www.zerohedge.com BY TYLER DURDEN
Pakistan, a nuclear power with at least 165 warheads from short range to medium range, is facing potential economic collapse according to the country’s Finance Minister, Miftah Ismail.
With an official inflation rate of over 13.37% (double the official CPI to get a more accurate picture of true price inflation), the 2nd fastest rising rate in Asia, Pakistan has sought relief from foreign debt obligations and an IMF bailout deal. Initial arrangements for a three year deal with the IMF began in 2019, but Pakistan says that deal, originally for $6 billion USD, is ‘outdated’ due to the covid pandemic and new global financial pressures. The nation now says it is in ‘dire need’ of at least $36 billion in order to stay afloat.
Pakistan is slated to pay back over $21 billion USD in foreign debt within the next fiscal year. It is also struggling with extensive food inflation and supply chain disruptions as the government seeks to import at least 3 million tons of wheat and 4 million tons of cooking oil to alleviate shortages.
This is yet another example of the spread of global inflation/stagflation that is going largely ignored by western media outlets. Nations like Pakistan with already weakened economic conditions are canaries in the coal mine; leading indicators of what is likely to happen throughout more affluent first world nations should current conditions continue.
