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Pakistan’s economy is on the verge of collapse as foreign exchange reserves plummet and there are only three weeks left to cover imports

Pakistan’s economy is nearing a breaking point as its foreign exchange reserves have hit rock bottom. According to reports, the nation’s reserves have dwindled to just three weeks’ worth of imports. This is an alarming situation for the country, as it is unable to finance its external payments and is facing a severe shortage of foreign currency.

The crisis has been exacerbated by the COVID-19 pandemic, which has hit the country’s exports and remittances from overseas Pakistanis. The government’s revenue has been limited due to low income tax collection due to the pandemic. This has resulted in a sharp decline in reserves, which are now at the lowest level since 2008.

The government has been attempting to alleviate the situation by seeking financial assistance from friendly countries, including China, Saudi Arabia, and Qatar. It has also been relying on loans from the International Monetary Fund (IMF) and other international organizations. However, these measures have not been enough to stem the crisis.

To address the issue, the government is planning to increase taxes, cut subsidies, and reduce spending. It has also taken steps to boost exports and attract foreign investments. However, these measures may not be enough to turn around the situation.

The government must take urgent and decisive action to address the crisis and ensure that the economy does not reach a breaking point. It must focus on boosting revenue collection and increasing exports, while also taking steps to attract foreign investments. If the situation is not addressed soon, the country’s economy could be in serious trouble.