Pakistan’s economy still remains critical and several economic indicators suggest that the situation could get worse.Food shortage, depleting energy, and foreign reserves may create a bigger problem in the upcoming winter.
According to Islam Khabar, such a big purchase will need a huge cash outflow as Russia itself is in need of cash itself because of its ongoing war with Ukraine.
Islam Khabar reported quoting a report from Dawn that the central bank reserves of Pakistan had dropped from USD 15 billion to just USD 6.7 billion.
These dropping foreign incidents will result in the default of foreign loans. And the amount left in the reserves may just be enough to cover one month of imports.
The situation of the industrial sector also remains critical as the large manufacturing sector dropped by 7.75 percent according to the Pakistan Bureau of Statistics (PBS) report which includes textiles and automobiles that contribute a major part to the foreign reserves, according to Islam Khabar.
All these factors contribute to a critical economic condition, and the future seems even more difficult according to indicators.