Implications of Global Financial Crisis on Pakistan

Abstract

Many economic developed countries are experiencing declines in the poverty as the poverty can be eliminated through solid economic growth. The recent economic recession is a big hurdle in such economic development. Even if such disturbed countries recover quickly they still will not be able to regain the same glory in the economic development as they were enjoying previously. Such process will stop further economic development as the financial recession implications will be seen for long time to come. The recent financial crisis though originated in the West but will have repercussions for Asian economies despite the fact that the Asian economies are well structured. Pakistan is one of the affected countries with weak economic setup and does not seem on the recovery path as many other Asian economies will recover. Such economic crisis in Pakistan will undermine its ability to fight against terrorism. Pakistan was seen as emerging Asian giant when it was ruled by a military dictator General Musharraf and a banker Shaukat Aziz but collapsed suddenly when the civilian government has taken the charge. The financial crisis even deteriorated the situation. Political instability is the main factor in the very slow recovery of the country.