A prominent English newspaper in Pakistan- the Dawn has reported that Pakistan has suffered a massive loss of $ 7.15 billion during the first 11 months of FY 23.
Why is Pakistan Facing this Loss?
The loss has been on account of dwindling exports and remittances. With the world and particularly the West entering into a recession, Pakistan’s exports have taken a massive hit. Concomitant to that have been the layoffs in Western companies which have forced Pakistan’s workers to return home.
The stringent inflation afflicting most of Europe and North America has hit the pockets of even those workers who have somehow managed to retain their jobs. The increased prices of daily-use commodities have further impaired the ability of these workers to send money back home.
What do the Critics Say?
The critics are accusing the Pakistan’s Government of lacking a vision and clear strategy. They are accusing the government of being preoccupied with borrowing from the International Monetary Fund and seeking funding from Saudi Arabia and UAE while ignoring more prominent issues.
The critics are saying that even if all things go as planned and the government does secure $3 billion from Saudi Arabia, $2 billion from the UAE and $1.1 billion from the IMF, yet the total funds would be less than the $7.15 billion loss attributable to loss of exports and remittances. Moreover, Pakistan would incur the interest and repayment burdens associated with these borrowings.
The critics are this demanding the government to focus on exports, remittances and other such pertinent issues rather than borrowings from foreign governments and international organisations.
