Promoting terrorism has never boned well for any country. Those who have attempted it have remained stuck in poverty, as is the case with Pakistan. Hidden behind closed doors, Pakistan has long fostered terrorism against India. Now burdened by colossal debt, Pakistan is left begging for financial aid globally.
Recent events reflect Pakistan's unchanged stance. On April 22, terrorists unleashed gunfire in Pahalgam's Baisaran Valley, Jammu & Kashmir, leaving 26 innocent lives lost. This has prompted India to take a firm stand, taking decisive actions against Pakistan while the latter fears potential military retaliation.
India's first bold action was suspending the Indus Water Treaty, a move unprecedented even during the 1971 and Kargil wars. Additionally, Pakistani visas were revoked with an order to vacate within 48 hours. The Attari border was shut to cease any direct trade links. India's latest measures present another significant blow to Pakistan's fragile economy.
Crippling Debt Weighs down Pakistan
Pakistan's economy sinks deeper with growing debts. Reliant on IMF or World Bank, Pakistan seeks a $1.4 billion loan from China by late 2025. The debt stands at PKR 70.36 trillion, roughly INR 21.15 trillion.
Source: aajtak
Just 3 Months of Foreign Reserves Remain
As per Pakistan's State Bank, the forex reserve on April 18, 2025, was USD 15.436 billion. In contrast, India spends USD 62 billion monthly on export-import activities, quadrupling Pakistan's annual expenditure of USD 54 billion. Pakistan's reserves suffice for just three months of national sustenance.
Economy Takes A Severe Hit
Since the Pulwama attack, India's direct imports from Pakistan were ceased, sparingly accepting emergency items. Exports and imports via alternate countries persisted until recently. As of May 2, both direct and indirect imports from Pakistan are banned, further disarraying its economy.
From April 2024 to January 2025, India exported goods worth USD 447.65 million to Pakistan, with imports worth just USD 0.42 million. The fiscal year 2023-24 saw exports of USD 1.18 billion and imports at USD 2.88 million, a negligible fraction of India's global trade. Now, even this limited income stream for Pakistan is halted.
Currently, with a GDP of USD 340 billion and projected growth of 2%, Pakistan's economy may shrink more due to India's robust actions.
Source: aajtak
Top Imports from India in 2024
Pakistan imported USD 164.19 million worth of organic chemicals, USD 120.86 million in pharmaceuticals, USD 4.94 million in plastics, USD 4.67 million in inorganic chemicals and precious metals, USD 2.70 million in mineral fuels and oils, USD 2.09 million in miscellaneous chemical products, USD 1.53 million in modified starches, adhesives, enzymes, USD 1.27 million in dye extracts, pigments, tanning agents, USD 0.38 million in medical and optical instruments. Smaller imports included grains, vegetables, automotive parts, dairy, and spices.
