Facing Economic Woes? Learn How Pakistan is Tackling Its Financial Struggles.
Pakistan is currently facing a serious economic crisis, one that threatens the livelihoods of its citizens. With rising unemployment, inflation and poverty levels, it’s becoming increasingly difficult for people to make ends meet. Thankfully, there are steps being taken by the government to alleviate some of the burden and bring hope back to those in need.
In the midst of a rapidly deteriorating economy, the writing on the wall for Pakistan’s future is clear: the country faces another historic crisis.
Following the removal of a cap on Pakistan’s foreign currency exchange rate by the State Bank, the sharp drop in the value of the rupee is bound to exacerbate an already high rate of inflation. The change came shortly after the State Bank of Pakistan (SBP) raised its interest rate to 17% in order to combat inflation, according to The News.
According to The News, Pakistanis should brace for a rise in petrol and diesel prices in the coming days, despite Finance Minister Ishaq Dar’s publicly repeated claims of keeping domestic fuel prices unchanged.
Because petroleum products are imported into Pakistan, the rupee’s depreciation must result in more than just an increase in domestic fuel prices; the resulting inflation is bound to affect a wide range of consumers, from owners of private vehicles to public transportation vehicles such as trucks and buses.
Furthermore, an increase in the price of diesel will inevitably raise the cost of production in agriculture and industry. Airlines are likely to raise the cost of domestic and international rupee-denominated airfares at some point, though this will have no direct impact on ordinary consumers.
Meanwhile, the authoritative screed blaming the previous government for Pakistan’s current economic woes is neither true nor productive. Dar came to the job in his most recent tenure promising
to oversee the rupee’s appreciation to a rate of 200 rupees to a US dollar. And the end result in today’s forex market is nothing short of a massive deviation from that goal, according to The News.
Furthermore, a delayed return to the IMF’s loan programme has previously cost Pakistan dearly and is likely to do so in the future. The reported planned increase in domestic gas tariffs of more than 70% is more than just a shock to consumers.
The potential outcome of backdating the charge to July of last year, when the current fiscal year began, must result in significant arrears in future gas bills. Furthermore, with a massive circular debt surrounding the energy sector, a significant increase in electricity costs is likely to occur soon, according to The News.
Other areas that are expected to be affected include more expensive imported raw materials for daily use items such as medicines, food, and consumer goods. Meanwhile, Pakistan’s bleak outlook for the near future has coincided with ruling politicians raising the heat.
Ahead of the arrival of an important mission representing the IMF (International Monetary Fund) on Tuesday (31st January), both Prime Minister Shehbaz Sharif and Dar set the tone for their political messaging on Friday by publicly blaming the PTI for Pakistan’s current economic woes.
In an election year, the dominant political structure and other mainstream political parties are unable to implement mounting and deeply unpopular reforms to address today’s economic challenges, according to The News.
The economic crisis in Pakistan is devastating, leaving many struggling to make ends meet. With financial hardship increasing, it’s more important than ever for citizens to stay informed and access the resources available to them so they can weather this difficult time.