edited by: Oindrila Mukherjee
Last Update: March 02, 2023, 22:48 IST
Former Pakistan Prime Minister Imran Khan has been at loggerheads with former COAS General Qamar Javed Bajwa ever since he was ousted from power through a no-confidence motion in April. (Image: Reuters / File)
Pakistan only has close to $3 billion in its reserves. The Pakistani rupee hit a record low of Rs 18.98 in a single day and closed at Rs 285.09 during the day.
Pakistan has placed itself in the high-risk category in its race to meet tough conditions set by the International Monetary Fund to revive the $7 billion aid package. Amidst all this, former Prime Minister Imran Khan launched a fresh attack on former Army Chief General Qamar Javed Bajwa, blaming him for the economic crisis.
The cash-strapped country, whose economy can now be compared to a sinking ship, has only close to $3 billion in its reserves. The Pakistani rupee on Thursday fell to a record low of Rs 18.98 in a single day and closed at Rs 285.09 during the day.
International agencies like Fitch, Moody’s, S&P and Morgan Stanley have downgraded Pakistan’s ratings. Pakistan’s public debt has crossed Rs 11 trillion and its total debt and liabilities are Rs 60.3 trillion.
On Thursday, the country’s currency posted another dramatic fall in just over a month, depreciating 6.66 per cent against the US dollar during the trading session. According to the State Bank of Pakistan (SBP), the rupee depreciated by Rs 18.98 to close at Rs 285.09 against the greenback at the interbank market.
Pakistan market is in panic as reports around IMF are also not positive, this has affected investor sentiment. The delay in much-needed funding from the global agency is creating uncertainty in currency and stock markets.
Pakistan has already taken most of the other prior actions, including raising fuel and energy duties, implementing new tax measures, and withdrawing subsidies in the export and power sectors. But the IMF, unfortunately, is not responding well.
The country’s economy is in dire straits. Pakistan’s old ally China is the only country to have refinanced $700 million to Islamabad.
‘Pakistanis are paying a heavy price for the regime change conspiracy’
Former Pakistani Prime Minister Imran Khan blamed General Bajwa for the “economic mess”. Rupee slaughtered in 11 months of PDM – lost 62% or more than 110/$. This alone has led to an increase of 14.3 trillion in public debt and a historic 75-year high inflation of 31.5%. Pakistanis are paying a heavy price for the regime change conspiracy where a bunch of criminals have been foisted on the country by former COAS,” he tweeted. (sic)
The PTI chief has been at loggerheads with Gen Bajwa ever since he was ousted from power through a no-confidence motion in April. He had earlier alleged that the former army chief wanted to get him killed and impose emergency in the country.
In January, he accused the general of playing a “double game” against his government and said he made a “big mistake” in 2019 by extending the tenure of the then army chief. -year extension in 2019 by Khan, who was the biggest critic of Pakistan Army.
The military has ruled the coup-prone country for more than half of its 75-plus years of existence, and has so far wielded considerable power in matters such as security and foreign policy. Khan, a legend of international cricket, is the only Pakistani PM to be ruled out of a no-confidence vote in Parliament. He alleged that it was part of a US-led conspiracy to target him because of his independent foreign policy decisions on Russia, China and Afghanistan. The US has denied the allegations.
(With PTI inputs)
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