New Delhi: Pakistan’s economic situation is heading for a major crisis, as inflation in neighboring India has jumped to 9%. Falling per capita income adds to challenges facing Pakistan’s ruling party Pakistan Tehreek-e-Insaf (PTI) amid opposition protests.
Pakistan’s per capita income rose from $ 1,482 in 2018 to $ 1,260 in 2021, according to IMF estimates, signaling that the country’s purchasing power still remains low, according to a report from local media, The News International.
In addition, the country’s GDP had previously grown by around 36 percent between 2008 and 2013 when the Pakistan People’s Party (PPP) was in power. From 2013 to 2018, GDP had further jumped by 36%. However, during the period 2018-2020, the economy plunged by 16%.
In addition, the US dollar has made strong advances against the Pakistani rupee due to alleged bad decisions by the PTI government, according to an ANI report, which read: “Bad governance and bad decisions at the highest level. Consisting of exporting sugar first, then importing the same goes for wheat and flour, coupled with the discouraging cultivation of pulses and cotton, has also played a key role in increasing food inflation and the importation of over $ 1 billion worth of cotton led to the devaluation of the rupee. Also read: Andhra Pradesh government excludes VAT cut on petrol and diesel, clarifies position with newspaper ad
With the weakening of the rupee, the price of oil per liter in Pakistan would now be around 145.82 rupees. Currently, the Pakistani government cites global inflation as the reason for the inflation in the country. Read also: LPG subsidy: is the center working on a new cooking gas subsidy policy? Find out who could benefit