Driving Naari Programme launched in Chandigarh
Pakistan Reels Under Economic Crisis: As the Pakistan government took a decision to comply with tough conditions set by the International Monetary Fund for the next tranche of its bailout package, the rupee fell to a record low on Thursday.
The rupee closed at 230 to the dollar on Wednesday. It slipped further, trading at 255 for $1 within hours of the market reopening Thursday.
This slide in the currency comes after Prime Minister Shahbaz Sharif said his government was ready to adhere to the “tough conditions of the IMF” to revive the $6 billion bailout package, which has been on hold for the past several months.
The IMF had put a condition that Pakistan needs to end its control and let market forces determine the currency rate for the funds to be released. The cash-strapped nation is heavily dependent on IMF approval to get $6.5 billion in funding which is currently stalled.
Forex Reserve Low, Inflation Sky Rockets
The low forex reserve in Pakistan has led to massive food inflation. In some parts of the country, a packet of flour is being sold for as high as Rs 3,000. Videos of people fighting for food and chasing food trucks are doing the rounds on social media.
The country also suffered a major power outage recently.
Pakistan’s central bank this week also raised interest rates to a 24-year high to fight surging prices.
Sharif Blames Former PM Imran Khan For Economic Crisis
Sharif has pinned the blame on former Prime Minister Imran Khan for this ongoing crisis in Pakistan. Khan was ousted in a no-confidence in Parliament in April and has since been campaigning for early elections.
