afghanistan crisis, recession; Plastic balloon to fill cooking gas in Pakistan? Afghan people to extreme poverty – one third of global economy to be in recession imf

Countries including Pakistan and Afghanistan are showing signs that the global economic recession is starting to tighten its grip. The cooking gas crisis is worsening in Pakistan. Pictures of people being forced to use plastic balloons for cooking gas are circulating on social media. There have also been some reports of LPG being stored in plastic bags due to unavailability of cooking gas cylinders.

Local media reported that people in cities like Hangu have been without gas connections for the past two years and have been without gas connections since 2007. Meanwhile, the videos have yet to receive official confirmation, but the financial crisis is raging in Pakistan. The government of Pakistan will even increase the price of goods sold through the Utility Stores Corporation, which provides goods to the people at lower prices than the public market. Prices of wheat flour, sugar and ghee were increased by 25 to 62 percent. The Dawn reported. Limits on subsidized purchases have also been cut.

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To avoid misuse of subsidies, the monthly limit for determining the subsidy of the people has also been limited. BISP beneficiaries will be allowed to purchase a maximum of 40 kg wheat flour, 5 kg sugar and 5 kg ghee per month. According to the new rates, the price of sugar has increased by 27 per cent from Rs 70 to Rs 89 per kg. The price of wheat flour increased by 62 per cent from Rs 40 to Rs 64.8 per kg.

The crisis is also acute in Afghanistan. The political crisis that started in August 2021 led to a further economic crisis in Afghanistan. Food insecurity and widespread poverty are pushing Afghanistan further into crisis. The Afghan economy will shrink by 20.7 percent in 2021. The sudden withdrawal of aid led to a huge increase in the country’s public spending. Low demand and low household incomes make Afghanistan more vulnerable.

Last day, IMF chief Kristalina Georgieva warned that one-third of the world will go into extreme poverty in the new year. 2023 is predicted to be a tough year for the global economy as the United States, China and Europe are all going through a recession. Even when one-third of the world’s economy is expected to be in recession, the IMF also states that millions of people will experience poverty in countries that are not in recession. In 2022, China’s growth is expected to be below the global growth rate for the first time in 40 years.