Currently, Pakistan is not at risk of default, but the burden of international debt payments is increasing. All industries in the country have been shut down due to government policies. Economists say that during March 2021, Pakistan earned more than $5 billion in exports and remittances, while the government had complete control over expenditures due to restrictions on non-essential items. Pakistan will have to negotiate rescheduling of loans with all institutions, including the IMF.
According to economic experts, all industries in the country have been shut down due to government policies, and no non-essential items can be imported into the country. The manufacturing sector, including the automobile and textile sectors, has been completely destroyed.
During the current fiscal year, exports amounted to $2.4 billion and remittances amounted to $2.53 billion during March alone. In March, revenues amounted to $3.9 billion, which led to a surplus of $654 million in the current account. From July to March of the current fiscal year, exports amounted to $21.05 billion and revenues amounted to $43 billion. Despite stopping all imports for nine months, the trade deficit is still $2.288 billion.
Remittances amounted to $20.5 billion, and foreign investment decreased by 98% in the past nine months, leaving only $37 million, which was more than $1.5 billion less than the previous year. During eight months, the exchange rate of the dollar against the rupee rose by 9.98% due to the IMF’s demand.