This story is from February 16, 2023
Cash-strapped Pakistan economy is in dire states with plunging currency, soaring inflation, a balance of payments crisis, diminishing forex reserves all amid political chaos and a deteriorating security situation.
Pakistan has plunged into one of its worst economic crisis since its formation in 1947 and experts have sounded alarmed regarding the financial crisis in the country amid fears that the nation could go bankrupt.
The consumer price index rose 27.5% year-on-year in January, its highest in nearly half a century.
Low-income households could remain under extreme pressure as a result of high inflation on account of being disproportionately exposed to non-discretionary items.
Long queues of automobiles and motorcycles were witnessed at filling stations in Pakistan's capital city of Islamabad and the Khyber Pakhtunkhwa province due to reduced supplies by oil marketing companies.
Pakistan government hiked petrol price in the country by another whopping Rs 22 a litre on Thursday. Petrol now costs Rs 272 per litre, high-speed diesel will now cost Rs 280 a litre after an increase of Rs 17.20.
According to petrol dealers, companies cut down supplies of petroleum products to the province over long delays in the issuance of letters of credit by private banks for imports.
With Pakistan's debt-to-GDP ratio in a danger zone of 70%, and between 40% and 50% of government revenues earmarked for interest payments this year, only default-stricken Sri Lanka, Ghana, and Nigeria are worse off.
A new report from the World Bank has revealed that an alarming six million people in Pakistan are currently experiencing acute food insecurity as a result of the devastating floods that hit the country last year.