Pakistan’s economic crisis likely turning into catastrophe, Atif Mian
Economist Atif Mian claimed on Wednesday that Pakistan’s economy of $350 billion is heading towards
“tailspin, towards collapse”
due to the hanging balance of payments crisis triggered by the International Monetary Fund (IMF). Mian said that
“the system is being seized,”
adding that it can be seen as growing stagnation forces, with growth plummeting and prices rising rapidly.
In a detailed thread on Pakistan’s economy shared on his Twitter handle, the economist warned that these are
“In fact, the excess of money has not only caused huge losses and hidden money but also attributed to the foolish policy choices that have seriously affected the country’s production capacity,”he said
The State Bank of Pakistan (SBP) raised its benchmark interest rate to 21% on Tuesday as a fresh record increase in inflation was seen in March due to tax and energy price hikes and meeting IMF conditions to let the currency fall. And revive a $6.5 billion program.
American scholar highlighted that
“now the biggest concern is that the whole system is becoming unmanageable.”
“We are witnessing an uncertain situation that results in the loss of capital and people…,”
they wrote on Twitter.