| The agreement should be viewed as a stopgap measure that gives Pakistan time and some resources needed to pull its economy back from the verge of default, say experts.
Read Haroon Janjua’s report from Islamabad
Irfan Ali, a 22-year-old resident of Rawalpindi, has been struggling to make ends meet over the past year.
Pakistan’s grave economic crisis has resulted in massive layoffs during this period and Ali, who was working for a real estate firm, also lost his job.
He’s managed to find work at a ride-hailing app, but says earning opportunities from it are limited, as demand for such services is down amid the gloomy economic climate and extremely hot summer weather.
Ali says he’s currently earning about 22,000 Pakistani rupees ($78, €71.5) a month, which is not enough to support his eight-member household, including his wife, mother, and five brothers.
“The situation is very grim. The very high food inflation and fuel prices are aggravating the misery of the poor,” he told DW.
What’s ailing Pakistan’s economy?
Pakistan has been in a state of economic turmoil in recent years.
Corruption, mismanagement, the COVID-19 pandemic, a global energy crisis, and natural disasters have all taken a heavy toll on the economy.
The growth of Pakistan’s gross domestic product (GDP) — an economy’s output in goods and services — has ground to a halt, with expansion projected to be just 0.29% for the fiscal year ending June 30.
Read the rest of Haroon’s report |
