Gloomy outlook.

PAKISTANIS are not unfamiliar with the boom-and-bust cycles that occur every few years, or the large costs they impose. But the present crisis has lingered far longer than they expected, with no resolution in sight. Starting as a balance-of-payments crisis caused by the post-Covid global commodity supercycle and the previous government's pursuit of growth, it has now overtaken every sphere of the economy. The government and the central bank have lowered the GDP growth for the present financial year to below 2pc, while many experts believe the country is more likely to post negative growth for the second time after the pandemic-hit FY20.

The summer floods destroyed standing crops on large swathes of agricultural land across the country, especially in Sindh, and industrial output is shrinking thanks to factory closures resulting from restrictions on the import of raw material and equipment to save our dwindling foreign currency reserves and delay a sovereign default. The increase in interest rates to contain price inflation, which soared to an all-time high of 31.5pc last month, is putting a crushing burden on the finances of companies, and the slowing global textile and clothing demand has led to a significant drop in exports. The construction industry, too, is groaning under rising prices of inputs such as...