Shahbaz, a noted Pakistani-American economist and professor of Economics, Public Policy, and Finance at Princeton University, has stated that Pakistan “is bankrupt” and “sinking deeper every year.”
In a series of tweets on Sunday, Shahbaz highlighted the dire economic challenges facing Pakistan following the February 09 General Elections. He emphasized the ongoing issues of “inflation, growth, debt, and investment.”
“Pakistan’s economy has consistently fallen behind globally – last year was one of the worst, with the economy actually contracting,” Mian stated. “Every macro fundamental is flashing red: inflation, growth, debt, investment, to name a few.”
Criticizing the government’s inability to generate revenue, Shahbaz noted that the federal government lacks funds. “It cannot even afford to pay the salary of a peon or a soldier without borrowing,” he remarked.
He explained that Pakistan’s entire tax revenue is consumed after paying provinces their share, pensions to retirees, and interest on debt. “Inflation cannot be controlled when the entire government is run on a deficit,” Shahbaz said. “Growth is impossible when the government has no money to invest in the future, and the lack of growth exacerbates every problem.”
“The country is bankrupt. It is sinking deeper every year,” he exclaimed, underscoring the grim state of affairs in the South Asian nation.
Mian also expressed concern over the growing despondency among the populace, noting that many are seeking to leave the country, and established firms are hesitant to invest. “Yet no leader has a viable economic plan for the future,” he added.
“People are mad – and they have every right to be. 442,353 children died in Pakistan just last year due to poverty, which is almost half a million dead kids every year.”
The 2024 General Elections have been plagued by uncertainty as the Election Commission of Pakistan (ECP) has not yet announced the results of all constituencies. Shahbaz warned that the distance between the rulers and the ruled has never been wider. “Do they understand how dangerous that is?” he questioned.
“There is an attempt – once again – to cobble together a compromised group. No one has a plan to fix the economy . But even if they magically did, they cannot do anything because they have lost all trust. They are foreigners in their own land,” concluded.
