of money and we borrow 40% of the money every year. These are not bailouts like Pakistan,

 

they are bonds in which mostly citizens of our country invest. But the point is that India does not earn enough money to cover all its expenses. We have to pay interest on these loans and this is the biggest part of our budget.

 

The money which can be invested in the nation's development goes only in interest payment. Devastating floods happened in Pakistan in 2022. They were called the worst floods in a century. Due to these floods, Pakistan's economy came in problems.

 

Tomorrow if India faces a natural calamity of this magnitude, then India too might not be left with that much money. It is said that 'loans steal the resources of the future.' If we spend tomorrow's resources today, then tomorrow we will not have money left. The second lesson is that

we have to get out of the cycle of poverty. IMF is now dealing strictly with Pakistan because of Pakistan's poor track record. This Diplomat article says that whenever a new government comes in Pakistan,

their first move is to take the bowl and go to other countries and beg for help.Pakistan today is stuck in a vicious cycle. Due to problems in the country there is poverty in the country.

 

If people are poor then money does not come from tax, if money does not come then they have to take loan from IMF. To keep these poor people happy and temporarily calm them,this loan is spent in the form of subsidies.

But does this reduce poverty? No way. When will we learn that subsidies are a temporary solution, like a Band-Aid. India also gives free water, free electricity, and free ration.

But corruption eats up all its benefits. And poor people remain poor.India is not different from Pakistan in this matter, is just a little lucky that we have some very big industries.People paying salaries are honest, who get money only after deducting tax.

These is the working class of the country who run the country, takes the responsibility of 1.4 billion Indians on his shoulders.The third lesson for India is we have to increase our income. Income means revenue of the country.

 

Need to focus on manufacturing. Whenever we go shopping, we definitely see one thing, where the product is made. Before the pandemic, everything used to come from China,now the situation is changing.Made in China things are decreasing,

but where are these things manufactured? Not in India, in Vietnam.Think our manufacturing sector is so shattered, is so broken, that we find it cheaper to import from some other country.

 

My personal endeavour is to find as many Indian products as possibleand only buy them,so that an Indian company gets maximum revenue. Tourism, pharmaceuticals, clothing, India has to get better in all these industries.

Money from outside has to be brought to India, and most importantly, need to see how to keep India's money from going out of India to the lowest.

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