Pakistan Crisis: Pakistan… has become such a country whose economy has become a living example of failure. At present, the difficulties of Pakistan do not seem to be reducing. All over Pakistan, the prices of food items and other essential items are skyrocketing. It would not be wrong to say that instead of the strategy of development and progress, the countries which promote terrorism ultimately collapse in the same way.
The condition of Pakistan rupee has become 260 against the dollar. The situation has become such that Pakistan is about to become a basket case. Here basket case means a country whose economic condition is very bad. In the midst of all this, the experts of India have expressed apprehension that the poor condition of poor Pakistan may create a dangerous situation in the neighboring areas including India.
What do analysts say?
According to the news agency PTI, he said that in the midst of the economic crisis, the Shehbaz Sharif government will start important talks with the Washington-based International Monetary Fund (IMF) for an aid package. He said it could involve “difficult and potentially politically risky” pre-conditions for austerity (in talks) that could lead to a major political crisis.
The risk to India would not only be instability in Pakistan with growing extremism in the region, but also unpredictable actions, which could include attempts to divert domestic public attention by focusing on an external enemy.
TCA Raghavan, former Indian envoy to Pakistan, said, “The current economic crisis is aggravating an already ongoing political crisis (where Imran Khan The Pakistan Tehreek-e-Insaf party led by T.K. has dissolved the two provincial assemblies to hold fresh elections)…The conditions that the IMF is likely to impose on the release of funds are sure to be one of the short-term difficulties. Will become a big cause, which can have political impact.
Pakistan does not stop
The disbursement of Pakistan’s $7 billion IMF ‘bail-out’ package (23rd since independence) was put on hold last November after the global lender felt that the country had taken the fiscal and economic steps to get the economy right into shape. Not enough steps have been taken towards reforms.
Pakistan’s foreign exchange reserves have declined to $4.34 billion (from $16.6 billion a year ago), barely enough to meet three weeks’ import needs, while its long-term debt has risen to $274 billion, including debt this quarter. About eight billion dollars is yet to be repaid.
The country depends on wheat and oil imports, with inflation rising to 24 percent. Foreign investors, including Chinese firms, who had shown interest in setting up factories in the economic corridor are also pulling back in view of the back to back terror attacks.
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