Pakistan: Its economy is getting worse. Now the nation stricken with multiple crises already takes another blow. Now Pakistan European has fallen to weakest level on record, breaching its previous all time low of 239 per dollar hit in July last year.
The currency has fallen nearly 10% over last 20 years with much of decline coming since Russia grin war. What is not helping country is tall. I am bailout package of $6.5 billion. What it needs desperately.
The weakening currency at a time when Pakistan has below $5 billion worth of import cover is bad for the economy. And let's say Pakistan's foreign currency reserves can cover imports for up to 20 days or so.
The country is also battling surging inflation which hit 24 year peak. Reports suggest Pakistan's desperation is clear with country now conceding to IMF's demand to secure funds after long period of elections.
Pakistan has been facing increasing pressure to allow market forces to set exchange rates after a bailout last year. The IMF has delayed transfer of next batch of funds even as Pakistan faces shortage of dollars amongst other complications, Pakistan's forex reserves they fall into lowest in no to about $3.7 billion. IMS conditions are adding more pressure on Pakistan now.
