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debt crisis

Pakistan’s experience amidst debt crisis has lessons for other nations

Debt crisis is indeed a burning current issue in the whole world.   A true glimpse of this reality is provided by the ongoing violent protests against a series of fiscal austerity reforms in Greece.  The worsening debt crisis of Greece is expected to trigger a contagion of sovereign debt crises in several other European countries.
 
It is interesting to note that the nature and the economic  aftermath of the current debt crisis of Greece and 1998 debt crisis of Pakistan have remarkable similarities ─ For example, the debt-gross domestic product ratio of Pakistan as well as Greece exceeded 100% during their respective debt crises,  national external debt has been acting as a drag on the national economies of Pakistan, and Greece, and now both Greece and Pakistan desperately need fiscal consolidation as well as economic growth for resolving their respective external debt crisis.

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