Pakistan grave economic crisis compels to auction its embassy in US - Indian amongst top bidders

Pakistan’s embassy in Washington is put on sale. Pakistan is reportedly selling the country’s embassy in Washington and has received three bidders for the purchase, as per reports published in a Pakistani daily ‘The Dawn’. The report further disclosed that the highest bidder ($6.8 million) for the real estate is a Jewish group. The second highest bidder is an Indian Realty group at $ 5 million, followed by a Pakistani realtor at $4 million. The sale is being considered as one of the measures being taken by the Pakistani government to tide over the grave economic crises that the country is facing.

Pakistan is reeling under a severe economic crisis and therefore the government has decided to take various cost-cutting measures including the sale of its embassy in Washington. The Pakistani government has put a cap on free fuel, restriction on travel allowance, and medical allowance among others. Pakistan's economy has been facing structural inflation where the average customer price index is currently around 25%.

The fear of bankruptcy in Pakistan has started growing…

Though the country managed to avert a default earlier this month, the challenges on the economic front are multiplying with foreign exchange reserves dipping below $7 billion. The fear of bankruptcy is only growing. The country will find it tough to manage a debt repayment of over $30 billion this fiscal year. Pakistan's Equity Market KSE100 lost more than 1,100 points on Dec 21 reflecting a panic-like situation among investors. As the country is now practically surviving on borrowed money, its fiscal space to invest in developmental sectors has diminished, leading to concerns among citizens.

The sale of Pakistani embassy was once occupied by the country's defence section from the mid-1950s to the early 2000s in Washington. However, the diplomatic status of the building was revoked in 2018 as it had become non-functional, thereby becoming liable to local taxes.

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Pakistan embassy officials stated that one of the country’s three diplomatic properties in Washington - a building on the prestigious R Street NW - was up for sale.

The diplomatic building on R Street NW in Washington has never been renovated. Embassy officials in Washington are consulting an appraiser to assess whether the building should be sold as it is or with some renovation, the report added. The country’s cabinet has approved the sale.

Pakistan’s external debt has jumped to PKR 60 trillion

Meanwhile, Pakistan’s debt has jumped to a record high of PKR 60 trillion. Former Pakistan Prime Minister Imran Khan, who had made promises to curb the debt, blamed his predecessors for throwing the country into the crisis.

Other properties are also being leased out 

Recently, Pakistan’s Cabinet Committee on Privatisation asked the privatisation commission to appoint a financial adviser to lease the Roosevelt Hotel site in New York. 

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