REASON WHY PAKISTAN IS FACING MAJOR ECONOMIC CRISIS

 Pakistan is facing such a severe economic crisis, with inflationary pressure, a shortage of basic goods, and its economy being kept afloat by international assistance. 

Here are the three main probable reason -

1.POLITICAL UNSTABILITY 

Pakistan's political history is quite complicated. It gained independence in 1947, but its first democratic election did not take place until 1970. Since then, eighteen Prime Ministers have been removed from office due to corruption or military coups. Last year, Imran Khan had to resign after Shehbaz Sharif and seven other parties brought a no confidence motion and brought down his government. People have hope that Shehbaz Sharif will create a new Pakistan, but this concept creates new economic problems because when the government changes, the financial policy also changes, often resulting in decisions that are the exact opposite of the previous government's, which can lead to economic failure.

2.DEBT & TRADE DEFICIT 

The total import bill of Pakistan has crossed a record $80 billion mark, while the exports of the country is only $31.76 billion during the fiscal year 2021/22. This has resulted in a record trade deficit of $48.26 billion in the fiscal year. Furthermore, the Public Debt of Pakistan is around 274 billion USD as of January 2023, which is nearly 79 percent of the (GDP) of Pakistan. 

3.NATURAL DISASTER

Country's monsoon season in 2022 was devastating, producing significant rainfall that caused floods and landslides, affecting millions of people. The sectors that were most affected were Housing, Agriculture and Livestock, and Transport and Communications, with losses estimated at USD 5.6 billion, USD 3.7 billion, and USD 3.3 billion, respectively.