Is Pakistan Better Placed than Sri Lanka

Sri Lanka and Pakistan suffer from huge debt burden beyond  the economic capacity of these countries to sustain and  which are beyond their repaying capability.

Imran in Colombo ( File Photo) 

by N.S.Venkataraman -MAY 15, 2022

Both Pakistan and Sri Lanka can be viewed as countries following the process of democracy for governance.  Elections are periodically conducted , there is media freedom and judiciary often pronounces judgements objectively in both the countries.

Pakistan has a population of around 220 million , whereas Sri Lanka's population is around 22 million. Most people are reasonably well  educated in both countries. One can view that  both the countries have considerable potential to achieve rapid economic growth  due to the availability of natural wealth and minerals etc., which can pave the way for sustained  developments in multiple directions.

 However, such growth is not taking place in both countries. Both Sri Lanka and Pakistan seem to be facing a certain level of instability and uncertain future.

Sri Lanka and Pakistan suffer from huge debt burden beyond  the economic capacity of these countries to sustain and  which are beyond their repaying capability. Both the countries have slipped in honouring the debt repayment obligations.

 External Debt in Pakistan increased to around 130.6  billion USD  in the fourth quarter of 2021 from 127 billion USD  in the third quarter of 2021.  Sri Lanka, through repeated cycles of borrowing since 2007, has piled up USD 11.8 billion worth of debt .Considering  the size of economy and population, both Pakistan and Sri Lanka can be viewed as seriously debt ridden countries with foreign exchange reserves at precarious level. Both these countries are now running to IMF and other countries with begging bowl  for more loans  and they  are not receiving  any sympathetic hearing , as other countries  are not convinced about the capability of both Sri Lanka and Pakistan to repay the debt  in the present conditions faced by them.

Considering the   gravity of the economic conditions in Pakistan, financial experts think that Pakistan could be only a few months behind Sri Lanka in the intensity of the financial and economic crisis.

While a mass uprising has taken place in Sri Lanka due to   scarcity of essential commodities and skyrocketing prices , Pakistan needs to remain warned that such conditions may take place in Pakistan too, if international  help would not be forthcoming in financial terms immediately.

Apart from the comparison of economic mess between Sri Lanka and Pakistan, Pakistan faces more serious conditions in terms of internal   stability due to the stranglehold of  religious extremists, resulting in frequent  violent clashes and explosions , killing innocent people . Pakistan is widely viewed and even classified by some international agencies as   country with terrorist groups. Several countries have even refused to send their sports team to play in Pakistan until recently.

Unlike Sri Lanka, Pakistan has a number of nearby countries including Afghanistan and China.  While the Taliban controlled Afghanistan is now a big headache for Pakistan, China has already taken a stranglehold  over  Pakistan’s industrial and economic scenario, due to the One Belt One Road (OBOR) scheme  involving several road and other infrastructure projects in Pakistan executed by China  with loan from China ,  adding to Pakistan’s financial burden.

It appears that China virtually considers Pakistan as an  extended territory  for all practical purposes  and will never leave it’s vice -like grip over Pakistan.  It is evident that there is resentment amongst Pakistan people about   activities of Chinese in Pakistan , as seen   from the frequent attacks on Chinese in Pakistan . Pakistan government has to depute it’s armed forces to   provide security  for Chinese in Pakistan. 

Pakistan has a huge obsession  with the Kashmir dispute  against India , which could be solved by  matured leadership from both the countries. 

Pakistan is spending on it’s military much beyond it’s capacity  due to confrontation with India over the Kashmir dispute  and  seems to be focussed on creating unrest in Kashmir by supporting terrorism in Kashmir.  Such strategy of Pakistan are increasingly seen to be counterproductive for Pakistan , as it is getting international bad name due to it’s support for terrorism in Kashmir.

Unlike Sri Lanka now, there are also separatist  forces in Pakistan operating in places like Baluchistan.

 With an economic crisis  accompanied by  political instability due to unacceptable level of bickering between political parties and family control of political parties , Pakistan is in an unenviable situation today.

Many people believe that the problems faced by Sri Lanka today are not really insurmountable problems  but  there is a view that Pakistan problems are more severe  and Pakistan is not better placed than the crisis ridden Sri Lanka in anyway.