Economy crisis in Pakistan

Ramesh Kumar
The Islamic Republic of Pakistan is blessed with natural resources. However, it is passing through a dark sea of economic crisis. These issues are undermining the basis of Pakistan’s economy. Currently, Pakistan is facing many economic crises like corruption in taxes, currency devaluation, and inflation. Corruption is causing alarming situations in Pakistan when the public is hiding its resources from the government in order to avoid taxes. Due to this injustice done by the public to the government, Pakistan is facing poor economic conditions and this is destroying its image globally. Moreover, currency devaluation is causing Pakistan to suffer from the worst economic circumstances. Nowadays, the rupee has been depreciated due to the unavailability of resources as well as misuse of natural reservoirs at the aggregate level. There is a probability that in the near future current economic miseries may force Pakistan towards bankruptcy. Furthermore, inflation is also the main reason for the economic crisis. It is a general rise in prices due to increasing demand for goods and services, and increasing money supply. Due to an increase in money supply, the buying power of ordinary people increases. Ordinary demand increases and, eventually, it causes inflation. Therefore, the government of Pakistan should take necessary measures in order to deal with these serious economic crises as well as to avoid bankruptcy.