Islamic Republic of Pakistan is fifth-most populous country with a population of almost 227 million and world second largest Muslim population . Pakistan GDP around 263.7 billion USD(2020) as per world bank report. According to survey in July-April FY2021 record Surplus $0.8 billion current account for the first time in 17 year. Now a days we face many problem related to Pakistan Economics.
What are Problems and its Solution.
First we count the problem what is the challenges faced by Pakistan.
- Increase the Dollar rate fluctuation
- Pakistan debt amounts to Rs. 53.3tr.
- Foreign Reserve
- Political instability
These some above major problem faced by Pakistan if we solved it our economy of Pakistan will be stable. Now we study and understand step by step these above problem.
1) Increase The Dollar Rate Fluctuation.
- Us Dollar closes at Rs 200 in interbank market.
- Rupee cumulatively loses around 8% in last 10 days.
- IMF program has become a necessity for Pakistan . Said by Govt.
These above main point that Dollar continuously increase day by day. as we saw in the interbank market dollar rate against Pak rupee increase why this happen because state bank of Pakistan have no reserve to put the dollar in the interbank market and secondly IMF program has become cancelled . IMF give our condition to Pakistan for fulfill the condition Pakistan agree on it but not fulfill at yet May be next Government of Pakistan my imposed to our Pakistani People.
The currency hit a record low of Rs188.66 on may 10. from these days continuously increase the dollar and last day of 20-May- 2022 cross double century of Rs. 200 against $ 1
According to new Pakistan total debt and liabilities jumped to Rs 53.5 trillion and addition of Rs23.7 trillion under former prime minister Imran Khan , who failed to meet his promise of bringing down by half of the debt. SBP latest debt bulletin of the end of March 2022 the debt burden increased both 53.5 trillion, a surge of Rs 23.7 trillion to public debt during its three-and-a-half-year stint, which was more than the liabilities accumulated by any government in 75 years.
After left PTI government new PML-N government took charged and discussion with IMF to revive the stalled program and also increase its size to $8 billion which means additional borrowing of $5 billion from the IMF from now till June next year.
3) Foreign Reserve of Pakistan in March 2022
In March 2022, Foreign reserve of Pakistan was 16,717 Million US dollar. our history of Pakistan our Export is compare to Import in less than. see also the table
|Industrial Production||5 Billion US Dollar|
|Export||2,897 million US Dollar|
|Import||6,743 million US Dollar|
|Stock Market Index||43.100 index|
|Foreign reserve in month of imports||2.6 month of imports|
|Exchange Rate||200 per US Dollar|
4) Political instability in Pakistan
Imran Khan as a Prime Minister of Pakistan lost a no-confidence motion against leadership and was forced to leave office. Imran khan faced this situation so decided the dissolve parliament and start new election but unfortunately Supreme Court of Pakistan revoke this order in the month of April 2022. Now this the start point the political instability of Pakistan is not stable till yet May-2022.
Shahbaz Sharif take the oath as a Prime Minister Of Pakistan. When PML-N leader Shahbaz sharif was elected Prime Minister Arif Alvi had to take oath from him. However the president went on leave due to illness , in the absence senate chairman sadiq sanjrani adminstered the oath of office to the new Prime Minister.
What is the Solution of Problem ?
Pakistan economy faced many challenges some are discuss above. so what is the solution of above challenges
how to control the fluctuation of Dollar Rate.
Current Government take step to Banned the import item . here are below list showing the stop the import item there is directly stop the draining Dollar. and IMF program reschedule and agree to bailout the $8 billion to Pakistan. economy survey again on quickly basis.
how to control the Debt ?
with 6% growth rate , Pakistan economic size jump to $ 383 billion GDP growth rate for the year 2021-22 is estimated at 5.97% announced the Planning Ministry after a meeting of the National accounts Committee. The nearly 6% growth rate is higher than the estimate of the Ministry of Finance , State Bank of Pakistan. International Monetary Fund, World Bank and the Asian Development Bank. Proper Planning to help out the crises of the Debt. annual import $55 billion in the fiscal year the over all economic growth rate would have remained 5% according to the Planning Ministry.
How to Increase Foreign Reserve of Pakistan?
An increase in foreign exchange reserve raise less import or more export , while shortening debt maturity . to extent that foreign exchange reserve interest rate are low, increased foreign reserve will be trade surpluses from last year with the greatest foreign.
- Increase Export
- Decrease Import
- Control the Cash inflow and Out Flow
- Increase trade from European country
- Banned the luxury Imported Item
- Focused Monetary policy of SBP
- Interest Rate
- Control inflation rate.
Better monetary policy SBP must focus on interest rate increase 12.25% to overnight 13.25%
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