Pakistan’s troubles are not taking the name of ending. Rather it is increasing day by day. Pakistan’s economy is facing a crisis. The falling value of rupee against the dollar is further deepening this crisis. After the devaluation, the Pakistani rupee has reached its lowest level in more than two decades.
Karachi: The Pakistani government failed to restore the International Monetary Fund (IMF) deal. Due to which the economy of Pakistan is in danger. This is warned by the British publication Financial Times. The rolling blackouts and acute shortage of foreign exchange are making it difficult for businesses to continue operating, reports Geo News. Geo News reported that shipping containers filled with imports are piling up at ports as buyers are unable to provide dollars to pay for them.
Airlines and associations of foreign companies have warned that they are barred from repatriating dollars by capital controls imposed to protect dwindling foreign reserves. Officials said factories such as clothing manufacturers were closing or cutting back on hours to conserve energy and resources. The difficulties had increased. The UK newspaper reported that there was a nationwide blackout on Monday for more than 12 hours.
The sharp fall in the rupee led to positive sentiment in the market at the
open and the devaluation of the rupee in the interbank markets led to the Pakistan Stock Exchange’s (PSX) benchmark indices rising over 1,000 points and posting gains. This information was given in media reports. Commenting on the development, Tahir Abbas, Head of Research, Arif Habib Limited, said that the sharp fall in the rupee has created a positive sentiment in the market, according to a Geo News report. Abbas said, “The driving factor behind the market is the market-based exchange rate of the rupee. This has helped in removing the uncertainty surrounding the investors.
The analyst said that the government’s steps are helping the market to recover. At the same time, the confidence of those investors is increasing, who were in a difficult situation due to uncertainty about the revival of the International Monetary Fund (IMF) program. Abbas said, it is expected that a mini-budget can be presented within the next eight to 10 days. In which an increase in the tariff of gas and electricity can also be seen and more taxes can be imposed.
