Pakistan's economy is sinking even after taking loans, poverty is increasing; Shocking revelations in World Bank report.
India-Pakistan: A World Bank report has revealed that in the last ten years, while poverty has decreased on a large scale in India, poverty in Pakistan has increased more than before.
India-Pakistan: India and Pakistan may be neighbouring countries, but there is a huge difference between the situations of both. A new data from the World Bank has revealed that in the last ten years, while poverty has decreased on a large scale in India, Pakistan is surrounded by economic problems.
Citing World Bank data, NDTV said in its report that while India's development model focused on growth and poverty removal, Pakistan kept sinking in increasing debt due to financial mismanagement. Here, financing of terrorism-related activities also kept increasing continuously.
Poverty rising in Pakistan
The World Bank has recently set the global poverty line between $2.15 and $3 per person to measure economic conditions and inflation. Even at this high benchmark, India's pace of development was worth watching.
According to the World Bank's Poverty and Shared Prosperity report, extreme poverty in India has come down from 27.1 percent in 2012 to only 5.3 in 2022. The number of people living in extreme poverty in the country has come down from 344.47 lakh in 2011-12 to 75.24 lakh in 2022-23. That is, there has been a reduction of 269 lakh, which is more than the entire population of Pakistan.
Pakistan's economy dependent on debt
In contrast, the proportion of its population living in extreme poverty in Pakistan increased from 4.9 percent to 16.5 percent between 2017 and 2021. Here the overall poverty rate, based on an income of $ 4.2 per person per day, increased from 39.8 percent in 2017 to more than 44.7 percent in 2021.
Pakistan's economy is heavily dependent on aid from other countries and loans from foreign banks. Pakistan has taken 25 bailout packages worth $ 44.57 billion from the IMF. Apart from this, it has taken a loan of $ 38.8 billion from the World Bank, Asian Development Bank and Islamic Development Bank.
Along with this, Pakistan has also taken a loan of more than $ 25 billion from China. It also has $ 7.8 billion in Eurobond and Sukuk borrowings. Pakistan has also received financial help from countries like Saudi Arabia, UAE and members of the Paris Club.
The army controls politics and economy
Ajay Bisaria, a former Indian High Commissioner to Pakistan, while talking to NDTV said, "The world cannot solve the problem of Pakistan until the problem of the heavy presence of the Pakistani army in politics and economy is resolved. Resource allocation in Pakistan is in the hands of the army, so the funds sent are misused by the army and in building the terrorist network. All donors should be aware of the data which shows that only the Pakistani army is flourishing with the bailout package."
