February 15, 2022
2 mins read

Fears on food security grow as Pak currency plummets

Pakistan imports a large chunk of its total requirements of edible oil, including palm, soyabean and olive from countries such as Malaysia, Indonesia and Brazil among others…writes Mahua Venkatesh

A steady depreciation of Pakistan’s currency has led to an increase in the country’s food import bill in the current financial year. In the beginning of July last year-the beginning of the Pakistani financial year, the country’s currency was pegged at around 158 to the US dollar. The Pakistani rupee at present is valued at 175 to a dollar. At a time when global oil and commodity prices are rising, the depreciation of the rupee would surely add to the worries of the country’s policymakers.

And now with building geopolitical tensions over Ukraine, the pressure on the country’s currency is likely to continue.

According to Pakistan based newspaper Dawn, Islamabad’s oil and food import bill rose 73 per cent to $14.97 billion in the July-December period compared to $8.67 billion in the corresponding period of the previous financial year.

“A steady increase in the import bill of these two sectors has widened the trade deficit and raised fears about the country’s food security,” the newspaper said.

Pakistan imports a large chunk of its total requirements of edible oil, including palm, soyabean and olive from countries such as Malaysia, Indonesia and Brazil among others.

However, challenges have multiplied since agriculture land has been thinning in Pakistan with growing urbanization. The News International said that “there is no doubt that this construction has its own benefits, but it causes the country’s food production to drop drastically. This in turn leads to an exorbitant increase in the prices of food supplies.”

Depreciation in the currency has also pushed inflation, which touched at 13 per cent in January. It also leads to a widening import bill.

“The world is going through uncertainties and countries need to be watchful..risks have risen for almost the entire world but countries which are already facing a number of challenges on the economic front, will be the worst affected,” an analyst said.

Meanwhile, Islamabad received a $1 billion tranche from the International Monetary Fund (IMF) as part of the Extended Fund Facility, providing the much-required breather to Pakistan’s Prime Minister Imran Khan. However, at the same time, inward remittances slowed down. In January Pakistan received remittances worth $ 2.1 billion, a fall from $2.5 billion in December, 2021. This is the lowest since August 2020, when the Covid 19 pandemic had just hit the world.

(The content is being carried under an arrangement with indianarrative.com)

ALSO READ: Pakistan not part of any camp, says Imran

Previous Story

Goa records high voter turnout, moderate response in UP, Uttarakhand

Next Story

Uyghurs still push for accountability 25 years after Ghulja massacre

Latest from -Top News

Afghan-Pak tensions threaten South Asian stability

The Afghanistan-Pakistan fighting has impacted civilians on both sides, with people fleeing the border areas while daily movement and trade has been disrupted…reports Asian Lite News The recent tensions between Afghanistan and

Fourth AUSTRAHIND exercise begins in Australia

Primary focus of this year’s exercise is “joint company level counter-terrorism operations in urban terrain and semi urban terrain…reports Asian Lite News The fourth edition of the India-Australia joint military exercise, AUSTRAHIND,

Sanae Takaichi makes history in Japan

From 2022 to 2024, Takaichi was Japan’s Economic Security Minister. She also holds the record as the longest-serving Minister for Internal Affairs…reports Asian Lite News Sanae Takaichi was elected Japan’s next Prime

Cabinet of Japan PM Ishiba steps down

After the prime ministerial vote, Takaichi will finalise cabinet appointments, and the chief cabinet secretary is scheduled to announce the lineup….reports Asian Lite News Outgoing Japanese Prime Minister Shigeru Ishiba resigned with
Go toTop

Don't Miss

Pak likely to allow transportation of Indian wheat to Afghanistan

During the meeting with Taliban foreign minister , Khan reaffirmed

Death toll rises in Pakistan’s monsoon season

As of Thursday evening, 53 houses were also destroyed in