Ishaq Dar & Post-flood Economy
USD 1.1 billion from the IMF eased fears of default, but Ishaq Dar (joining as the finance minister of Pakistan for the fourth time) has to deal with both climate and politics.
Was this email forwarded to you? Subscribe here.
Hyperinflation, a weak currency, and monetary tightening under the IMF package had already been affecting the economic growth of Pakistan when the torrential monsoon rains submerged large parts of the country and made the condition much worse.
Before resigning, former Finance Minister Miftah Ismail had pointed out “the path to solvency was narrow; it has gotten narrower”. The new (but not so new) Finance Minister, Ishaq Dar is taking charge of a post-flood economy with only one ray of hope i.e from the IMF that it is willing to ease the conditions under the bailout program in a changed post-floods economic situation and increase the amount Pakistan would receive in the next tranche, subject to a “lot of negotiations” in the coming weeks.
GRAPHIC OF THE DAY
The Planning Commission of Pakistan has shared its post-flood economic outlook and has estimated the cost of flood damages and losses at USD 28 billion — the fourth estimate given by any Pakistani authority since loss estimates started for the recent floods
Out of the USD 28 billion, the Planning Commission has estimated that the losses sustained by the provincial governments amounted to ~USD 10 billion. Punjab USD 0.55 billion, Sindh USD 5.9 billion –the worst affected province, Khyber Pakhtunkhwa USD 0.54 billion, and Balochistan USD 3 billion – the second most affected province
INSTAGRAM POST
National poverty rate could increase in the range of 4.5% to 7% due to floods — www.instagram.com
⚫ Poverty rate in Pakistan during FY 2021-22 was 4.4% and it might increase in the range of 4.5% to 7% due to the devastating floods
⚫ During June 2021, World Bank (WB) estimated that poverty in Pakistan had increased from 4.4% to 5.4% in 2020 due to the COVID-19 pandemic
View more
TWEET
What Else We’re Reading
How digitalization kept aid coming to flood-hit Pakistanis (WEF)
Big economic worries (Dawn)
DON'T MISS OUT...
Misaal Podcast 🎙 — www.youtube.com
The startup ecosystem in Pakistan is booming thanks to entrepreneurs, investors, and experienced operators. Learn how they make decisions and solve problems. Discover what it takes to be successful!
Zahid Lilani, founder of Techshaw is doing some great work to cover Pakistan's digital/startup economy.
Subscribe now: 👇
Improve brand awareness for your startup/business or amplify the reach of your ongoing marketing campaigns by promoting them on Macro Pakistani.
Learn more:
About Us: Macro Pakistani is a data-driven research platform that aims to provide a basic understanding of Pakistan’s economy. If you have an interest in contemporary news but are currently overburdened with sensationalism and specialized vocabulary, we are the platform for you.
How are we doing? Please send us any questions, comments or suggestions by replying to this email.