- Pakistan’s economy on the verge of bankruptcy
- The Financial Times called the IMF package a lifeline.
- The date of bankruptcy of Pakistan was also mentioned in the report.
The Pakistani economy is standing on the verge of collapse. In such a situation, the Pakistani government is pleading for help by extending its hands in front of countries around the world. Pakistani Prime Minister Shehbaz Sharif and Army Chief Asim Munir are constantly demanding loans to save the economy. Meanwhile, the British publication Financial Times has warned that Prime Minister Shehbaz Sharif’s economy is at risk of collapse if the Pakistan government fails to agree on a deal with the International Monetary Fund (IMF). It has also been told in the report that till when Pakistan can go bankrupt.
Difficult to run business in Pakistan due to lack of money
According to this report, blackouts and acute shortage of foreign exchange are creating difficulties in continuing business operations in Pakistan. Pakistani ports are full of containers from abroad. But, the buyers do not have money in dollars to make the payment. The Government of Pakistan has banned payments in dollars to maintain foreign exchange. Because of this, the possibility of stalling of the supply chain is increasing in Pakistan. Pakistan imports food items including clothes, medicines and many other things from abroad.
Foreign airlines threaten to stop operations in Pakistan
Foreign airlines and their associated associations are threatening to stop operations in Pakistan due to the ban on dollar payments to maintain dwindling foreign exchange reserves. Meanwhile, the energy crisis has hit new frontiers for Pakistan. In such a situation, the Pakistani authorities have closed many textile mills to save electricity and cut down the working hours of the rest. Pakistan was immersed in darkness for more than 12 hours on Monday.
Don’t know when Pakistan will default
Saqib Sherani, founder of Macro Economic Insights, said that already a lot of industries have shut down, and if those industries do not restart soon, some of the losses will be permanent,” the Financial Times reported citing analysts. That Pakistan’s economic situation is becoming untenable and may end up in a Sri Lanka-like situation if the situation persists. The report also warned that Pakistan may default in May if the situation does not improve. .
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