Pakistan facing unprecedented economic crisis: report
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Princeton economist Atif Mian has issued a stark warning that the country is on the brink of an unprecedented financial crisis, driven by a complex web of challenges. His analysis highlights the gravity of the situation, as Pakistan grapples with severe economic difficulties stemming from multiple factors.
Mian, a Pakistani American scholar, points to the alarming rise in both domestic and external debts, unsustainable pension liabilities, and the deteriorating power sector as key contributors to the country's economic collapse.
His assessment paints a grim picture of Pakistan’s financial health, suggesting that the situation is extraordinarily dire, even by global standards. According to Mian, Pakistan's economic troubles are a clear example of fiscal mismanagement, positioning the country as an outlier on the world stage.
"Pakistan’s domestic and external debts, its unfunded pension liabilities, and the zombie power sector have pushed Pakistan into a deep fiscal crisis. It is hard to think of another country in as bad a shape," Mian stated in a comment shared on his official X account.
In response to Mian's analysis, Asad Rizvi, a former Treasury Head at Chase Manhattan Bank, called on the economist to propose practical solutions to help the country navigate its economic challenges. Rizvi also encouraged Mian to explain how advanced economies with high debt-to-GDP ratios manage to stabilize their financial systems in similar circumstances.
