Pakistan’s Economic Crisis is on the verge of a serious disaster, as inflation has risen to 9% and per capita income has fallen.
New Delhi, India: Pakistan’s economy is on the verge of a serious disaster, as India’s neighboring country’s inflation rate has risen to 9%. In the midst of opposition rallies, Pakistan’s governing party, Pakistan Tehreek-e-Insaf (PTI), is facing new hurdles as per capita income declines.
According to IMF predictions, Pakistan’s per capita income has declined from $1,482 in 2018 to $1,260 in 2021, indicating that the country’s buying power has remained low, according to a report by local news outlet The News International.
Furthermore, while the Pakistan People’s Party (PPP) was in office, the country’s GDP expanded by roughly 36% from 2008 and 2013. The GDP increased by 36 percent between 2013 and 2018. The economy, on the other hand, fell by 16% between 2018 and 2020.
According to an ANI report, “the bad governance and wrong decisions at the highest level of first exporting sugar, then importing it, and the same with wheat and flour, coupled with discouraging cultivation of pulses and cotton, also played a vital role in increasing food inflation and importing over USD 1 billion cotton fumigation,” the US dollar has been making strong advances against the Pakistani rupee due to alleged wrong decisions by the PTI government.
With the rupee’s depreciation, the price of a litre of fuel in Pakistan is presently estimated to be about Rs 145.82. The Pakistani government is now blaming global inflation for the country’s rising inflation.