A wave of uneasiness characterized by deep concerns pervades the country because of growing political instability that is exacting its toll on the economy day in, day out.
The International Monetary Fund (IMF) appears to have expressed its dismay over the government’s failure to follow the path the former had delineated through its conditionalities. The IMF concerns have therefore dampened the market sentiment. Bourse is witnessing bloodbaths on almost alternate days.
The fast erosion of rupee value has badly hurt people’s purchasing power. Growing circular sector in energy sector has constituted a new economic challenge to a seemingly beleaguered government. Country’s foreign reserves have fallen to just little over $6 billion.
Rising burden of external debts, soaring inflation, growing unemployment, etc., have earned the country global rating agencies’ ire. S&P Global, for example, has lowered country’s rating only recently. Everybody is asking the question whether or not the government will default on its foreign debt by failing to meet its interest or principal payments.
Tabinda Kashif Khan (Karachi)
Copyright Business Recorder, 2022
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