Pakistan on the verge of becoming a grain-fed, foreign exchange reserves at the lowest level

Pakistan News: Pakistan, which has been facing political upheaval for several months, has now come to the brink of poverty. On the one hand, it is buried under foreign debt, while on the other hand, its foreign exchange reserves have reached their lowest level in three years. In fact, the foreign exchange reserves of the State Bank of Pakistan (SBP) have fallen to their lowest level in almost three years to reach $ 7.83 billion as of August 5, from $ 8.385 billion on loan payments a week earlier. According to local media, this information has come from central bank data.

there’s a fall everywhere

Foreign reserves held by the State Bank of Pakistan declined by $555 million, or 6.6 percent, on a weekly basis due to increased debt payments and lack of external financing. Data from the central bank shows that reserves have fallen to their lowest level since October 2019. Pakistan’s total liquid foreign reserves fell by 4.6 percent to $13.561 billion from $648 million. While the reserves of commercial banks fell 1.6 percent to $ 5.730 billion.

Pakistan is facing crisis

The reserves available with SBP are sufficient to cover a little more than a month’s imports. SBP said in a statement that the shortfall in reverse was due to external debt payments. “The loan repayment is expected to moderate during the next three weeks of this month. In fact, nearly three-fourth of the loan repayment for the month of August was concentrated during the first week,” the central bank said. The News reported that this figure of the latest foreign exchange reserves has come at a time when the country is facing a crisis like depleting external funds with the rapid depletion of the stalled reserves of the $ 6 billion International Monetary Fund program. and reserves are depleting rapidly. However, analysts believe that the IMF program has resumed and the current account deficit is expected to narrow amid falling imports to help make up for depleting foreign reserves.

This decision was taken recently

The pauper Pakistan is facing the danger of bankruptcy. Sensing this danger, the Federal Cabinet of Pakistan has approved the bill, in which government properties can now be sold to other countries. In this bill, a provision has been made to sell government properties in other countries by going beyond all the prescribed procedure and other necessary rules. According to the news, the government has taken this decision to avoid the threat of bankruptcy of the country. According to media reports, the Federal Cabinet approved the ‘Inter-Government Commercial Transfer Ordinance. 2022’ on Thursday. According to the information, a provision has been made in this bill that even if a petition is filed against the sale of a share of the government’s assets to other countries, the court will not be able to hear it.

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