The country's currency has hit an all-time low of Rs 82 against the dollar. Foreign exchange reserves are dismal, and inflation is at a high of 25 per cent this month. To add to its woes, the country's debt is huge.
Pakistan needs a whopping $5 billion to avoid defaults on sovereign debt, which needs to be repaid next year. For the people of Pakistan, who having been bearing the brunt of terrorism and military rule, this crisis is the biggest nightmare. The rising food, fuel prices, unemployment, power cuts, fall in sales and exports have shattered the people of Pakistan and pushed millions below the poverty line.
The prices of basic commodities have more than doubled in the last year. The trade deficit during the first eight months of the current fiscal year has gone up 40 per cent due to the rise in oil prices and fall in exports.
With unemployment rising, the youth of the country are facing tough times too. Many could turn vulnerable and join the militant outfits, spreading more terror and violence across the country and in the sub-continent.
Image: A Pakistani money changer counts US dollars notes at a money market in Islamabad.| Photograph: Aamir Qureshi/AFP/Getty Images
Also read: 5 mantras to survive a slowdown
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