Here we will analyze Pakistan’s Political Instability and its effects on the Economy. We will discuss the current and prevailing situation in the country and its effects on Pakistan’s economy.
Political Instability and its effects on the Economy of Pakistan
The dollar also crossed the interbank rate of Rs 182 and the open market rate of Rs 183.
According to economists, the dollar will appreciate against the rupee in two weeks and this is also due to the rise in the price of imported goods in the global market, while the Governor SBP says that there is a lot of potentials to increase Pakistan’s exports.
On the other hand, even before the arrival of Ramadan, inflation has started across the country. Economists say the ongoing political crisis in Pakistan is seriously affecting the country’s economy. Business and economic activities are affected.
Due to the ongoing political instability and uncertainty in the country, investors have also suspended new investment decisions. The situation on stock exchanges is also not good, food and non-food inflation are also on the rise, making life difficult for the common man.
Non-Muslim countries also reduce food prices during the month of Ramadan. Special Ramadan discount packages are introduced, big iftar and dastar khan are decorated for the Muslim brothers, but before the arrival of the blessed and merciful month like Ramadan in Pakistan, from food items to shoes and clothes. The trend of rising prices begins. This time too, before the arrival of Ramadan, the prices of commodities have started rising. In some cities of the country, the price of chicken meat has exceeded Rs. 400 per kg.
Most items, including ghee and oil, became more expensive at utility stores. Oil has reached Rs 490 per kg in different markets of Karachi city while ghee is being sold between Rs 450 and Rs 460. At the retail level in the market, mash dal has gone up to Rs 260 per kg while lentil dal has gone up to Rs 220 in the retail market. Even before the arrival of Ramadan, the prices of food items have started rising.
The wrong economic policies of the present government have made it difficult for the common man to earn a living. The white supremacist class is struggling to maintain its white supremacy. According to a survey, nearly two million people have lost their jobs in the past two years.
In these circumstances, it is the responsibility of the government to take concrete steps on an emergency basis to control inflation. The ban on posting rate lists in wholesale and retail markets should be banned and strict action should be taken against violators. At the district level, DCOs and Assistant Commissioners should be required to ensure compliance with the rate lists set by the government. If eliminated, inflation can be reduced.
The business elite of the country should also take steps to ensure that there is no shortage of commodities. Is. But our practice is that whoever is at stake does not stop beating Dundee. No one needs to conspire against us or destroy us, we are enough.
To create their own destruction equipment. In our ego and selfishness, we have become so blind and morally bankrupt that we only care about our own interests no matter how much it harms my country or my society.
What will happen if we do business this Ramadan with business principles in mind instead of making money through illegal means, but the tragedy of this country which is being built in the name of Islam is that it is the rotten fruit of the whole year, that Ramadan I will sell The mixture will be doubled. Even in a holy month like Ramadan, instead of embracing the blessings of God, they invite the opposite torment. Just look around you, there were so many people who were with us last Ramadan but will not be with us this Ramadan.
At the moment European buyers are finalizing winter orders but our exporters do not know whether the concessions given to them will continue after a few weeks or not, the political crisis in Pakistan should be resolved as soon as possible and the opposition alliance Should immediately announce that it will not change current economic policies, if the government is forced to raise taxes in the coming days, it may also increase the rates of transport fares, school fees, and utility bills. This will make the life of a common man very difficult.
The current political instability in the country is likely to have immediate, medium, and long-term effects on the country’s economy. As economic growth slows and inflation rises, so do poverty and unemployment.
The long-term effects will be that the urgent need for reform and structural change for the economy will become even more difficult. Opposition groups called for the beleaguered PM to resign, saying that it was not just a matter of days before the economy was in crisis. On the other hand, a spokesman for the finance ministry said that it was not true that the no-confidence motion had slowed down government decision-making.
The textile industry plays a significant role in the economy. The industry has been suffering for the last three or four years due to a record decline in cotton production. The situation is that when cotton was available, then the energy crisis was a headache. Now the energy problem in the textile sector is relatively solved, then cotton is not available.
This tragic situation needs immediate attention. It is necessary to investigate why Pakistan, which is self-sufficient in cotton, is now forced to import cotton to meet the needs of the country. In the textile industry, it is imperative to promote small-scale industries in the country, which could reduce unemployment in a year or two.
News of dozens of projects launched by the government in the name of fulfilling dreams in the name of public interest is often eye-catching but apparently, the fruits of these projects do not seem to reach the people. This is the result of malpractice, from which the vested interests, including artificial inflation and stockpiling of essential commodities, are reaping the full benefits.
Interestingly, this mafia is singing the praises of the government’s “performance” in the media even in the midst of economic woes and the authorities are unable to comprehend how dangerous this flattering class is behind the scenes. It manages to make the most of government subsidies for public benefit projects.
Economic growth is stagnant. Without taking the country’s growth rate to five to seven percent immediately, the functioning of the economy will remain a dream. The country has stopped the production of all products that directly or indirectly employ thousands of people. Economically, this is a painful aspect for the low-income business class and the daily wage earners. Millions of workers have been directly affected.
There is still time for the government to focus on upholding the rule of law to ensure law and order in the country to speed up business activities and live below the poverty line instead of just protecting the interests of the elite for political reasons. Attention should be paid to the plight of millions of people living there.
Despite all government efforts, export targets have not been met, nor have imports of luxury items declined to maintain the balance of foreign exchange reserves. The Pakistani currency continues to be under pressure, while the dollar continues to appreciate. Rapidly rising inflation in Pakistan, the country’s economic situation, and the rate of dissatisfaction with the direction of the country has further increased, these are the issues that need urgent and full attention.
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