Work

Pakistan's Economy: Fallout of 2022 Economic Distress Magnified the Need for Structural Reforms

Year: 2024

Type: article

Abstract: This present paper discusses the main issues gripping Pakistan's economy. It takes a long‐term perspective to indicate that several economic issues are structural, going back at least 60 years. The present paper substantiates that Pakistan's current issues were aggravated during 2022, particularly by the damage caused by large scale floods. Government relief efforts increased budget deficits, public debt, and inflation. Crop failures dampened export earnings, increased the current account deficit and added urgency to the need to mobilize foreign exchange for foreign debt servicing during 2023. In 2024, resolving foreign debt servicing obligations is the touchstone for achieving macroeconomic stability and initiating reforms to change structural factors inhibiting Pakistan's economic growth.

Source: Asian Economic Policy Review

DOI: 10.1111/aepr.12486

Author: Pierre van der Eng

Institution: Australian National University

Language: English

Topic: Economic, financial, and policy analysis

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: hybrid

Estimated APC paid: $2,580