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Alarm bells ring as foreign exchange reserves fall below $8bn

maithil

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May 21, 2010
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: In line with the dominant trend over the last several weeks, the country’s foreign exchange reserves held by the State Bank of Pakistan (SBP) once again declined by 1.32% falling below the psychological level of ?$8 billion,

On September 30, the foreign currency reserves held by the SBP were recorded at $7,899.8 million, down $106 million compared with $8,005.9 on September 23, data released by SBP showed on Thursday.

Overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $13,588.8 million.

Net reserves held by banks amounted to $5,689 million. The central bank cited external debt repayment, including interest payments on Eurobonds, as a major reason behind the decline.

With the current foreign exchange reserves position, Pakistan has an import cover of fewer than 1.5 months.

A critical level of reserves has caused severe pressure on the Pakistani rupee with the local unit becoming the worst-performing currency last month.

The rupee gained some ground as Ishaq Dar assumed charge as the new finance minister, a development that helped the currency market recover.

The rupee was at the cusp of a fresh historic low; however, Dar’s arrival gave the market much-needed clarity.

The Pakistani rupee appreciated for the 10th consecutive session on Thursday and closed at 221.75.
 

Burger_King

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Jul 18, 2014
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Pakistanis seem to have a death wish as far as economy is concerned. I have had the fortune of working in some of the major financial centers of the world and I have not seen another society where people are so indifferent to their own economic wellbeing. Perhaps economic shock therapy will make the society come to its senses. Standing in line for three hours to get two liters of fuel or watching your parents or children suffer because country has no dollars to buy medicine should do the trick.

But perhaps not. Awam seems satisfied by cocktail offered by elites; coctail of azad adilya, jumhooriyath, free press and constitution that guarantees fundamentals right. Read the constitution and sermons of minallah and bandial to satisfy your sick parent or your jobless younger brother. My constitution is much weaker so I beat a hasty retreat when the same bunch of clowns were in charge. Pakistanis are made of sterner stuff. Soon they will get a chance to demonstrate their iron will.
 

SoulSpokesman

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@Burger_King

The truth is more nuanced. It is Pakistan, the state which is poor, not Pakistani citizens. The latter earns enough - through farming, business, trade and remittances- to earn their keep. They can survive without the state's support.

Regards
 

PradoTLC

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: In line with the dominant trend over the last several weeks, the country’s foreign exchange reserves held by the State Bank of Pakistan (SBP) once again declined by 1.32% falling below the psychological level of ?$8 billion,

On September 30, the foreign currency reserves held by the SBP were recorded at $7,899.8 million, down $106 million compared with $8,005.9 on September 23, data released by SBP showed on Thursday.

Overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $13,588.8 million.

Net reserves held by banks amounted to $5,689 million. The central bank cited external debt repayment, including interest payments on Eurobonds, as a major reason behind the decline.

With the current foreign exchange reserves position, Pakistan has an import cover of fewer than 1.5 months.

A critical level of reserves has caused severe pressure on the Pakistani rupee with the local unit becoming the worst-performing currency last month.

The rupee gained some ground as Ishaq Dar assumed charge as the new finance minister, a development that helped the currency market recover.

The rupee was at the cusp of a fresh historic low; however, Dar’s arrival gave the market much-needed clarity.

The Pakistani rupee appreciated for the 10th consecutive session on Thursday and closed at 221.75.


nothing to worry.. the brilliant $ Darr and under genius leader ship of Miss Calibri font will save us

this all part of the greater plan to save Pakistan
 

MH.Yang

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Jul 21, 2021
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I remember that Pakistan imports about 7 billion dollars every month. Pakistan needs at least US $20 billion of reserves to obtain initial financial security.
 

PradoTLC

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Mar 17, 2007
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Pakistanis seem to have a death wish as far as economy is concerned. I have had the fortune of working in some of the major financial centers of the world and I have not seen another society where people are so indifferent to their own economic wellbeing. Perhaps economic shock therapy will make the society come to its senses. Standing in line for three hours to get two liters of fuel or watching your parents or children suffer because country has no dollars to buy medicine should do the trick.

But perhaps not. Awam seems satisfied by cocktail offered by elites; coctail of azad adilya, jumhooriyath, free press and constitution that guarantees fundamentals right. Read the constitution and sermons of minallah and bandial to satisfy your sick parent or your jobless younger brother. My constitution is much weaker so I beat a hasty retreat when the same bunch of clowns were in charge. Pakistanis are made of sterner stuff. Soon they will get a chance to demonstrate their iron will.

Dont worry change is coming..
 

SD 10

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Sep 27, 2019
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: In line with the dominant trend over the last several weeks, the country’s foreign exchange reserves held by the State Bank of Pakistan (SBP) once again declined by 1.32% falling below the psychological level of ?$8 billion,

On September 30, the foreign currency reserves held by the SBP were recorded at $7,899.8 million, down $106 million compared with $8,005.9 on September 23, data released by SBP showed on Thursday.

Overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $13,588.8 million.

Net reserves held by banks amounted to $5,689 million. The central bank cited external debt repayment, including interest payments on Eurobonds, as a major reason behind the decline.

With the current foreign exchange reserves position, Pakistan has an import cover of fewer than 1.5 months.

A critical level of reserves has caused severe pressure on the Pakistani rupee with the local unit becoming the worst-performing currency last month.

The rupee gained some ground as Ishaq Dar assumed charge as the new finance minister, a development that helped the currency market recover.

The rupee was at the cusp of a fresh historic low; however, Dar’s arrival gave the market much-needed clarity.

The Pakistani rupee appreciated for the 10th consecutive session on Thursday and closed at 221.75.
well that what ishaq dar do everytime...using reserves to artificially upsizing of currency!
 

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