ISLAMABAD: Pakistan faces the most difficult challenges of overcoming the troubles of a massively increasing national debt, waste of national resources, a rapidly growing population, rising unemployment, and inadequate health and education facilities, as it enters the new year — 2022 from Jan 1, 2022 (Saturday).
According to available data, Pakistan ranked first among the top 10 countries with the highest external debt of $127 billion, out of the 73 states eligible for the World Bank’s Debt Service Suspension Initiative. The list of the top 10 countries include: Nigeria, Bangladesh, Angola, Kenya, Mongolia, Uzbekistan, Ghana, Ethiopia, and Zambia. These countries are next to Pakistan on the list of highly indebted poor countries.
With Pakistan raising Rs14 billion worth of loans every day to cover its expenses, the country’s domestic and external debt has increased to $280 billion (Rs50,000 billion), 94 percent of its GDP.
The PTI government has added another Rs20,000 billion to the national debt during its term. In dollars term, the incumbent government has added $113 billion to the overall national debt in its three and a half years govt out of its 5-year term.
Also, the energy crisis and public sector enterprises are causing further damage to the national economy. At present, the country’s circular debt is being projected betweenRs1200-2500 billion.
Pakistan’s nominal GDP per capita is $1,542 with global ranking of 181. As far as purchasing power parity is concerned, it is $5,964 per capita and Pakistan ranks 174th in the world in this category.
Among Asia’s 55 most populous countries, Pakistan ranks fourth with a population growth rate of 2%. By 2050, Pakistan’s population is expected to rise to 35 million and the country’s net growth is negative. This means that the country has failed to generate resources in proportion to a growing population.
Importantly, 220 million Pakistanis, 15 million are under 30 years of age, and are jobless and unable to contribute to the economic growth cycle in the country.
According to the Economic Survey 2020-21, the literacy rate in Pakistan could not exceed 60%. There was a 29.6% reduction in educational expenditures in 2019-20.
The survey said the literacy rate is higher in urban areas than in rural areas. The literacy rate in cities is 74% and in rural areas 52%. According to UNICEF, 59 out of 1,000 newborns die within a year of their birth. In 1971, this number was 139.87. There are many cases of Beta Thalassaemia in Pakistan and its patients are 9.8 million.
