Pakistan is in a frighteningly similar economic condition to that of Sri Lanka. Sri Lanka had faced a very similar financial situation before their default. In light of the present state, experts believe that a few days or weeks are left before a huge disaster.
Further, the experts believe that the hybrid system is responsible for Pakistan’s current affairs. The various experts in Pakistan society, including the observers, the political elite, analysts and economists, realized almost two years ago (2021) that this experiment of the hybrid system has failed.
The project was installed in August 2018, utilizing all unlawful resources and means and billions of investments. However, they did not anticipate the intensity and adverse effects of the project in the long run. Meanwhile, the economic analyst of Pakistan, Khurram Hussain, believes that Pakistan can escape the situation only by relying on aid from the International Monetary Fund. Further, the financial analyst noted that the country would have to pay a high political price.
Hussain also noted that before assuming the office of the Prime Minister, Shahbaz Sharif held several meetings with Miftah Ismail. During the meeting, they discussed the country’s economic condition. Ismail had suggested to the prime minister that to rectify the financial disaster. The government would have to increase the prices exorbitantly. However, when the government acted on this advice, the PM’s political party started to protest.
Following this, the party members contacted the Prime Minister’s brother and former Prime Minister of Pakistan, Nawaz Sharif. After a series of meetings in London, Pakistan witnessed a shift in the finance ministry, and Ishaq Dar replaced Miftah Ismail as the minister of finance.
Following the change, economic expert Khurram revealed that the appointment had a diverse effect on the economy of Pakistan. This he did by stopping the IMF programme. In light of history and the ongoing economic crisis, experts expect the situation to remain the same or even worsen in the upcoming year.
Accordingly, the situation of Sri Lanka must serve as a warning bell for Pakistan, which is steadily reaching the same condition as the former country. To bail out Sri Lanka, IMF asked Sri Lanka to comply with various demands of the international organization. These demands include a reduction in the army. If faced with a similar situation, Pakistan will also need to comply with the directives and requests of IMF