Pakistan’s foreign exchange reserves on Thursday exceeded $ 18.2 billion out of which $ 13 billion are with the State Bank of Pakistan.
However, the sources said reserves were enough only for three months of imports and this level was necessary to be achieved to get another $ 540 million tranche from the International Monetary Fund (IMF).
The government is under continuous pressure of international financial institutions to build up its reserves. In the last one year, the government has floated bonds at a very high rate in the international market and during the next year it plans to sell off its family silver in the shape of PIA, PSM, DISCOs and GENCOs. An estimated $ 5 billion earning is targeted by the government during the next financial year by selling highly prized public sector entities.
Experts have warned that the foreign exchange reserves have ballooned to $ 18 billion like the Musharraf era without an accompanied increase in exports and services. Without addressing the energy crisis which is slowing down the economy by 2 percent annually, maintaining the foreign exchange reserves at the current level was next to impossible in the longer run.