Is foreign aid a blessing or curse?
September 19, 2011
Since the time of independence Pakistan has been facing macroeconomic exertions, such as vicious circle of poverty, less utilization of available natural resources, unfavorable political circumstances that influenced domestic economy and so on. To seize the deficiency, Pakistan has had to depend greatly on financial assistance made by distant countries. Pakistan has been seeking aid since 1947 from global lenders including International Monetary Fund (IMF), Asian Development Bank (ADB) and World Bank. This financial aid poured mostly in the form of loans or debts with high interest rates. Focal of such assistance is the socio-economic development of the country. Financial assistance once taken as a blessing, appeared as to remove all the dearth of the economy. Resultantly many of the sectors started nourishing at par. Pakistan commenced its way towards developing nation but 2005s earthquake ruined Pakistan leaving its awful economy further worsen. Though foreign aid showered in the country but, in fact, it directly went to the bank accounts of few effluents and hence with the passage of time, it proved that foreign aid has become a curse instead of becoming blessing, not only perished the confidence of local people but corrupted more government officials. All the authorities here are now seeking more and more aid rather than to rely on their own available resources. Pakistan has already borrowed too much foreign aid in the form of loans and is still borrowing that has reached the historic over $60 billion. Debt burden is continuously increasing so its interest rates that worth more than the debt itself. Now the economic position is so deteriorated that for the payment of interest, Pakistan tries to get more loans. Pakistan has become now an aid addict and does not make policies to develop their economy with their own domestic resources. Officials do not pay attention for the...
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