An article published on 14 June 2023 in Pakistan’s most respected newspaper Dawn, gives details about the country’s dire financial exchange situation leading up to the incoming financial year, beginning 1 July. The author, Khurram Hussain, who modestly describes himself as a "Business and Economy journalist”, is one of Pakistan’s most authoritative voices on the economy, and particularly on its macro-economic condition. What he writes, therefore, has to be taken most seriously.
Khurram Hussain, after examining various scenarios relating to the inflows and outflows of foreign exchange in the coming financial year, concludes thus, “No major covenants have been broken with the country’s external creditors so far. But for the next fiscal year, Pakistan is looking at a higher debt service bill, very slim chance of securing external financing support, and far lower level of reserves than last year. The possibility of landing up in a situation where the foreign exchange reserves can no longer support even the basic life support systems of the economy is now a clear and present danger. If financing does not arrive fast, the situation would have lingered too close to the edge for far too long for a country of 220 million people."