The Failing Economy of Pakistan | Economics Explained

Pakistan's economy has recently come under pressure due to high levels of debt, currency devaluation, floods, and high prices for imported food and energy. So how bad are things likely to get and what are the possible solutions?

0:00 - 3:34 Intro
3:35 - 5:49 Emerging market debt
5:50 - 6:45 Advanced economies
6:46 - 7:50 Pakistan's vulnerability
7:51 - 11:00 Asian financial crisis
11:01 - 12:00 Pakistan's previous resilience
12:01 - 14:46 Why Pakistan is struggling today
14:47 - 17:00 Solutions
17:01 National leaderboard

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[rakeshv.]

Fun Fact: Not even a single Pakistani prime minister has ever completed their term.

[emmanuelmacron]

Asking for loans is halal, but repaying them is haram as per PM of Pakistan.

[taterkaze]

Ranking Pakistan slightly above Brazil doesn't make much sense. Brazil doesn't need a bailout, its economy is larger, its per-capita GDP is 5x greater, and it has a well-established industrial base. Perhaps this expresses a flaw in the economic leaderboard concept, that snapshots of national economies taken at different points in time aren't truly comparable.

[ishanp]

For anyone who is well informed about South Asia, the real question is not what is happening to Pakistan, it is how in the WORLD is Pakistan still going.

[prateeksharma]

*Youtuber :- mentions pakistan*
Gets views from pakistan
*Mentions its failing*
Gets views from India
*Youtuber :- stonks📈*

[midnightflare]

I love how even EE points out that the biggest privilege in the world is the ability to be an idiot without financial ruin.

[greenearth]

Pakistan being ranked higher than Brazil, Argentina and Turkey doesn't make much sense to be honest. Those countries have much more sophisticated industries, higher GDP per capita, etc.

[Steve_Gates]

As an Indian, a part of me felt bad when I heard about natural disasters there but other part quickly reminded me that this is the country whose official policy was to "bleed India through thousand cuts."

[anay]

Just watched this episode. All good but it fails to explain the major cause of Pakistan's economic collapse i.e. Corruption at institutional level by military. The reason Pakistan's economy was flourishing till 2018 was because USA was in Afghanistan, and Pak was indirectly getting US dollars for it. As soon as taliban took control and US left Afghanistan, the main source of dollars disappeared overnight, putting pressure on local business to generate revenue especially dollars. As a result forex depleted. Also the rise of security threat from Afghanistan added additional stress on Pakistan.

[ajm.]

the unhealthy influence of military on each and everthing makes the matters worse.

[sudeep]

You missed one major point. Big % of Pakistan's economy was boosted by Foreign Aid coming from Western countries (mainly U.S.) and China. But as the interest of these countries are now moving more towards Indo-Pacfic region so that source of income for Pakistan is also declining.

[i-z-g]

I live in pakistan in the city of rawalpindi and I know that the situation here is a lot worse than you expect.

[john_doe_not_found]

My takeaway from this is that as bad as Pakistan is, it still ranks higher than Brazil on the EE leaderboard.

[saitama]

Pakistan hasn't still gotten the basics right
Without stable government whatever you do will not matter so unless they can seperate their military from the governance it will continue to fail

[Creative___Mind]

You forgot to mention the clusterfuck that is Pakistan's political and economic situation my man. Those affect investor and economic confidence. And the inflation and corruption... let's not talk about them.

[xxjojoxx]

Target audience: Pakistani
Actual audience: Indians

[hassaanbukhari]

Living in Pakistan I want to mention the foremost cause which is that Pakistanis have been fooled for most of their history by the ones who rule them not just politically but economically and socially as well. And it can't be fixed until people open their eyes. Pakistan is in a situation where it needs a similar socioeconomic revolution as of French did.

[EhteshamShahzad]

Pakistani here. Would like to add a few comments:

* 11:41 Pakistan's economy was resilient on paper. The military aid Pakistan got was mostly funnelled into consumption lead growth. Source: Bust, boom, and bust — Mush’s Muddy economic footprint | Profit Explains
* 13:12 the building on the bottom left has been "under construction" for more than 10 years. It is location at one of the most prime locations of Lahore. Yet, it remains empty, not being used to add value to the economy. This issue is not only with this building, but a lot of land through out the country.
* 13:27 Freezing petrol and electricity prices was a political move. PM Khan knew he was going to be overthrown soon, so he laid out the trap. When the new gov came into power they were hesitant to correct course for months, as they believed it would be an unpopular move. In the meanwhile, the gov burned a significant amount of our foreign reserves.
* 14:12 In order to resume the IMF program, the gov is no longer controlling the exchange rate.
* 4.2 seems a bit generous, especially compared to Turkey's 3.8.

[owaistariq]

As a Pakistani I'm surprised with the ranking on the leaderboard. I think its optimistic to say the least 😅

[empatil]

Pakistan was deeply impacted by India’s demonetization. Pakistan could no longer print Indian rupees and send them to India