Pakistan surrounded by all-round crisis amid violence, will any solution be found?

latestly

हिंसा के बीच चौतरफा संकट से घिरा पाकिस्तान, क्या निकल पाएगा कोई समाधान?

No superpower of the world can ignore the position India is in today in 75 years. Then whether it is China or America, Europe and Russia. On the other hand, Pakistan has completed 75 years of independence and today it is being burnt by its own people. The violence is not stopping, in 48 hours billions of people have been harmed. The surprising thing is that till June, Pakistan has to repay the debt of more than 3.5 billion dollars. Which he can default.

Inflation figures have reached a record level, which is difficult to even estimate. The time has come for the people there to starve to death. If Pakistan does not get loan on the basis of IMF and China, then more difficulties are going to arise for it. From the atmosphere that is being seen in Pakistan, it is clearly understood that now the country is trapped and confused. Let’s turn those pages today and see what other economic crises are emerging for Pakistan in the midst of this arson and violence.

Pakistan’s debt burden

It is a coincidence that this data has come out from the place which shows the sign of peace and that is the United States Institute of Peace. This black letter belongs to that Pakistan where people are doing violence and arson on the streets. The USIP report clearly states that by December 2022, the total external debt on Pakistan is $126.3 billion. Out of which 77 percent loan i.e. $97.5 billion has been taken by the government of Pakistan from different lenders and institutions and countries of the world. Apart from this, a loan of 7.9 billion dollars has been taken by the public sector companies of Pakistan from different institutions.

inflation in pakistan

Even if we ignore the debt burden for once, then what to do with the rising inflation in Pakistan, which has reached a record level. The country which has the highest inflation rate in South Asia is Pakistan only. This means that Pakistan’s condition is worse than Sri Lanka on the inflation front, which is seeking help from different countries and recently India has also given huge help to Pakistan and has been doing so continuously.

If you try to understand from the figures, the inflation in Pakistan has reached 36.4 percent in the month of April. Which was close to 35.4 percent in the month of March, which means the inflation rate has increased by 1 percent in a month. Inflation in rural Pakistan is a little more than 40 percent and in urban Pakistan the same rate is more than 48 percent. Because of this, Pakistani central banks have to increase the interest rate, which has come down to 21 percent. The subsidy has been abolished, the currency of Pakistan is continuously falling.

No import reserve for one month

Pakistan’s troubles do not end here, rather it appears to be moving four more steps forward when it is revealed that the country’s reserve is not enough to import goods even for a month. Yes, according to USIP data, Pakistan has foreign reserves of $4 billion, which is less than one month’s import bill. If this is also spent, then what will be the circumstances after that, it is very scary and frightening.

Looking at the recent State Bank of Pakistan report, as of April 28, Pakistan’s foreign exchange reserves have come down to $4,457.2 million, which was $4462.8 million on April 20. At the same time, other banks other than SBP also have foreign exchange reserves of $ 10,043.2 million. This means that Pakistani banks have foreign exchange reserves of $ 5.586 billion, but this situation is quite pathetic. In this, Pakistan has to repay a debt of $3.7 billion. If the bailout package is not received from the IMF, then difficulties will arise.

Pakistan Economic Growth

According to the latest report of the Asian Development Bank, Pakistan’s economic growth is expected to slow down significantly in the fiscal year 2023 (ending June 30, 2023) in view of last year’s devastating floods, rising inflation, current fiscal deficit and foreign currency crisis. According to the Asian Development Outlook April 2023, ADB’s flagship economic report, Pakistan’s GDP growth is projected to slow down to 0.6 per cent in FY2023 from 6 per cent in the previous fiscal year. In the financial year 2024, the growth rate has been estimated at 2 percent.

Leave a Comment