Pakistan Economic Crisis: Economically-strapped neighboring Pakistan may face a severe fuel shortage in February. According to reports, Pakistani banks are not releasing money to buy crude amid worrying situation of foreign exchange reserves in the country.
Not only with foreign exchange reserves, Pakistan is also dealing with depreciating value of its currency against the dollar which is increasing the cost of imports, especially fuel and food.
The Pakistani rupee is currently hovering around Rs 270 against the dollar after its government relinquished control over the exchange rate to meet the bailout demands of the International Monetary Fund (IMF).
“We are at the end of the road. The government will have to make a political case to the public to meet these (IMF) demands. If they don’t, the country will surely default, and we will end up like Mr. Will go.” Lanka, that would be even worse,” AFP quoted former World Bank economist Abid Hasan as saying.
Last week, Pakistan witnessed massive power cuts, with several major cities without electricity for hours.
According to Reuters, there is no shortage of fuel in Pakistan this fortnight, but if the letters of credit are not issued, a crisis may be faced.
Recently, the Government of Pakistan announced new prices of petroleum products which became effective from 29 January.
As per the revised rates, the cost of high speed diesel is Rs 262.80 per litre, MS petrol Rs 249.80 per litre, kerosene Rs 189.83 per liter and light diesel oil Rs 187 per litre.
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