Crisis-hit Pakistan’s macro-economic indicators 

People buy pulses and grains at a wholesale market in Karachi on February 1, 2023. (Photo courtesy: AFP/FILE)
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Updated 10 February 2023
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Crisis-hit Pakistan’s macro-economic indicators 

  • Pakistan’s foreign exchange reserves have fallen to the lowest level in 10 years 
  • Inflation, current account deficit, currency depreciation remain other top issues 

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. 


US freezes immigrant visa processing for 75 countries, including Pakistan

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US freezes immigrant visa processing for 75 countries, including Pakistan

  • Immigrant visas to be suspended from Jan 21, tourist visas unaffected
  • Move targets “public charge” concerns as Trump revives hard-line immigration rules

ISLAMABA: The United States will pause immigrant visa issuances for nationals of 75 countries, including Pakistan, from January 21, the State Department said on Thursday, as President Donald Trump presses ahead with a hard-line immigration agenda centered on financial self-sufficiency.

In an update published on its website, the State Department said it was conducting a comprehensive review of immigration policies to ensure that migrants from what it described as “high-risk” countries do not rely on public welfare in the United States or become a “public charge.”

“The State Department will pause immigrant visa processing from 75 countries whose migrants take welfare from the American people at unacceptable rates. The freeze will remain active until the US can ensure that new immigrants will not extract wealth from the American people,” the department said.

The pause applies specifically to immigrant visas, which are issued to people seeking permanent residence in the United States. The department said applicants from affected countries may still submit applications and attend interviews, but no immigrant visas will be issued during the suspension.

According to the State Department, the affected countries include Pakistan, Afghanistan, Bangladesh, Iran, Iraq, Egypt, Nigeria, Russia, Somalia, Brazil, Thailand and dozens of others across Asia, Africa, the Middle East, Europe and Latin America.

The department said tourist and other non-immigrant visas are not affected, and that no previously issued immigrant visas have been revoked. Dual nationals applying with a valid passport from a country not on the list are exempt from the pause.

The State Department did not indicate how long the visa pause would remain in effect, saying it would continue until its review of screening and vetting procedures is completed.

The announcement underscores the breadth of the Trump administration’s renewed immigration crackdown. Since returning to office last year, Trump has revived and expanded enforcement of the “public charge” provision of US immigration law, which allows authorities to deny entry to applicants deemed likely to rely on public benefits.

During his previous term, Trump imposed sweeping travel restrictions on several Muslim-majority countries, a policy widely referred to as a “Muslim ban,” which was challenged in courts before a revised version was upheld by the Supreme Court and later rescinded under former president Joe Biden.

The visa freeze also comes amid an intensifying domestic enforcement push. US Immigration and Customs Enforcement (ICE) has expanded operations nationwide, drawing scrutiny over its tactics. Last week, an ICE agent shot and killed Renee Good, a US citizen, during a federal operation in Minneapolis, sparking protests and renewed debate over immigration enforcement under the Trump administration.