After Sri Lanka in South Asia, the economic condition of Pakistan is also deteriorating. Due to debt and political instability, Pakistan’s economy has been further devastated by the severe floods. The latest report of ADB (Asian Development Bank) suggests that the pace of the Pakistani economy may slow down by 3.5 per cent in the coming financial year. Inflation is expected to rise to 18 per cent.
The Pakistani rupee fell against the dollar
The value of the rupee is continuously falling in the Pakistani economy, which is facing many challenges on the economic front. On Wednesday, the Pakistani rupee slipped to Rs 240 per dollar. The Express Tribune described it as the lowest level ever. The rupee was Rs 214.60 per dollar on August 1, 2022. In the last 14 working days, it has fallen by about 12 per cent. On July 28, when the rupee reached 239.94 against the dollar, it was said to be the lowest level.
Petrol Rs 237 per liter
In another blow to inflation-hit Pakistani citizens, the Shahbaz Sharif government on Wednesday increased the price of petrol by Rs 1.45 per litre. In this way, now petrol has increased from ₹ 235.98 per litre to ₹ 237.43 per litre. The government says that the increase in the prices of petroleum products is due to the volatility in oil prices globally.
The latest price of petroleum products in Pakistan:
- Petrol -₹237.43/Litre
- Diesel – ₹247.43/Litre
- Kerosene – ₹202.02/Litre
- Light Diesel – Oil ₹197.28/Litre
The total debt in Pakistan
According to a report published in The Express Tribune on 16 August 2022, the total debt and liability of Pakistan are 59.7 trillion rupees (Pakistani Rupee). This is Rs 11.9 trillion i.e. 25 per cent more than the previous financial year.
According to the State Bank of Pakistan, the public debt stood at Rs 9.3 trillion in the last financial year, which rose to Rs 49.2 trillion by the end of June 2022. The government is directly responsible for the increase in public debt.
Former Prime Minister Imran Khan had promised to reduce the GPD (Gross Public Debt) to 20 trillion at the end of his term. Pakistan’s central bank on August 15 issued the debt bulletin for the financial year 2021-22, according to which Pakistan is increasingly burdened with heavy debt.