Struggling with economic crisis, Pakistan reportedly ready to sell embassy in US to cover costs

Pakistan is ready to sell its embassy located in the US capital to raise money as the South-Asian country tries to survive the economic crisis as reportedly it can cover imports only for 3 more weeks.

“This building is in the market. We are following the proper procedure for sale. It is still in the market, no final decision yet,” an official for the Pakistan Embassy in the US told the Dawn last December, referring to a building that formerly housed the defence section of the nation’s embassy.

According to a report by Live Mint, Pakistan has received three offers so far.

The highest bid, $6.8 million was offered by a Jewish group in order to construct a synagogue inside the structure. The second highest bid of roughly $5 million was placed by an Indian real estate agent while a Pakistani real estate agent placed the third bid of about $4 million.

Pakistan’s current debt is equal to 80% of its GDP. In 2022 Pakistan had $16.7 billion in foreign exchange reserves.

Reports suggest that Pakistan has 29 days’ worth of diesel and 21 days’ worth of gasoline stocks left.  According to Express Tribune, with the remaining foreign exchange reserves of just $3 billion, Pakistan can only cover the import cost for the next three weeks.

The country has been in a dire economic state since the negotiation with the International Monetary Fund (IMF) team did not go through even though Pak Prime Minister Shehbaz Sharif and Finance Minister Ishaq Dar agreed to all the prerequisites.

Shehbaz Sharif’s administration has significantly burdened the public by acceding to the IMF’s demands. In order to secure loans, Pakistan has sharply increased the cost of diesel and petrol. 

To reduce petrol consumption, wedding lawns, shopping malls, and markets have been asked to close early.