Pakistan has faced several economic crises in recent history, with the most recent one beginning in 2018. Some of the factors that have contributed to the crisis include:
- Rising inflation: The cost of living in Pakistan has been steadily increasing, with inflation reaching over 8% in 2019.
- Depreciating currency: The Pakistani rupee has lost significant value against the US dollar in recent years, which has made imports more expensive and has led to a decrease in purchasing power for consumers.
- High current account deficit: Pakistan has a high trade deficit, which means that it imports more goods than it exports. This has led to a shortage of foreign currency and has made it difficult for the country to pay for its imports.
- Rising debt: Pakistan’s government debt has been increasing, which has led to a decrease in the country’s credit rating and has made it more difficult for the government to borrow money.
- Political instability: Political instability in Pakistan has led to a lack of confidence in the government’s ability to address the economic crisis.
- Energy crisis: Pakistan has been facing energy crisis since last many years, the country has been facing electricity and gas shortages, which has led to higher costs for businesses and consumers, and has affected economic growth.
The Pakistani government has implemented several measures to address the economic crisis, such as implementing a tight monetary policy, implementing an austerity program to reduce government spending, and seeking financial assistance from international organizations. However, the situation remains challenging and a long-term solution is yet to be found.