SBP left with $5 bn foreign exchange reserves

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KARACHI: The abysmal state of the national economy can be gauged from the fact that the State Bank of Pakistan (SBP) is left with less than $5 billion worth of foreign exchange reserves and these reserves are constantly on the decline.


According to the SBP, $91 million from the reserves reduced last week and total depletion amounted to $161 million in June.The government on Thursday entered an agreement for a $5.3 billion loan from the IMF that would last for three years. This loan will not relax the pressure on foreign exchange reserves. Experts hold the SBP responsible for the decline in foreign exchange reserves.

The business of foreign currency exchange is deteriorating day by day in the country. For many years, the SBP has shown dollar deposits in different banks as foreign exchange reservesBut in reality, it has $4.99 billion worth of foreign exchange reserves that will suffice to pay import bills of a few months.Experts say that Nawaz Sharif government’s decision for an immediate bailout from IMF will not leave any positive impact on economy; rather it will cast a negative impact.

Courtesy:  The News

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