Pakistan on brink of bankruptcy
Sri Lanka (the home of Tamil Tigers) was the first. Second is Pakistan A well developed country with large population It has ran out of gas, and currency to import its basic necessity.
Why does a country go bankrupt?
1. Lack of revenues; poor ways and means and tax collection;
2. Diminished exports
3. Too much dependence on imported products.
Bad weather and faltering exports have not been kind to Pakistan economy Dollar reserves stand below $5 billion, its worst. (compare this to PHL below $100 billion) Banks have refused to extend LC for its imports (Can it still rattle saber with India?)
It is still in difficult negotiation with IMF for a $6B bail outs. The top guys of the country must have rubbed the IMF guys for alleging that the conditionalities included non nuclear stance of the country ( could be Why do we lend to a country who could be using the funds to fuel a future of the war, that could endanger the world) I does not get too the usual cash assistance from KSA who as fellow Islam country is ready to lend on a phone call The KSA head impose conditionalities like strict revenue imposition, and financia controls, just like the IMF
How can we avoid being a bankrupt country?
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