"Pakistan in Crisis: A Look at the Challenges Facing the Nation"
[THREAD🧵]
1) Depleting Foreign Reserves
Foreign reserves are necessary to cover the cost of imports, including nearly all of Pakistan's oil needs.
#PakistanBankrupt #PakistanEconomicCrisis
[THREAD🧵]
1) Depleting Foreign Reserves
Foreign reserves are necessary to cover the cost of imports, including nearly all of Pakistan's oil needs.
#PakistanBankrupt #PakistanEconomicCrisis
The nation currently has a remaining reserve that will last for only one month.
2) Pakistani Rupee Depreciation
The Pakistani rupee has been steadily losing value compared to the dollar, making imports more expensive.
2) Pakistani Rupee Depreciation
The Pakistani rupee has been steadily losing value compared to the dollar, making imports more expensive.
This results in increased costs for the same goods, which further diminishes the country's foreign reserves."
3) Flood
The floods that occurred in Pakistan in 2022 resulted in an estimated $30 billion in economic damages.
3) Flood
The floods that occurred in Pakistan in 2022 resulted in an estimated $30 billion in economic damages.
4) Increasing Inflation
As of December 2022, Pakistan's inflation rate is at 24.5%, the highest it has been since December 2008, when it reached 23.3%.
Videos of Pakistanis fighting over food and essentials, like wheat, as prices soar have gone viral.
As of December 2022, Pakistan's inflation rate is at 24.5%, the highest it has been since December 2008, when it reached 23.3%.
Videos of Pakistanis fighting over food and essentials, like wheat, as prices soar have gone viral.
5) IMF Pressure
The IMF is pressuring Pakistan to take measures such as raising electricity prices, increasing tax collection, and making significant budget cuts before the next release of funds, in order for Pakistan to be in a position to repay the IMF in the future.
The IMF is pressuring Pakistan to take measures such as raising electricity prices, increasing tax collection, and making significant budget cuts before the next release of funds, in order for Pakistan to be in a position to repay the IMF in the future.
6) Rising External Debt
Pakistan must pay off $33 billion in debts by the end of the fiscal year 2023. While $20 billion has been accounted for, the nation still needs to come up with $13 billion in the remaining fiscal year.
Pakistan must pay off $33 billion in debts by the end of the fiscal year 2023. While $20 billion has been accounted for, the nation still needs to come up with $13 billion in the remaining fiscal year.
7) Political Turmoil & Unstable Leadership
Due to the ongoing feud between the current and previous prime minister, the government is unable to fully address the economic situation.
This is the 6th time the country has had a change in Prime Minister in the last decade.
Due to the ongoing feud between the current and previous prime minister, the government is unable to fully address the economic situation.
This is the 6th time the country has had a change in Prime Minister in the last decade.
8) Lower Economic Growth
Pakistan's economic growth for the fiscal year 2023 is forecasted to be 2%, which means fewer funds will be available to pay off debts.
Pakistan's economic growth for the fiscal year 2023 is forecasted to be 2%, which means fewer funds will be available to pay off debts.
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