Pakistan is in a political and economic death spiral that could push it over the same cliff as #SriLanka, as internal conflict, regional instability, and global uncertainty all threaten the survival of the #state.
#Pakistan has struggled to recover from the #pandemic and is now grappling with another spike in #COVID-19 cases. But the country faces life-threatening challenges similar to what Sri Lanka faced before the island government collapsed amid 50 percent #inflation; food, fuel, and medicine shortages; power cuts; and, in May, its first failure to make an interest payment on a foreign loan. For Pakistan, life support is a drip feed of loans from foreign friends and emergency injections from multilateral lenders.
Some of Pakistan’s economic woes are internal and even self-inflicted, with subsidies thrown around like confetti, for instance, as successive governments have failed to boost exports that would benefit the working class to balance high-end imports for the #military and political elite.

https://foreignpolicy.com/2022/08/05/pakistan-sovereign-debt-imf-inflation/ #economics #crisis #war #ukraine #usa #imf #taliban