The Economist Intelligence Unit (EIU) has projected Pakistan’s economy to expand by an annual average of 2.9% in 2018/19 till 2022/23, compared with 5.4% growth in the previous years.

The advisory issued by the EIU comes amidst Pakistan’s ongoing negotiations with the International Monetary Fund (IMF) which commenced on November 7th and are expected to conclude by November 20th. Its not going to be an easy task for Pakistan to get an IMF bailout package as the United States holds the largest voting share in the Fund’s decision-making process.

Pakistan has had a history of economic failures due to inefficient govt policies that have always been directed towards targeting India in the form of either terrorism or a covert economic war by injecting fake currencies in the financial system. Instead of focusing on education, infrastructure and human development it drew closer to religious Islamic fanaticism and became a hot bed for Islamic Terror.

Pakistan is currently in a financial mess where it cannot stay afloat without bailout packages from China and the UAE and it still dreams of snatching Kashmir away from a country like India which is the world’s fastest growing economy with a defence budget of $52.5-bn, more than what the United Kingdom spends annually.

India’s military capabilities under PM Modi’s leadership are advancing rapidly towards challenging China in the 21st century leaving Pakistan so far behind that it has virtually become insignificant in the Asian power balance.

Pakistan’s current account deficit widened by 43 percent to $18 billion in the last fiscal year and its budget deficit has ballooned to 6.6 percent of economic output, creating a financial crunch that economists say will lead to a collapse if it doesn’t get Financial AID.

India should target Pakistan’s export markets and completely annihilate the remaining little industry that it has. This will lead to a faster guaranteed economic collapse and force Pakistan to further drop its defence budget.

Pakistan has not imported any major weapons system that can threaten India since the last batch of F-16s given in AID by the United States. All it relies on currently is cheap sub-standard Chinese Fighter Jets and a few Drones. At this rate, Pakistan should become a Banana Republic in less than a decade.

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Article written by Darshil R Patel exclusively for www.DefenceNews.in
Bsc. in CASFX (U.K.)
Location : Mumbai
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