SBP’s Foreign Exchange Reserves Further Declines by $294m - Capital TV

May 28, 2023


SBP’s Foreign Exchange Reserves Further Declines by $294m

Anum Razzaque

KARACHI: The Foreign Exchange (FX) reserve further declined by $294 million to $ 5.8 billion in Dec. This is an eight years low rank, and global aid is the only hope of increasing foreign reserves, and despite the assurance of the Finance Minister the tranche of IMF is still nowhere.

Earlier on Wednesday, Ishaq Dar, the Finance Minister said, “Yes, we are in a tight [fiscal] position, and we do not have $24 billion in reserves which [the PML-N government] left in 2016, but that is not my fault. The fault is in the system, and we must ensure that everyone works together for Pakistan’s progress,” Dar said.

Since the beginning of the current fiscal year, the foreign exchange reserves of the state bank persistently declined, and experts predicted that the country is very close to default, but Finance Minister insisted that the fact would be inverse from the prediction.

Since the change of government in Islamabad earlier this year, the SBP’s foreign exchange reserves have been falling, and the few inflows over this period have proved to be too little to meet heavy payments.

In April, when the Imran-led PTI government was replaced by the Shehbaz-led PDM government, the reserves stood at $10.5bn as compared to $5.8bn on Dec 23.

On the other side, Political uncertainty is also imposing negative consequences on finance and leads to an economic crisis from months, The Punjab is the political Hub of the country, which didn’t find any way yet to fix its political position.

Musarat Cheema, the spokesperson of the Punjab Government, criticized the government for declining forex reserves, and blamed Finance Minister and Pakistan Democratic Moment (PDM) that they have devoured $10 billion within 8months.

She claimed they would never accept a technocrat government.

icon-facebook icon-twitter icon-whatsapp

Leave a Reply

Your email address will not be published. Required fields are marked *