Pakistan Economic Crisis: Pakistan is currently going through its worst phase ever since its creation. Where on one hand the country’s foreign exchange reserves are on the verge of being exhausted. On the other hand, the debt pressure on the country is increasing day by day. February 9, 2023 The country has only $ 3 billion foreign reserves (Forex Reserves of Pakistan) left. It has reached the lowest level in the last 9 years. According to the data released by the State Bank of Pakistan, there has been a decrease of $ 2.9 billion in foreign exchange reserves.
In such a situation, Pakistan is hoping for help from the International Monetary Fund (IMF), but till now no agreement has been reached at the level of the officials for the relief package of $ 1.1 billion. IMF said that the virtual meeting with Pakistan will continue in the future as well. In such a situation, due to the decreasing coffers and increasing debt, the situation in Pakistan is expected to worsen in the coming times. Situations like Sri Lanka Economic Crisis can happen in the world’s fifth most populous country. Come, let us tell you how is the economic situation in Pakistan at this time-
1. Falling Pakistani Rupee
Significantly, in the last few days, a huge decline has been registered in the Pakistani rupee against the dollar. By February 10, Pakistani Rupee vs Dollar has dropped to the level of 271.50 against 1 dollar. Due to the falling prices of rupee, now the government will have to spend more money to import anything. This will increase the burden of inflation on the public. To improve the economic situation, the Business Council of Pakistan has also advised to remove 5,000 notes from the market.
2. Rising inflation in the country
Inflation in Pakistan has broken the back of common people. The country’s inflation rate has reached the highest level in 48 years. The Consumer Price Index has increased to 27.6 percent. At the same time, the Wholesale Price Index has increased to 28.5 percent. In such a situation, everything from food and drink to medicines etc. has become expensive in the country. In January, the price of 20 kg flour in Pakistan had reached Rs 1,164 and compared to December it had become costlier by 50 per cent.
3. Energy crisis
In January, out of 450 petrol pumps in Pakistan’s Punjab province, 70 petrol pumps ran out of fuel. In such a situation, people also had to face the shortage of petrol (Energy Crisis in Pakistan). Along with this, electricity is being cut for hours in many big cities of the country like Karachi, Lahore, Islamabad, and Peshawar.
4. Rising Debt
Due to the bad economic condition, Pakistan has so far taken a loan of billions of rupees from the whole world. The country currently has a debt of 59,687.7 billion Pakistani rupees. In this case, it is 89 percent of the country’s GDP. At the same time, only 35 percent of this debt is from China. In such a situation, increasing debt and decreasing foreign exchange reserves have increased the concerns of the country. In such a situation, if Pakistan does not get bail out package from IMF soon, then the situation here can also be like Sri Lanka.