{"id":225075,"date":"2023-02-04T20:49:28","date_gmt":"2023-02-04T15:19:28","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=225075"},"modified":"2023-02-20T14:32:50","modified_gmt":"2023-02-20T09:02:50","slug":"pakistan-conundrum-islamabads-economic-collapse-wont-be-good-for-india","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/pakistan-conundrum-islamabads-economic-collapse-wont-be-good-for-india\/","title":{"rendered":"Pakistan Conundrum – Islamabad\u2019s economic collapse won\u2019t be good for India"},"content":{"rendered":"\n

Source<\/strong>: The post is based on the article\u00a0\u201cPakistan Conundrum – Islamabad\u2019s economic collapse won\u2019t be good for India\u201d <\/strong>published in The Times of India <\/b>on 4th February 2023<\/b>.<\/p>\n

Syllabus<\/strong>: GS 2 \u2013 India and its neighbourhood- relations.<\/p>\n

Relevance<\/strong>: About Pakistan’s economic crisis.<\/p>\n

News<\/strong>: Recently, the IMF review mission rejected Pakistan\u2019s debt management plan and demanded a steep increase in electricity tariffs to restrict subsidies. In response, Pakistan’s PM agreed to implement the harsh conditions.<\/p>\n

What is the status of Pakistan’s economic crisis?<\/strong><\/h2>\n

Pakistan is in the midst of a deep forex crisis with reserves down to just $3. 09 billion as of January 27. This can cover only 18 days of imports. Thus, Pakistan desperately needs to complete the pending ninth review of the IMF to avoid default.<\/p>\n

Why Pakistan’s power sector is a cause of concern?<\/strong><\/h2>\n

Pakistan\u2019s power sector has a)<\/strong> unsustainable subsidies, b)<\/strong> poor transmission, c)<\/strong> lack of accountability, c)<\/strong> privatisation of the power sector led to the creation of 12 local distribution companies that mostly provided employment to military retirees, and d)<\/strong> The government is also paying more than Pakistani Rs 1 trillion as Tariff Differential Subsidy.<\/p>\n

Why does India need to worry for Pakistan’s economic crisis?<\/h2>\n

Pakistan is also facing a new spate of home-grown terrorism. A total collapse of the Pakistani government could see the entire stretch from the Iran-Afghanistan border to Lahore becoming an extremist hotbed.<\/p>\n

This will complicate India\u2019s security challenges and lead to an even greater Af-Pak problem than the one the world has faced.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article\u00a0\u201cPakistan Conundrum – Islamabad\u2019s economic collapse won\u2019t be good for India\u201d published in The Times of India on 4th February 2023. Syllabus: GS 2 \u2013 India and its neighbourhood- relations. Relevance: About Pakistan’s economic crisis. News: Recently, the IMF review mission rejected Pakistan\u2019s debt management plan and demanded… Continue reading Pakistan Conundrum – Islamabad\u2019s economic collapse won\u2019t be good for India<\/span><\/a><\/p>\n","protected":false},"author":10311,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[212,10496],"class_list":["post-225075","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-2","tag-times-of-india","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/225075","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10311"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=225075"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/225075\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=225075"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=225075"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=225075"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}