Cheeni Kum time for Pakistan’s chai-wallahs
Pakistani tea-drinkers expressed divided opinion on Wednesday a day after a government minister urged them to cut down on their tea consumption to help reduce the import bill and to save the country’s depleting foreign exchange reserves.
Minister for Planning and Development, Ahsan Iqbal, said on Tuesday (June 14) Pakistanis should reduce their tea consumption by “one or two cups” per day.
“I will appeal to the nation to reduce tea intake by one or two cups (daily) because we borrow money for tea import as well,” he told reporters in Islamabad.
The minister asked people to support government efforts to steer the country out of the economic crisis.
“We know such people who drink five, six cups of tea a day. They work outdoor and feel tired and the often sit at a restaurant and drink tea. If we, all of us, cut down a cup of tea, may be our economy improves and the import is eased,” said cloth merchant Waleed Ansari who came to a roadside café to drink tea with friend.
Pakistan urgently needs funds in the face of dwindling foreign exchange reserves, which have reached $9.2 billion - enough for less than 45 days of imports.
“Our people will never cut down tea drinking. When you tell these people something they start asking questions. So you have to tell people everything about the economy. I don’t think it (cutting down tea) will make any difference,” said Kazim Mirani at another modern style tea café.
The South Asian nation of 220 million is the world’s largest importer of tea, buying more than $590 million worth in 2020, according to Statista.com, an online portal providing data on the global digital economy, industrial sectors, consumer markets, public opinion, media and macroeconomic trends.
Pakistan has been facing severe economic challenges for months, leading to an increase in the prices of food, gas and oil.
The country has banned the import of all non-essential luxury goods in a bid to stabilize the economy.
Pakistan’s current account deficit has spiralled out of control and its foreign exchange reserves have tumbled while the Pakistani rupee has plummeted to historic lows against the U.S. dollar.
Pakistan on Wednesday (June 15) further removed fuel subsidies in a bid to trim the fiscal deficit and aimed at securing critical support from the International Monetary Fund (IMF), the finance ministry said.
This is the third cut in fuel subsidies since May 26.
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