Drastically falling Pakistan’s Economy

Pakistan continues to import luxury cars despite its high prices for commodities like wheat flour (3000 rupees), onions (their price has increased by 500%), and electricity

The Pakistani Rupee fell by 250 dollars and 310 pounds in one day. Another severe setback for Pakistan’s economy on the global platform. In the land where wheat grew like gold, not a single grain of rice could be found. Due to the expensive cost of tea, this nation has long prohibited its citizens from drinking it. A kilogramme of wheat flour now costs 3000 rupees. Onion prices have increased by 500%. No sign of electricity. No money to purchase necessities. The situation for 21 crore people is grave. Pakistan’s finances are about to collapse. The Pakistani Government’s financial efforts to have the $6.5 billion in IMF aid withheld has failed miserably. Inflation and complete suffering are the outcomes.

Decreasing Pakistani rupee Value

Pakistan is suffering from a crisis brought on by a covert conflict with India and its subsequent defeat. In order to crush India, China had extended its borders and anticipated unwavering Chinese assistance. But it never materialised. By giving terrorists a safe harbour so they could attack India, America has suffered. As a result of the sharp decline in the exchange rate versus the dollar, Pakistan is now experiencing a new degree of currency crisis. The Pakistani rupee is in fact fixed to the US dollar. The value of the Pakistani rupee versus the dollar has increased to Rs 250 from Rs 255 previously. Value dropped as the exchange rate fell in order to qualify for fresh loans from the International Monetary Fund. As a result, 24 rupees were lost in one day.

The IMF has urged Pakistan’s government to relinquish control over currency rates and allow the market to decide on them. According to the IMF, the aid can be taken into account. Pakistan is currently attempting to recoup $6.5 billion in withheld funding.

Pakistan going into Famine?

Prices for food have skyrocketed. In certain places, a kilo of flour costs 3,000 rupees. Not many locations have food. There is video evidence of individuals fighting over food. Since Monday, Pakistan has been without electricity due to a problem with the power distribution network. The majority of the 21 crore people are struggling.

Pakistan only has enough reserves to last for an additional three weeks, according to reports.

There is a food shortage crisis in numerous locations, including cities. To address the issue, the nation is enacting harsh austerity measures. The payment of allowances to MPs in addition to their salaries has been terminated, and they are no longer permitted to travel internationally or purchase expensive vehicles. Additionally, measures have been taken to reduce fuel use. The cost of electricity, natural gas, etc. will rise as a result. The country now has a stringent ban on the use of electricity. Since last month, it has been strictly forbidden for marketplaces and commercial centres to be open past 8 o’clock. Meanwhile, the nation’s electricity went out for several hours the day before. The crisis was reportedly brought on by the country’s power plants having to shut down owing to a lack of fuel, contrary to the official explanation that it was caused by a grid breakdown.

Luxury Cars import amidst Crisis

Despite a previous recommendation to refrain from purchasing luxury automobiles, the government has made another odd choice in light of the anticipated inflow of Rs 200 crores. Subject to restrictions, citizens may import foreign vehicles into the nation. Despite the fact that everyone else is carrying a pitch pot, Pakistan’s pride is undeniably present, despite the lack of food, fuel, and luxury. The Pakistani government authorised the importation of 2,200 luxury vehicles during the first six months of this fiscal year.

Due to severe import restrictions imposed as a result of a significant fall in foreign exchange reserves, Pakistan has permitted the purchase of luxury cars from overseas. Pakistan’s action is intended to reduce the amount of money that is paid to the government’s coffers in taxes and excise duties when it imports luxury vehicles worth billions of rupees. Despite the fact that millions of dollars are lost through the importation of cars, the government anticipates tax revenue of about Rs 200 crore. 95 percent of the 8,500 containers that have just arrived at Pakistani ports are delayed because of tougher regulations brought on by the financial crisis. It also contains industrial products and medicines in addition to basic consumer goods. While postponing authorisation to import them, the Pakistani government decided to bring in high-end vehicles. 193 luxury vehicles were imported into Pakistan during the first half of the previous fiscal year. Between July and December 2022, 164 electric vehicles in total were imported. Pakistan has seen a sharp rise in the imports of luxury vehicles older than three years. From July through December 2022, around 1,900 automobiles were imported. Pakistanis living abroad are permitted to import. It has also been claimed, however, that major importers are abusing this facility in a huge way by bribing passport holders.

Growing Terrorism

Pakistan’s instability is partly caused by the country’s rising terrorism. The government is also concerned about a future civil war. There is an obvious explanation for that. Pakistan’s economic instability was initially caused by India’s strong response to the deceitful techniques used against it.The first significant riot in Pakistan after its creation took place in 1971 in relation to Bangladesh’s liberation. Then, fifty years later, Pakistan is once again in ruins. The MPs revealed Pakistan’s deplorable economic situation to the globe at the December 2022 session of Parliament.

The southwestern province of Pakistan, Khyber Pakhtunkhwa, has been seized by terrorists, the interior minister of Pakistan informed parliament. Further, he claimed that thousands of terrorists have camped there.

Tehreek-e-Taliban, the same terrorism that Pakistan fostered, is currently wreaking havoc in the country. The Pakistani army is the target of these terrorist assaults as they conquer provinces. Financial instability is also brought on by this.Tehrik-e-Taliban Pakistan can be said to be a major group of all terrorist organizations in Pakistan. Three organizations in particular.

1. The Taliban in Afghanistan

2. The Al-Qaeda

3. The Islamic State of Khorasan- ISIS 

Tehrik-e-Taliban

2007 saw the formation of Tehrik-e-Taliban by Badullah Masood. The name Badula Masood has been mentioned in relation to Benazir Bhutto’s passing.

 Even though this group broke up into many pieces after its formation, the job it did remained terrorism. All of the dissolved organisations are reformed in 2020. The death knell for Pakistan began to sound at that point. The Taliban are now immensely powerful on the Pakistan-Afghanistan border. They have a huge fighting force. Currently, this terrorist group is attempting to topple Pakistan’s government, challenging their authority. In terrorist strikes, Pakistan has lost thousands of security officers. Khyber Pakhtunkhwa and Balochistan are the two primary regions where Tehrik-e-Taliban is concentrated. Beginning in November of last year, the Afghan Taliban launched cross-border operations. Tehrik-e-Taliban captured 33 persons after attacking a police station in Khyber Pakhtunkhwa in December.

Tehrik-e-Taliban has reportedly established its own government in northern Pakistan. This is noted in Horizon Diary, TTP’s official publication. According to reports, the terrorist organisation constituted the cabinet and named ministers to the positions of political affairs, defence, justice, and information. Today, the TTP openly challenges itself to seize Rawanpindi and Islamabad. Death threats have been made by this group.