Pakistan’s foreign reserves fall; The country is facing the biggest collapse since 2014
Islamabad: Pakistan’s foreign reserves have fallen. Foreign reserves fell to 4.3 billion US dollars. This is the biggest drop in the country’s foreign reserves since 2014.
The information released by the Central Bank of Pakistan is that the use of reserve funds as part of Pakistan’s foreign debt obligations is behind this collapse of Pakistan.
The State Bank of Pakistan said on Thursday that the country’s commercial banks have USD 5.8 billion in reserves.
In 2019, through the IMF (International Monetary Fund), seven billion U.S. Al Jazeera reports that as part of the agreement to borrow US dollars, Pakistan will receive 1.1 billion U.S. dollars as debt soon, and through this, Pakistan hopes to be able to face the current financial crisis to some extent.
As a result of Pakistan’s Prime Minister Shehbaz Sharif’s visit to the UAE, the UAE has pledged two billion U.S. dollars to Pakistan. A billion U.S. dollars in addition to Pakistan has also been able to borrow S$.
30 billion U.S. due to catastrophic flooding. The loss of the US dollar has plunged the country into a major financial crisis. About 1,700 people lost their lives in the floods that killed 33 million people.
Economists advise that Pakistan can get out of the economic crisis it is currently facing only by formulating short-term economic plans and policies instead of long-term economic policies.
Also, it has been decided in the United Nations meeting in Geneva to give about 10 billion US dollars in aid to Pakistan, which has to pay back about 20 billion debt in the next two years.
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