NEW DELHI: Pakistans aggravating economic crisis and progressively rigorous austerity procedures, which are being executed by the Shehbaz Sharif government in the hopes of securing the critically-needed $1.1 billion IMF bailout, are damaging the common man.

Besides escalating food rates and record-breaking inflation, regular and prolonged power cuts, and long lines at the fuel station, Pakistanis are now struggling to get appropriate healthcare as health centers are running short of essential medications and materials.Worst medication crisisThe lack of forex reserves in the nation has affected Pakistans capacity to import the required medications or the active pharmaceutical components utilized in domestic production.

As an outcome, regional pharmaceutical producers have actually been required to slash their production as clients suffer in medical facilities.

As per regional media reports, numerous operation theatres are left with less than two-week stock of anaesthetics needed for delicate surgical treatments.

Medical professionals have actually been required to not perform surgeries due to the scarcity of drugs and medical equipment.Pakistans medication production sector is highly import-dependent with almost 95% of the drugs requiring raw materials from other countries, including India and China.

For most of the drug manufacturers, the imported materials have actually been held up at the Karachi port due to a scarcity of dollars in the banking system.Pakistan currently has a forex reserve of just $3.5 billion and industrial banks are not releasing brand-new Letters of Credit for imports.

The worst medication crisis could emerge in the nation if existing policies [restriction on imports] stay in place for the next 4 to five weeks, stated a report by The Express Tribune quoting Pakistan Pharmaceutical Manufacturers Association main chairman Syed Farooq Bukhari.Drug merchants in Pakistans Punjab have said that federal government study groups performed field visits to identify the shortage of important medicines.

The merchants revealed that the shortage of some typical but important drugs is impacting the majority of the consumers.

These medications consist of Panadol, Insulin, Brufen, Disprin, Calpol, Tegral, Nimesulide, Hepamerz, Buscopan and Rivotril, etc.Weekly inflation at over 40%Meanwhile, customer prices rose considerably in the outgoing week on the back of onions, chicken, eggs, rice, cigarettes and fuel, official information showed on Friday, driving the weekly inflation to over 40% for the very first time in over five months, as per a report by Dawn.Though week-on-week inflation reduced somewhat, it still remained high as bananas, chicken, sugar, cooking oil, gas and cigarettes became more expensive, the Pakistan Bureau of Statistics reported.The headline inflation measured by the Consumer Price Index (CPI) was tape-recorded at 27.6% in January.

Nevertheless, the federal government has actually been taking rigorous measures under IMF conditions that are most likely to further cool the economy and stoke inflation.Struggling to carry out IMF conditionsMeanwhile, the Sharif federal government on Sunday consented to increase the policy rates of interest, which stands at 17%, by 200 basis points to 19%-- just listed below the previous record of 19.5% set in October 1996.

With the new decision, Pakistan has actually accepted another pre-condition of the IMF for the release of $1.1 billion in critical financing, a part of the $6.5 billion bailout plan.

A report by The Express Tribune mentioned that the rates of interest was hiked based upon rates the federal government embeded in the auction to raise domestic debt.Pakistan has been struggling to meet the hard conditions set by the global financier-- specially since an election is due by the end of the year and the government hesitates to be too severe in case it is punished at the polls.Earlier this month, the Pakistan federal government and the IMF personnel concluded the ninth review of the $6.5 billion bailout plan without a staff-level arrangement.

Ever since the Sharif government has been rushing to follow the IMFs riders for bailout.In order to stave off bankruptcy and debt default, the crisis-ridden nation has currently eliminated synthetic caps on its currency leading to it shedding more than a quarter of its worth; fuel rates have actually leapt by practically a 5th and are anticipated to increase further; crucial policy rate has been hiked; and taxes on high-end items have been increased.

Pakistans federal government has likewise provided standards to save energy expenses, consisting of closing all shopping centers and markets by 8.30 pm.Pakistan has purchased its foreign ministry to slash the number of missions abroad, minimize staff and start other steps to lower expenses by 15%.

All departments have likewise been told to slash their costs by 15%.

Power, gas sectors next?Despite the serious measures taken already, Pakistan authorities said the worldwide investor is still working out with Islamabad over power sector debt.Consumers will likely need to brace for another hike in electrical power tariff with authorities stating that the federal government has actually been entrusted no other alternative but to receive additional payment from consumers to retire the power sector debt.Moreover, gas rate changes and immediate elimination of aids for commercial customers are also set to be customized as the government desperately tries to satisfy the IMFs needs.