Deteriorating Economic Conditions of Pakistan

By Waheed, Amjad | Economic Review, February 1993 | Go to article overview

Deteriorating Economic Conditions of Pakistan


Waheed, Amjad, Economic Review


Today Pakistan is almost bankrupt and foreign donors have also refused to provide any more aid until Pakistani government cuts its defence expenditure. If the Pakistani government decides not to cut defence expenditure then the only other option it has is to keep on printing currency which will result into even higher inflation. Inflation is running at about 20 per cent according to many estimates. And my own prediction is that inflation can reach 100 per cent a year in 2 to 3 years. This means that price of every thing will double every year.

As an economist, I will like to inform the reader of the deteriorating economic condition of Pakistan and what impact that might have on him or her. Pakistani government is acquiring debt at the rate of Rs. 60,000 per second. And what is the government doing with this debt and other revenues raised by the government! Of every Rs. 100 that the government raises in revenues from taxes and custom duties etc., Rs. 40 are paid as interest on the debt that Pakistani governments have taken in the past. Rs. 40 are being spent on defence, while another Rs. 10 are spent on civilian administration. The remaining Rs. 10 are spent on education and training, health and nutrition, water supply, population planning, women development, rural development, science and technology, and building of roads, bridges, dams, etc., combined. To spend such a meager portion (only 10 per cent) of the budget on the 120 million people of Pakistan shows how "messed up" the priorities of our government are.

The enormous debt that Pakistan has taken in the past and present has not been spent on important development issues like health, education, and infrastructure, but mainly on defence. Pakistan spends less than 2 per cent of its budget on education and less than 1 per cent on health. The rest of the world by comparison spends about 20 per cent on health and education. As a result of low spending, 75 per cent of Pakistanis are illiterate and about 50 per cent do not have access to health care facilities and clean drinking water. Pakistan is ranked 116 of 127 countries in education and 100 of 127 countries in health by World Bank and IMF.

The biggest national security threat to Pakistan, in my opinion, is that of financial bankruptcy. In the worst scenario, financial bankruptcy can force government to close public schools and hospitals and temporary power shortages might become permanent. Moreover, clean drinking water might not be available to the people. Some tests conducted recently by international scientists showed that drinking water in Pakistan, in villages as well as major cities like Lahore, Rawalpindi, and Karachi, is contaminated with bacteria, chemicals, and lead. Studies have shown that lead can cause mental abnormalities, especially in children. Also, Pakistani government might even fail to pay its own employees. This is what happened in Zaire just recently where soldiers started looting and shooting after not getting paid due to lack of funds, killing thousands including the French minister to that country.

I recognize the legitimate defence requirements of the military, however, Pakistan cannot afford to spend more than what it earns. Pakistan's defence expenditure of about 40 per cent of revenues is one of the highest in the world. The rest of the world (including India) spends less than 20 per cent of its revenues on defence. This excessive defence spending has drained Pakistan's economy and has undermined our national security. Other countries that spend a high percentage of their budget on military include the former Soviet Union, Iraq, Yugoslavia, Ethiopia, and Somalia. Their experiences prove that economic weaknesses and military adventures only result in misery and tragedy to the people and destruction to the country involved. The best defence for any country is a strong economy. In surveys undertaken in US, a majority of Americans considered Japan instead of Soviet Union as the bigger threat. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Deteriorating Economic Conditions of Pakistan
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.