Pakistan world's fifth most populous country, with a population almost 242 milion and has the world's second largest Muslim population is edge of the economic collapse.
Major imports of Pakistan are Mineral Fuels and Oils, Electrical Equipment, Machinery, Iron and Steel, Pharmaceutical products, Animal and Vegetable Oils, Plastics, Organic Chemicals, Food and Vegetable.
This imports' total volume is almost 56 Billion United States Dollar and 2021-22 trade deficit of Pakistan's is surged an all-time high of $48.66B in the outgoing fiscal year, It was $30.96B a yer ago that is a significant 57% jump on the back of the higher expected imports and this is create huge pressure on tresuary.
Pakistan's economy is expected to grow by only 2 percent in the current fiscal year ending June 2023. According to the World Bank's October 2022 Pakistan Development Update: Inflation and the Poor, this slower pace inflict damage to economy of pakistan and their growth for sure.
Pakistan Goverment political and economical strategy is affecting current inflation and act as catalyse and create an unrest in public. Their inflation rate is 24.93% second high in Asia and basic food prices nearly doubled in Pakistan.
Facing of nearly 25% inflation rate Pakistan keep their policy rate 15% and lower than inflation causes their currency keep devalue and lose their 25% of their value in a year while their debth became more and more deep pakistan tresuary cant keep this pressure as well. Without foreign investment their growth halted and lowered from 3%-4% to 2%.
The International Monetary Fund (IMF) has approved the revival of a massive loan program for Pakistan as the country struggles to deal with a longstanding economic crisis made only worse by devastating monsoon flooding in recent weeks.
“The authorities have taken important measures to address Pakistan's worsened fiscal and external positions resulting from accommodative policies in Fiscal Year 2022 and spillovers from the war in Ukraine, and which have placed significant pressure on the rupee and foreign reserves,” the lender said in a statement on August 29.
However even after IMF has approved the revival of massive loan program for pakistan, we can't just ignore the fact China is funding to Pakistan itself 30% as Foreign Debt with higher interest rate that China is currently putting of the loan given Pakistan rate is 8%-10% and this is currently a driving force for economic crisis in Pakistan.
IMF move for helping Pakistan goverment only giving the goverment itself temporary relief but reality itself IMF money is directly going China treasuary as the consequence of debth itself.
As a politc maker goverment doesn't create a value in country and onlu using foreign investment for their growth and this create a economy driven foreign sources this makes the economy weak the international news and situation after Russia going operation to Ukraine and Natural Gas priceses rising that affect Pakistan as well.