discuss pros and cons of economic development with Borrowed

discuss pros and cons of economic development with Borrowed funds. Explain with the reference of Pakistan.

Solution

Following are pros:

Cons:

Pakistan is dependent on US and China for meeting its developmental needs. Pakistan gets concessional loans from US and spend such capital in unproductive activities. This has led to debt trap like situation. Now Pakistan is moving towards the China for loans. Recently, Pakistan has borrowed huge amount from China to fund its plummenting foreign exchange. Pakistan has lost its political sovereignty and its crucial decisions are impacted by the foreign entities.