142 Global News Post 3

 [Photograph of a Pakistani food stall in Islamabad, Pakistan]. (July 2, 2016) https://www.dawn.com/news/1268504

Pakistan is facing a terrible economic situation, with the country having gone bankrupt. The problem has been caused by corruption, for which everyone in the establishment, bureaucracy, and politics is responsible. Pakistan has sought assistance from the IMF, but the solution to its problems lies within the country itself. One suggestion in the article mentioned is to “sell two golf clubs built on expensive government land, which could pay off a quarter of the country’s debt” (The Economic Times, 2023). However, despite the availability of such solutions, no one in the country is taking the necessary steps to implement them. If Pakistan were to sell these golf clubs, it would be a significant step in reducing its burden of debt. It could then explore other solutions to address its financial issues.

Inflation gets bad when you keep borrowing money and asking other countries for help. To pay off the loans the prices go up on the thing that people need on daily bases. The article says “The yearly inflation hit a new high of nearly 40 percent this week. The inflation surged to 38.42 percent this week in cash-strapped Pakistan as the hike in the prices of essential commodities continued to rise” (Economic times). This is very bad for the civilians, and this will create more poverty and more problems in the nation.

Persistent borrowing and seeking external aid can lead to inflation, as prices of essential commodities rise to pay off the loans. As reported in the article, the inflation rate in Pakistan hit a record high of nearly 40 percent, with essential commodity prices continuing to increase (The Economic Times, 2023). This situation is particularly damaging to the people, as it can worsen poverty and exacerbate existing problems in the country.

Pakistan must find a solution to its economic problems from within the country, rather than relying on external aid from institutions such as the IMF or other nations. The government needs to explore ways to reduce its expenditure and lower inflation, which will benefit its citizens by making essential goods more accessible. Looking inward for solutions is crucial for Pakistan to become self-sufficient and address its financial challenges.

This news is interesting due to the current economic situation in Pakistan and its potential impact on the country’s defense capabilities. The article you mentioned discusses Pakistan’s Defense Minister’s confession that the country is already bankrupt and his suggestion to sell golf clubs to pay off some of its debts. This raises concerns about Pakistan’s ability to finance its defense sector, which could have significant implications for its national security and foreign relations. Additionally, the article also gives insights on the economic challenges that Pakistan is facing.

References: Economic Times, 2023.   https://economictimes.indiatimes.com/news/international/world-news/pakistan-defence-minister-confesses-country-is-already-bankrupt-says-selling-golf-clubs-could-pay-off-one-fourth-debt/articleshow/98049747.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst