World Desk, AnyTV, Islamabad
Published by: Harendra Chaudhary
Updated Wed, 02 Mar 2022 02:20 PM IST
Summary
Data from the Pakistan Bureau of Statistics (PBS) has shown that rising prices in the international market are directly affecting Pakistan’s current account. As a result, the deficit reached $ 2.6 billion in January. Never after 2008 did Pakistan face such a loss in a month…
The financial condition of Pakistan is going to deteriorate rapidly. The Imran Khan government’s target of reducing the country’s current account deficit is unlikely to be met. On the contrary, due to increased oil prices in the international market, there is a possibility of the current account deficit reaching a record level of $ 20 billion in this financial year. Imran Khan-led Pakistan Tehreek-e-Insaf (PTI) government’s troubles are expected to increase due to Ukraine crisis.
Analysts have pointed out that when PTI came to power, it had accused previous governments of destroying the country’s economy. People believed his words, as the 2017-18 current account deficit had reached $19 billion. But now after four years of PTI’s rule, this record is about to be broken.
forex reserves towards emptying
Economist and former Finance Minister of Pakistan Dr. Hafiz-e-Pasha told The News that the current account deficit going up to $ 20 billion would mean that in this financial year this deficit would be equal to six percent of the country’s GDP. Meanwhile, the prices are increasing rapidly in the international markets. This is adding to the pressure on the current account of Pakistan. Pasha suggested that the government should take immediate steps to reduce imports. If this is not done then the reserves of foreign exchange will start depleting rapidly. It will have a very bad effect on the entire economy.
Data from the Pakistan Bureau of Statistics (PBS) has shown that rising prices in the international market are directly affecting Pakistan’s current account. As a result, the deficit reached $ 2.6 billion in January. Pakistan had never suffered such a loss in a month after 2008.
Government should adopt a policy of economy
Experts say that Pakistan’s only problem is not the increasing current account deficit. Rather recently, the International Monetary Fund had estimated that Pakistan will have to spend $ 18.5 billion in this fiscal year on repayment of foreign debt. Whereas in the last financial year, this burden on it was only $ 11.9 billion. Presenting the budget for this fiscal year, the government had earmarked $12.8 billion in this item. Whereas the real cost is going to be much higher than that.
Dr. Ashfaq Hasan Khan, who was the Economic Advisor to the Government of Pakistan, has also described this situation as a serious challenge. He has said that the government should adopt an aggressive policy of reducing imports. Analysts say that on this occasion, the Pakistan government should adopt a policy of economy by taking everyone into confidence. But there is a competition among political parties to make popular announcements. Now the Imran Khan government has also jumped into it. This will have a very bad effect on the future of Pakistan.
Expansion
The financial condition of Pakistan is going to deteriorate rapidly. The Imran Khan government’s target of reducing the country’s current account deficit is unlikely to be met. On the contrary, due to increased oil prices in the international market, there is a possibility of the current account deficit reaching a record level of $ 20 billion in this financial year. Imran Khan-led Pakistan Tehreek-e-Insaf (PTI) government’s troubles are expected to increase due to Ukraine crisis.
Analysts have pointed out that when PTI came to power, it had accused previous governments of destroying the country’s economy. People believed his words, as the 2017-18 current account deficit had reached $19 billion. But now after four years of PTI’s rule, this record is about to be broken.
forex reserves towards emptying
Economist and former Finance Minister of Pakistan Dr. Hafiz-e-Pasha told The News that the current account deficit going up to $ 20 billion would mean that in this financial year this deficit would be equal to six percent of the country’s GDP. Meanwhile, the prices are increasing rapidly in the international markets. This is adding to the pressure on the current account of Pakistan. Pasha suggested that the government should take immediate steps to reduce imports. If this is not done then the reserves of foreign exchange will start depleting rapidly. It will have a very bad effect on the entire economy.
Data from the Pakistan Bureau of Statistics (PBS) has shown that rising prices in the international market are directly affecting Pakistan’s current account. As a result, the deficit reached $ 2.6 billion in January. Pakistan had never suffered such a loss in a month after 2008.
Government should adopt a policy of economy
Experts say that Pakistan’s only problem is not the increasing current account deficit. Rather recently, the International Monetary Fund had estimated that Pakistan will have to spend $ 18.5 billion in this fiscal year on repayment of foreign debt. Whereas in the last financial year, this burden on it was only $ 11.9 billion. Presenting the budget for this fiscal year, the government had earmarked $12.8 billion in this item. Whereas the real cost is going to be much higher than that.
Dr. Ashfaq Hasan Khan, who was the Economic Advisor to the Government of Pakistan, has also described this situation as a serious challenge. He has said that the government should adopt an aggressive policy of reducing imports. Analysts say that on this occasion, the Pakistan government should adopt a policy of economy by taking everyone into confidence. But there is a competition among political parties to make popular announcements. Now the Imran Khan government has also jumped into it. This will have a very bad effect on the future of Pakistan.