The Pakistan Economic Crisis: Pakistan, the Next Sri Lanka?

 Pakistan Economic Crisis:-

The country of Pakistan is under huge debt internationally and has very few resources left, upon which the country can still run smoothly. All of this leads to the possibility that it would not take much time for Pakistan to be second Sri Lanka.

Irrevocable Breakdown of Administrative and Economic Machinery in Pakistan

The President of Pakistan had fled in the month of July 2022 as a result of the widespread Pakistan economic crisis in the country. The Pakistan economy’s health can be traced from the country’s Exchange Reserves which have fallen severely for up to US$6.7 billion and as a result, many countries which had invested in the Pakistan economy, have reduced their contributions such as China. To combat the current situation, the Pakistani administration has ordered markets, restaurants and malls to shut down by 8:30 p.m. The government is trying to shift to sustainable forms of energy and is phasing out high energy consuming light bulbs and fans. Energy conservation measures also involve switching off all street lights. At many places of the country it has been reported that people are filling their LPG cylinders with plastic balloons.

Prices of Essential Commodities Soaring High

The Pakistan economic crisis has led to unbelievable prices of regular goods in the country. The increase in food inflation in Pakistan is around 35.5% and the increase in transportation services is around 41%. Both of these services are very essential to a comfortable life and business respectively.

The price of some goods amidst the Pakistan economic crisis in 2023 are listed below:

1. ₨. 152 for 1 liter of cow’s milk
2. Rs. 225 for a dozen eggs
3. Rs. 107 for bread for two people/ day
4. ₨. 252 for 1 kg apples
5. Rs. 75 for 1 kg potatoes and Rs. 136 for 1 kg tomatoes

The housing prices amidst the Pakistan economic crisis are listed below:

1. ₨. 104,338 monthly rent for a 900 square feet furnished living space in an expensive area
2. ₨. 68,231 monthly rent for a 900 square feet furnished living space in a normal area

The cost of living for a family of four has reached ₨. 334, 553 monthly presently. All of the above mentioned rates, however, are subject to fluctuation according to the market from time to time. Pakistan Economic Crisis Similar Situation as Sri Lanka Pakistan has been facing a situation just like the situation which the island country of Sri Lanka has been facing for a long time now after the covid-19 pandemic. The pandemic crippled the Sri Lankan tourism industry which was a major source of revenue for the country. Besides this, import prices for fuel went soaring high after the ongoing Russia Ukraine war began. All of this led to the country in a situation where it had to take a huge loan from the IMF amounting to $2.9 billion, despite widespread assistance from India. Conclusion Features such as huge debt, a crippling economy, need for switching to alternate methods of earning and energy conservation plans are some of the facets which leads to the very obvious conclusion that soon, the situation will lead Pakistan to be second Sri Lanka.