As the Pakistani rupee hits 262 against US dollar: Will Pakistan go bankrupt?
Pakistani rupee hit 262 against a US dollar, Finance Minister Ishaq Dar said Pakistan is the only country founded in the name of Islam and Allah is responsible for its development and prosperity as the cash-strapped nation faced an acute balance of payments crisis. (India Today Reports)
The finance minister further said that they are trying their best to improve Pakistan’s condition under Prime Minister Shehbaz Sharif’s leadership.
Meanwhile, cash-strapped Pakistan’s Federal Reserve fell below $4 billion. So, will Pakistan go bankrupt?
IMF had asked the Pak government to end its control and let market forces determine the currency rate, a condition that was readily accepted. Pakistan has been looking to win the global body’s approval to get $6.5 billion in funding which is currently stalled.
While Pakistan won an IMF bailout last year, the release of funds has been stalled this year.
The low forex reserve in Pakistan has led to massive food inflation. In some parts of the country, a packet of flour is being sold for as high as Rs. 3,000. Videos of people fighting for food and chasing food trucks are doing the rounds on social media.
The country has also plunged into darkness owing to frequent blackouts.