The Pakistani economic crisis since 2022 is an ongoing economic crisis and part of 2022 political unrest in Pakistan. It has caused severe economic challenges for months due to which food, gas and oil prices have risen.
The Russian invasion of Ukraine has caused fuel prices to rise worldwide. Excessive external borrowings by the country over the years raised the spectre of default, causing the currency to fall and making imports more expensive in relative terms. By June 2022, inflation was at an all time high, along with rising food prices.
Poor governance and low productivity per capita in comparison with other low to middle-income developing countries have contributed to a balance of payment crisis, where the country is unable to earn enough foreign exchange to fund the imports that it consumes.Pakistan’s economic crisis is the biggest crisis since its independence.
