Pakistan Financial Crisis: Closed factories, zero earnings and back-breaking inflation… May the anger of Pakistanis explode in the pauper! – pakistan crisis raises question can shehbaz sharif government control public protest amid worse cost of living
[ad_1]
According to the State Bank of Pakistan, the crisis-hit country’s current account deficit (CAD) narrowed by 90.2 per cent to US$0.24 billion in January. It was US$ 2.47 billion in the same month last year. The report said that the Pakistani authorities need to act fast to get the IMF bailout package. If it is delayed, people may come out on the streets in protest and anarchy, disorder may spread, which will make the situation more difficult.
layoffs and employment crisis
As per ANI report, the reduction in Current Account Deficit is due to a major cut in imports. This has had a direct impact on many industries in Pakistan. Many companies in almost every sector have either stopped production or downsized, leading to layoffs and job losses. The ban on imports has brought Pakistan to the brink of default. Pakistani Defense Minister has already considered the country bankrupt.
Pakistan Bankrupt: Bankrupt Pakistan, why good news for India
Inflation at its peak in Pakistan
People in Pakistan are buying flour at Rs 100 to 150 per kg, milk at Rs 250 per liter and chicken at Rs 780 per kg. Pakistan is heavily dependent on remittances from overseas Pakistanis in addition to exports and foreign debt for its foreign exchange reserves. It is a matter of concern that there has also been a drastic decline in this. Factors such as economic mismanagement, political instability, natural calamities, rapidly rising inflation and foreign debt are responsible for the current crisis in Pakistan.
[ad_2]
Source link
