Pakistan’s economy in dire straits
New Delhi: Pakistan’s economy is going through tough times. Crisis has come from all around. There is a risk of a situation like Sri Lanka. The government of Pakistan is making desperate efforts to avert that crisis. The government is appealing to the International Monetary Fund (IMF) to bail it out of the crisis. China and Saudi Arabia are also asking for funds. Pakistan’s foreign exchange reserves have depreciated rapidly.
In 2010, there were $1430 crore of foreign exchange. By 2018, it had fallen to $917 crore. Currently, Pakistan has only $310 crore of foreign currency in its reserves. It is not enough to cover the cost of imports. The Pakistani rupee has become very weak against the US dollar. In 2019, one dollar was worth 85 Pakistani rupees. Now one dollar costs 250 Pakistani rupees. The country which was importing $3430 crore in 2010 has increased to $6270 crore. At the same time, exports increased from $2390 crore to $3150 crore. In January 2002, the inflation rate in Pakistan was 13 percent. Now it has increased to 29 percent. In 2010, the growth rate of Pakistan’s economy was 2.6 percent. This year it is expected to drop to 1.5%.
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