New DelhiPakistan looks set to head towards financial ruin as it struggles to work out the details to secure a bailout package from the IMF. Fuel prices and flour prices have skyrocketed in the country, making it unaffordable to survive in the country. Pakistan’s finance minister had earlier announced that they will collect an additional tax of Rs 17,000 crore from citizens. Taxes will be increased on other things including cold drinks, air travel and cigarettes.
If Pakistan accepts the conditions of IMF, then IMF will make the budget for Pakistan.
DNA Live: ‘Serial Blast’ of ‘Tax Terror’ on Pakistan Awam!#DNA #pakistan crisis #Pakistan #Pakistan economic crisis @irohitr pic.twitter.com/aS5dqNTmLJ– Zee News (@ZeeNews) February 16, 2023
In today’s DNA, Zee News’ Rohit Ranjan will analyze Pakistan’s crumbling economy and find out how things could get worse before any improvement. Pakistan is in a difficult situation as it has to repay all its loans and at the same time, its credit rating has gone down, which means it cannot possibly take a new loan. Another setback is that Pakistan is heavily dependent on imports for most of its supplies and has not made much progress on domestic production.
Since Pakistan’s rupee is depreciating against the dollar, it is becoming more expensive for Pakistan to import goods.
The future of Pakistan is quite uncertain now.
Pakistan’s foreign exchange reserves are dangerously low and if the situation continues it may deplete them as well. In comparison, India’s foreign exchange reserves are close to $575 billion, which is 200 times more than Pakistan’s.