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3 Reasons Behind Cuba’s Widespread Power Grid Failure Amid Deepening Crisis

October 21, 2024, 5:53 pm

Cuba’s national electrical grid collapsed for the fourth time in 48 hours on Sunday, plunging the island’s 10 million residents into darkness. The power outages come as Cuba grapples with severe shortages of medicine, food, and fuel, compounding the crisis.

The first grid failure occurred on Friday when the country’s largest power plant shut down, triggering widespread blackouts. Since then, the grid has failed three more times, prompting growing frustration across the nation.

Cuban Prime Minister Manuel Marrero Cruz attributed the crisis to aging infrastructure and fuel shortages, further exacerbated by the recent impact of Hurricane Milton. However, the country’s power grid problems have been years in the making, with a report from NPR highlighting the fragile state of Cuba’s energy system.

Three Key Reasons Behind Cuba’s Power Crisis:

Aging Power Plants: Cuba’s power plants are in disrepair, suffering from years of neglect. Prime Minister Marrero Cruz acknowledged the crumbling infrastructure as a key factor in the ongoing crisis, leaving the grid unable to handle the demands placed on it.
Fuel Supply Disruptions: The island relies heavily on fuel imports to sustain its power grid. However, shipments have drastically decreased, particularly from Venezuela, Cuba’s main supplier. Economic challenges in Venezuela, combined with reduced supplies from Mexico and Russia, have severely limited Cuba’s ability to generate electricity. US sanctions have also complicated efforts to secure affordable fuel.
Slow Investment in Alternative Energy: Although efforts to upgrade the grid with alternative energy sources have been underway, progress has been slow. A project to build 31 solar energy centers isn’t expected to be completed until next year, leaving the country dependent on its struggling thermoelectric plants.

The situation has been worsened by economic hardship, inflation, and the fallout from the COVID-19 pandemic, which decimated Cuba’s tourism industry. US sanctions under former President Donald Trump, which reclassified Cuba as a “state sponsor of terrorism,” have also restricted the country’s access to crucial resources.

Protests erupted earlier this year in Santiago de Cuba over shortages of electricity and food. In response, the Cuban government has been forced to ration supplies, including limiting bread for children and pregnant women. Some experts say the current conditions are worse than those of the Special Period following the collapse of the Soviet Union in the 1990s.

To manage the crisis, the government announced the cancellation of classes and instructed non-essential workers to stay home. The US Embassy in Havana also announced it will only provide emergency services.

Prime Minister Marrero Cruz, in a delayed televised address on Thursday, said that much of Cuba’s limited production has been paused to prevent complete power outages. “We have been paralyzing economic activity to generate power for the population,” he explained.

Mexico First Female President: Claudia Sheinbaum Sworn In Amid Challenges

October 2, 2024, 11:00 am

Claudia Sheinbaum made history on Tuesday by becoming Mexico’s first female president. She inherits a country facing significant challenges, including economic issues, escalating violence, and political division. As she took the oath of office in Congress, legislators enthusiastically chanted “Presidenta! Presidenta!” marking a pivotal moment in Mexico’s 200-year history.

Promises of Social Continuity and Economic Reform

In her inauguration speech, Sheinbaum emphasized her commitment to continuing the popular social programs of her predecessor, Andrés Manuel López Obrador (AMLO). These include expanded cash assistance programs for women and children, limits on gasoline and food prices, and increased housing and infrastructure development. She also vowed to foster business investment while promoting renewable energy and capping oil production.

However, Sheinbaum offered only limited changes to AMLO’s controversial security policy of “Hugs not Bullets,” which focuses on addressing the root causes of violence without directly confronting drug cartels. She pledged to increase intelligence and investigative efforts but rejected a return to the aggressive anti-cartel tactics of past administrations.

Rising Violence and Devastated Cities

Despite the promises of continuity, Sheinbaum faces pressing challenges with widespread cartel violence across Mexico. One immediate concern is the northern city of Culiacan, where ongoing factional fighting within the Sinaloa cartel has led to street battles. Violence is also surging in cities from Tijuana to Chiapas, exacerbating the humanitarian crisis of displaced citizens.

Sheinbaum’s first official trip as president will be to Acapulco, which is still reeling from the devastating effects of Hurricane John. This natural disaster compounded the damage caused by Hurricane Otis in October 2023, leaving the region in crisis.

Economic Concerns and US Relations

On the economic front, Sheinbaum must manage a large budget deficit, unfinished infrastructure projects, and rising debt, all while navigating strained relations with the United States. A potential victory by Donald Trump in the upcoming US presidential election threatens to complicate Mexico’s trade with its northern neighbor. Trump has already vowed to impose 100% tariffs on Mexican-made vehicles and has promised mass deportations, adding to Sheinbaum’s growing list of challenges.

Argentina Poverty Rate Hits Hard At 53% During First Half Of Javier Milei Presidency

September 28, 2024, 3:39 pm

Argentina’s poverty rate has surged to nearly 53% in the first half of Javier Milei’s presidency, highlighting the immediate effects of his stringent austerity policies. The government’s statistics agency reported that this is the highest poverty level in two decades, affecting 3.4 million Argentinians since his administration began.

Milei, a self-proclaimed “anarcho-capitalist,” assumed office in December with a promise to implement aggressive spending cuts aimed at curbing rampant inflation and addressing the budget deficit. His measures have included freezing pensions, reducing aid to soup kitchens, slashing welfare programs, halting public works projects, and laying off tens of thousands of public employees. Additionally, cuts to energy and transportation subsidies have led to rising living costs, diminishing the purchasing power of many families.

Kirsten Sehnbruch, a Latin America expert at the London School of Economics, remarked on the unprecedented spike in poverty rates, stating, “This new economic program is not protecting the poor. The jump is absolutely horrendous.” Despite the social impact, Milei’s policies have been welcomed by markets, investors, and the International Monetary Fund (IMF), with monthly inflation dropping from about 26% in December to approximately 4% in June. However, annual inflation remains exceedingly high at over 230%.

Community worker María Claudia Albornoz lamented the dire situation, stating, “Money is really worth absolutely nothing.” Meanwhile, Catalina, a 33-year-old ministry worker, expressed her fears of job loss after being informed that 2,500 employees would be laid off by year’s end.

While Milei’s approval ratings were once robust, recent surveys indicate a drop of nearly 15% in September, suggesting that public support may be waning. Christopher Sabatini, a senior fellow at Chatham House, cautioned about the potential dangers of Milei’s austerity measures, questioning their effectiveness in alleviating poverty.

Milei’s spokesperson defended the government, claiming it inherited a “disastrous situation” from previous administrations, and emphasized ongoing efforts to improve the country’s economic conditions.

Pakistan Set for 24th IMF Bailout Amid Economic Crisis

September 25, 2024, 2:18 pm

Pakistan is on track to receive its 24th financial rescue since 1958, with the International Monetary Fund (IMF) expected to approve a new bailout. The IMF board is scheduled to meet on Wednesday to discuss the aid package, which is anticipated to be around $7 billion.

Optimism from Pakistan’s Finance Minister

Finance Minister Muhammad Aurangzeb expressed optimism ahead of the IMF meeting, indicating that the loan would likely be approved. According to ARY News, Aurangzeb noted that under the deal, Pakistan would receive an initial tranche of $1-1.5 billion soon after approval.

IMF Conditions and Agreement

In July, Pakistan reached a staff-level agreement with the IMF, having met nearly all the conditions set by the global financial institution. This paved the way for the upcoming financial assistance, as reported by the Express Tribune.

Economic Prospects Look Positive

Aurangzeb highlighted Pakistan’s improving economic indicators, noting that the policy rate had been lowered, investor confidence was growing, and inflation was easing. Additionally, he mentioned the second phase of the China Pakistan Economic Corridor (CPEC) was about to begin, focusing on monetizing the infrastructure developed so far.

Improved Current Account and Market Conditions

The finance minister pointed out that Pakistan’s current account showed a surplus of $75 million in August. He added that with lower oil prices, a more stable dollar, and aggressive interest rate cuts, the country’s current account is expected to remain in good shape.

Aurangzeb remains hopeful that Pakistan’s economic situation will continue to improve in the coming months.

Pakistan Crisis: Social Media Shows Nation Decline Amidst Economic And Political Instability

August 22, 2024, 2:16 pm

Pakistan is grappling with severe economic, political, and security issues, as soaring inflation and political discord fuel public discontent. The crisis intensified following the 2022 ousting of Prime Minister Imran Khan, leading to diminished foreign reserves and increased reliance on IMF bailouts, further straining the economy.

کوئی نہیں ,کوئی نہیں, صرف چار بندے ہی تو مارے ہیں۔#Karsaz #Karachi #KarsazAccident #FailedStatePakistan pic.twitter.com/QXrG16C5QY

— Jawad Malik (@jawadmalik6785) August 21, 2024

Social media has become a platform for Pakistanis to express their frustrations, with the hashtag #FailedStatePakistan gaining traction. This hashtag has been used to highlight various issues, including a tragic accident on Karachi’s Karsaz Road on August 19. A speeding Toyota Land Cruiser, driven by Natasha Danish, collided with several vehicles, resulting in the deaths of sixty-year-old Imran Arif and his 22-year-old daughter Amna. Danish was arrested and charged with manslaughter and is currently on a 14-day judicial remand.

Pak Supreme Court was attacked by Islamists for giving a verdict in favour of Ahmadis.

The religious hatred & intolerance has spread lawlessness on the streets of Pak. Radicals are protesting against Chief Justice Qazi Faez Issa accusing him of blasphemy.#FailedStatePakistan pic.twitter.com/Dk2dgvznc9

— Ashmita Mehta (@MehtaAshmita_) August 20, 2024

Additional social media posts have criticized widespread corruption, including allegations against the military. Disturbing contrasts are highlighted, such as incidents of self-immolation over police corruption and politicians indulging in extravagant lifestyles amidst widespread poverty.

As Pakistan’s economic instability and political turmoil continue, citizens are increasingly voicing their concerns online. The hashtag #FailedStatePakistan has become a forum for expressing dissatisfaction and calling for urgent reforms.

Mali Grapple With Economic Hardship And Power Cuts Four Years After Military Coup

August 18, 2024, 4:06 pm

Four years after the military ousted Mali’s then-president and took control, many residents report worsening economic conditions and frequent power outages that are severely impacting businesses.

The August 2020 coup, which toppled the government of the West African nation, was fueled by widespread public dissatisfaction with corrupt leaders backed by former colonial power France, a growing jihadist insurgency, and mounting economic difficulties. Despite the change in leadership, many Malians are still waiting for improvements in their daily lives.

Economic Struggles and Power Cuts

Oumar Diarra, a furniture maker, expressed frustration over the ongoing power cuts, saying they have caused significant financial losses for many Malians. “The way they’ve handled the electricity situation is a problem. The government has to make an effort because we are suffering enormously,” Diarra told Reuters.

The power outages have not only disrupted businesses but have also taken a toll on households across the country. Allasana Ag Agaly, a silversmith, highlighted the broader impact, noting that when the head of a household cannot work due to power cuts, it affects the entire family.

Postponed Elections and Rising Poverty

The military rulers, who solidified their power with a second coup in 2021, have postponed elections that were initially scheduled for February, citing technical issues. This delay has added to the uncertainty and frustration among the population.

Economic growth in Mali is expected to slow to 3.1% this year, down from 3.5% last year, according to the World Bank. The extreme poverty rate is also on the rise, with about 90% of the population living in poverty.

Shifting Alliances and Hope for the Future

In addition to domestic challenges, Mali’s military government, along with those in neighboring Burkina Faso and Niger, has expelled French and U.N. troops that had been battling Islamist insurgents for a decade. Instead, these nations have sought assistance from Russia.

Despite the hardships, some residents remain hopeful. Alkady Haidara, a resident of the capital Bamako, views the current difficulties as a necessary step toward greater independence from France. “Political independence without economic independence is meaningless,” Haidara said, urging fellow Malians to remain patient during these trying times.

Pakistan’s Internet Clampdown: Censorship Hits Economy And Freedom

August 18, 2024, 2:50 pm

Pakistan’s government is facing criticism for its recent internet throttling measures, as activists and business leaders claim that the state is using these restrictions to suppress dissent. Since July, internet speeds across the country have plummeted by up to 40 percent, and popular messaging app WhatsApp has experienced disruptions affecting its document-sharing and voice note functionalities. This slowdown is believed to be linked to the government’s implementation of a new national firewall designed to monitor and control online activities.

Digital rights activists argue that the firewall is aimed at increasing surveillance and censoring political dissent, particularly targeting criticisms of the security establishment. Usama Khilji, a digital rights expert, told AFP that the firewall’s main function is to restrict criticism of the government and military, which has been embroiled in controversies and political interference.

Government’s Acknowledgment and Legal Challenges

The Pakistani government, which analysts say is influenced by the military, has been reluctant to publicly discuss the slowdown. Defense Minister Khawaja Muhammad Asif recently confirmed that a transition is underway, which will eventually restore internet services but include controls to prevent “threatening and defamatory content” against the state. This vague acknowledgment has done little to quell public concerns.

In response to the government’s actions, prominent journalist Hamid Mir has filed a legal challenge at Islamabad High Court, demanding transparency regarding the firewall’s implementation. The case is set to be heard on Monday, reflecting the growing frustration over the lack of clarity surrounding these restrictions.

Economic Consequences and IT Sector Strain

The internet slowdown is putting Pakistan’s economic recovery at risk, particularly affecting its IT sector. The Pakistan Software Houses Association estimates that the disruption could cost the IT industry up to $300 million. Shahzad Arshad, head of the Wireless & Internet Service Providers Association of Pakistan, warns that continued restrictions might lead to a significant exodus of businesses from the country, further damaging its economic prospects.

The government’s efforts to promote Pakistan as an “IT city” through advertisements in New York’s Times Square stand in stark contrast to the domestic reality of internet disruptions. This irony highlights the potential long-term damage to Pakistan’s reputation as a reliable hub for IT and technology services.

Impact on Fundamental Rights and Political Landscape

The broader implications of the internet controls extend beyond economic concerns, touching on fundamental rights and freedoms. Activists have long criticized the government for its tight grip on media and internet freedoms, which has already stifled free speech in the conservative country. The social media platform X (formerly Twitter) remains banned in Pakistan following its use to highlight alleged election rigging, further restricting the flow of information.

Shahzad Ahmad, head of the digital rights watchdog Bytes for All, warns that the firewall could erode trust among IT investors and undermine citizens’ fundamental rights. As political tensions continue to rise, the government’s actions are seen as part of a broader strategy to control dissent and maintain power.

In summary, Pakistan’s internet slowdown, attributed to the testing of a national firewall, is raising alarms about its economic impact, legal challenges, and implications for fundamental rights. The government’s move to control online spaces has sparked widespread concern among activists, business leaders, and citizens alike.

Pakistan PM Plans To Unveils Five-Year Economic Plan Amid Crisis

August 14, 2024, 5:46 pm

On Wednesday, Prime Minister Shehbaz Sharif announced plans to introduce a comprehensive five-year economic program aimed at alleviating Pakistan’s economic crisis. Speaking on the 78th Independence Day, Sharif emphasized the need for a fresh start with renewed vigor to address the nation’s current challenges. He urged Pakistanis to reflect on past mistakes and expressed optimism about imminent reductions in electricity prices, as reported by Radio Pakistan.

Commitment to Economic and Social Reforms

Sharif vowed to tackle inflation and lower electricity costs as crucial steps for revitalizing agriculture, industry, and boosting exports. He encouraged the youth to concentrate on education and skill development, warning against the negative influences of digital misinformation. In his Independence Day address, Sharif also paid tribute to the sacrifices made by Pakistan’s founders and reiterated the country’s support for Jammu and Kashmir’s right to self-determination.

Presidential Appeals for Unity and Recognition

President Asif Ali Zardari, in his Independence Day message, called for national unity, rule of law, and economic stability. He emphasized the importance of upholding democratic institutions and reaffirmed Pakistan’s support for the rights of Kashmiris and Palestinians. Additionally, Zardari announced that awards will be conferred on 104 individuals, including former Prime Minister Zulfikar Ali Bhutto and Olympic gold medalist Arshad Nadeem, for their exceptional contributions to Pakistan. The awards will be presented at a special ceremony on March 23 next year.

Tornadoes Became A Billion-Dollar Threat To US Economy

July 16, 2024, 3:53 pm

Joplin Tornado: A Costly Wake-Up Call

On May 22, 2011, a beautiful day in Joplin, Missouri, turned tragic as a massive EF5 tornado descended upon the city, leaving behind almost $3 billion in damage. Troy Bolander and Ann Leach, among other residents, sought shelter as the tornado wreaked havoc. The storm claimed 161 lives and destroyed thousands of buildings, making it the costliest tornado in US history.

Tornadoes: A Growing Billion-Dollar Problem

Tornadoes are a significant financial burden for the US, with 17 billion-dollar climate disasters involving tornadoes occurring between 2018 and 2023. The US experiences about 1,200 tornadoes annually, more than any other country. In 2022 alone, the nation faced two separate billion-dollar tornado outbreaks.

The EF Rating Scale and Building Resilience

Tornadoes are rated on a scale from EF0 to EF5 based on estimated wind speeds and damage. The EF5 tornado that struck Joplin had winds of 200 miles per hour and caused extensive damage over a 13-mile path. Ann Leach’s home was among the 7,500 residential dwellings destroyed or damaged.

Rebuilding after such disasters is a long and arduous process. FEMA Associate Administrator for Resilience Victoria Salinas emphasized the importance of communities coming together and building more resilience for the future.

Shifting Tornado Patterns

Traditionally, the central Great Plains, including states like Kansas and Texas, have experienced the most tornadoes. However, tornado frequency has increased in the Southeast and Midwest, affecting cities like Memphis, Indianapolis, and Nashville. This shift poses new challenges as these regions have higher population densities and more infrastructure at risk.

Investing in Tornado Resilience

While tornado damage is often preventable, only 17 states have a statewide building code, and 65% of US counties, cities, and towns lack modern building codes. Stronger building construction, including wind-rated garage doors and resilient roofing, can mitigate damage from EF0 and EF1 tornadoes.

In response to the 2011 Joplin tornado, the city implemented new building codes requiring anchor bolts and hurricane clips. Troy Bolander, Joplin’s director of planning, development, and neighborhood services, believes that these measures could have spared many homes on the edge of the tornado zone.

Challenges and Federal Support

Building codes are generally a local and financial decision, which complicates efforts to standardize them nationwide. Counties and municipalities must balance the costs of resilience with affordability for residents.

Federal resources are available to support resilient building. FEMA’s Building Codes Strategy and the Biden administration’s allocation of billions for climate resilience through the Bipartisan Infrastructure Law and the Inflation Reduction Act aim to strengthen nationwide efforts.

The devastating Joplin tornado underscores the urgent need for stronger building codes and resilience planning to protect communities from future tornado disasters. As tornado patterns shift and the frequency of billion-dollar disasters increases, investing in resilience is crucial to safeguarding lives and property across the US.

Iran Presidential Elections: Iran Prepares For Run-Off Election Amidst Disillusionment And Economic Strain

July 3, 2024, 3:51 pm

Iran is preparing for a run-off Presidential election, only its second since the 1979 Islamic Revolution, following a first-round voter turnout of just 39.9%. This low turnout, criticized by Supreme Leader Ayatollah Ali Khamenei over two decades ago, shows that many Iranians are disillusioned with their political system.

The upcoming election, set for Friday, features hard-line former nuclear negotiator Saeed Jalili against reformist Masoud Pezeshkian, a heart surgeon facing a tough challenge in the middle of widespread public dissatisfaction. Economic hardships, high inflation, and unemployment, along with government crackdowns on dissent and strained relations with the West, have intensified tensions across Iran.

Public discontent has grown due to events like the 2022 death of Mahsa Amini, which led to protests against the morality police’s enforcement of women’s dress codes. These incidents highlight broader dissatisfaction with the government’s policies and its handling of civil liberties.

In the first round of voting, Masoud Pezeshkian received 10.4 million votes, making him the leading candidate. Saeed Jalili followed closely with 9.4 million votes, while Mohammad Bagher Qalibaf, the parliament speaker, secured 3.3 million votes. Shiite cleric Mostafa Pourmohammadi received over 206,000 votes. The rejection of more than 1 million ballots, often used to protest against all candidates, reflects widespread disillusionment among voters.

Critics of Jalili warn he may bring back stricter policies, while Pezeshkian’s supporters hope for a more moderate and inclusive government. Many Iranians doubt whether voting can bring real change, given the limits of Iran’s political system.

The upcoming election’s outcome will shape Iran’s path, amid internal dissatisfaction and international scrutiny on issues like its nuclear program. The next president will face challenges in dealing with economic problems, social issues, and navigating Iran’s relations with the world.

Food waste in Pakistan costs $4 billion annually, says report

May 2, 2023, 4:25 pm

As per the news report on Tuesday, a shocking report in Pakistan has revealed that food waste is worth USD 4 billion annually.

Pakistan wastes 26% of its food production, i.e., 19.6 million metric tonnes a year. Most food items are wasted because they do not meet the criteria of appearance, size, and colour, despite the steps taken to ensure food security, as per the report by Pakistan’s Ministry of National Food Security and Research.

According to media reports, the majority of food items are excluded from the supply chain and wasted for a variety of reasons.

The majority of food items stored in kitchens are wasted annually after their expiration date, as highlighted in the report. Despite being an agricultural country, Pakistan is facing a shortage of food items, particularly after recent floods and heavy rain. During a review meeting in Islamabad on the Kissan Package, which is designed to develop the agricultural sector, Prime Minister Shehbaz Sharif directed the government to expedite its implementation. He stressed the importance of ensuring food security in Pakistan and noted that the development of the agriculture sector is the key to achieving this goal, as per the media report.

Pakistan’s rupee biggest 1-day decline in over 20 years

January 27, 2023, 3:07 pm

Pakistan’s rupee set a new record low of 259.7148 against the US dollar. It slumped more than 4% on Friday. This was triggered by Pakistan’s money exchange companies which decided to abolish the limit on dollar-rupee rate in the open market.

Pakistan likely to cut 10 % salaries amid looming economic crisis

January 26, 2023, 1:56 pm

Amid growing economic crisis in cash-strapped Pakistan, different proposal are being considered including 10 % salary cut of government employees across the board.

Pakistan is grappling with one of the country’s worst economic crises in recent years amid dwindling foreign exchange reserves.

As per the reports of Geo news, The National Austerity Committee (NAC) — constituted by Prime Minister Shehbaz Sharif — is considering different measures, including cutting down the salaries of government employees by 10 per cent across the board.

The expenditures of ministries/divisions are also considered to be cut down by 15 % by NAC which will also further reduce the number of federal ministers, ministers of state and advisers from 78 to 30 only while the remaining ones to work on a pro bono basis, the report further said. The recommendations would be finalised on Wednesday and the committee will send the report to prime minister Shehbaz.

The recommendations on the austerity come in the wake of IMF tranche which Pakistan is likely to seek however reluctant to implement the conditionalities. This hesitation created a deadlock for the last two and a half months with the IMF.

Pakistan revived a stalled USD 6 billion IMF programme last year which was initially agreed upon in 2019 but is finding it hard to meet the tough conditions of the Washington-based global lender.

As per the reports the IMF may not release more funds under the programme until the pledges made by the government are met.

The International Monetary Fund (IMF) also requested additional information regarding the budget from Pakistan, as the country urgently needs to generate USD 10 billion in foreign loans, Geo News reported.

Prime Minister Rishi Sunak sets out priorities for 2023 on his first speech of the year

January 4, 2023, 1:00 pm

British Prime Minister Rishi Sunak said he will set out priorities on his first speech of 2023. He reassured the Conservative Party that he has what it takes to lead them into the next national elections. “This is personal for me. Every Opportunity I have had in life began with the education I was so fortunate to receive.” He will be setting out a new ambition of ensuring that all school pupils in England study some form of math to the age of 18. He said, “And it’s the single most important reason why I came into politics: to give every child the highest possible standard of education… With the right plan – the right commitment to excellence – I see no reason why we cannot rival the best education systems in the world.”

Last year after failing to become the prime minister, Sunak took on job after his predecessor, Liz Truss was forced out of power in October after markets rejected her unfunded tax-cutting plans. This led to a myriad of problems. Thousands of workers have gone on strike to protest over pay, healthcare service and inflation. Few economists see Britain slipping into a long recession.

Pakistan spent Rs 2.2 trillion on interest on debt, defence from July-November

December 28, 2022, 4:19 pm

Amidst the economic crisis, Pakistan has spent Pakistani Rupee (Rs) 2.2 trillion as interest on debt and defence from July-November this year. The interest amount is more than the total net income of the government, which led to severe crisis in managing other expenses for the government.

During the first five months of the current fiscal year, the interest cost faced an alarming increase of 83% in the interest cost of the Rs 50 trillion federal govt debt stocks. In the total amount, the finance ministry paid Rs 1.7 trillion in interest cost.

Further, Pak govt has spent Rs 517 billion in five months on defence in this fiscal year. The amount has hiked by Rs. 112 billion or nearly 28 per cent as compared to last year, as per The Express Tribune’s reports.

The country is still unable to find a way out of the debt trap due to spending all of its net earnings on just two areas, and the security situation in the nation is only making matters worse.

According to The Express Tribune, the likelihood of a sovereign default is quite high in the absence of an International Monetary Fund (IMF) safety net and significant cash infusions from bilateral creditors.

Only Rs 119 billion was spent on development in comparison to the enormous Rs 2.2 trillion spent on debt repayment and defence. More money is spent on debt and defence than this.

Compared to the prior fiscal year, development spending was Rs 133 billion, or 53% less.

According to a report in The Express Tribune, the government would fall short of the yearly primary budget deficit objective due to unchecked expenditure on debt servicing and significant slippages against the annual circular debt reduction plan.

Due to unchecked debt servicing spending, the federal budget deficit increased to nearly Rs1.43 trillion in the first five months of the current fiscal year. This is because current expenditures increased faster than gross income.

The difference between expenditures and receipts, or the federal budget deficit, was 1.7% of the GDP.