Pakistan economic situation: Pakistan in the face of economic ‘catastrophe’? Concern expressed by the Ministry of Finance – mssewb.org

Pakistan economic situation: Pakistan is facing economic disaster. Where inflation rate is 21-23%. The revenue budget deficit in the first four months (July-October) of the current financial year is about 11%. Which will continue in the future. This is the concern expressed by the Ministry of Finance of Pakistan. In their monthly ‘Economic Update’, they said that the country’s economy has collapsed due to floods. The Pakistani newspaper ‘Dawn’ published this report.

According to newspaper reports, Pakistan’s Finance Ministry said that slow economic growth, high inflation and dwindling public foreign exchange reserves are the main obstacles in the way of monetary policy formulation.
According to a Finance Ministry report, the country’s fiscal deficit stood at 1.5% of total GDP during the July-October 2022 period. Which was 0.9% at the same time last year.

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On the one hand, the country’s economy is facing disaster due to the lack of revenue to cope with the expenditure on relief and other relief services to the people in the flood-affected areas.

The Consumer Price Index was 25.1% in the last 5 months during July-October period. Which was 9.1% at the same time last year. As a result, there has been a huge difference in this figure in a year. In the words of an economic analyst, “No matter how turbulent the financial situation is around the world, it is unusual for the CPI to increase nearly 3 times in a year.” According to the report of Dawn newspaper, Pakistan’s Ministry of Finance said that the CPI will hover between 21-23% in the coming days. .

However, reports suggest that commercial Lenden has improved compared to last year. The deficit has narrowed to $3.1 billion this fiscal year, from $7.2 billion last year. This is mainly due to improvement in commercial transactions, according to newspaper reports.

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While the current account deficit narrowed in November compared to October, it currently stands at $276 million. According to newspaper reports, the finance ministry has also expressed concern over industrial production. The scale of industrial activity, which is largely determined by the output of large industries, is currently low in Pakistan. Because, the impact of the economic turmoil in the outside world has fallen on that sector the most. All in all, experts believe that the economic condition of Pakistan is very bad both now and in the future.

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