PAK Economy Crisis: Pakistan Is On The Verge Of Ruin, Oil Industry Will Collapse
PAK Economy Crisis: Pakistan is on the verge of ruin, and the oil industry will collapse in a few days.
The monetary state of affairs in Pakistan is getting worse day via way of means of the day. At present, Pakistan`s economic system has absolutely collapsed because of the lower forex reserves.
So, now the oil groups of Pakistan have additionally raised their hands. The country’s oil enterprise has reached the verge of whole disintegration.
Oil companies say that due to the non-availability of dollars and continuously falling rupee prices, an industry crisis has arisen in Pakistan.
PAK Economy Crisis: Pakistan’s currency reached 276.58 in the interbank market.
According to the companies, only some days are left and Pakistan`s oil enterprise will crumble completely.
According to a News report, the Pak government has removed the dollar cap to satisfy the call for the International Monetary Fund (IMF).
As a result of which the Pakistani rupee has fallen to a historic low of Rs 276.58 in the interbank market.
Industries lost billions of rupees due to the fall of the local rupee.
In a letter to the Oil and Gas Regulatory Authority (OGRA) and the power ministry, the Oil Companies Advisory Council (OCAC) said industries have lost billions of rupees due to the “sudden fall” of the local rupee, coupled with depleting foreign exchange reserves.
Due to this, the government has also banned LC (Letters of Credit).
Inflation is increasing the prices of imported goods.
The Government of Pakistan has also restricted LCs due to depleting foreign exchange reserves. It had fallen to USD 3,086.2 million by 27 January.
Hence the LC is left only sufficient to cover 18 days’ imports. Pakistan is dealing with a stability of bills crisis.
So on the other hand, the falling value of the local currency is increasing the prices of imported goods.
Pakistan also imports natural gas.
Energy accommodates a chief part of Pakistan`s import bill. Pakistan typically meets more than a third of its annual electricity demand using imported natural gas.
Natural gas prices have been rising steadily since Russia’s invasion of Ukraine.
One thought on “PAK Economy Crisis: Pakistan Is On The Verge Of Ruin, Oil Industry Will Collapse”
Pingback: Former President Of Pakistan Pervez Musharraf Dies In A Dubai Hospital - ANN