Hello and welcome to my blog. I’m Waqas Ahmad from sialkot Pakistan.

According to Bloomberg’s recent report Pakistan is almost on the top of the list of countries which are maybe going to default in 2022. So, the question is for considering that how strong this report is? And what are the factors behind the default of any single county in the report.

An other question is, why do countries default?

Here are some reasons of defaults of countries.

1- Economic stagnation

2- Political instability

3- Financial mismanagement

4- Unemployment etc.

First of all if we want to analyze the current situation of Pakistan we should have to study these factors one by one.

1- Economic stagnation

The first and main reason behind the default of any country is Economic stagnation. When we see the Pakistan’s Economic position, No doubt it’s not going in the favor of public and secure future of country. The whole nation is depressed now a days unfortunately. The stock market index is going down day by day. That’s why the local investors are not ready to invest along with international crocodiles. The per Capita income of people is very low and US DOLLAR is flying more high all the times against Pakistan’s rupee history.

2- Political instability

Another factor behind this vulnerable report is political instability in Pakistan. It’s said that political stability plays key role in economic stability. These two are inter linked with each other. In Pakistan now a days and infact in the whole 74 years of history of Pakistan no government completed her tenure unfortunately. So this could be the a huge factor of unseen any long term project in any department of Pakistan from administration to establishment.

3- Financial mismanagement

It’s a quote that if you you have millions of dollars or tons of gold you will lost immediately if you don’t have a good plan for investment or business. Same as in Pakistan it looks like Pakistan’s government don’t have any solid or good plan for financial management to save national reserves. So it’s of course a genuine reason behind current situation of Pakistan.

4- Unemployment

Unemployment is the biggest cause or problem in the whole world after COVID-19. Like, a report says only in the US there 6 million people suffering from unemployment and they are also illegal individuals as well. And in Pakistan one- fourth of the population is also unemployed. This is a huge number that covers millions in it. Unemployment is also inter linked with political instability and financial mismanagement.

CONCLUSION

To conclude our arguments we can say these all the problems are in relationships with each other but the question is if unemployment is caused by the political instability and financial mismanagement then in the US which is said to be the strongest democratic or the best administration system in the existing world. Why there is unemployment in it’s peek in US.

So definitely it’s not a good time for Pakistan or on Pakistan but it’s hopefully all the stack Holders will do there best for the future of country for political stability as well as economic stability.

Thanks for reading

Regards- WAQAS AHMAD