Pakistan’s economy has been on a downward spiral for last few months with multiple indicators clearly suggesting that the country is battling its worst nightmare since 1971, when the country lost a war against India and partitioned from Bangladesh. Common citizens are suffering from a severe shortage of food, power, medicines and other essential items.
Amidst growing concerns of economic turmoil, Pakistan media has quoted Pakistan Democratic Movement (PDM) Spokesperson, Hafiz Hamdullah indicating that if the situation does not improve the upcoming elections will be suspended.
So how bad is the situation there? These economic indicators may throw some light.Forex Exchange at 9 year-low
Pakistan’s foreign exchange reached a record low of $ 4.56 billion, which can cover only three weeks of imports, according to a Geo News report. It is a catastrophic situation for a country that depends heavily on imports. Reports suggest, the decline in funds is due to repayment of USD 1 billion in commercial loans to two UAE-based banks.
Fiscal deficit 43%
For the July-September quarter of 2023 Pakistan’s fiscal deficit widened by 43, according to a report on Pakistan Revenue, quoting official data released by the ministry of finance. It further elaborated that the The budget deficit of the country was 1 per cent of the GDP during the first quarter of the current fiscal year as compared with the deficit of 0.7 per cent in the corresponding quarter of the preceding fiscal year.
Prices have skyrocketed
According to Pakistan media reports prices of essential items have increased drastically with Sensitive Price indicator (SPI) up 32% Year on Year (YoY) for week ending January 19, 2023, according to Pakistan Revenue. Meanwhile, experts are hinting at another 100 basis points hike to bring the benchmark rate to 17 per cent.
Fiscal deficit 43%
For the July-September quarter of 2023 Pakistan’s fiscal deficit widened by 43, according to a report on Pakistan Revenue, quoting official data released by the ministry of finance. It further elaborated that the The budget deficit of the country was 1 per cent of the GDP during the first quarter of the current fiscal year as compared with the deficit of 0.7 per cent in the corresponding quarter of the preceding fiscal year.
Prices have skyrocketed
According to Pakistan media reports prices of essential items have increased drastically with Sensitive Price indicator (SPI) up 32% Year on Year (YoY) for week ending January 19, 2023, according to Pakistan Revenue. Meanwhile, experts are hinting at another 100 basis points hike to bring the benchmark rate to 17 per cent.