Sri Lanka witnessed anti-government protests and ousting of elected officials over the worsening condition of its economy in 2022, with inflation running as high as 50% and a shortage of basic amenities such as fuel, food, medicines, and power.
Pakistan is on the brink of a similar fate and is looking at bankruptcy as its foreign exchange reserves reached an 8-year low, leaving room for less than 3 months of imports as lenders are refusing further funds as reported by Economic Times.
The country has been in constant economic and political turmoil with changing governments and internal unrest. The floods of 2022 struck a damaging blow to the already struggling nation.
The World Bank’s forecast slows Pakistan’s economic growth by a further 2% from its June 2022 estimates. As per the World Bank Report, the countries’ economic output was not only declining but also lowering their growth rate.
Prime Minister Shehbaz Sharif has stated the country will need $ 16.3 billion in debt over three years to rebuild and improve the country’s ability to withstand climate change as reported by Economic Times.
The cost of food in Pakistan has increased by 35.5% y-o-y in December 2022 with the most increase in onions (415%), tea (63.8%), wheat (57.3%), eggs (54.4), gram whole (53.2%), and rice (46.6%) as per Trading Economics report amidst its appeal to the world for funds.
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