Decrease in Pakistan’s foreign exchange reserves
Pakistan’s foreign exchange reserves have fallen sharply. As of June 30, Pakistan’s foreign exchange reserves stood at 98 9,800 million, according to The Express Tribune. As of June 24, it was over 1,000 million. That’s down 49 million. According to the State Bank of Pakistan, most of the shortfalls are due to external debt and other repayments. Pakistani politicians are also concerned about the depletion of foreign exchange reserves. Recently, a Pakistani minister had said that people should stop drinking tea as tea would have to be imported less.
Pakistan in trouble with change of government
Shahbaz Sharif has recently come to power in Pakistan by overthrowing Imran Khan’s government. But he has not been able to perform any miracle that will improve Pakistan’s economic situation. Like Imran Khan, he is looking to the Gulf for loans. But in view of the instability, no country wants to lend to the Pakistan government at this time. However, it is getting crude oil from the Gulf, which is why there is no protest in Pakistan at the moment.
No agreement with the IMF
The biggest challenge for Pakistan is the IMF. Pakistan expects a loan from the IMF, but no agreement is being reached. Under pressure from the IMF, Pakistan has raised the prices of many items. Inflation in Pakistan is a sign of the economic crisis there. From July 1, natural gas prices have been approved to be increased from 43 per cent to 235 per cent. This is because the Pakistan government wants to recover 660 billion Pakistani rupees.
With the destruction of Pakistan, India will be in trouble
India’s relations with Pakistan, which is mired in China’s debt trap, may not be good, but its ruin will only create problems for India. This is because the situation in Sri Lanka today is such that if such a situation arises in Pakistan, China will be a country that can lend it huge debts. At the same time, there are concerns that Pakistan may enter into an agreement with China for a naval base like the port of Gwadar. It would not be a good thing if India’s enemy came so close through the Chinese navy.