Its economy Pakistan is heading towards collapse as foreign exchange reserves dwindle amid successive hours of blackouts as authorities impose capital controls and businesses struggle to avoid a lockout.

Pakistan’s economy is in danger of collapse due to ongoing power outages and a severe shortage of foreign exchange as Pakistani authorities try to revive IMF bailouts, the newspaper writes. Financial Times.

Containers full of goods pile up in Pakistani ports and their buyers can no longer get the dollars they need to pay for imports. At the same time, factories (textiles, etc.) are lowering their blinds or reducing hours of operation to save energy and resources.

Already dire conditions worsened further in the shadow of (literally) a nationwide power outage that hit the country last Monday and lasted more than 12 hours in some areas.

Analysts warn that the economic situation in Pakistan is becoming unsustainable and the country is following the path of Sri Lanka, where a lack of foreign exchange reserves caused a severe shortage of basic goods and eventually led to bankruptcy last May. Islamabad’s foreign exchange reserves have now fallen below the $5 billion mark, while the Pakistani government and the IMF continue negotiations that are not making the desired progress (as Pakistan is currently refusing to accept some of the reforms requested by the International Monetary Fund).

At a conference in Geneva this month, foreign lenders pledged more than $9 billion in recovery assistance, but details of how and when that money will be made available are still being discussed.

And all this in a year that will also be an election year in Pakistan.

According to FT