Imran Khan’s economic inheritance in four chartsArchive
The economic quagmire that Pakistan faces today has its roots in two structural problems. One, the government spends more than it collects in taxes, thus failing to balance its books every year. It borrows to bridge that revenue gap, which restricts its ability to spend on human development.
Two, it imports way more than it exports, which widens the trade deficit every year. It borrows more dollars from foreign lenders to pay for these imports, which further increases the debt burden and depletes foreign exchange reserves.