Monday, September 26, 2022

Pakistan is facing a crisis of severe shortage of dollars

Without improving dollar inflows, Pakistan’s major economic weaknesses will not go away: sources. Photo file

ISLAMABAD: Pakistan is going through a severe dollar liquidity crisis and the recent floods have further eroded major economic fundamentals despite the resumption of the IMF program after a seven-month hiatus.

Expecting a cold response from the Washington-based International Monetary Fund (IMF), Pakistan has yet to make a fresh request to the IMF for a Rapid Financing Instrument (RFI) or a disaster relief facility. Who is

Now in the wake of severe floods, with preliminary estimates of losses in the range of $18 billion, Pakistan’s agriculture sector has been hit the hardest as agricultural growth has slowed to 3.9 percent against the projected target for the current fiscal year 2022-23. May remain zero or may go negative.

The poor performance of the agricultural sector will put pressure on the growing demand for commodity imports and if Pakistan fails to generate the desired level of dollar inflows, it could lead to food shortages in the current fiscal year.

Top government sources told The News that without improving dollar inflows, Pakistan’s chronic economic weaknesses are not going anywhere.

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by Azadi Times