Economic crisis deepens in Pakistan: Pakistan on the verge of poverty, Sri Lanka-like situation expected, inflation created outcry
The situation in debt-ridden India's neighboring countries is not good. Yes, after Sri Lanka, the condition of Pakistan is also bad on the economic front. Pakistan is on the verge of poverty. The situation is so bad that inflation is at its peak in the country and we are craving for essential things like food and drink. Pakistan's economy has completely collapsed. Pakistan's foreign exchange reserves, which are facing severe cash crunch, have come down drastically and have come down to $ 7.83 billion.
Sri Lanka-like situation is about to happen
Pakistan's foreign exchange reserves have fallen to the lowest level since the year 2019. According to data released by Pakistan's central bank, the country's foreign exchange reserves have also come down this month due to increase in loan payments and lack of external financing. In which time 3 experts say that if Pakistan is not helped by the IMF, then its situation will also become like Sri Lanka.
Data from the State Bank of Pakistan (SBP) shows that the country's foreign reserves fell 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 almost three years to $ 7.83 billion.'
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 to meet one month's import expenses. Experts are also saying that the reason for the bad situation in Pakistan is corruption and political instability. Remind that no government comes to Pakistan but it cannot complete its five-year term.