Pakistan’s economic indicators are showing the worst economic picture as the total debt and liabilities shot up by an astounding 24% over the past year
The ouster of Imran Khan has brought economic turmoil as the sources say that $730 million have been withdrawn from Naya Pakistan Certificate, while the investment has also decreased by 46%.
The foreign exchange reserves of the State Bank decreased by 27%, in the last 7 months, reserves of the State Bank decreased by $2.8 billion to $7.9 billion, the foreign exchange reserves of commercial banks also decreased by 6 per cent to 340 million dollars. While the crashing value of the rupee was a major factor in the increase, the raw size of the debt — Rs62.5 trillion — is unsustainable by any measure.
The cost of debt servicing is now approaching Rs5 trillion per year, and our finance ministers have been jetting around the world, begging bowls in hand, to try and keep the country afloat.
During the last seven months, the rupee devalued by 40.3 against the US dollar and reached 223.2 rupees.
Inflation has also doubled in the last seven months’ rule of the incumbent government, the inflation rate has increased from 13.4 to 26.6%. Petrol has become expensive by Rs 35 to Rs 225 per litre while diesel has become expensive by Rs 85 to Rs 235 per litre.
Exports in April 2022 were 2.7 billion dollars, while exports in October 2022 shrunk to $2.3 billion, and textile exports were $1.76 billion in April 2022, which decreased to 1.42 billion dollars in October 2022.
But it is not just devaluation that is to blame. Continual failure to meet tax targets, high-interest rate, debt mismanagement and loss-making state-owned enterprises are, quite literally, bankrupting the country.
No matter which party is in power, they fail to address these problems well enough to actually leave the situation better for their successors. Pakistan needs strong and constant policies for the uplift of the economy, the economic policies should continue no matter which party comes into power because this is the only way left for uplifting the de-tracked economy and break the begging bowl.
