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According to economists, due to political instability, Pakistan is facing a serious economic crisis
Islamabad (92 News) – Pakistan is facing a serious economic crisis due to political instability. Economists told an Al Jazeera program that if Pakistan meets the IMF for a bailout package, it will not face a situation like Sri Lanka, so there is no risk of Pakistan defaulting.
What will happen after Pakistan’s economic crisis becomes more serious? Al Jazeera TV published a report on the economic and political instability of Pakistan. According to the report, the rupee has depreciated by 10 percent against the dollar, leaving Pakistan’s foreign exchange reserves at just $3.5 billion. IMF funding has been suspended due to clashes with the Pakistani government over economic reforms. Next week, the IMF team will go to visit Pakistan for the bailout package.
Former adviser of the World Bank, Abid Hassan, while talking to the host of Al-Jazeera TV, said that the economic structure of Pakistan over the last 30 years needs reforms. Even if an agreement is reached with the IMF, in two years we should face the same crisis. Lifting the dollar limit will not be enough to save the IMF. He said that the IMF will demand Pakistan to increase the price of electricity and gas. The government should provide relief to the poor and shift the burden of inflation to the rich class.
Nilufar Afridi Qazi, an expert in natural disaster management, said that the reforms proposed by the IMF will not revive the economy or benefit the poor. An IMF bailout would be a temporary solution. Excessive borrowing and imports of agricultural products are also the cause of the economic crisis. Due to the natural disaster, the people of Pakistan suffered serious injuries.
Akhtar Ali Shah, a political expert, said that the political crisis also affected the country with economic instability, the supply chain and foreign investment were seriously damaged due to the political crisis.