Pakistan’s economy is in its worst crisis since its independence in 1947 as conditions worsen daily for its citizens. Recently, the country’s currency sank to its lowest level of PNR 300 per US Dollar.
Pakistan’s economy has been in trouble for a while now as the country’s foreign reserves have hit record lows and trade has been difficult. Multi-national companies have been packing up or planning to pack up their operations in Pakistan as the currency has been in freefall.
The country is facing a terrorism crisis as mosques, schools, and public marketplaces are under attack by Tehrik-e-Taliban Pakistan, the Pakistani arm of the Taliban, as the country’s economy and security are both compromised.
To make matters even worse, the country’s management is in shambles as playing the “Blame Game” appears to be the most important task on hand. Moreover, the ex-PM Imran Khan was recently arrested and presented before the country’s authorities on charges of corruption. This arrest resulted in massive unrest as people took to the streets and riots erupted in several cities. The government had to call in the army that used tear gas and water cannons to disperse the riots.
After Khan was arrested, the PNR fell 3.3% to hit its lowest low of PNR 300 per dollar! The country is a net importer of several necessary commodities as the declining value of the currency will make imports more expensive than it already is. Inflation in the distressed nation is already at its highest level around 36%, which is the highest in the South Asian region.
Amidst all the unrest, the country is struggling to find a way out. The country is on the brink of default and an IMF bailout appears to be the only hope for the country. Earlier this year, the country was looking to get a bailout worth billions but the IMF put down certain conditions that existing PM Shehbaz Sharif claimed to be difficult.
With foreign reserves of around $4.5 billion, the country is in dire need of funds. Currently, the IMF deal of $6.5 billion is stalled due to a negotiation stalemate and the same expires in June 2023. With no alternate financing options in sight, the country needs to comply with IMF’s demands to get a bailout and avoid complete collapse.
-Aman Agarwal.
Also, Read Microsoft employees won't receive a hike this year.
