Pakistan’s flailing economy hit by drop in worker remittances
1 year, 6 months ago

Pakistan’s flailing economy hit by drop in worker remittances

Al Jazeera  

A dramatic drop in foreign workers’ remittances signals a further blow to the economy as Islamabad seeks an IMF bailout. Remittances sent home by Pakistanis working abroad fell to $27bn for the fiscal year 2023, compared with $31.3bn a year earlier, the country’s central bank said on Monday. According to the World Bank last year, Pakistan was the world’s sixth top recipient of remittances in 2022, behind India, Mexico, China, the Philippines and Egypt, although Tonga, Lebanon and Samoa are most dependent on money sent home from abroad as a percentage of GDP. Pakistan’s economic crisis The drop signals another blow to Pakistan’s economy which is facing its worst crisis since gaining independence from Britain in 1947. Years of financial mismanagement, a global energy crisis and severe flooding have battered the economy, resulting in a slew of strict economic measures imposed by the International Monetary Fund as Pakistan’s central bank looks to secure a bailout.

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History of this topic

How 1.5 lakh Pakistan government jobs just 'vanished'
1 week, 1 day ago

How 1.5 lakh Pakistan government jobs just 'vanished'

Firstpost  

For the second time in six months, Pakistan has cut down 1.5 lakh government jobs. Pakistan’s Finance Minister Muhammad Aurangzeb said that the job cuts are part of a broader cost-cutting and efficiency drive introduced by the government. Pakistan’s Finance Minister Muhammad Aurangzeb said that the government aims to reduce the number of affiliated agencies by half, with the reforms …

Pakistan's Skilled Workforce Exodus: A Crisis of Economic Indifference
Trending News
2 months, 2 weeks ago

Pakistan's Skilled Workforce Exodus: A Crisis of Economic Indifference

Firstpost  

Pakistan's emigration phenomenon is a major concern, with the country facing a severe brain drain. Skilled workers are leaving the country in search of better opportunities abroad, leading to a significant decline in the country's workforce and economic growth. The country's economic struggles, political instability, and soaring consumer prices have contributed to this exodus. The government needs to address the …

Is Pakistan’s crisis-ridden economy finally recovering?
7 months ago

Is Pakistan’s crisis-ridden economy finally recovering?

Al Jazeera  

Ahead of the country’s budget on Wednesday, inflation is down, forex reserves are up. Islamabad, Pakistan – The Pakistani government will present its annual budget on Wednesday, seeking to balance domestic commitments to the country’s 240 million people and demands of fiscal prudence from the International Monetary Fund – a key source of loans. Sharif recently travelled to Saudi Arabia, …

World Migration Report 2024: India received $111 billion in remittances in 2022
8 months, 1 week ago

World Migration Report 2024: India received $111 billion in remittances in 2022

The Hindu  

According to the United Nations’ latest World Migration Report, India was the highest recipient of remittances from abroad at $111 billion in 2022. The report enumerated that with a “very large” number of migrant workers from the subregion, South Asia receives “some of the largest inflows of remittances globally.” It further stated, “India is also the origin of the largest …

IMF approves immediate disbursal of USD 1.1 billion loan tranche to Pakistan
8 months, 2 weeks ago

IMF approves immediate disbursal of USD 1.1 billion loan tranche to Pakistan

Deccan Chronicle  

Washington/Islamabad: The IMF has approved an immediate disbursal of the final tranche of USD 1.1 billion to Pakistan as part of a bailout package, emphasising that the cash-strapped country needs to take tough measures to bring its economy back on track. The International Monetary Fund Executive Board's decision on Monday came after the global lender completed the second and final …

Saudi foreign minister arrives in Pakistan to discuss how to help with the country's economic crisis
9 months ago

Saudi foreign minister arrives in Pakistan to discuss how to help with the country's economic crisis

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Please try again later {{ …

‘Pakistan’s economic model…’: World Bank warns as 95 mn fall below poverty line
1 year, 3 months ago

‘Pakistan’s economic model…’: World Bank warns as 95 mn fall below poverty line

Live Mint  

Pakistan's financial woes prompted an urgent warning from the World Bank on Friday as millions more fell below the poverty line. “Pakistan’s economic model is no longer reducing poverty, and the living standards have fallen behind peer countries,” said Tobias Haque – the World Bank’s lead country economist for Pakistan. According to the latest draft policy notes unveiled by the …

Pakistan: 95 million people living under poverty as living standards fall, reveals World Bank
1 year, 3 months ago

Pakistan: 95 million people living under poverty as living standards fall, reveals World Bank

India TV News  

The World Bank has revealed that poverty in the cash-strapped Pakistan has risen by 39.4% since the last fiscal year, pushing an additional 12.5 million people below the poverty line. In its draft policy notes prepared with the help of all stakeholders for Pakistan's next government, the World Bank said that an additional 12.5 million people have been pushed into …

China Rolls Over $2.4 Billion Loan to Cash-Strapped Pakistan for Two Years
1 year, 5 months ago

China Rolls Over $2.4 Billion Loan to Cash-Strapped Pakistan for Two Years

News 18  

China has rolled over a USD 2.4 billion loan to its all-weather ally Pakistan for two years to help the cash-strapped country shore up its foreign exchange reserves, Finance Minister Ishaq Dar said on Thursday. “Chinese EXIM Bank has rolled over for 2 years principal amounts of following loans totalling US$ 2.4 billion which are due in next 2 fiscal …

Pakistan’s forex reserves double to $8.73 billion
1 year, 5 months ago

Pakistan’s forex reserves double to $8.73 billion

Live Mint  

Pakistan's foreign exchange reserves have surged to a nine-month high following a fresh financial bailout from the International Monetary Fund. The country's reserves nearly doubled to $8.73 billion as of July 14, with inflows coming from the IMF and friendly nations like Saudi Arabia and the UAE. The financial assistance, totaling around $4.2 billion received last week, comes as Pakistan …

Pakistan facing "exceptionally high" economic risks, external debt to mount: IMF
1 year, 5 months ago

Pakistan facing "exceptionally high" economic risks, external debt to mount: IMF

India Today  

An assessment from the International Monetary Fund has said that Pakistan's economic challenges were complex and multifaceted and risks were exceptionally high, The Dawn reported. “Resolving Pakistan's structural challenges, including long-term BOP pressures, will require continued adjustment and creditor support beyond the current programme period,” the Fund said in a report. “A possible successor arrangement could help anchor the policy …

Pakistan lost $8.3 bn in remittances, exports in FY23 amid IMF bailout bid
1 year, 5 months ago

Pakistan lost $8.3 bn in remittances, exports in FY23 amid IMF bailout bid

Live Mint  

Earlier this week the International Monetary Fund deposited a much-awaited first installment of $1.2 billion in Pakistan's central bank. The financial infusion was part of a $3 billion new bailout deal that the beleaguered country secured earlier this month after making a slew of changes to comply with conditions set out by the IMF. Recent reports however indicate that Pakistan …

IMF approves much-awaited $3bn bailout for Pakistan
1 year, 6 months ago

IMF approves much-awaited $3bn bailout for Pakistan

Al Jazeera  

IMF approves release of funds over nine months to support Pakistan’s economic stabilisation programme. In a statement on Wednesday, the IMF said its executive board gave the green light to the nine-month standby arrangement “to support the authorities’ economic stabilisation programme”. Pakistan has suffered from a balance-of-payments crisis as it tries to service burdensome external debt amid a fraught political …

Saudi Arabia deposits $2 billion in Pakistan’s central bank as a boost ahead of a key IMF meeting
1 year, 6 months ago

Saudi Arabia deposits $2 billion in Pakistan’s central bank as a boost ahead of a key IMF meeting

Associated Press  

ISLAMABAD — Saudi Arabia has deposited $2 billion into Pakistan’s central bank, the government said Tuesday, a much-needed financial boost ahead of a critical meeting of the International Monetary Fund on the new bailout package for the cash-strapped South Asian country. Dar said that with the Saudi deposit, Pakistan’s foreign exchange reserves which dropped to $9.6 billion last week — …

Pakistan’s economy to grow by 2% in the next fiscal year, says World Bank
1 year, 7 months ago

Pakistan’s economy to grow by 2% in the next fiscal year, says World Bank

The Hindu  

The World Bank has projected Pakistan’s economy to grow by 2% in the next fiscal year, much lower than the 3.5% target set by the National Economic Council, the country's top economic body, saying the lasting effects of the August 2022 floods, along with policy uncertainty and limited foreign exchange resources have depressed activity in the country. “In Pakistan, the …

Number theory: Why Pakistan's current account surplus may spell bad news for the economy
1 year, 7 months ago

Number theory: Why Pakistan's current account surplus may spell bad news for the economy

Hindustan Times  

Pakistan recorded a surplus in its current account for the second consecutive month in April, as per the data released by the State Bank of Pakistan on May 17, shrinking the ongoing fiscal year’s current account deficit by a massive 76% to $3.3 billion in July-April compared to the same period last year. See Chart 1: Revisions in IMF projections …

Pakistan unemployment at its peak: Over 10 lakh lost jobs in past few months amid economic slowdown
1 year, 8 months ago

Pakistan unemployment at its peak: Over 10 lakh lost jobs in past few months amid economic slowdown

India TV News  

Pakistan economic crisis: As Pakistan is facing the worst-ever financial crisis, unemployment among young people has created a record, pushing the country into another havoc, Dawn reported on Saturday. Over 5 lakh lost their jobs in industrial sector In four industrial sectors of Karachi and the countrywide auto vending units, stakeholders claimed that “over 5,00,000 people have faced joblessness.” Quoting …

World Bank estimates decline in Pakistan's GDP per capita income to USD 1,399
1 year, 9 months ago

World Bank estimates decline in Pakistan's GDP per capita income to USD 1,399

Hindustan Times  

The World Bank has estimated a drop in GDP per capita income for Pakistan from USD 1,613.8 in 2021-22 to USD 1,399.1 in 2022-23, Business Recorder reported. In its report 'Macro Poverty Outlook for Pakistan: April 2023', the bank noted that GDP per capita growth is estimated at -1.5 per cent in 2022-23 in comparison to 4.2 per cent in …

From the India Today archives (2023) | Pakistan's fast emptying coffers
1 year, 9 months ago

From the India Today archives (2023) | Pakistan's fast emptying coffers

India Today  

We have never defaulted in the past and we won't default now," asserted Pakistan's federal minister for finance Ishaq Dar on March 3, looking irritated at the persistent questions journalists were lobbing at him at a press conference. His irritation stemmed from ongoing speculation about the country's crisis-wracked economy; the latest blow dealt by credit ratings agency Moody's, which had …

Pakistan's current account deficit hits two-year low
1 year, 9 months ago

Pakistan's current account deficit hits two-year low

India Today  

Curbs on imports by Pakistan began to yield results as the cash-strapped country's current account deficit hit a two-year low of $ 74 million in a month, it emerged on Monday. The State Bank of Pakistan reported that "the current account deficit recorded at $ 0.1 billion in February 2023 against a deficit of $ 0.5 billion in February 2022. …

US encourages crisis-hit Pakistan to continue working with IMF - here’s why
1 year, 10 months ago

US encourages crisis-hit Pakistan to continue working with IMF - here’s why

Live Mint  

The United States on Thursday urges crisis-hit Pakistan to improve its business environment which would make the South Asian country more attractive and competitive around the world. As per the latest report, the country's external debt rose sharply by 38% to PKR 20.69 trillion by the end of January 2023 as compared to the year-ago period. The pkrevenue report mentioned …

The fall and fall of Pakistan
1 year, 10 months ago

The fall and fall of Pakistan

New Indian Express  

How it all came tumbling down 1958-68: General Ayub’s non-liberal policies of the capitalist model increases income inequality 1970s: During Zulfiqar Ali Bhutto’s reign, there was a recession in exports, the partition of East Pakistan, the floods of 1974 and locust attacks. His nationalisation policies became the major reason for the loss of industrial units and private investment 1998: Pakistan …

Pakistan economic crisis: Islamabad receives $700 mn from China bank, eyes $1,300 mn more
1 year, 10 months ago

Pakistan economic crisis: Islamabad receives $700 mn from China bank, eyes $1,300 mn more

India TV News  

Pakistan economic crisis: Pakistan has received $700 million from the China Development Bank to bolster the country's foreign exchange reserves, which have been under strain due to external debt. The deposit will provide much-needed relief to Pakistan, which has foreign exchange reserves of $3.25 billion as of February 17, barely enough to cover less than three weeks' worth of imports. …

Pakistan Economic Crisis: Millions in danger of losing jobs as industries shut down
1 year, 10 months ago

Pakistan Economic Crisis: Millions in danger of losing jobs as industries shut down

Firstpost  

Karachi: With Pakistan battling its worst economic crisis since its creation, various industries in the country are facing a significant decrease in production and are now bracing for massive layoffs in the workforce. Nasir Mansoor, Secretary General of the National Trade Union Federation Pakistan was quoted as saying by Pakistani media outlet ‘The News International’ that as many as one …

Will crisis-hit Pakistan be able to prevent looming recession?
1 year, 10 months ago

Will crisis-hit Pakistan be able to prevent looming recession?

Live Mint  

The current economic situation of Pakistan has raised the question of whether the cash-strapped country can control mass protests as the cost of living is becoming intolerable for its citizens due to rising inflation, reported Asian Lite International. The current account deficit of the crisis-hit country shrank 90.2% to USD 0.24 billion in January from USD 2.47 billion in the …

High taxes, cost-cutting formula: How Pakistan is dealing with economic crisis?
1 year, 10 months ago

High taxes, cost-cutting formula: How Pakistan is dealing with economic crisis?

Live Mint  

Pakistan has been spiraling into a deep economic crisis as the country's rupee is falling down, fuel prices shooting up, and taxes on luxury goods rising. Pakistan's cost-cutting formula Pakistan Prime Minister Shehbaz Sharif has asked his ministers and advisers to fly economy class, forgo luxury cars and their salaries as part of an austerity drive that will save the …

Pakistan taxing its citizens for IMF deal: 7% surge in tax, luxury goods costly
1 year, 10 months ago

Pakistan taxing its citizens for IMF deal: 7% surge in tax, luxury goods costly

Live Mint  

Pakistan is facing an imminent economic meltdown with the country modifying its policies according to the conditions laid down by the International Monetary Fund, in an effort to unlock the tranche of a $6.5 billion loan facility to overcome the financial crisis. Kristalina Georgieva, IMF Managing Director has also emphasized two things that can help Pakistan get away from economic …

Pakistan economic crisis: Inflation, forex reserves among 5 worrisome indicators
1 year, 10 months ago

Pakistan economic crisis: Inflation, forex reserves among 5 worrisome indicators

Live Mint  

Pakistan has been struggling with an economic downfall for the last few months with multiple indicators clearly suggesting that the country is battling its worst nightmare since 1971 when the country lost a war against India and partitioned from Bangladesh. Let's know Pakistan's economic situation with these economic indicators, 1) External debts jump by 70% Pakistan's external debt servicing rose …

Inflation in Pakistan could average 33% in H1 2023, says Moody’s economist
1 year, 11 months ago

Inflation in Pakistan could average 33% in H1 2023, says Moody’s economist

Live Mint  

Inflation in Pakistan could average 33% in the first half of 2023 before trending lower, and a bailout from the International Monetary Fund alone is unlikely to put the economy back on track, a senior economist with Moody's Analytics told Reuters. "Food prices are high and they can't avoid paying for that, so we're going to see higher poverty rates …

Data | Why is Pakistan’s economy collapsing? Explained in charts
1 year, 11 months ago

Data | Why is Pakistan’s economy collapsing? Explained in charts

The Hindu  

Pakistan’s economy is on the brink of collapse. Foreign exchange reserves with the State Bank of Pakistan dipped to $3.08 billion in the week ending January 27, 2023. Chart 3 shows the week-wise foreign exchange reserves held by Pakistan’s central bank. Chart 6 shows financial year-wise Pakistan’s total debt and liabilities in billion PKR. Source: State Bank of Pakistan, Economic …

Global Watch | No bailout package can help Pakistan as it suffers from systemic failure
1 year, 11 months ago

Global Watch | No bailout package can help Pakistan as it suffers from systemic failure

Firstpost  

Three incidents happened recently in Pakistan which shows the extent of failure of Pakistan as a nation-state and the prevailing chaos there. Third, the much awaited visit of the International Monetary Fund team to review Pakistan’s economic policies before offering a bailout package of $1.1 billion took place in early February. In the past 75 years since its formation, Pakistan …

Cash-strapped Pakistan's rupee plunges amid talks with IMF
1 year, 11 months ago

Cash-strapped Pakistan's rupee plunges amid talks with IMF

The Hindu  

Cash-strapped Pakistan’s currency plunged Thursday against the dollar after the government indicated it was ready to comply with tough conditions set by the International Monetary Fund for the next tranche of its bailout package. Pakistan is seeking a crucial installment of $1.1 billion from the fund — part of its $6 billion bailout package — to avoid default. The rupee's …

Pakistan foreign exchange reserves drop to lowest since 2014
2 years ago

Pakistan foreign exchange reserves drop to lowest since 2014

Al Jazeera  

Experts paint a gloomy picture, saying the government must reconsider its priorities from finding short-term solutions to more sustainable reforms. Islamabad, Pakistan – Pakistan’s foreign exchange reserves have fallen to $4.3bn, its lowest levels since February 2014, the country’s central bank announced after paying off some of Pakistan’s external debt payments. For details https://t.co/WpSgomnKT3 pic.twitter.com/l9Syz9T1bh — SBP January 12, 2023 …

World Bank cuts Pakistan’s GDP growth projection to 2 percent
2 years ago

World Bank cuts Pakistan’s GDP growth projection to 2 percent

Al Jazeera  

Islamabad, Pakistan – Predicting a difficult year ahead for Pakistan, the World Bank has revised the country’s growth projections from 4 percent in June last year to 2 percent for the current fiscal year, citing “precarious economic situation, low foreign exchange reserves and large fiscal and current account deficits” among the primary reasons. The bank, in its Global Economic Prospects …

Pakistan imports threatened as forex reserves hit eight-year low
2 years ago

Pakistan imports threatened as forex reserves hit eight-year low

Firstpost  

Pakistan has just $11.4 billion in reserves – enough to pay for just three weeks of imports, traders and economists say Karachi: Pakistan’s central bank forex reserves have plunged to an eight-year low of $5.6 billion, posing a serious challenge for the country in financing imports. Coupled with another $5.8 billion held by commercial banks, the nation has $11.4 billion …

Pakistan's economy faces severe headwinds with mounting deficits, high inflation
2 years ago

Pakistan's economy faces severe headwinds with mounting deficits, high inflation

The Hindu  

Pakistan’s economic situation is facing "severe headwinds" with inflation being forecast to stay high between 21-23% and the cash-strapped country's fiscal deficit widening by more than 115% in the first four months of the current fiscal year. "This combination of low growth, high inflation and low levels of official foreign exchange reserves are the key challenges for policymakers,” alerted the …

Closure of border markets make thousands of people jobless in Pakistan, forex reserves, FDI, textile exports all at dismal low
2 years ago

Closure of border markets make thousands of people jobless in Pakistan, forex reserves, FDI, textile exports all at dismal low

Op India  

Thousands of people are left jobless due to the closure of the market at Taftan, for the last one-year — the border of Iran and Pakistan, reported Pakistani vernacular media Intekhab Daily. A sit-in protest was held in September by regional political parties against the prolonged closure of trade and travelling corridors at Taftan border in Chagai district in Pakistan’s …

Pakistan central bank’s forex reserves fall to near four-year low
2 years, 1 month ago

Pakistan central bank’s forex reserves fall to near four-year low

Al Jazeera  

Announcement by the State Bank of Pakistan comes as the country is in dire need of foreign aid. Islamabad, Pakistan – Pakistan’s central bank says its foreign exchange reserves have fallen to $6.7bn, its lowest level in nearly four years as the country battles an economic crisis. Thursday’s announcement by the State Bank of Pakistan came as the country is …

Pak in Financial Free Fall, Credit Default Swap Jumps to 93%, No Help from IMF, 'Friends'
2 years, 1 month ago

Pak in Financial Free Fall, Credit Default Swap Jumps to 93%, No Help from IMF, 'Friends'

News 18  

Pakistan’s economy is in upheaval, and its reserves are running out. According to the latest data, the cost of insuring exposure to Pakistan’s five-year sovereign debt rose by 1,224 basis points over the weekend, hitting the highest-ever level of 92.53%. After finance minister Ishaq Dar’s claim of bringing down the dollar rate to PKR 180 or PKR 200, people started …

How Pakistan's Economic Crisis Has Sent Prices Skyrocketing
2 years, 6 months ago

How Pakistan's Economic Crisis Has Sent Prices Skyrocketing

The Quint  

Foreign exchange reserves with the Pakistan central bank currently stand at US$10.3 billion. Though recently bolstered by Chinese bank lending, reserve levels have been volatile since late April 2022, when a political crisis resulted in the ousting of the Prime Minister, Imran Khan. To preserve foreign currency, an early measure taken by the newly appointed government in May 2022 was …

Pakistan Facing 'Significant Economic Challenges', Economy At Critical Juncture: IMF
5 years, 6 months ago

Pakistan Facing 'Significant Economic Challenges', Economy At Critical Juncture: IMF

ABP News  

Washington: Pakistan is facing "significant economic challenges" due to a weak and unbalanced growth and that its economy is at a critical juncture where it needs an ambitious and bold set of reforms, the IMF has said. The global lender last week formally approved the USD 6 billion loan to Pakistan, which is facing "significant" economic challenges on the back …

Pakistan finalises $6bn IMF bailout package
5 years, 8 months ago

Pakistan finalises $6bn IMF bailout package

Al Jazeera  

Pakistan will receive funds over 39 months, as structural reform planned to stabilise deficits and reorient economy. “Pakistan is facing a challenging economic environment, with lacklustre growth, elevated inflation, high indebtedness, and a weak external position,” said Ernesto Ramirez Rigo, the head of the IMF’s mission to Pakistan, said in the statement. “This reflects the legacy of uneven and procyclical …

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