• Download the Constitution of Pakistan
  • Advertise
WRITE FOR US
Economy.pk
No Result
View All Result
  • Economy
  • Politics
  • Technology
  • Education
  • Life & Style
  • Health
  • World
  • Videos
  • Economy
  • Politics
  • Technology
  • Education
  • Life & Style
  • Health
  • World
  • Videos
No Result
View All Result
Economy.pk
No Result
View All Result
Home Business

Govt Plans Additional $4 Billion Forex Inflows

by Suneela Zulfiqar
August 1, 2022
in Business, Finance
Reading Time: 3 mins read
Govt Plans Additional $4 Billion Forex Inflows
Share on FacebookShare on Twitter

In order to strengthen Pakistan’s position with regard to its foreign exchange reserves, the government has budgeted an additional $4 billion during the upcoming 12 months.

Several channels are being used to get the financing commitment, including assistance from friendly nations that supported Pakistan at the start of the International Monetary Fund (IMF) program in June 2019.

This information was provided in a joint statement from the Ministry of Finance and the State Bank of Pakistan titled “Pakistan’s Strategy for Navigating FY2023: Five Important Facts”.

Under the present IMF program, Pakistan’s gross funding requirements in FY23 will be more than satisfied. The statement states that the funding requirements are brought on by a current account deficit of around $10 billion and principal payments on the external debt of over $24 billion.

In a joint statement, the Ministry of Finance and the SBP discuss the causes of the current foreign exchange reserve situation, the depreciation of the rupee against the dollar, and the anticipated improvement of these macroeconomic indicators with the scheduled inflows of the International Monetary Fund (IMF) in the upcoming weeks.

“Going forward, as the current account deficit is reduced and sentiment improves, we fully expect the rupee to increase,” the joint statement said. In fact, this was the situation at the start of the IMF program in 2019, when the rupee recovered significantly following a period of weakness prior to the program.

The rupee has just seen a brief overshoot. But over time, it shifts in both directions. In the upcoming time, we anticipate seeing this pattern emerge once more. As a result, it was predicted that the rupee would appreciate in accordance with better fundamentals, such as a reduced current account deficit and more positive mood.

According to the announcement, Pakistan’s foreign exchange reserves have decreased since February as a result of outflows of foreign currency outpacing inflows. The primary sources of inflows include multilateral loans from the IMF, the World Bank, and the ADB; bilateral loans and deposits from friendly nations like China, Saudi Arabia, and the United Arab Emirates; commercial borrowing from international banks; and the issue of Eurobonds and Sukuks.

Due to policy lapses, the next review of the IMF program has been delayed since February, which has contributed significantly to the scarcity of inflows. As debt repayments for foreign borrowing throughout this time period have been due, debt servicing on the inflows side has continued.

The exchange rate has also been under a lot of pressure, particularly since mid-June. It has been caused by a general weakening of the US dollar, an increase in the current account deficit (which was made worse by a large energy import bill in June), a decline in foreign exchange reserves, and deteriorating sentiment as a result of concern over the IMF program and domestic politics.

In addition, macroeconomic policies, both monetary and fiscal, have been suitably tightened to minimize pressures brought on by demand and control the current account deficit.

Finally, the administration has made it plain that it wants to complete the remainder of its term to October 2023 and that it is prepared to carry out all the terms of the IMF program for the remaining 12 months.Govt Plans Additional $4 Billion Forex Inflows in Next 12 Months

Tags: foreign exchange reservesForex InflowIMFlatestState Bank of Pakistan
Suneela Zulfiqar

Suneela Zulfiqar

Related Posts

Railways to shut down Shalimar Express

Railways to shut down Shalimar Express

Pakistan Railways has decided to shut down Shalimar Express once again due to financial crunch. According to sources, the railway...

COAS Munir meets Saudi counterpart, discusses bilateral security matters

COAS Munir meets Saudi counterpart, discusses bilateral security matters

General Asim Munir, Chief of Army Staff (COAS), met with Saudi Arabia's army chief, General Fayyadh Bin Hamed Al Ruwaili,...

Rupee Keeps Strengthening Against US Dollar

Rupee Keeps Strengthening Against US Dollar

The Pakistani rupee gained another 0.37% against the US dollar during the first hours of trading in the interbank market...

Gwadar Airport’s new inauguration Date unveiled

Gwadar Airport’s new inauguration Date unveiled

The new Gwadar International Airport, built as part of the China-Pakistan Economic Corridor (CPEC), has been delayed by another year....

Pakistan imported food items worth Rs374.98bn in two months

Pakistan imported food items worth Rs374.98bn in two months

Pakistan imported food worth Rs378.98 billion in the first two months of the current fiscal year 2023-24, according to facts...

Cars You Can Buy in Pakistan for the Same Price as an iPhone 15 Pro Max

Cars You Can Buy in Pakistan for the Same Price as an iPhone 15 Pro Max

As the iPhone 15 Pro Max creates excitement throughout the world due to its $999 USD price tag, the expected...

Next Post
Pakistan's fintech OneLoad secures $11 Million in funding

Pakistan's fintech OneLoad secures $11 Million in funding

Recent Posts

  • Gold Rate In Pakistan Today
  • Pakistan’s Caretaker PM Raises Concerns over Indian Hindutva Expansionist Designs
  • India frees Kashmiri leader Mirwaiz Umar Farooq after 4 years
  • Subway Unveils a Flying Restaurant: Serving Sandwiches 1,000 Feet Above the Ground
  • Saudi crown prince says he does not care about ‘sportswashing’ claims

Advertisement

Twitter

Economy.pk

Economy.pk is a source of economic, political, business, finance, health and sports updates.

Categories

  • Economy
  • Politics
  • Technology
  • Education
  • Life & Style
  • Health
  • World
  • Videos

Privacy & Legal

  • Privacy Policy
  • Cookies

Social Media

  • Facebook
  • Instagram
  • Twitter
  • Linkedin
  • About
  • Advertise
  • Contact

© 2023 Economy.pk

No Result
View All Result
  • VIDEOS
  • World
    • Europe
    • Americas
    • Asia
    • Oceania
    • Africa
    • Middle East
  • Finance
  • Politics
  • Business
    • Economy
    • Finance
    • Entrepreneurship
    • Real Estate
  • Technology
    • Cyber Security
    • Mobiles
    • Social Media
  • Education
  • Sports
  • Life & Style
    • Personalities
    • Art
    • Culture
    • History
    • Entertainment
    • Fashion
    • Food
    • Health
      • Environment
      • Fitness
  • Sponsored

© 2023 Economy.pk