Pakistan is the world’s largest tea importer, with annual imports totaling about $590 million. However, Pakistan is currently dealing with a severe energy crisis, a massive debt load, and skyrocketing inflation. A senior prime minister named Ahsan Iqbal made the following request to the country on Tuesday:
I appeal to the nation to reduce tea consumption by one or two cups daily because we borrow money for tea and import it as well.
Green tea is now a part of weight loss and diet plans in Islamabad, Lahore, and Karachi because people believe that chai has benefits that will endure forever. Chai has been a part of everything, from useless banter at roadside tea shops called dhabas to significant board meetings and making crucial life decisions. This judgment also affected the imports of automobiles, cell phones, cosmetics, tobacco, food items, specific clothing items, and toiletries. As Europe consumes significant amounts of the world’s natural gas resources in an effort to quit utilizing Russian fuel, certain regions of Pakistan are already experiencing planned outages for several hours. The new government is now under pressure as a result of these problems.
https://m.youtube.com/watch?v=kX4cpaX7qII
Edouard Thomas
Most people don’t even realize that the economy is collapsing and there is an increasing rate of unemployment worldwide, so take advantage and prepare by making investment to survive.
Aisha Mohammed
They can’t afford a cup Tea ☕️ but they want Kashmir
Teacher
Lol I don’t think TEA will solve they economic problem alone what about coffee?
Njoroge
Coffee in Pakistan is still in its nascent stage compared to tea which is significantly mature. Pakistan is traditionally a tea drinking country!
Sara Deshpande
Pakistan the government imports tea on loan but sells it to citizens! What happens to the money Pakistan citizens pay for purchasing tea because I don’t think Pakistan government is giving away tea leaves packets for free?
Anthony Yahweh
i think it’s about foreign currency that is dollar. You can only import items through dollars, not by your local currency. And Pakistan right now is having very low forex reserves, that’s why they are taking dollars on loan for import of essential items.
Sara Deshpande
Hmmm, let’s say 1 USD = to 100 Pakistani rupee. So just assume Pakistani govt buys or imports 1 kilo tea leaves for 1 USD (100 Pakistani rupee). The Pakistani government then sells the tea leaves at 100 Pakistani rupee per half kilo to common men (Excluding import, other taxes). So they earn 200 Pakistani rupee equivalent to 2 USD per kilo that they imported for 1 USD (100 Pakistani rupee) sold the same commodity for 2 USD (200pak rupee) to common men since they won’t really spare a morsel for freeto common men nor sell it at loss. They are bound to make profit of it no matter what. What happens to the money?
Anthony Yahweh
Point is that you need dollars to import anything because international trade happen only in dollars. For example let’s say Pakistan only has 100 dollars, it imported tea of 100 dollars and exhausted all dollars. Now if you want to import more tea you will again have to use dollars, which you don’t have as your exports are negligible and hence very little or no dollars come into Pakistan, you only have Pakistani Rupee which the trader will not accept. So to import tea you have to take dollars on loan from other country and pay to trader to import. You may have a lot of Pakistani Currency but you can’t buy anything with that in international trade. That’s why you have to take dollars on loan.