Pakistan economy on brink, Afghanistan fears repercussions
New Delhi, July 19
Pakistan’s economy is in danger of a collapse due to the economic fallout of the Russia-Ukraine war, according to a report by Michael Rubin, a senior fellow in Washington-based magazine, National Interest.
Last week, Fitch Ratings identified 17 countries, including Pakistan, which could be on the verge of default. Russia has been included in the list because despite having the money it has been unable to pay its foreign creditors as the US Government has barred entities from accepting money from Moscow.
“Russia’s invasion of Ukraine sent economic shockwaves across not only in Europe, but also in the broader Middle East. Pakistan, whose economy is already weak because of decades of corruption, mismanagement and unstable governance, has been particularly vulnerable,” said the report. Afghanistan’s Chamber of Commerce and Investment has said the collapse of Pakistan’s economy would have a negative effect on Kabul. “If the prices of wheat are cheap in Afghanistan, it will be smuggled, but so far it has no happened,” said K Alikozai of the ACCI.
