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Islamabad [Pakistan]Nov 28 (ANI): Writing for Asian Lite, Dr Sakariya Kareem says Pakistan’s economy continues to deteriorate due to structural imbalances as the South Asian nation’s multiple economic policies on taxes, subsidies, etc. The decision remains unresolved.
Islamabad’s foreign exchange reserves have depleted to a critical low of $8 billion, compared with more than $20 billion in August 2021, and the country’s foreign exchange crisis has worsened, weakening the country’s ability to make international payments.
Foreign direct investment (FDI) fell by 52% in the first four months of the current fiscal year, FY23, pointing to the country’s poor economic conditions. The continued decline in remittances has exacerbated Pakistan’s currency woes.
The total remittances in July-October 2022 will be US$9.9 billion, down 8.6% from US$10.827 billion in the same period last year. According to Asian Lite, if current trends continue, total remittances are expected to be close to US$30 billion in FY23 ending June, down from US$31 billion in FY2022.
Meanwhile, Pakistan’s textile exports have fallen to a 17-month low since May 2021 amid rising commodity prices, higher energy costs, a global economic slowdown in textile and apparel demand in Europe, the UK and the US, spending and the cost of credit in the West. soaring.
Last year, Pakistan’s export revenue reached a record high of $19.35 billion. However, the outlook for exports this year remains bleak due to the foreign exchange reserve crisis. According to Asian Lite, Pakistan’s textile exports may drop by US$3 billion.
Although Pakistan’s overall trade deficit narrowed to $10.8 billion in the first four months of fiscal 2023 compared to a deficit of $13.75 billion in the same period of the previous fiscal year, there is no reason to be complacent, mainly due to falling imports, a sign of a slowing economy. signs.
Despite Pakistani Finance Minister Ishaqdar’s repeated assurances of Sukuk payments, international markets are reluctant to believe the assurances as the economy struggles to avoid default by borrowing more from markets, donors, commercial banks and friendly countries.
Talks between the IMF and the Pakistani government, which were scheduled to begin in early November, have been postponed to the third week of November, Dawn newspaper reported. The talks will resume after Pakistan fulfills its pledge to adjust sales tax on petroleum products and take other necessary steps under the loan agreement revived earlier this year.
Talks between the IMF and Pakistan were rescheduled after the World Bank released a report on Pakistan’s flood damage in October, according to official sources who spoke to Dawn. Pakistan will pay $1 billion on December 5 as a five-year Sukuk, or Sukuk, due date.
Despite Pakistani Finance Minister Ishaqdar’s repeated assurances of Sukuk payments, international markets are reluctant to believe the assurances as the economy struggles to avoid default by borrowing more from markets, donors, commercial banks and friendly countries.
The financial sector said the fund called for new taxes to boost liquidity and avoid widening fiscal deficits. The government needs at least Rs 80,000 crore and according to the report, this can be achieved through new taxes, which may be difficult for the government amid the economic situation and political turmoil.
Pakistan has been in political turmoil since Imran Khan was ousted in a confidence vote in April. Pakistani Tehreek-e-Insaf leader Imran Khan has accused the US of orchestrating his ouster. (Arnie)
(This is an unedited and auto-generated story from a Syndicated News feed, the content body may not have been modified or edited by LatestLY staff)
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