Islamabad [Pakistan]: Pakistan Prime Minister Imran Khan will address the nation today over the impact of the Russia-Ukraine conflict on the country’s economy.
The development comes amid news of another imminent petrol hike in Pakistan, reported Samaa TV.
According to analysts, the price of petroleum products may increase by Pakistani Rs 8 to Rs 12 after the price of crude oil in the international market hit over USD 100 a barrel for the first time since 2014.
Earlier this month, the Imran Khan government had dropped a “petrol bomb” on the masses by increasing the prices of petroleum products by up to PKR 12.03 per litre. Petrol in Pakistan now costs PKR 159.86 per litre.
The Russia-Ukraine crisis has also fanned concerns over supplies of key commodities including wheat and metals in an already struggling economy, reported the media outlet.
On Thursday, the State Bank of Pakistan (SBP) released data showing that Pakistan’s Current Account Deficit (CAD) rose to an all-time high of USD 2.56 billion in the month of January 2022.
At the same time, Pakistan’s debt and liabilities hit an all-time high of Rs 51.724 trillion in December 2021 with external debt rising by a staggering 20 per cent during the first half of the current fiscal (2021-22).
Notably, the Ukraine crisis is also expected to weigh on the Pakistan currency as a large current account deficit, surging energy and oil prices, and volatility in financial markets will likely put the Pakistani rupee under pressure next week, Geo News reported.
Meanwhile, the Imran Khan government has been facing flak from both the opposition and masses over the record increase in oil prices as well as the dependency on loans and bailouts.
The massive rise in inflation in Pakistan could also result in demand destruction and may create difficulties for the government to meet its tax targets, according to a report by Dawn. (ANI)