Pakistan Economic Crisis
Times of Bennett | Updated: Apr 03, 2023 01:57
By: Triveni Mahajan
Pakistan has been facing economic problems since the beginning of General Musharraf regime in 1999 and has been doubling it's debt every five years but the main difficult phase started since the Russia-Ukraine war took place. This war caused fuel prices to rise and the fall in the currency made it even more expensive for Pakistan to import goods.
Poor governance and low productivity per capita has caused the country to have a balance of payment crisis till the extent where they are unable to earn foreign exchange to fund the imports. This also led to the All Pakistan Textile Mills Association(APTMA ) to shut down 1,600 garment mills due to withdrawal of power subsidies. Many of the assembly plants had been shut down after failing to secure letters of credit foreign exchange curbs imposed by the government.
The shortage of foreign exchange reserves has also led to depreciation in Pakistani rupees making it difficult to import crude oil leading to Pakistan's petroleum refinery being shut temporarily. Not only this, even the pharmaceutical companies have been shut down due to the increase and unaffordable cost of production causing shortage of medical resources across the country forcing hospitals to postpone surgeries and treatments.
Poor governance and low productivity per capita has caused the country to have a balance of payment crisis till the extent where they are unable to earn foreign exchange to fund the imports. This also led to the All Pakistan Textile Mills Association(
The shortage of foreign exchange reserves has also led to depreciation in Pakistani rupees making it difficult to import crude oil leading to Pakistan's petroleum refinery being shut temporarily. Not only this, even the pharmaceutical companies have been shut down due to the increase and unaffordable cost of production causing shortage of medical resources across the country forcing hospitals to postpone surgeries and treatments.
