Is Pakistan really suffering from global economic slowdown or something else?
State Bank of Pakistan linked loss of $3 billion to global economic situation, however, lack of impact of global economic situation on neighboring country India makes it said that central bank may not be able to reveal actual facts.
The State Bank of Pakistan (SBP) has denied the news circulating in the print and electronic media that by limiting the value of the dollar, there has been a loss of 3 billion dollars in remittances and exports.
The State Bank of Pakistan (SBP) has said in a statement that the loss of 3 billion dollars was not caused by limiting the value of the dollar, but it happened due to many factors including remittances, reduction in exports.
The central bank’s statement said that exports are facing severe challenges due to moderate demand in international markets while major trading partners are experiencing financial hardship.
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SBP officials have claimed that the decline in remittances is mainly due to the global economic slowdown. Inflation has been significantly higher in the developed world, eating into consumer purchasing power.
The statement said that inflation in developed countries led to an increase in spending, which reduced remittances. The US federal funds rate increased to 4.5 percent from 0.25 percent in March 2022.
The statement of the State Bank of Pakistan (SBP) said that the decrease in exports and remittances is the result of various external factors and domestic reasons and it would not be appropriate to attribute it only to the exchange rate.
Linking the loss of 3 billion dollars in the statement of the State Bank to the lack of remittances, exports and other factors is a question mark as to why the rest of the world was not affected when we were affected by global inflation.
The reasons mentioned in the statement of the central bank seem to be irrelevant considering the economic development of India. The effects of the global economic situation are apparently only affecting Pakistan.
The lack of impact of the global economic situation on the neighboring country India makes it sad that the Central Bank may not be able to bring out the complete facts. In this financial year, India has defeated Great Britain in the economic field.
Strong economic growth in the first quarter of fiscal 2022-23 helped India overtake Britain to become the fifth-largest economy, while international exports trended downward.
The central bank is predicting a recession in view of the global economic situation, while India has emerged as the fastest growing major economy in the world.
Economic affairs experts say that the time has come to bring their shortcomings and mistakes to the public and move towards the Charter of Economy for the development and development of the country so that the country’s security is not threatened.
