Despite support from Saudi Arabia and International Monetary Funds (IMF), Pakistan is on the verge of economic collapse with a lack of funds.
The political instability, deteriorating business environment and mismanagement of the economy have pushed the country into investment fatigue from the traditional partners exposing the country to economic risks as well as political uncertainty, reported Asian Lite International.
Initially, there was hope for Pakistan, when on August 29, the Board of the International Monetary Fund (IMF) completed the combined seventh and eighth reviews under the Extended Fund Facility (EFF) for Pakistan, allowing the authorities to draw the equivalent of SDR 894 million (USD 1.1 billion).
But the recent floods and heavy monsoons in the country have dampened the hope of a quick revival from the economic crisis, reported Asian Lite International.
The initially estimated losses due to the natural disaster have accumulated in the range of USD 18 billion. Pakistan’s agriculture sector faces the worst blow as at least 18,000 sq km of agricultural land have been wiped out.
The agriculture growth might remain zero or slide into negative against the envisaged target of 3.9 per cent for the current financial year 2022-23. Nearly 80 districts of Pakistan have been worst hit by the floods.
Thousands of people have been lodged in tents or are waiting for shelter under open skies along the main highway that leads to Hyderabad. Either side of the highway could be seen inundated by floodwater for miles.