Pakistan's Forex Crisis Worsens; Dollar Crunch to Force Import Suspension of Eatables and Drinks

Owing to the non-availability of US dollars, commercial importers in Pakistan have announced to stop the import of all eatables and drinks from June 25.

According to a statement issued by Karachi Wholesale Grocers Association Secretary Farhat Siddique, all banks have refused to provide them with dollars, The News reported Monday.

US dollar
US dollar IANS

After a thorough discussion, the association decided that importers should inform their indenters that no shipment should be dispatched after June 25.

The importers are only responsible for the clearance of goods that have reached the port or are on the way. No shipment would be cleared that was dispatched after June 25.

The association lamented that due to lack of foreign currency, thousands of containers are stuck at the port and they are paying fines and other charges on them.

Pakistan rupee
Pakistan rupee

The statement said the State Bank of Pakistan (SBP) is not providing the much-needed foreign exchange and its policies are extremely harmful to the country's economy, The News reported.

Left with barely enough foreign exchange reserves to cover one month's imports, the coalition government is desperately trying to manage a balance of payments crisis and bring inflation under control after it hit a record of nearly 38 per cent last month.

The dollar crunch, restrictions on imports, and delay in opening letters of credit have severely affected several sectors of the country as none of them met the growth targets set for the fiscal year 2022-23.