As the economic crisis spreads to South Asian countries, India is among the nations that came to their rescue



ANI |
Updated:
May 22, 2022 10:06 p.m IS

New Delhi [India]May 22 (ANI): As the economic crisis grapples with various South Asian countries including Nepal, Sri Lanka and Pakistan, the three countries including the United States, India and China have come forward to bail out the nations.
The recent financial crises in hardest-hit Sri Lanka, which is almost out of gas, Nepal, which is struggling with power outages, and Pakistan, which is also struggling with rising inflation.
India on Saturday shipped an additional 40,000 tonnes of diesel to Sri Lanka under the credit line for the island nation grappling with its worst economic crisis.
Last month, India extended an additional $500 million credit line to help Sri Lanka import fuel as the country struggled to pay for imports after its foreign exchange reserves plummeted recently.
“Diesel is being pumped to #SriLanka!!! Another 40,000 MT shipment of diesel under #India’s credit line reached #Colombo today. India’s High Commission tweeted.
Sri Lanka is experiencing its worst economic crisis since independence in 1948. A crippling lack of foreign exchange reserves has led to long queues for fuel, cooking gas and other essentials, while power outages and soaring food prices have left people in misery. The economic crisis has also triggered a political crisis in Sri Lanka, demanding the resignation of the powerful Rajapaksas.
On the other hand, Nepal is in the midst of a severe financial crisis, with foreign exchange reserves falling as the Russia-Ukraine crisis spreads. The government is trying to reduce fuel consumption to conserve foreign exchange reserves and has also decided to ban the import of 10 different luxury goods.
China, on the other hand, invested in Pakistan to strengthen its diplomatic ties.
In the last few days, with inflation approaching 13 percent and food prices skyrocketing, Pakistan is reportedly heading for a Sri Lanka-like crisis.
Former Prime Minister Imran Khan, who was ousted by a no-confidence motion last month and replaced by Shehbaz Sharif, has threatened to hold a demonstration in the capital, Islamabad, unless new elections are held. (ANI)

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