Is cricketer-turned-rookie politician Imran Khan oblivious, or is he pretending to dodge the reality that Pakistan is on a sticky wicket on all fronts in general, and economics in particular?

New Delhi: It is welcome news that Pakistan has agreed to release Wing Commander Abhinandan Varthaman, who was captured in Pakistan-occupied Kashmir (PoK) after his MiG-21 Bison crashed on Wednesday. The real reason behind Pakistan’s gesture to free India's hero is pure economic compulsions, not politics. Or is it a Trojan horse by the Muslim-majority state to hide its unholy motives? However, it is too early to predict anything at this juncture.

Is cricketer-turned-rookie politician Imran Khan oblivious, or is he pretending to dodge the reality that Pakistan is on a sticky wicket on all fronts in general, and economics in particular? The Islamic nation does not have the financial resources to sustain a prolonged war-like situation with India.

Almost seventy years after its birth, the primary issue facing the nation is its ramshackle financial condition. Pakistan has only USD 8 billion left in foreign reserves, and is literally on the road with a begging bowl, seeking funds from several countries and institutions, including the International monetary fund (IMF) and Saudi Arabia to run its day-to-day affairs.

Pakistan premier Imran Khan has been seeking aid from the IMF, and it is looking for its 13th bailout since late 1980s. However, several Pakistani officials raised concerns that conditions being put forward as part of an IMF package would further derail the economic growth. Besides, Islamabad is seeking loans from nations, mostly in the Middle East. Saudi Arabia has already provided a USD 6 billion loan.

It is worth noting that Karachi Stock Exchange's equity index KSE 100 plummeted approximately 8 per cent since the Pulwama massacre (February 14), and the value of Pakistani currency (rupee) dropped nearly 14 per cent over the last five months. Also, the Islamic nation is staring at a balance of payments crisis that refuses to die down.

According to the World Bank report, Pakistan’s total population is around 19.7 crore (2017 figure) and its current GDP stands at USD 305 billion.

With economic growth is likely to slow this year to 4 per cent, from 5.8 per cent in 2018, a huge current account deficit and a fiscal deficit set to hit 6.9 per cent of gross domestic product in 2019, Reuters reported in January citing the IMF estimates.

Reports citing State Bank of Pakistan data mentioned that Pakistan’s balance of payment deficit for July 2018-January 2019 is USD 23.78 billion and its current account deficit is USD 110.12 billion. Many experts are of the opinion that with its GDP is a mere USD 305 billion, such huge imbalances can hurt the economy in the event of a lengthy skirmish or a sharp escalation in tension with India.

Low employment rate, high inflation (7.19 per cent in January), dismal tax collection along with low domestic GDP growth rate and the presence of a massive black economy have made Pakistan the slowest growing country in South Asia.

Pakistan’s unemployment rate has been around 6 per cent through the last 10 years, the economic growth rate may dip to 4 per cent in 2019, while its black economy is estimated by the IMF to be about 50 per cent of the total GDP of that country.