Pakistan economic crisis: Govt assures citizens of stable economy despite warning signs

Pakistan's economic managers assured citizens that the country was not heading towards a crisis even as the rupee fell by 0.83 percent.

Pic Credit: File Photo

Islamabad: While Pakistan`s economy is heading towards disaster, its government is assuring the citizens that Islamabad`s economy is stable. Pakistan`s government tries a "glass half full" approach as economic crises abound, reported Dawn. The country`s economic managers continued to give assurances on Thursday that Pakistan was not heading to default, the rupee has stabilized -- even as it fell 0.83 per cent -- and the country has enough petrol for over a month.

In his press conference alongside Finance Minister Miftah Ismail, Defence Minister Khawaja Asif called for a complete end to `executive allowance` recently given to top government employees and other similar lavish lifestyles at public expense, whereas the prime minister in a cabinet meeting expressed concern over the local currency`s record depreciation against the dollar, reported Dawn.

Separately, Energy Minister Khurram Dastgir asserted that the country`s petroleum product reserves were at a "record level". Conceding that ongoing policy measures by the government coupled with external factors would push a lot of middle-class people below the poverty line, Defence Minister Khawaja Asif on Thursday called for a complete end to `executive allowance` recently given to top government employees and other similar lavish lifestyles on public expense.

"The permanent government, I mean the bureaucracy and others, would have to jointly share the burden to ensure that it is felt by the common man that they are not paying the price alone but shared by the entire nation," Asif told reporters.

Pakistan's rupee fell from 227 to 204.85 against the dollar

Meanwhile, Pakistan`s rupee plunged to 227 to the dollar from 204.85 on June 30. Asif further said that the size of Pakistan`s government should be reduced as much as possible in given circumstances. He also stressed the need for a change in habit patterns and said business should be restricted to daytime only. Responding to a question, Asif said a delegation had returned from Kabul and arrangements would now be made to increase coal imports for power plants, reported Dawn.

However, it is pertinent to note that the Taliban government has raised the price of coal yet again, this time by USD 80 per ton, Geo News reported citing media reports. The coal price has increased from USD 200 to USD 280 per tonne. He said the State Bank of Pakistan had also taken steps to discourage imports. Responding to a question, he said the SBP governor would be appointed next week and its board of directors would be notified anytime.

Meanwhile, Energy Minister Khurram Dastgir asserted on Thursday that the PML-N-led coalition government`s commitment to stabilise the economy and prevent the effects of an "international energy crisis" from manifesting here was clear as a petroleum product reserves were at a "record level". But, the biggest indication of economic turmoil in the country was that it ran out of petroleum products, reported Dawn.

A cabinet meeting presided over by the premier on Thursday claimed that it would bring down unbridled prices of petroleum products in the country by next month. "All necessary steps are being taken to bring down the dollar rate and by the next month, the rupee will stabilize against the dollar," Finance Minister Miftah Ismail informed the meeting. Meanwhile, according to Prime Minister`s Office, Shehbaz Sharif expressed concern over the local currency`s record depreciation against the dollar.