Is Pakistan Status On Risk? | Pakistan’s Economic Condition (2022)
Recap of recent events in Pakistan and Pakistan Economy
For a couple of months, we can see a lot of things happening in Pakistan’s economy and politics, the biggest event could be the replacement of the previous government by the opposition through the “No-confidence Motion” a few weeks ago.
The current Government then came into being after Imran Khan’s PTI lost control, existing government is leading under the ministry of Shahbaz Shareef hence he is declared to be the new prime minister officially last month.
A great fluctuation can be seen in the price of the United States dollar against Pakistani currency (Rupees) and the inflation rate is continuously increasing which indicates a negative effect or it can be a possible bank corrupt situation for Pakistan if hard measures could not be taken!
The political situation is unstable right now and the leading parties were; Pakistan Tehreek-e-Insaaf (PTI) chairman Imran Khan, Pakistan Muslim League N (PMLN) chairman Nawaz Shareef and Pakistan Peoples Party (PPP) Charman Asif Zardari.
After the “No-confidence motion” Imran Khan declared this a foreign intervention or an injustice act against him or his party and doing peaceful protests and gatherings across the country.
Some people also tried to run campaigns against Pakistan Army and General Qamar Javaid Bajwa later they all were traced.
Impact in Pakistan Economy 2022
Pakistan’s economy is facing a hard time due to political instability in the country and due to these recent events production got affected, the foreign direct investment will face a sharp decline, remittances get affected, and investors are afraid and confused about whether to invest in or not, Pakistan’s already exports their major product to other countries and these are mainly primary goods i-e fruit, seeds, etc.
Pakistan’s balance of payment could only be improved if exports are greater than imports and it can be expected that the current government could take some hard decisions to avoid further imports and payments.
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Pakistan Economy decline is a sign of Bankruptcy?
Recently, Sri Lanka got bankrupt and still doing its best to survive from this period, and now if we are talking about Asia then Pakistan is the next one after Sri Lanka whose economic condition is not stable and day by day is even getting poor. United States dollar recorded its highest in May with an exchange rate of 193.2 and the government is trying its best to stable that along with a team of experts.
If Pakistan’s government would not take urgent decisions quickly then probably the nation of Pakistan will face the term “Bank corrupt” and these measures could probably include Ban on imported goods, imposing a tariff, providing subsidies to local producers, attracting foreign investors, seek a low-interest loan, increase exports, etc.
Pakistan’s current inflation rate is around 13% and it is the second-highest after Sri Lanka, the State bank of Pakistan’s reserve is decreased by 190 million to around 100 million.
Check official financial reports of Pakistan HERE
