Due to ongoing political turmoil, Pakistan’s economy has largely collapsed and millions of people have lost their employment. If the scenario continues, the country would experience hyperinflation, with the indigenous currency probably falling below Rs 500 against the US dollar.
Nawaz Sharif, a former prime minister, predicted late last week that if the political situation worsened, the local currency may fall below Rs 500 versus the US dollar.
Business leaders call on all parties to overcome the political impasse, mend fences, and strive towards political stability and unity in order to save, repair, and revitalise the economy. They said that in the interest of the country as a whole, the coalition government should pick a road of amity rather than pursue a collision course, and the Pakistan Tehreek-e-Insaf (PTI) should likewise adopt a more conciliatory stance.
The International Monetary Fund (IMF) and the country’s political leadership, including both the government and the opposition, have a huge trust deficit, according to Ehsan Malik, CEO of the Pakistan Business Council (PBC), a business advocacy forum of leading corporations and business groups, which has led to the economy’s shutdown.
He asserted that the root of all deficits, including the fiscal and current account deficits, is the trust deficit. He claimed that the situation has become so bad that people are dying in stampedes at locations where wheat is distributed and where charity donations are made. “This is a pretty dire circumstance. Without national political unification, forget about restoring the economy “Said he.
He questioned who would believe in and support a divided country. “Deep partisan political differences are now present in Pakistan. Sadly, it appears that the Supreme Court is likewise split. The division must give way to harmony.”
Malik predicted that the economy would entirely collapse if the political situation didn’t improve. “Elections are necessary, thankfully or regrettably, to create political stability and allow the economy to make a recovery.