Day: April 17, 2022

By Bilal Sayed Forex and currency crises Pakistan has repeatedly run into macroeconomic crises: runaway inflation, current account and trade deficits, depleting foreign reserves, and currency devaluations. It is, once again, faced with a combination of these problems. The two immediate threats to the country’s $263-billion economy come from the build-up of inflationary pressures, and a payment crisis that stems from a combination of global and domestic factors — problems that the pandemic has exacerbated. The situation is similar to, and worse than, the crisis of 2018 when Pakistan’s foreign exchange reserves plummeted to multi-year low. As of November...