Islamabad, Pakistan: Pakistan is on the verge of bankruptcy as over 8,500 shipping containers filled with essential life-saving items are still stuck up at the seaports following the financial crisis continuing in the nation, The Express Tribune reported.
As per the updates, the scenario of the financial aspect in Pakistan is getting worse as the nation is running out of funds and facing increased inflation and a spike in food prices; the coffers of Pakistan are about to get empty soon, said the report.
The imports in Pakistan are getting affected as there are not enough funds to clear the due of about 8,531 containers because of the shortage of dollars.
On the other hand, contracts for imports and exports of Pakistan with other nations are under threat as Pakistan has failed to make timely payments.
Furthermore, the financial situation could be better with time as the central banks of Pakistan have left with reserves of just USD 4.4 billion, which would barely hold up for three weeks of imports.
In contrast, according to The Express Tribune report, the estimated funds needed clear the dues. Pending requests for opening letters of credit in the range of USD 1.5 billion to USD 2 billion, the reports have also stated that the Pakistan government has stopped the payments of dividends of over USD 2 billion, which would hurt the future investment prospects for the nation.
The inflation in the country is already moving up by 25%. If the supply chain breaks down, the government will face hyperinflation that might be in for extra imported inflation due to sleep currency devaluation.
In the current financial scenario, Pakistan has been approaching the release of a loan from the organization of IMF (International Monetary Fund); after the revival, the reserves of Pakistan saw a slight bounce back to USD 8.8 billion before decreasing again to USD 7.8 billion when Miftah Ismail left the command of Finance Ministry, reports Express Tribune.
Moreover, industries in various sectors were also kept shutting down temporarily. One of the industries, Beco Steel Ltd, halted production until further notice owing to delays in the approval of letters of LCs.
In the end, its inventory levels have seen “significant reductions, ” negatively impacting the supply chain. The list of non-essential Import Items has hit not only these industries but around 100 types of businesses under the Import Policy Order 2022, as per the report in The Express Tribune. (ANI)