Inflation, loans, forex balance: The many crises for Pakistan's economy

Without a bailout package from IMF and support from others, India's neighbour will be pushed deeper into the abyss

Subhomoy Bhattacharjee
Pakistan flag

Photo: ANI

Monday’s horrible blast in a Peshawar mosque that killed more than 80 people is the latest dismal news emerging from Pakistan. As the economy turns precarious, political tempers are flaring up in the country.
Imran Khan’s removal as Pakistan’s Prime Minister had a lot to do with soaring inflation rates. Consumer price index inflation has surged to more than 20 percent year on year. An S&P report noted inflation “will remain elevated for the rest of this fiscal year” (FY23). Pakistan, like India, follows an April to March accounting year. India has next to no trade or business ties with its Western neighbour. Leaving out India, every country in the subcontinent is now under an International Monetary Fund (IMF) bailout programme and they are unlikely to come out of it soon.
The S&P report was itself another bad news for Pakistan. In December, the ratings agency downgraded Pakistan to CCC+, deep inside the spec

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First Published: Jan 31 2023 | 12:05 PM IST

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