Pakistan minister urges citizens to cut down tea consumption; here's why
Iqbal informed the media that the nation has been importing tea by accepting loans. According to the federal budget document for the current fiscal year, Pakistan imported Rs13 billion (USD 60 million) more tea than the previous fiscal year.
FollowAhsan Iqbal, Pakistan's Federal Minister for Planning and Development, has urged citizens to drink less tea in order to keep the country's economy afloat. According to Ahsan Iqbal, Pakistanis could reduce their tea consumption by "one or two cups" per day because imports are putting additional financial strain on the government.
Iqbal informed the media that the nation has been importing tea by accepting loans. According to the federal budget document for the current fiscal year, Pakistan imported Rs13 billion (USD 60 million) more tea than the previous fiscal year.
The administration proposed a new $47 billion budget for 2022-23 last week in an attempt to persuade the IMF to renew the $6 billion bailout agreement reached by both parties in 2019.
Pakistan has been suffering significant economic issues for months, resulting to a spike in the cost of food, gas and oil. Meanwhile, its foreign currency reserves are rapidly depleting. According to Reuters, the central bank's funds decreased from $16.3 billion at the end of February to just over $10 billion in May, a reduction of more than $6 billion and enough to pay two months' worth of imports.
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Pakistan's foreign exchange reserves fell from around USD 16 billion in February to less than USD 10 billion in the first week of June, barely covering the cost of two months' worth of imports.
As part of its effort to save foreign currency, the government restricted the import of dozens of non-essential luxury items last month. The planning minister said the traders' community has also been asked to close markets by 8:30 PM to conserve energy. According to Iqbal, this will help the country reduce its reliance on petroleum imports. Finance Minister Miftah Ismail recently warned that if tough decisions are not taken, Pakistan's economy will be in a similar position to that of Sri Lanka.
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