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Pakistan's economy grinding to a halt as dollars dry up (Yahoo USA)

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    Pakistan's economy grinding to a halt as dollars dry up (Yahoo USA)

    I wonder if authors of this news who are Lahoris are active workers of PTI. The news create shivers to every person who truly love Pakistan. The comments below are mostly from biased Indians who wants to see Pakistan destroyed like it was once destroyed in 1971. One of the Indian comments speaks of 'words louder than actions':

    "DUSU 76
    13 hours ago
    They need to stop spending on military and corrupt politicians. World is getting tired of bailing out this corrupt, bigger, terrorists country."

    Whether this person is telling the truth or not, your guess is as good as mine. If this is just a propaganda or even the truth, the coalition government lead by PML(N) in Pakistan is in great trouble.

    https://www.yahoo.com/news/pakistans...030129629.html



    Pakistan's economy grinding to a halt as dollars dry up

    ​Ashraf KHAN with Kaneez FATIMA in Lahore
    Sat, January 14, 2023 at 10:01 PM EST
    Thousands of containers packed with essential food items, raw materials and medical equipment have been held up at Pakistan's Karachi port as the country grapples with a desperate foreign exchange crisis.

    A shortage of crucial dollars has left banks refusing to issue new letters of credit for importers, hitting an economy already squeezed by soaring inflation and lacklustre growth.

    "I have been in the business for the past 40 years and I have not witnessed a worse time," said Abdul Majeed, an official with the All Pakistan Customs Agents Association.

    He was speaking from an office near Karachi port, where shipping containers are stuck waiting for payment guarantees -- packed with lentils, pharmaceuticals, diagnostic equipment and chemicals for Pakistan's manufacturing industries.

    "We've got thousands of containers stranded at the port because of the shortage of dollars," said Maqbool Ahmed Malik, chairman of the customs association, adding that operations were down at least 50 percent.

    State bank forex reserves this week dwindled to less than $6 billion -- the lowest in nearly nine years -- with obligations of more than $8 billion due in the first quarter alone.

    The reserves are enough to pay for around a month of imports, according to analysts.

    Pakistan's economy has crumbled alongside a simmering political crisis, with the rupee plummeting and inflation at decades-high levels, while devastating floods and a major shortage of energy have piled on further pressure.

    The South Asian nation's enormous national debt –- currently $274 billion, or nearly 90 percent of gross domestic product -- and the endless effort to service it makes Pakistan particularly vulnerable to economic shocks.

    - Teetering on a tightrope -

    Islamabad has been pinning its hopes on an IMF deal brokered under the last Pakistani leader Imran Khan, but the latest payment has been pending since September.

    The global lender is demanding the withdrawal of remaining subsidies on petroleum products and electricity aimed at helping the population of 220 million with the cost of living.

    Prime Minister Shehbaz Sharif this week urged the IMF to give Pakistan some breathing space as it tackles the "nightmarish" situation.

    Zubair Gul, a 40-year-old father of four and daily wage labourer in Karachi, said it has become "hugely difficult" to live on his earnings.

    "I have to queue up for two or three hours to purchase subsidised flour -- the regular prices are not affordable," he told AFP.

    For Shah Meer, an office worker, borrowing from relatives or using credit cards are the only ways to get by.

    "A common man cannot afford to buy milk, sugar, pulses or any necessity you name," he said.

    With an election due at the end of the year, implementing -- or campaigning on -- the tough conditions demanded by the IMF would be political suicide, but Pakistan is unlikely to secure fresh credit without making at least some cutbacks.

    On Thursday, the United Arab Emirates agreed to roll over $2 billion owed by Pakistan and provide the country with an extra loan of $1 billion, helping it to avoid immediate default.

    Islamabad won some relief last week when donors pledged over $9 billion to help with recovery efforts after devastating monsoon floods left almost a third of the country under water last year.

    But that cash, even when it does arrive, will not help the current forex crisis, so Sharif continues to press allies -- including Saudi Arabia, Qatar and Beijing -- which has invested billions as part of the China-Pakistan Economic Corridor project.

    - Escaping the debt trap -

    The forex crisis has deepened the woes of textile manufacturers, which are responsible for around 60 percent of Pakistan's exports.

    They have suffered as a result of the country's energy shortages, damage to cotton crops during the floods, and a recent hike in taxes.

    The troubles together have led to around 30 percent of power looms in the city of Faisalabad, the centre of the textiles industry, temporarily shutting down, with the remaining ones working on alternate days, said Baba Latif Ansari, head of the Labour Qaumi Movement union.

    "More than 150,000 workers who had come from surrounding villages to work here have had to go back because of a lack of work in the past few weeks. Others are just sitting at home hoping the situation improves," he told AFP.

    Some factories have complained of a backlog of imported raw materials such as dyes, buttons, zippers and spare parts for machinery held up at the Karachi port.

    Abdul Rauf, an importer of grain and pulses, said he has just 25 days of stock left and without the release of dollars, there will be an "immense shortage" during the holy month of Ramadan, which begins in March.

    "I've never witnessed a situation where people are so worried," he told AFP.




    #2
    I personally think that IK was leaning towards China and drew the ire of west and they were punishing Pakistan for jilting them and duplicity. Ukraine war changed everything. Iran is the strongest ally of Russia and India is not towing US line and also Saudis seem to be leaning eastwards so Pakistan has a potential of becoming a US pawn all over again and its raining money again. The biggest news was Pak sending munition to Ukraine, that is a telltale.

    No way in Hell will IK be allowed to rule again by the masters. They like Bilawall as this boy will look after the masters.

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      #3
      Pakistan made a huge blunder by joining America's war on Afghanistan, and as a result Pakistan will keep on getting it's blow back from every angle for years and decades to come. According to State Bank numbers, Pakistan's economy suffered direct losses of more than 150 Billion dollars, indirect losses far exceed that amount. Unfortunately, we never learn from our blunders. Back in 2002, I used to tell my friends that all the boom caused by $$$ given by worldly gods will go bust, because Pakistan had gone against Allah's orders to endear worldly gods.

      Anyway, I'm hopeful that this storm will pass as well, hopefully there will be another chance to make amends and the leadership of Pakistan will be in the hands of those who haven't forgotten their graves.

      As far as the comments, mentioned by the OP, are concerned. We should keep in mind that no one else benefited more than US-India-Israel geopolitically by using terrorism as a cover. They are the biggest terrorists themselves, and I tell it on their face. Terrorism has no definition. Basically anything going against national security narrative of a country is terrorism. For example, Russians are calling Ukrainian actions as terrorism and Ukrainians are calling Russian actions as terrorism. It's not about who or how many get killed. It's about if the narrative of the perpetrator was against the national security narrative.

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        #4
        Originally posted by decentGuy View Post
        Pakistan made a huge blunder by joining America's war on Afghanistan, and as a result Pakistan will keep on getting it's blow back from every angle for years and decades to come.
        After partition there was no Pakistani army. The army was made in bits and pieces and were part of British Army who were also part of allied forces in second world war which fought against Hitler's army. Quaid-e-Azam did not have time to lay solid foundation of democracy and soon after his death this so called Pakistan Army took over the rule, most of the officers were employees of British Army before 1947. The Britishers handed over the authority to Americans in 1954. Since then Americans are the most powerful influencers in Pakistan army well before General Zia-ul-Haq led the army into Afghan war to please his masters. Even today post of CAOS needs the approval of Uncle Sam as far I can imagine. Unfortunately leaders did not learn the lesson from neighboring India which made the army under civilian rule and completely changed the civil servant rules left by Britisher masters treating local population as their slaves

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          #5
          ^^Your analysis reminded me of a story. One day a dead body was brought into a hospital’s post-mortem room to determine the cause of death. Highly qualified professors and doctors started the examination. They all agreed that the cause of death was organ failure. But got confused over what caused the organ failure. One of them suggested that it had happened because of oily diet. Which was indeed true ! Another one of the highly qualified professors suggested that it had happened due to sedentary lifestyle. Which was also totally true ! Then one of the expert doctor who had done specialization in vitamin absorption suggested that it had happened due to a key vitamin deficiency. Test reports had indeed indicated that as well ! Meanwhile, a sweeper who was sweeping the room, as it had gotten quite late, thought that since everyone is brainstorming about the core reason, so he can share his opinion as well. The sweeper interrupted the deliberations and said out loud, “I think it had happened because a bullet went through his head”. The intellectuals got infuriated at the interruption and sacked him immediately from employment. The poor sweeper didn’t know that only the SHO of that town had a gun.

          Moral of the story is that sometimes intellectuals deliberately over-complicate things to avoid upsetting someone powerful.

          So while a lot of the points you've made are true. They were not the reason for the suicidal policy of Musharraf.

          Comment


            #6
            Originally posted by decentGuy View Post
            So while a lot of the points you've made are true. They were not the reason for the suicidal policy of Musharraf.
            Suicidal polices were written a long time ago when people accepted the dictators as their saviors . Dictators can not think otherwise after seeing the fates of Sadam Hussain, Colonel Qazafi, Zia-ul-Haq etc...Where are the other guys, why have they stopped participating in this forum?


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