Pakistan On The Verge Of Bankcruptcy? | 4/6/22 | 10% to @pak-charity

As far as economic conditions are concerned, we saw the decline of Sri Lanka in the past times and how the economic crisis hit it. Similar situations can be seen in Pakistan which is going through worst economic situations of its history.

[link(http://www.differencebetween.net/business/economics-business/difference-between-bailout-and-bankruptcy/ )

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What Is Bankcruptcy?

When a firm is unable to cater its financial responsibilities or unable to pay back to its creditors, it files for bankruptcy. After which, a petition is filed in the court against the same firm where all the debts are calculated and paid out if not in full from the firm’s assets.
Filing for Bankcruptcy is a legal action which is taken by the firm itself to free itself from all the debt obligations. Firms who are unable to pay their debts file for bankcruptcy after which all the debts are forgiven by the creditors in exchange of various demands. Filing for bankcruptcy varies in different countries.

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Breifing Of Recent Political Drama

Pakistan experienced weeks of high political drama. Imran Khan was dethroned through a No-Confidence Motion (NCM) in the National Assembly of Pakistan. He followed the foot steps of all the Ex Pakistani PMs whose term ended ahead of time and he became the first-ever Pakistani Prime Minister to be expelled in such a manner by opposition forces. After he was gone, Combined Opposition Leader, Shehbaz Sharif, co-leader of Pakistan Muslim League (N) was selected, and he took oath as the next Prime Minister. This victory of Shahbaz Sharif led him to explore multiple challenges that he needs to address immediately.

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Challenges Faced By New Government

The foremost concern and primary challenge that Shahbaz Sharif faced is the economy of Pakistan. This will capture even more of media’s attention when they further secure a loan from individual powerful countries such as China or Saudia Arabia or from other strong financial institutions.
With a declining growth rate, drying foreign reserves and growing dependency on loan have brought Pakistan to the verge of financial bankruptcy.
The new regime would have to convince the International Monetary Fund (IMF) for obtaining financial space to take corrective measures.

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Why Is Pakistan On The Verge Of Bankcruptcy?
Burdened with Chinese and American loans, Pakistan is almost broke. To put it simply, Pakistan’s debt is soaring to the peak, the Current Account Deficit situation is broadening, our country's reserves are dangerously low, and the currency has already been devalued four times in just a span of eight months.
Pakistan’s state of the financial situation is voicing that the country is in a terrible condition of financial difficulties. If we even leave the repayments of earlier borrowings aside, we does not even have sufficient resources to import basic amenities like food or fuel in coming times.
The country’s foreign exchange reserves are terribly falling, food inflation is twisting and the Pakistani rupee is on the declining ground. Together these reasons are leading our country to Bankcruptcy.

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CONCLUSION

I would conclude my writing with a famous quote by our great leader Quaid e Azam Muhammad Ali Jinnah:

"My message to you all is of hope, courage and confidence. Let us mobilize all our resources in a systematic and organized way and tackle the grave issues that confront us with the grim determination and discipline worthy of a great nation.”

We can save our country from all odds if we stay united and work towards country's benefit instead of our own. We all are aware of Pakistan’s economy which is on the brink of collapse and I dont think we can rely on our leaders for the betterment. Every tax payer would want to see his/her country flourishing. So does us. I hope our country's economical situations gets stabilized soon.