In the last 4 years, the budget deficit of Pakistan has increased from $ 1600 billion to $ 3500 billion. At the same time, there is a reserve equal to one month’s import expenditure in the country.
Pakistani economy in trouble
After Sri Lanka, now the economy of another neighboring country of India has come close to sinking. In fact, Pakistan’s foreign exchange reserves have reached record low levels. At the same time, there are signs of no decline in the coming time. facing cash crunch Pakistan The foreign exchange reserves of the country have come down drastically to $ 7.83 billion. This is the lowest level of foreign exchange in Pakistan after the year 2019. The situation is that Pakistan’s foreign exchange reserves are equal to the import bill of 3 to 4 weeks. About a month ago, Pakistan’s foreign exchange reserves were equal to the import bill of 5 to 6 weeks. That is, the situation in Pakistan is deteriorating continuously.
Why did foreign exchange reserves fall?
According to data released by Pakistan’s central bank on Friday, the country’s foreign exchange reserves have decreased this month due to increased debt payments and lack of external financing. These figures from the State Bank of Pakistan (SBP) show that the country’s foreign reserves have fallen by $ 555 million, or 6.6 percent, on a weekly basis. This has happened this month due to increased loan payments and lack of external financing. According to this report, data from Pakistan’s central bank showed that its foreign exchange reserves have fallen to their lowest level in nearly three years at $7.83 billion. This is the lowest level since October 2019. A week ago on August 5, Pakistan’s foreign exchange reserves stood at $ 8.385 billion. However, analysts say that Pakistan’s current foreign exchange reserves are enough for a month’s import expenses.
‘Bad days are coming for Pakistan’
Pakistan’s Finance Minister Miftah Ismail recently said that the coming days are going to be bad for the cash-strapped country. He said that the government will continue to control imports for the next three months. In an event in the Pakistan stock market, Ismail said that the government of Prime Minister Shahbaz Sharif is bearing the brunt of the economic policies of the previous Imran Khan government. Geo TV quoted Ismail as saying that the country’s budget deficit during the Pakistan Muslim League-Nawaz (PML-N) government was $1,600 billion. In the last four years, this figure has increased to $ 3,500 million under the government of Pakistan Tehreek-e-Insaf (PTI). If the current account deficit is so high, no country can grow, nor can there be stability.