Pakistan: Facing economic crisis Pakistan There is no way out of it but his troubles are increasing. According to media reports, imports of food and beverages into the country have come to a complete halt due to the shortage of dollars. This situation has resulted in thousands of containers being stranded at ports, forcing traders to pay fines and additional charges.
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Farhat Siddiqui, secretary of Karachi's Wholesale Grocers Association Society, said commercial dealers across the country have been forced to stop imports due to dollar shortage. Media reports said that the banks refused to give him the foreign exchange he needed.
Shipments will not be sent after June 25th
According to Pakistani media, the association held a meeting and decided that no shipment would be sent after June 25. Importers will be responsible for clearance of only those goods, which have either arrived at the port or are en route.The society said any shipment sent after June 25 will not be cleared for entry.
Thousands of containers were stopped at Karachi port
A similar situation occurred in January this year when thousands of containers filled with essential food items and medical equipment were stopped at the Karachi port as the country grappled with a dollar crunch. If this situation continues, Pakistan may face food shortages, which will further increase the already high prices. A situation that could land Prime Minister Shehbaz Sharif in trouble. The country has already recorded the highest inflation in Asia, surpassing bankrupt Sri Lanka.
LNG purchases were also hit.
Pakistan suffered another blow on Tuesday when it did not receive any consignment to buy natural gas (LNG). The country made its first attempt to buy LNG on the spot market in nearly a year on Tuesday, but no suppliers of the power-station fuel offered the cargo, according to Bloomberg. No company responded to Pakistan LNG Ltd's tender to buy six shipments for delivery from October to December, which closed on Tuesday.
Pakistan lacks foreign exchange
Foreign exchange-strapped Pakistan is required to pay off all its foreign debt to avoid default as no decision has yet been taken on a $1.1 billion bailout package from the IMF. The cash-strapped country tried to save dollars by curbing imports. However, the move has hit industries that were struggling to import raw materials.
The vehicle manufacturer stopped production
A few weeks ago, Indus Motors, a vehicle manufacturer in Pakistan, halted its production due to a disruption in the company's supply chain. In a letter to the Pakistan Stock Exchange, the company management said its vendors are facing hurdles in importing raw materials and getting clearance for their consignments. Because opening up credit and supply chain issues can be challenging.
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