KARACHI: Going through the ‘balance sheet’ of Pakistan, historicallty speaking it is an insolvent country with acute balance of payment crisis.
We cover our fiscal deficits through borrowing, said Ateeq ur Rahman, an economic & financial analyst.
Our liabilities are more than our liquid assets; external payments are higher than inflows. The country is facing mostly a foreign exchange crisis, he said.
Recently our foreign exchange reserves dropped by almost$74 million with some total of $ 4.38 billion, he said adding it is all due to external debts payments and debt servicing.
We have huge funding gap. The gross financial requirement is $52 billion in two years, having like $26 billion every year. Urgently we need $ 3.7 billion at least up to end of June for debt servicing, added Atteeq.
We seem to be in tight rope; IMF loan is lingering on and we are talking on budget. Seriously speaking, we have to work out a formula substantially and create an economic roadmap to avoid such non-stop situation in future. Gradually, if we concentrate on reducing our financial funding gap, borrowing, fiscal deficit, debt and liabilities, etc., simultaneously, we have to focus on minimizing our energy tariffs and enhancing the exports, he suggested.
Copyright Business Recorder, 2023
Comments
Comments are closed for this article.