{"id":15259,"date":"2023-04-05T12:36:52","date_gmt":"2023-04-05T12:36:52","guid":{"rendered":"https:\/\/dailyausaf.com\/en\/?p=15259"},"modified":"2023-04-05T12:36:52","modified_gmt":"2023-04-05T12:36:52","slug":"pakistans-economic-crisis-likely-turning-into-catastrophe-atif-mian-warns","status":"publish","type":"post","link":"https:\/\/dailyausaf.com\/en\/business\/pakistans-economic-crisis-likely-turning-into-catastrophe-atif-mian-warns\/","title":{"rendered":"Pakistan\u2019s economic crisis likely turning into catastrophe, Atif Mian warns"},"content":{"rendered":"

Pakistan\u2019s economic crisis likely turning into catastrophe, Atif Mian warns. Economist Atif Mian on Wednesday claimed that the $350 billion Pakistan economy is in a \u201ctailspin, going from crisis to catastrophe” as the nation teeters on the brink of a default as the International Monetary Fund<\/a>\u2019s (IMF) bailout hangs.<\/p>\n

\u201cThe system is coming hinged,\u201d Mian said, elaborating that this can be seen in the increasing stagflationary forces \u2014 growth is rapidly falling, and prices are rapidly rising.<\/p>\n

The economist \u2014 in a detailed thread on Pakistan’s economy shared on his Twitter handle \u2014 warned that these are \u201cvery worrying\u201d signs.<\/p>\n

\u201cIn effect, inflation is not only being fuelled by large deficits and money printing,\u201d he said, blaming \u201cfoolish policy choices\u201d that have seriously impacted the productive capacity of the economy.<\/p>\n

The State Bank of Pakistan (SBP), a day earlier, raised its benchmark interest rate to a record 21% as inflation quickened by a fresh record in March months after authorities raised taxes and energy prices and allowed the currency to depreciate to meet IMF conditions and revive a $6.5 billion programme.<\/p>\n

Read more:\u00a0Pakistan must end dependency on IMF, insists Ishaq Dar<\/a><\/strong><\/em><\/p>\n

The US scholar reiterated that the \u201cbigger worry now is that the entire system is getting unhinged.\u201d<\/p>\n

\u201cWe are witnessing the kind of uncertainty that results in the flight of both capital and humans \u2014 pushing further downward pressure on supply,\u201d he wrote on Twitter.<\/p>\n

\u201cJudiciary, politicians, and generals \u2014 in the last couple of years have witnessed a level of chaos, infighting, and jostling for selfish power grabs that have brought the country to this catastrophe,\u201d he said while referring to the ongoing political and constitutional crises in the country.<\/p>\n

While the coalition government is struggling to woo the IMF to release the next tranche following which Pakistan will be able to secure funding from other multilateral and bilateral donors.<\/p>\n

However, with inflation at all-time high and foreign currency reserves barely enough to cover a month of imports the people teeter to make ends meet.<\/p>\n","protected":false},"excerpt":{"rendered":"

Pakistan\u2019s economic crisis likely turning into catastrophe, Atif Mian warns. Economist Atif Mian on Wednesday claimed that the $350 billion Pakistan economy is in a \u201ctailspin, going from crisis to catastrophe” as the nation teeters on the brink of a default as the International Monetary Fund\u2019s (IMF) bailout hangs. \u201cThe system is coming hinged,\u201d Mian […]<\/p>\n","protected":false},"author":8,"featured_media":15260,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[5751,1247,572,599,160,138],"class_list":["post-15259","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-coalition-government","tag-international-monetary-fund","tag-sbp","tag-state-bank-of-pakistan","tag-imf","tag-pakistan"],"_links":{"self":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts\/15259","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/comments?post=15259"}],"version-history":[{"count":0,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts\/15259\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/media\/15260"}],"wp:attachment":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/media?parent=15259"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/categories?post=15259"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/tags?post=15259"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}