Pakistan is facing a cash crisis as ATMs run out of money ahead of the Muslim festival Eid Al-Adha on June 29. This is because people withdraw substantial sums of money to purchase animals for sacrifice during the celebration. Customers in Karachi are particularly affected by this issue, reporting frequent complaints about ATMs not working or running out of cash before Eid.
This problem is occurring as the country faces a cash-strapped economy, with hopes of a bailout decision from the International Monetary Fund before the bailout programme expires on June 30. The government has also announced a four-day holiday, and Pakistan has revised its budget for the upcoming financial year.
The current economic crisis in Pakistan is having a significant impact on the lives of its citizens. Skyrocketing inflation, which reached an annual rate of 36.4% in April, has made it difficult for people to afford basic necessities such as food.
There are shortages of food items, which is contributing to the rise in prices. The country’s official foreign exchange reserves are insufficient to finance even one month of its imports, which is affecting the availability of essential goods. In addition, the depreciating currency and precariously low foreign reserves are making it difficult for Pakistani citizens to access foreign goods and services, which is also contributing to rising prices.