Pakistan is currently in a phase of crisis related to its economy. Debt is on its peak and devaluation of the rupee is creating a hectic situation for the economy as a whole. The reasons for this crisis can be found from the historical overview that can elaborate on the causes of present situations. Pakistan is among those countries who have gained independence. This territory has experienced an era of slavery under British rule. The reasons below can somehow satisfy the question of why the economy of Pakistan is experiencing a crisis.
- Thehistory shows that Pakistan was once greatly exploited by the west in terms of its rich resources and labour. Under British rule, the subcontinent suffered a lot that later caused hurdles in the way of progress.
- The agenda ofcorruption gets great attention when the underlined issues of crisis in Pakistan are under discussion. Corruption has its roots in all levels of bureaucracy and the whole nation as well.
- The increasing event of devaluation of rupeeon a daily basis is also one of the causes of the crisis. The less competitive exports are making the conditions worse for the economy on global markets. This is also encouraging the trend of seeking debt from IMF.
- The lack of advancementof technology, infrastructure as well as knowledge are the greatest hurdles when it comes utilizing the natural resources of its land.