Pakistan’s economy grinding to a halt as dollars

FF .Pakistan’s economy grinding to a halt as dollars dry up. At Karachi port, thousands of containers containing raw materials, food goods, and medical supplies have been stalled.

Pakistan's economy grinding to a halt as dollars dry upPolice reported that the deadliest aircraft accident to strike the Himalayan nation in three decades occurred Sunday when a plane carrying 72 crashed in Nepal doramasmp4live.

Police officer AK Chhetri told AFP that 31 remains had already ransport  to medical facilities. Dut that there were still 36 more bodies in the 300-metre (600-foot) deep gorge the plan crash  into.

I’ve worked in this industry for the past 40 years, and I haven’t seen anything worse “a representative of the All Pakistan Customs Agents Association named Abdul Majeed.

He was speaking from a location close to the port of Karachi, where shipping containers full with chemicals, pharmaceuticals, diagnostic tools, and lentils.

Pakistan’s manufacturing industry are sitting idle while payment assurances are obtain . Due to a lack of funds, thousands of containers are trapp .

Port “Maqbool Ahmed Malik, the customs association’s chairman, added that activities had decreased by at least 50%.

With payments totaling more than $8 billion due just in the first quarter, state bank foreign exchange reserves last week fell to less than $6 billion, the lowest level in nearly nine years.

Analysts estimate that the reserves would cover imports for around a month. With the rupee falling and inflation at decades-high levels, Pakistan’s economy has collapsed amid a brewing political crisis. Devastating floods and a severe energy deficit have added to the pressure.

Pakistan is particularly sensitive to economic shocks due to its massive national debt, which is at $274 billion ($almost 90% of GDP), and the endless effort required to service it.

Teetering on a tightrope

Islamabad has been relying on an IMF agreement negotiated under the previous. Pakistani president Imran Khan, but the most recent payment heen made since September.

The 220 million-person populat is being help with the expense of life by the remaining petroleum and energy subsid which are being demand to be remov by the international lender.

This week, Pakistan’s Prime Minister Shehbaz Sharif pleaded with the IMF to give Pakistan some breathing room as it deals with the “nightmarish” circumstance.

It has became “hugely tough,” according to Zubair Gul, a 40-year-old father of four who works as a daily wage labourer in Karachi, to make ends meet.

I must wait in line for two to three hours to buy subsidised flour since the ordinary rates are too expensive, “He informed AFP.

Shah Meer, an office worker, can only make ends meet by borrowing money from family members or using credit cards. The average person cannot afford to purchase milk, sugar, beans, or any other requirement, “added he. Implementing.

The strict restric sought by the IMF would be political suicide given the upcomi elect but. Pakistan is unlikely to get new financ without at least modest spending reductions.

Pakistan’s $2 billion debt was agreed to be rolled over by the Unit Arab Emirates on. Thursday, and the nation also received an additional $1 billion loan to help it avoid going into default right away.

Last week, donors committed over $9 billion to aid in rehabilitation operations after . Ssevere monsoon floods submerged about a third of the nation the year before, providing some relief to Islamabad.

But even when it does, that money won’t be able to solve the current currency issue, so. Sharif is still pressing his allies, notably Saudi Arabia, Qatar, and. Beijing, which has made enormous investments as part of the China-Pakistan Economic Corridor project.

Escaping the debt trap

The plight of Pakistan’s textile producers, who produce over 60% of its exports. Han made worse by the currency crisis. They han harm by the nation’s energy shortages, the flooding’s devastation to cotton crops, and the most recent tax increase.

According to Baba Latif Ansari, head of the Labor Qaumi. Movement union, the issues together have caused about 30% of the power looms in. Faisalabad, the centre of the textile industry, to temporarily shut down, with the remaining ones operating on alternating days.

Due to a lack of work during the past few weeks. Fore than 150,000 employees who had arrived from nearby communities to work here had to return. Others are simply staying at home and waiting for things to get better, he told AFP.

The Karachi port is experiencing . Facklog of imported raw supplies, including dyes, buttons, zippers, and machinery replacement parts, according to certain manufacturers.

Without the release of dollars, there will be a “immense shortage” during the holy month. Ramadan, which starts in March, according. Abdul Rauf, an importer of grains and pulses, who claims he has just 25 days of stock remaining.

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