Pakistan Economic Crisis: New decree in Pakistan after donkey-goat export, will drinking less tea improve the situation?

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The economic condition of Pakistan is bad. The government is trying to get a loan from the IMF. It is also appealing for help from countries like America. Earlier, the government of Pakistan has also tried to increase its foreign exchange reserves by exporting animals like donkeys and goats. Even after this, the prices of everyday things are skyrocketing in the country.

Now a minister of the Government of Pakistan has given such a statement to improve the economic situation that everyone is discussing it. He has appealed to the people to drink less tea. Planning and Development Minister Ehsan Iqbal told the people of the country, ‘I appeal to the country that people drink less than one or two cups of tea every day because we also borrow money to import tea.’

The people of Pakistan, the world’s largest tea importer, did not like the minister’s appeal. Reactions are also coming against this suggestion on social media. In his appeal, Iqbal has appealed to the tea shopkeepers to close their shops soon. He says that this will also save electricity.

Let us know what is happening in Pakistan after all? What does the country’s economic crisis have to do with tea? What is Pakistan doing to deal with the economic crisis? Let’s know…

What is happening in Pakistan?

The economic condition of Pakistan has been thin for the last few months. Due to this, there has been a huge increase in the price of food, gas and oil. In the midst of rising inflation, the country’s foreign exchange reserves are continuously decreasing. The country is in dire need of money. According to Reuters, Pakistan’s central bank had a fund of $ 16.3 billion. Which has come down to $10 billion in May. A BBC report says that this amount can meet the country’s import needs for only two months.

The country’s poor economy was at the center of the recent political drama. Because of this, Imran Khan had to lose power and Shahbaz Sharif became the new Prime Minister of the country. The biggest challenge for the Sharif government is to deal with rising inflation and bring the economy back on track.

What does the country’s economic crisis have to do with tea?

In a press conference this week, Ehsan Iqbal said that we are importing tea by taking loan. Along with this, he also appealed to the traders to save electricity. Pakistan is the largest importer of tea in the world. According to the Observatory of Economic Complexity, a site keeping import-export data of countries around the world, Pakistan imported tea worth $ 646 million in 2020. Which is 8.39 percent of the total tea imported worldwide. The US is at number two, which imported tea worth about $ 474 million in 2020.

What is Pakistan doing to deal with this crisis?

The Government of Pakistan is taking many steps to overcome the economic crisis. Only last month, Pakistani officials announced that imports of many non-essential luxury items would be reduced, so that the expenditure on exports could be reduced. However, critics say these steps have been taken too late. With these steps, the government’s expenditure on imports will be reduced by only five percent.

What items have been imported?

The decision of the Government of Pakistan has made a difference in the import of things like cars, cosmetics, mobile phones and cigarettes. Refined petroleum products, petroleum gas and crude oil account for the largest share of imports by Pakistan. These three account for about 16 per cent of Pakistan’s total imports of $50.5 billion. Apart from this, palm oil accounts for 4.26 per cent, cotton 3.33 per cent, scrap iron 3.2 per cent and telecom equipment 3.09 per cent. Apart from this, everyday items like wheat, soybean, tea also account for more than one percent of the imports.

Why is the government appealing to save electricity with tea?

Along with excessive debt, Pakistan is also grappling with energy crisis. There is a blackout situation in many cities of Pakistan. Even in villages and towns, there is power failure for many hours.

Export of goat and donkey to raise foreign exchange

Earlier, Pakistan’s cabinet, which was trying to get loans from abroad, had lifted the ban on the export of live animals by changing the export policy. After this, approval was received from Pakistan to send 100 live goats to the UAE. Earlier Pakistan has been earning foreign exchange by supplying donkeys. It is said that donkeys from Pakistan are in highest demand in China. Because of this people are rearing donkeys more than other animals. In fact, medicine is made in China from the skin of donkeys. Which is used in the work of blood circulation.

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