Pakistan is a country that faces many more challenges and hardships than more developed countries like the U.S. Most recently, Pakistan is suffering a bombing attack on a mosque that killed 100+ people. Along with this attack, Pakistan on January 24th, all 230 million residents of the country were hit with a nationwide blackout due to lack of oil and gas available to fuel the power sources needed to run factories, businesses, and infrastructure. This has further led to the Pakistani rupee to be at a record low against the dollar, and their economy hanging on by a thread. There has been lots of government corruption for months, leading up to all of these effects, and has quickly depleted their foreign reserves, and skyrocketed debt. Essentials to the Pakistani citizens have skyrocketed in price to the point it is all Pakistani citizens can really talk about.
After months of a depleting economy in Pakistan, The International Monetary Fund is beginning to consider aiding the country with a $7-billion payout package that is secured for desperate emergencies. Despite Pakistan being in a crippling condition, the International Monetary Fund wants to see Pakistan implement their own monetary policy reforms before they unlock the $7-billion. The IMF over the years has provided millions to the Pakistani government to aid with economic growth for the country. Pakistan has to make many critical moves within their economy to aid the direction of the economy to switch. It will definitely be interesting to see if the IMF hands over the $7-billion package or not and how this will affect the world economy and oil and gas resources in the coming months as countries may attempt to aid this country suffering so much.
7 comments:
Great article Lauren! This post is very apt and shows the realness of the situation of the economy of Pakistan and what they are going through right now. Inflation is high, along with gas prices being the highest they have ever been, and the average family is struggling to get by even more now. It is also scary as there is a lot of political instability right now as well, and just this morning there was another terrorist attack, this time in Karachi, Pakistan, where the Taliban attacked a Chief Police Station.
Great article, it is interesting to see how FIAT currencies have been just collapsing due to high inflation and no real support. We saw the Ruble collapse and now this. This may not be relevant to Pakistan, but I see the BRICS nations' influence on global currency eventually being the strongest as their plan to make an efficient CBDC will allow for us to progress into the quantum financial system. I saw that many South American nations are de-dollarizing which shows our weak debt backed currency could also be in need of some modifications too.
I am devastated to hear about the horrific act that happened in a mosque that killed 100+ people. This is truly a global tragedy that can not be left unnoticed. As for the struggles of Pakistan's economy, the country is facing challenges like currency depreciation, corruption, and blackouts. The country has struggled to meet rising electricity demand, resulting in frequent blackouts and power shortages that have harmed businesses and households. This has had a significant social and political impact, contributing to a sense of frustration and unrest among the population. The Pakistani rupee's depreciation has also made it more difficult for the country to attract foreign investment, as international investors are increasingly hesitant to invest in a currency that is losing value. Corruption is also dragging Pakistan's economy to the bottom. Reports of bribery, embezzlement and other forms of graft have been reported at all levels of government and business.
Overall, great post! I think that this is very crucial to be made aware of and for the sake of the citizens of Pakistan, I hope that they can teeter away from the brink and get themselves together. I wonder what type of effect this will have on the global economy, especially in regards to the United States, and if we will see any of the aftermaths of the events happening in Pakistan here in the United States.
It's a smart move on IMF's part to make sure that Pakistan makes its own monetary policy before they provide them with another bailout. It is very important for the well being of many people for Pakistan to cover, however, if they cannot somewhat stabilize their own economy and continue to need bailouts like they have been, then these bailouts would just be prolonging the inevitable. It is imperative that Pakistan receives some form of aid, however, their own government must step up in some way.
Great article, it is sad to see that no one talks about the mass killing in a mosque in Pakistan. It should be in international news as brutality anywhere is unacceptable. Moreover, the economic crisis that Pakistan is facing right now is very dangerous for Pakistan. Being a Pakistani, I can see that the country is moving fast towards default and if no strict actions are taken, it will be disastrous for the people of Pakistan and the country. The government is not doing anything to tackle the situation, they are busy promoting their own political agendas even in times like this. If this continues, it will take Pakistan to a dead end.
Hello Lauren,
This is an issue that has recently come to my attention, although I was provided no insights into what really happened in Pakistan. This attack on the people of Pakistan is super devastating and is not deserved in any country. Additionally, the corruption in Pakistan allows for little to no voice from the people.
The national blackout of villages, businesses, and homes can have more consequences than one may think. When firms experience blackouts they lack productivity. Human capital is not able to perform their daily tasks and may also not receive a paycheck in their time away from work. This may have short-term effects on consumer prices and spending.
Overall, this is a very interesting post and provides good insight into corruption and the policy outlook in Pakistan.
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