A hacker on Friday posted a tweet from the official handle of the Pakistani embassy in Belgrade, claiming government officials had not been paid for three months amid galloping inflation, and mockingly asked Prime Minister Imran Khan if this was “Naya Pakistan” he had promised. The Foreign Office in Islamabad said the claim in the tweet was “baseless and unfactual”.
Pakistan’s GDP growth is projected to touch a 4-year high of 5% in the fiscal year ending June 2022 — at the same time, heightened inflationary risks and an imminent balance-of-payments crisis has the country teetering on the brink, dependent on external debt bailouts in order to stay afloat.
Forex and currency crises
Pakistan has repeatedly run into macroeconomic crises: runaway inflation, current account and trade deficits, depleting foreign reserves, and currency devaluations. It is faced with a combination of these problems again.
The two immediate…