FEBRUARY 28, 2022
Amid reports of Pakistan’s economy heading to a historic $20 billion current account deficit, Prime Minister Imran Khan is set to address the nation to “take the nation into confidence on the economy and global challenges amid Russia-Ukraine conflict.”
Pakistan’s former finance minister and economist Dr. Hafeez A Pasha has said that the country is heading towards “a serious financial crisis”, disclosing that the country’s current account deficit (CAD) will touch the $20 billion mark, or six per cent of Gross Domestic Product (GDP) for the current fiscal year, The News reported.
“The international prices were witnessing skyrocketing trends, and now the CAD would witness more pressure with the possibility of touching a historic high. The CAD had already touched the $11.6 billion mark in the first seven months of the current fiscal year and now it was projected that it might go up to unprecedented levels of $20 billion versus $19 billion in the fiscal year 2017-18,” Pasha has been quoted as saying to The News.
“For God’s sake, the political parties must shun their differences because the country is heading towards a serious financial crisis. The foreign currency reserves of the country could go below the $7 billion mark as the country had witnessed in 2017-18 when the CAD had touched the $19 billion mark,” he further added.
In the backdrop of Russia’s lingering war with Ukraine, rising oil and commodity prices in international markets have exacerbated the concerns of Pakistan’s economic managers, reported Geo News.
Pakistan’s Federal Minister for Information and Broadcasting, Fawad Ahmed Chaudhry announced the news of Imran Khan’s address to the nation on Twitter.
وزیر اعظم عمران خان آج شام قوم سے خطاب کریں گے، وزیر اعظم روس اور یوکرائین تنازعے کے بعد معیشت اور عالمی چیلنجز پر قوم کو اعتماد میں لیں گے
— Ch Fawad Hussain (@fawadchaudhry) February 28, 2022
Imran Khan’s address to the nation on economy comes amid reports of the possibility of rise in the price of petroleum products in Pakistan by Rs 8 to Rs 12 after the price of crude oil in the international market hit over $100 a barrel for the first time since 2014.
Foreign Minister Shah Mahmood Qureshi shared the timing of Khan’s address, saying that he is going to make a very big announcement, according to this report in Dawn.
Federal Minister for Defence Pervez Khattak had said Sunday that PM Imran Khan will release a relief package for the masses and announce a reduction in petroleum and energy prices, according to this report by Geo TV.
However, Marriyum Aurangzeb, the spokesperson for the Pakistan Muslim League (PML-N) dubbed this news as a “time-waste”. “We will waste more time of the nation by addressing the nation. Will the person who has lost the trust of the people take the people into confidence even if it is not possible,” she said in her tweet.
Meanwhile, several social media users are apprehensive of Imran Khan’s address. They think it may bring policy announcements that can further deteriorate inflation in the country.
Reacting to this news, social activist Asma Azam said, “this means that the war between Russia and Ukraine will cause a further inflationary bomb on their people.”
Mein gaadi ki tanki full kara lu phir? https://t.co/AHfwewxDWE
— Peshawari Elite (@SfeakerSb) February 28, 2022
A Twitter user took a jibe and asked whether he should go ahead and get the tank of his car filled.
Mein gaadi ki tanki full kara lu phir? https://t.co/AHfwewxDWE
— Peshawari Elite (@SfeakerSb) February 28, 2022
“Brace yourself for another wave of increase in prices. This time with another justification. Our economy can’t adjust to any shock,” said user Zafar Zaheer.
‘Means we have to be ready for more inflation,’ said another user Asim Ali Mirza.
Courtesy/Source: ThePrint
