Economic Uncertainty and IMF: CURRENT AFFAIRS & ESSAY WRITING BY IQRA ENSEMBLE CSS

Economic Uncertainty and IMF: CURRENT AFFAIRS & ESSAY WRITING BY IQRA ENSEMBLE CSS 

Current economic challenge seems familiar to past events. History witnessed a series of economic crises and weak management. 

The summer and spring of 2019 were considered critical regarding economic uncertainty and IMF. Pakistan's economy was facing IMF backlash before its announcing $ 6 billion. For instance, significant fiscal and financial needs; weak and unbalanced financial growth are significant economic hindrances. Plenty of measures were taken to restore stability. Before the pandemic started between July 2019-February 2020, the rupee strengthened by 4 percent.

Moreover, unlike other countries, Pakistan dealt with the covid-19 pandemic and reduced the public debt-to-GDP ratio by about 5 percent. The innovative measure saved lives and balanced economic recovery wonderfully. Pakistan's current account deficit in the first half of 2019 was almost in the same range as today's, but oil prices are about $40 higher than that. At the same time, our public debt is today approximately 80 percent as compared to 75 percent in 2019.

However, there are a few causes of this economic crisis.

First, the perceived absence of political clarity casts a shadow over most economic decisions. Furthermore, the future course of decision-making seems to swing like a pendulum.  Second, the US interest rate for borrowing from emerging markets has risen sharply. Global interest rates are much higher today than they were in 2019. The current price of a US dollar is 240 as compared to the rupee. Hence, it is proof that the economic conditions are moving towards a similar crisis that destroyed Sri Lanka.

 Finally, Pakistan is on the list of high-debt countries. The debt distress destroyed Sri Lanka's economy. Weak economic management must be controlled. Domestic political stability (cooperation of stakeholders) is required for a stable future economy. 

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