Explained: With PM abroad, Pakistanis struggle to put food on table, economy on track

The food crisis in Pakistan, India's northwestern neighbour, reached unprecedented proportions this week. With visuals of stampede at wheat flour shops in different parts of the country dominating the South Asian news cycle, years of economic mismanagement by Islamabad have come to haunt its current rulers.While the Pakistani economy was declining for quite some time, the floods of 2022 caused unprecedented damage to the country with critical infrastructure destroyed and millions displaced.

Pakistan food crisis: How bad is it?

Prices of staple food items have increased by nearly 56 per cent. According to Pakistan Bureau of Statistics (PBS), Onion prices have risen by more than 415 per cent since last year.

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The wheat flour, a necessary food item for preparation of various types of breads, is reportedly being sold at prices as high as Rs 140-160/kg in the port city of Karachi. It is also reported that a single roti currently costs Rs 30.

According to reports in local Pakistani media, in several other parts of the country, a 10 kg bag of flour is costing people around Rs 1,500 and a 20 kg bag at Rs 2,800.

At present, Pakistan is on the verge of economic collapse. Its hopes are pinned on getting concessions from the International Monetary Fund (IMF) on the Extended Fund Facility established in 2019. Islamabad further expects to get economic help from friendly nations in the form of donations and long-term loans.

Pakistan economic crisis: Poor foreign reserves, loan repayment deadlines

A report in Pakistan's 'The Frontier Post' newspaper cited The Federation of Pakistan Chambers of Commerce (FPCCI), saying that the country's foreign exchange reserves have fallen to a critical level of $4.5 billion. In the first quarter of 2023, the country has loan repayment obligations of more than $8 billion.

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Pakistan will reportedly be left with just 25 days of import cover if it stands by its loan repayment commitments.

Reports in Pakistani media point out that since Islamabad's change of guard from Imran Khan to Shehbaz Sharif, the corresponding political turmoil too has contributed to the country's economic decline.

Throughout the year, the political elite failed to agree to play by any rules of the game amid the falling economic health of the country, reported The Express Tribune.

Pakistan economic crisis: What country's rulers are doing?

Pakistani leaders are doing what they are known to do at the moments of crisis: visiting foreign nations, asking for help by using 'aid' and 'assistance' adjectives. Country's Prime Minister Shehbaz Sharif is currently in Geneva. On January 9, Sharif asked the International Conference on Climate Resilience to aid the country, citing the damage caused by 2022 floods.On the sidelines, Pakistani representatives met IMF officials regarding its currently stalled Extended Fund Facility.

In the face of the ongoing financial crisis, the Pakistani government has come up with measures to save energy and reduce its energy bill. Markets and restaurants will close at 8:30 PM and 10 PM in a bid to save energy. This January 3 decision, intended to save about $274 million, has drawn flak from both market associations as well as general masses.

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