Sri Lanka and Pakistan suffer from huge debt burden beyond the economic capacity of these countries to sustain and which are beyond their repaying capability.
by N.S.Venkataraman
Both Pakistan and Sri Lanka can be viewed as countries following the process of democracy for governance. Elections are periodically conducted , there is media freedom and judiciary often pronounces judgements objectively in both the countries.
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| Imran in Colombo ( File Photo) |
Pakistan has a population of around 220 million , whereas Sri Lanka's population is around 22 million. Most people are reasonably well educated in both countries. One can view that both the countries have considerable potential to achieve rapid economic growth due to the availability of natural wealth and minerals etc., which can pave the way for sustained developments in multiple directions.
However, such growth is not taking place in both countries. Both Sri Lanka and Pakistan seem to be facing a certain level of instability and uncertain future.
Sri Lanka and Pakistan suffer from huge debt burden beyond the economic capacity of these countries to sustain and which are beyond their repaying capability. Both the countries have slipped in honouring the debt repayment obligations.
External Debt in Pakistan increased to around 130.6 billion USD in the fourth quarter of 2021 from 127 billion USD in the third quarter of 2021. Sri Lanka, through repeated cycles of borrowing since 2007, has piled up USD 11.8 billion worth of debt .Considering the size of economy and population, both Pakistan and Sri Lanka can be viewed as seriously debt ridden countries with foreign exchange reserves at precarious level. Both these countries are now running to IMF and other countries with begging bowl for more loans and they are not receiving any sympathetic hearing , as other countries are not convinced about the capability of both Sri Lanka and Pakistan to repay the debt in the present conditions faced by them.
Considering the gravity of the economic conditions in Pakistan, financial experts think that Pakistan could be only a few months behind Sri Lanka in the intensity of the financial and economic crisis.
While a mass uprising has taken place in Sri Lanka due to scarcity of essential commodities and skyrocketing prices , Pakistan needs to remain warned that such conditions may take place in Pakistan too, if international help would not be forthcoming in financial terms immediately.
Apart from the comparison of economic mess between Sri Lanka and Pakistan, Pakistan faces more serious conditions in terms of internal stability due to the stranglehold of religious extremists, resulting in frequent violent clashes and explosions , killing innocent people . Pakistan is widely viewed and even classified by some international agencies as country with terrorist groups. Several countries have even refused to send their sports team to play in Pakistan until recently.
Unlike Sri Lanka, Pakistan has a number of nearby countries including Afghanistan and China. While the Taliban controlled Afghanistan is now a big headache for Pakistan, China has already taken a stranglehold over Pakistan’s industrial and economic scenario, due to the One Belt One Road (OBOR) scheme involving several road and other infrastructure projects in Pakistan executed by China with loan from China , adding to Pakistan’s financial burden.
It appears that China virtually considers Pakistan as an extended territory for all practical purposes and will never leave it’s vice -like grip over Pakistan. It is evident that there is resentment amongst Pakistan people about activities of Chinese in Pakistan , as seen from the frequent attacks on Chinese in Pakistan . Pakistan government has to depute it’s armed forces to provide security for Chinese in Pakistan.
Pakistan has a huge obsession with the Kashmir dispute against India , which could be solved by matured leadership from both the countries.
Pakistan is spending on it’s military much beyond it’s capacity due to confrontation with India over the Kashmir dispute and seems to be focussed on creating unrest in Kashmir by supporting terrorism in Kashmir. Such strategy of Pakistan are increasingly seen to be counterproductive for Pakistan , as it is getting international bad name due to it’s support for terrorism in Kashmir.
Unlike Sri Lanka now, there are also separatist forces in Pakistan operating in places like Baluchistan.
With an economic crisis accompanied by political instability due to unacceptable level of bickering between political parties and family control of political parties , Pakistan is in an unenviable situation today.
Many people believe that the problems faced by Sri Lanka today are not really insurmountable problems but there is a view that Pakistan problems are more severe and Pakistan is not better placed than the crisis ridden Sri Lanka in anyway.
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