Pakistani economic crisis (2022–present)
Ongoing economic crisis in Pakistan / From Wikipedia, the free encyclopedia
Pakistan has experienced an ongoing economic crisis as part of the 2022 political unrest. It has caused severe economic challenges for months due to which food, gas and oil prices have risen.
This article needs to be updated. The reason given is: Early closing of markets as per the Govt energy conversation plan. (January 2023) |
Date | 2022 – present |
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Location | Pakistan |
Type | Economic crisis |
Cause | Political reactions to the Russian invasion of Ukraine and Israel–Hamas war, rising fuel prices, excessive external borrowings, poor governance, low productivity per capita, cost of living crisis, floods, political instability |
Outcome |
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The Russian invasion of Ukraine has caused fuel prices to rise worldwide. Excessive external borrowings by the country over the years raised the spectre of default, causing the currency to fall and making imports more expensive in relative terms. By June 2022, inflation was at an all time high, along with rising food prices.[1][2][3][4]
Poor governance and low productivity per capita in comparison with other low to middle-income developing countries have contributed to a balance of payment crisis, where the country is unable to earn enough foreign exchange to fund the imports that it consumes.[5] Pakistan's economic crisis is the biggest crisis since its independence.[6][7]