Friday, June 21, 2024

Pakistan on the brink of bankruptcy: Punjab chief minister

Immigration News

Fidel Rahmati
Fidel Rahmati
Fidai Rahmati is the editor and content writer for Khaama Press. You may follow him at Twitter @FidelRahmati
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In an unprecedented decision by the government of Pakistan, announced by Khawaja Asif, the defence minister on Tuesday that shopping malls and markets would have to close early every day as the country faces an economic crisis.

The reason for this decision has been said that the foreign reserves of Pakistan have remained at less than 5.6 billion dollars, and the country is unable to pay its debt.

Pakistan generates most of its power using imported oil, while global energy prices have jumped since last year, putting further pressure on the country’s already dwindling finances. To pay for these energy imports, the government need foreign currency. Therefore the defence minister announces several steps on Thursday, including closing factories and markets earlier than before to avoid further energy consumption.

Regarding this announcement, the Punjab government stated on Friday that the defence minister could not defend the economic policies and prescribed the wrong solution to the country.

The spokesperson for the Punjab government, Cheema, told the media that Pakistan is currently facing the problem of survival; regretfully, the foreign exchange reserves of Pakistan shrunken by 5.6 billion dollars while the defence minister is prescribing the country to plunge into the darkness.

Kh Asif’s claim that foreign currency is not available for importing petroleum is a matter of concern. She noticed and added that the federal ministers should tell the public their remedies instead of telling them the problem; in contrast, the statement that would plunge the nation into darkness demonstrates the federal government’s lack of seriousness. Closing factories and markets will result in the economic genocide of the people, while all these robbers’ wealth is in dollars, so it will not matter to them.

According to the experts, several factors contribute to Pakistan’s economic crisis; colossal debt, a potentially volatile currency, a high-risk premium on global financial markets, and the most recent shock of disastrous floods. On the other hand, increasing import prices, falling global export demand, China’s economic slowdown, and other concerns will put more stress on Pakistan’s economy.

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