Pakistan’s Currency Crisis and Inflation | Is The IMF Program Viable | Can Imran Khan Deliver?
New Wave Pakistan10 Huhti 2023

Pakistan’s Currency Crisis and Inflation | Is The IMF Program Viable | Can Imran Khan Deliver?

Nauraiz Rana (Economist, World Bank) is joined by world renowned economist Steve Hanke (Professor, Johns Hopkins University) to delve deeper and identify the underlying causes of Pakistan’s ongoing #currencycrisis, and unprecedented levels of inflation. They discuss the viability of the under-negotiation #IMF program, and former PM Imran Khan’s ability to steer the country out of this turmoil, given he comes to power. Recently, Pakistan's economy has been in an uncontrollable downward spiral undergoing a balance of payment crisis, explicitly losing out on its foreign exchange reserves, and implicitly, on its ability to sustain a functioning economy. Since January of 2022 the rupee has depreciated by 37.8 percent against the US dollar. The current rate of #inflation has risen to 31.6 percent, which too, is claimed by many Economists to have been underestimated – highlighting the gravity and precariousness of the situation. Over the last ten years the country has accumulated over $70 billion in external #debt bringing the country on the brink of default. Much has been spoken about the flaw in Pakistan’s economic model: import-oriented, consumption-driven, coupled with an underdeveloped and unincentivized export-base which renders the economy unsustainable.

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