2023 brought more miseries to Pakistan’s economy, analysts warn of bankruptcy

INTERNATIONAL DESK: The New Year, 2023, has brought more miseries to Pakistan’s already dwindling economy. Analysts are now warning that the country may go bankrupt, Islam Khabar reported. Amid this Prime Minister Shehbaz Sharif-led Pakistan Democratic Movement (PDM) government has agreed to meet all conditions of the International Monetary Fund (IMF) for the early resumption of the next review.

Sharif on January 24 said that Pakistan’s ruling PDM alliance is ready to sacrifice its “political career for the sake of the country” by accepting IMF’s “stringent” conditions to revive the loan programme. Reports reveal that over 9,000 containers are stuck at different Pakistani seaports, threatening to disrupt the supply chains of essential goods. Inflation in the country has risen to almost 30 per cent. The country’s funds are running low and food prices are increasing.

According to Islam Khabar, importers are unable to clear containers due to a shortage of dollars, while shipping companies are threatening to suspend Pakistan’s operations over the country’s failure to make timely payments. This will negatively impact both imports and exports. The State Bank of Pakistan (SBP) has only USD 4.4 billion in forex reserves, barely enough for three weeks of imports, while the estimated needs to clear the containers and pending requests for opening more letters of credit is in the range of USD 1.5 billion to USD 2 billion, according to the Islam Khabar report.

Businesses in Pakistan are at risk of closure due to a breakdown of supply chains as domestically manufactured goods rely on imported raw materials. The textile industry in Pakistan is also in a critical position as it is losing credibility and market share among international buyers. Hospitals in the country are running short of medicines, and there may soon be shortages of goods such as wheat, fertilizers, and gasoline.

Prime Minister Sharif has thus asked people to conserve resources such as water, gas, and electricity to assist the government in reducing its import bill, which has risen significantly in recent years. Former Pakistan Senator Mustafa Nawaz Khokhar recently said that Pakistan has become “politically and morally bankrupt”, according to a news report.

“We have become politically and morally bankrupt. Even today, people are not being told the truth, which the country needs,” Khokhar said while addressing the second session of the national dialogue in Quetta. During the conference, the former Pakistan People’s Party (PPP) leader said that communication between Pakistan’s people and political parties is broken. He said there is a need to address people’s issues rather than being engaged in irrelevant political discourses such as the Panama Papers and the Toshakhana case.

“There were discussions on (Panama papers) and Toshakhana (case), but where were the issues of people? The situation has gotten to a point where if one doesn’t leave the country, they are going to the mountains,” he said, as quoted by The News International Newspaper. (ANI)