The International Monetary Fund has asked for more time for negotiations with Pakistan over a deal that would unlock much-needed funds from a $6.5 billion program.
Below are four key economic indicators of the cash-strapped country.
Forex reserves
Pakistan’s foreign exchange reserves have fallen to the lowest level in 10 years and cover only three weeks’ worth of imports. In the week ending Jan. 27, the central bank’s foreign currency reserves shrank to $3.09 billion, down $592 million from previous week.
Inflation
Inflation has averaged at a record high 25.4 percent for the seven months of the current fiscal year that started last July compared to 10.3 percent in the same period in the previous fiscal year. The consumer price index rose 27.5 percent year-on-year in January, the highest in nearly half a century.
Last month, the central bank raised its key interest rate by 100 basis points to 17 percent in a bid to rein in persistently high inflation, and said achieving price stability was key to attaining sustainable economic growth in the future. The bank has raised the key rate by a total 725 bps since January 2022.
Current account deficit
Pakistan’s current account deficit shrank to around $400 million in December 2022 from $1.9 billion a year earlier, as the government slashed imports in a bid to avert an external payments crisis.
Pakistani rupee
The rupee reached a record low of 276.58 to the dollar in the inter-bank market on Feb. 3. The rupee has dropped over 35 percent in the last 12 months.
