Pakistan has put itself in the high-risk category in its race to meet tough conditions set by the International Monetary Fund to revive a $7-billion aid package. In the midst of all this, former prime minister Imran Khan fired a fresh salvo at ex-army chief General Qamar Javed Bajwa, blaming him for the economic crisis.
The cash-strapped country, whose economy can now be compared to a sinking ship, has only close to $3 billion in its reserves. The Pakistani rupee stood at a record low on Thursday, falling by Rs 18.98 in a single day and trading at Rs 285.09.
International agencies, such as Fitch, Moody’s, S&P and Morgan Stanley, have downgraded Pakistan’s ratings. Pakistan’s public debt has crossed Rs 11 trillion and its total debt and liabilities stand at Rs 60.3 trillion.
On Thursday, the country’s currency registered yet another dramatic fall in just over a month, plummeting 6.66 percent against the US dollar during the trading session. According to the State Bank of Pakistan (SBP), the rupee settled at Rs 285.09 against the greenback, a decline of Rs 18.98 in the interbank market.
Pakistan’s market is in a panic as reports around the IMF are also not positive, denting investor sentiment. A delay in much-needed funding from the global agency is creating uncertainty in currency and stock markets.
Pakistan has already taken most of the other prior actions, including hike in fuel and energy tariffs, imposition of new tax measures, and withdrawal of subsidies in export and power sectors. But the IMF, unfortunately, is not responding well.
The country’s economy is in dire straits. Pakistan’s longtime ally China is the only country that has refinanced $700 million to Islamabad.
‘Pakistanis paying heavy price for conspiracy of regime change’
Former Pakistani prime minister Imran Khan blamed General Bajwa for the “economic mess”. “Rupee slaughtered – lost over 62% or 110/$ in 11 months of PDM. This has increased public debt alone Rs 14.3 trn & historic 75 yr high inflation 31.5%. Pakistanis paying heavy price of regime change conspiracy, where a bunch of criminals have been foisted upon nation by ex COAS,” he tweeted. (sic)
The PTI chief has been at loggerheads with Gen Bajwa ever since his ouster from power in April by a no-confidence motion. He has previously alleged that the former chief of army staff wanted to have him murdered and impose a state of emergency in the country.
In January, he accused the general of playing a “double game” against his government and said he committed a “big mistake” by extending the tenure of the then military chief in 2019. Gen Bajwa retired on November 29 last year after getting a three-year extension in 2019 by Khan, who turned out to be the biggest critic of the Pakistan army.
The army has ruled the coup-prone country for more than half of its 75-plus years of existence, and has hitherto wielded considerable power in matters like security and foreign policy. Khan, an international cricketing legend, is the only Pakistani PM to be ousted in a no-confidence vote in parliament. He had alleged this was part of a US-led conspiracy targeting him because of his independent foreign policy decisions on Russia, China, and Afghanistan. The US has denied the allegations.
(With PTI inputs)
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