The economy of Pakistan loses Rs. 190 billion a day as a result of protests or government actions, such as the recent closure of motorways and highways. The closures were implemented ahead of a Pakistan Tehreek-e-Insaf (PTI) protest march in Islamabad, causing major disruptions in Punjab, Khyber Pakhtunkhwa, and the Islamabad Capital Territory. The government offered “repair work” as the official reason for the closures.
Consequently, the shutdowns have had a significant impact on multiple sectors, including transportation, healthcare, retail, and telecommunications. Businesses and individuals who rely on daily pay were seriously impacted as output, consumption, and exports suffered. The shutdown disrupted economic activity, resulting in significant financial losses across sectors and services.
Moreover, the Ministry of Finance prepared an internal report for the federal cabinet about the losses due to the PTI’s call for jamming Pakistan in October. The report states that “current unrest affects society, the economy, and politics in the long term.”
Read more: Pakistan’s Finance Minister To Fix Economy By Working For Free
Financial Losses and GDP Impact
The Ministry of Finance predicts daily losses amounting to a staggering amount of Rs. 189 billion, or around 0.6% of the quarterly GDP. This includes Rs. 144 billion in nominal GDP, Rs. 16 billion in reduced exports, and Rs. 26 billion in FBR tax revenue. Additionally, foreign direct investment (FDI) inflows are expected to drop by Rs. 3 billion each day. The shutdown has also hindered GDP growth, resulting in a daily loss of Rs. 144 billion.
Long-Term Economic Consequences
The Ministry of Finance has cautioned that the disruptions could have a long-term impact on Pakistan’s economic growth. Supply chain disruptions are expected to raise expenses and cause higher food inflation, therefore worsening the country’s economic problems.
With lower FBR tax collections and more government spending, the budget deficit and financing gap are expected to expand, affecting the overall financial situation.
Stay tuned to Brandsynario for the latest news and updates