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Thursday, June 21, 2018

Pakistan Currency Crises-IMF Or China? Who will bailout Pakistan


Pakistan's central bank recently devalued Pakistani rupee for the third time in six month, Stoking concerned that the country may have to go to IMF for Bailout.
Speculation about Pakistan is going to IMF for borrowing loan since 2013.
Pakistan total export have dropped dramatically down to 6.8%.
While  a sronger doller benefits some economies it hurts others, Especially  in developing countries .
Argentina peso has depreciated by about 25 percent this year ,while turkey currency lira has also suffering  bruising year falling more than 15 percent against US Dollar in 2018.
Many other emerging economies such as Brazil , Southafrica , Indonesia and india has also hard time with their economies .
A Balance Of Payment Crises  looms:-
Since gaining independency fron 1947 Pakistan has indured significant period of military rule, however for the last 15 years it has been government democratically government of three different parties PML Q , PPP, and PML N.
I am not affiliated with any political party but having  a commitment to democracy and free speech , i must point out what the word on the street these tbree government has disappointed  to the peoples of Pakistan.
IMF AND CHINA WHO WILL BAILOUT PAKISTAN ECONOMY FROM LATEST CURRENCY CRISES
Between 2001 to 2013 PAKISTAN turned to IMF three time , infact there were as many bailout IMF of the country over that period as there were world cups .
Pakistan  seeking lifeline with  fresh economic china  loan.
Pakistan  was already spending 45% to its GDP to return loan.
Now Pakistan  has about 22.8 trillion rupeez debt.
Now that's  too much for a $300 billion  to economic handle .

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