Islamabad: The government of Pakistan is involved in efforts to control the cost of foreign exchange. One of the main ways in which the Pakistani minister has asked is to significantly reduce the consumption of tea, which is good for the country’s treasury.
Pakistan is the largest importer of tea in the world. It has advised people to reduce their drinking of tea in order to reduce the foreign exchange spent on imports.
“I urge the people of Pakistan to reduce their tea consumption to 1-2 cups a day as they import tea on credit,” the Union Planning Minister told PTI.
Reducing tea consumption to two cups a day will not reduce Pakistan’s foreign exchange reserves. The Pakistani government, which is already reeling from a cash crunch, has urged people to reduce tea consumption.
Pakistan consumed 83.88 billion (USD 400 million) worth of tea in the 2021-22 financial year. It was only after this that Ahsan Iqbal, the Union Planning Minister of Pakistan, made the request, according to The News International.
He said Pakistan, the world’s largest importer of tea, had to borrow money to import it.
The federal budget document for the last financial year indicates that Pakistan imported tea worth Rs 13 billion (USD 60 million) more than the previous fiscal.
In the financial year 2020-21, Rs. 70.82 billion ($ 340 million) was spent, according to the News Network International news agency.
Pakistan’s foreign exchange reserves stood at about US $ 16 billion in February. That was less than $ 10 billion in the first week of June 2022. It has exacerbated the country’s economic problems.
The country is concerned that the foreign exchange reserves are not even enough to cover the two-month cost of imports required by the country.
Last month, the Pakistani government restricted the import of dozens of non-essential luxury items as part of an effort to save foreign exchange.
Pakistan’s Planning Minister has said that shops and markets operating in the country have been asked to close by 8:30 pm to save energy. Iqbal said this would help reduce import duty on petroleum products.
Finance Minister Mifta Ismail recently warned that Pakistan’s economy would be similar to Sri Lanka’s unless the country took tough decisions.
Pakistan, the world’s largest importer of tea, has been advised to reduce its consumption of tea as part of its efforts to reduce foreign exchange costs.