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The Economic Crisis in Pakistan has Forced Malls and Markets to Close Early

The Report Inn by The Report Inn
January 6, 2023
in Business
0
The Economic Crisis in Pakistan has Forced Malls and Markets to Close Early

The Economic Crisis in Pakistan has Forced Malls and Markets to Close Early

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As the country faces an economic crisis, Pakistan’s government has ordered shopping malls and markets to close early every day.

Defence Minister Khawaja Asif estimates that the measures will save Pakistan approximately 62 billion Pakistani rupees ($274.3 million; £228.9 million).

Pakistan gets the majority of its energy from imported fossil fuels.

Global energy prices rose last year, putting additional strain on the country’s already precarious finances.

The country requires foreign currency, particularly US dollars, to pay for these energy imports.

The Pakistani government had $11.7 billion in foreign currency available last month, after its reserves fell by roughly 50% the previous year.

That is only enough to cover about one month’s worth of all imports into the country, the majority of which is energy.

Pakistan country information
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On Tuesday, Mr Asif told reporters that shopping malls and markets would have to close by 20:30 local time, and that government departments would have to reduce their electricity consumption by 30%.

Meanwhile, the manufacture of inefficient electric fans will be prohibited beginning in July.

“The federal cabinet has immediately approved the implementation of the Energy Conservation Plan,” the ruling Pakistan Muslim League-N (PML-N) party said on Twitter.

For years, the nation of 220 million people has struggled to stabilise its economy.

Pakistan received a $6 billion bailout from the International Monetary Fund in 2019, and another $1.1 billion in August of last year.

The government is also negotiating with the IMF to postpone the release of another $1.1 billion in bailout funds.

Last year’s devastating floods in Pakistan also had an impact on the country’s finances.

The World Bank estimated in October that the flooding had cost the country $40 billion.

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