US media predicts Pak economy collapse despite it receiving enough pledges

October 18th, 2008 - 4:13 pm ICT by ANI  

Washington , Oct 18 (ANI): Despite Pakistan receiving enough pledges from donors to avoid a possible economic default, the US media continues to predict an impending economic collapse in the recession-hit country.

Only a day ago, a excerpts of a draft report being prepared by the US intelligence agencies said that Pakistan economy was on the edge, having no money, no energy, no government.

About half a dozen reports published in the US and Western media on Friday blamed political turmoil, rising inflation, increase in oil and fuel prices and power shortages for derailing the Pakistani economy.

The Los Angeles Times published a detailed report on the financial crisis facing Pakistan . It said that the Pakistani economy has been in free fall for months. From the poorest of the poor to the wealthy elite, Pakistanis are frightened. Some say the wretched state of the economy scares them more than the threat of terrorist attacks. The government is desperate for an infusion of foreign cash; it is seeking 10 billion dollars in emergency funds from overseas to avoid default. But in light of everyone else’’s troubles, a bailout may not be forthcoming — or may not be on the scale that Pakistani officials had hoped, the Dawn quoted the LA Times report as saying.

Another report, published in London Telegraph, noted that Pakistan has managed to secure funding from other countries and international organizations to cover the 10 billion dollars needed to prevent the country from defaulting.

Several newspapers published a dispatch from Karachi , reporting that the Pakistani rupee weakened 2.78 percent to a record low of 84.40 rupees to the dollar on Friday after a 570 million dollars fall in foreign currency reserves reinforced concern over a looming balance of payments crisis.

The Pakistani rupee has lost nearly 25 per cent of its value in the last months.

Yet another report noted that Pakistan barely had enough foreign exchange reserves for about a month’’s import of essential commodities such as food and oil. (ANI)

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