How bad is the economic crisis in Pakistan

Pakistan has been spiralling deep into the economic crisis.

Pakistani currency is declining- Recording PKR 255.43 against the US dollar.

Several Factors that Contribute to Inflation in Pakistan, including –

1. Government Policies

2. Financial Market Failures

3. External Debt

4. Natural Disasters and Pandemics

5. Inefficient use of Resources

6. Political Instability Low Foreign Exchange Reserves have led to massive Food Inflation as People are unable to bear increased Food prices.

~ Onion sells at PKR 250 per kg in Karachi.

~ Flour packets and Pulses are being sold around PKR 300 per kg.

~ Petrol and Diesel prices have been increased by PKR 35.

~ The prices of Chicken rose from PKR 300 to about 700 this month. To Tame Inflation- The Central Bank of Pakistan raised Interest Rates raise. Also, Pakistan must implement structural Economic Reforms in its monetary and fiscal policy. Economists suggest that "Foreign Borrowing is not a long-term option for addressing Economic Imbalances."

Pakistan may avoid furthering the crisis if it curbs its

~Unprofitable development initiatives

~Reduced import costs

~Relied more on its domestic industries.