The financial condition of Pakistan is deteriorating very fast. There is a huge decline in the Pakistani Rupee (Dollar vs Pakistani Rupees) against the dollar. According to the latest information, the Pakistani rupee has slipped below the level of 240 against the dollar. This is a new record low level. Moody's Investors Services and Fitch Ratings said that it is expected that Pakistan will get a bailout package of $ 1.2 billion from the International Monetary Fund (IMF). This will strengthen the currency.
Pakistan's foreign exchange reserves are continuously decreasing and inflation is touching the sky. This is the reason why it is on the verge of economic collapse. The value of the Pakistani Rupee is falling by more than 3 rupees every day. In the last 10 days, the Pakistani rupee has slipped by about 35 rupees against the US dollar.
Government attitude is responsible
The Pakistani rupee had closed at a record low of 239.94 against the dollar in the international market. After this, Zafar Paracha, general secretary of the Exchange Companies Association of Pakistan, blamed the political situation in the country and the careless attitude of the government for this. So far this year, the Pakistani rupee has slipped by 30 percent. This information has been shared by the Foreign Exchange Association of Pakistan.
CAD increased by almost six times
Pakistan's current account deficit has risen to a four-year high of $17.4 billion in the last financial year 2021-22. The State Bank of Pakistan said that in the financial year 2021-22, the current account deficit stood at $ 17.40 billion. At the same time, in the financial year 2020-21, it was only $ 2.82 billion.
Current account deficit at a record level
According to the Dawn newspaper, the deficit of over $17.4 billion is more troubling with no inflows in the form of debt. On the other hand, the commercial markets are not ready to accept Pakistani bonds due to the high risk. According to the news, such a high level of current account deficit shows the seriousness of the balance of payments. The current account deficit has exceeded the SBP's estimate for 2021-22. In the last financial year, it increased to 4.6 percent of the gross domestic product (GDP), which was 0.8 percent of GDP in the financial year 2020-21.