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Can Pakistan afford a war with India amid economic free fall?
short by / on Friday, 9 May, 2025
Pakistan, with a GDP of just $373 billion and forex reserves of $18.3 billion, faces a dire economic outlook as tensions with India escalate. Inflation exceeds 23%, and external debt tops $131 billion. Experts warn that a war could derail its $7 billion IMF bailout and plunge the economy into crisis, unlike India’s stable $3.9 trillion economy.
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