Is the worst behind Pakistan’s economy?
While it remains too early to assert definitively, several indicators suggest that Pakistan’s economy may have weathered the worst of its recent challenges. There were serious concerns that due to the IMF’s push for easing import controls and letting the exchange rate float, the rupee may see further free fall. However, after hitting a record low of Rs335 on September 5, the rupee is regaining ground, stabilising at approximately Rs292 to the US dollar, a level where the caretakers inherited. Foreign exchange reserves have surged past $13 billion, including $5.5 billion held by commercial banks. Even with a notable spike in fuel prices, the inflation rate has slowed and now stands at 27.4%. As caretaker federal ministers take charge of their respective ministries, they face a daunting task. The latest entrant, the federal minister for privatisation, rightly directs attention towards Pakistan International Airlines (PIA) and Pakistan Steel Mills (PSM), the two ailing state enterprises t...