A senior fellow at the American Enterprise Institute, warning of the collapse of the economy of Pakistan.
Publish dateTuesday 19 July 2022 - 14:45
Story Code : 255873
Afghan Voice Agency(AVA)_Monitoring, The report cited the war between Ukraine and Russia as having a significant effect on the economy of Pakistan.
“Russia’s invasion of Ukraine sent economic shockwaves across not only Europe but also the broader Middle East. Pakistan, whose economy is already weak because of decades of corruption, mismanagement, and unstable governance, has been particularly vulnerable,” the report reads.
The report said Islamabad requires wheat from both Russia and Ukraine. “While many countries are dependent upon Ukrainian or Russian wheat or foreign energy imports, Pakistan requires both. Between July 2020 and January 2021, for example, Pakistan was the third-largest consumer of Ukrainian wheat exports after Indonesia and Egypt,” according to the report.
The report mentioned Pakistan's trade deficit of $50 billion as of June, a 57% increase over the previous fiscal year, as well as high inflation.
Meanwhile, Afghanistan’s Chamber of Commerce and Investment (ACCI) said that the collapse of Pakistan's economy will have a negative effect on Afghanistan.
“If the prices of wheat and flour are cheap in Afghanistan, it will be smuggled, but so far there is no concern in this regard, and there is no doubt that Pakistan is facing an economic crisis,” said Khanjan Alikozai, a member of the ACCI.
The National Interest article said that the price spike in oil prices has hit Pakistan hard, driving up the cost of its imports by more than 85 percent, to almost $5 billion, just between 2020 and 2021.
“The collapse of the economic system of Pakistan will have dire consequences for Afghanistan as well, it will have a negative impact on export and imports, regional projects such as CASA 1000, the TAPI project, and trade,” said Shakir Yaqoobi, an economist.
The report added that the Pakistani rupee continues to "hemorrhage value when compared to the US dollar," off more than 30 percent over the past year.
“Russia’s invasion of Ukraine sent economic shockwaves across not only Europe but also the broader Middle East. Pakistan, whose economy is already weak because of decades of corruption, mismanagement, and unstable governance, has been particularly vulnerable,” the report reads.
The report said Islamabad requires wheat from both Russia and Ukraine. “While many countries are dependent upon Ukrainian or Russian wheat or foreign energy imports, Pakistan requires both. Between July 2020 and January 2021, for example, Pakistan was the third-largest consumer of Ukrainian wheat exports after Indonesia and Egypt,” according to the report.
The report mentioned Pakistan's trade deficit of $50 billion as of June, a 57% increase over the previous fiscal year, as well as high inflation.
Meanwhile, Afghanistan’s Chamber of Commerce and Investment (ACCI) said that the collapse of Pakistan's economy will have a negative effect on Afghanistan.
“If the prices of wheat and flour are cheap in Afghanistan, it will be smuggled, but so far there is no concern in this regard, and there is no doubt that Pakistan is facing an economic crisis,” said Khanjan Alikozai, a member of the ACCI.
The National Interest article said that the price spike in oil prices has hit Pakistan hard, driving up the cost of its imports by more than 85 percent, to almost $5 billion, just between 2020 and 2021.
“The collapse of the economic system of Pakistan will have dire consequences for Afghanistan as well, it will have a negative impact on export and imports, regional projects such as CASA 1000, the TAPI project, and trade,” said Shakir Yaqoobi, an economist.
The report added that the Pakistani rupee continues to "hemorrhage value when compared to the US dollar," off more than 30 percent over the past year.
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