Pakistan in MAJOR economic crisis, faces debt of Rs 21150000000000, now THIS move by India set to cause more pain to Sharif govt, PM Modi plans to…

New Delhi: Bankrupt Pakistan is in the midst of a severe economic crisis. Crippled by mounting debt and a lack of financial resources to sustain basic governance, the country is now appealing to the international community for aid. The crisis in Pakistan shows that terrorism has never been good for any country. Whoever has tried to promote it has never been able to overcome poverty. However, it seems like Pakistan has not learnt from its mistakes and in no mood to stop its actions. On April 22, terrorists opened fire on innocent people in the Baisaran Valley of Pahalgam, Jammu and Kashmir, killing 26 innocent tourists. Following this incident, the Modi government has resolved to teach Pakistan a lesson and is taking a slew of actions. However, Pakistan is also fearful that India might retaliate through military action.

Here are the diplomatic steps taken by India against Pakistan:

  • India has, for the first time, suspended the Indus Waters Treaty — something that was not done even during the 1971 war or the Kargil conflict.
  • Visas issued to Pakistanis were cancelled and they were ordered to leave the country within 48 hours.
  • The Attari border was sealed to halt any kind of direct trade between India and Pakistan.

Heavy Debt on Pakistan

Pakistan’s economy is already in a state of collapse, and its debt continues to increase day by day. The country is often seen pleading for help from institutions like the IMF or the World Bank. Recently, Pakistan has requested 40 billion yuan (approximately 1.4 billion USD) from China, which is expected to be disbursed by the end of 2025. Currently, Pakistan is burdened with a debt of 70.36 trillion Pakistani rupees, which is equivalent to approximately Rs 21.15 trillion in Indian currency.

Only Three Months of Foreign Exchange Reserves Left

The State Bank of Pakistan has said that the country’s total foreign exchange reserves stood at USD 15.436 billion as of April 18, 2025. India, on the other hand, spends around USD 62 billion every month on exports and imports. This means India spends about four times more on foreign trade in a single month than Pakistan’s total reserves.

Pakistan spends approximately USD 54 billion annually on exports and imports. Given this, it can be inferred that Pakistan has enough foreign exchange reserves to sustain just three months of its international trade requirements.

Pakistan’s economy suffers a major blow

It is important to note that India had already stopped all its direct imports from Pakistan after the Pulwama attack. Trade with Pakistan was continuing only indirectly, via third countries. However, on Saturday, May 2, India announced a complete halt to both direct and indirect imports from Pakistan, which is expected to have an even deeper impact on its economy.

Between April and January of the 2024–25 fiscal year, India exported goods worth USD 447.65 million to Pakistan, while imports from Pakistan stood at only USD 0.42 million. In the full 2023–24 fiscal year, exports were USD 1.18 billion and imports were USD 2.88 million — a share that doesn’t even make up 0.1% of India’s total global trade. Now, even this income for Pakistan is expected to cease completely.

Currently, Pakistan’s economy is valued at around $340 billion, with an estimated growth rate of 2%. However, due to India’s recent actions, this growth may decline further.

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