ANL 13.14 Decreased By ▼ -0.05 (-0.38%)
ASC 12.30 Increased By ▲ 0.13 (1.07%)
ASL 13.44 Decreased By ▼ -0.06 (-0.44%)
BOP 8.41 Increased By ▲ 0.10 (1.2%)
BYCO 6.00 Increased By ▲ 0.25 (4.35%)
FCCL 17.85 Increased By ▲ 0.79 (4.63%)
FFBL 24.11 Increased By ▲ 0.50 (2.12%)
FFL 10.15 Increased By ▲ 0.10 (1%)
FNEL 9.52 Increased By ▲ 0.21 (2.26%)
GGGL 14.10 Increased By ▲ 0.30 (2.17%)
GGL 26.16 Decreased By ▼ -0.59 (-2.21%)
HUMNL 5.74 Increased By ▲ 0.08 (1.41%)
JSCL 15.00 Increased By ▲ 0.45 (3.09%)
KAPCO 31.25 Increased By ▲ 0.55 (1.79%)
KEL 3.37 Increased By ▲ 0.21 (6.65%)
MDTL 2.10 Increased By ▲ 0.01 (0.48%)
MLCF 33.60 Increased By ▲ 1.70 (5.33%)
NETSOL 90.95 Increased By ▲ 1.95 (2.19%)
PACE 4.15 Increased By ▲ 0.06 (1.47%)
PAEL 20.70 Increased By ▲ 0.28 (1.37%)
PIBTL 7.40 Increased By ▲ 0.13 (1.79%)
POWER 6.44 Increased By ▲ 0.13 (2.06%)
PRL 12.16 Increased By ▲ 0.36 (3.05%)
PTC 8.68 Decreased By ▼ -0.01 (-0.12%)
SILK 1.19 No Change ▼ 0.00 (0%)
SNGP 37.80 Increased By ▲ 0.70 (1.89%)
TELE 14.35 Decreased By ▼ -0.12 (-0.83%)
TRG 87.18 Increased By ▲ 7.99 (10.09%)
UNITY 21.96 Increased By ▲ 0.11 (0.5%)
WTL 2.03 Increased By ▲ 0.03 (1.5%)
BR100 4,473 Increased By ▲ 75 (1.71%)
BR30 17,594 Increased By ▲ 602.1 (3.54%)
KSE100 43,853 Increased By ▲ 572.7 (1.32%)
KSE30 17,006 Increased By ▲ 228.3 (1.36%)

Coronavirus
LOW
Source: covid.gov.pk
Pakistan Deaths
28,784
724hr
Pakistan Cases
1,287,393
23224hr
Sindh
476,958
Punjab
443,560
Balochistan
33,509
Islamabad
107,960
KPK
180,412

KARACHI: We are rushing fast towards “A Broken Economy” with serious financial crisis and mass joblessness. A Broken Economy is where Inflation and interest rate moves continuously towards the higher side, said Ateeq Ur Rehman, an Economic and Financial Analyst.

Due to expensive cost of borrowing it is difficult for a common man to add finance to his business or entity for expansion or to create margin to fight inflation. Micro financing through banks is unbearable, he said.

Millions of household have been struggling to make their ends meet and being crushed due to Covid pandemic, high energy prices, currency devaluation, hike in gas and POL products, etc. This is a continuous apathy without any end.

He said locally, to run the affairs we are borrowing persistently. Our external debt is historically high now, which is nearly $122.5 billion that is almost an increase of $26 Billion in last 3 years. This is directly affecting the momentum of economic stability and consequently bringing towering effect on a common man, said Ateeq.

Moreover, the trade gap is ballooning day by day with a vast difference between imports and exports. "We have touched nearly $70 billion for importing commodities like POL products, coal, industrial raw material, agriculture produce, etc."

"Whereas the exports are below $25 billion; otherwise we can diversify and focus on exports of IT, textiles, medicines, poultry, dairy, sea foods, rice, fruits, leather goods, salt, marble, surgical goods, motorcycles, furniture, etc."

He added that electric, gas, petroleum tariff hikes without tackling the deep rooted consequences will not work. The government needs to carefully weigh the proposals before making a final decision, since it is going to have quite a deep impact on the vast majority of the people and not a limited number of them.

Copyright Business Recorder, 2021

We love hearing your feedback, please help us improve by answering these few survey questions

Comments

Comments are closed.