Pakistan facing a Forex Reserves Crisis
Pakistan has been facing a crisis in its foreign exchange reserves in recent years, which has had a significant impact on the country's economy. One major factor contributing to the crisis has been Pakistan's trade deficit, which has been consistently increasing in recent years. This is due in part to the country's reliance on imports, particularly for energy and raw materials, which has put pressure on the balance of payments. Another factor contributing to the crisis has been the government's reliance on external borrowing to finance its budget deficit. This has led to an increase in Pakistan's external debt, which has further strained the country's foreign exchange reserves. The crisis has also been exacerbated by declining foreign investment and a decrease in remittances from Pakistanis living abroad. These factors have contributed to a reduction in the inflow of foreign currency, further diminishing the country's foreign exchang...