Forex Reserves are Strengthening Soon told by Dar in the coming days:
Ishaq Dar, Pakistan’s Minister of Finance and Revenue, stated on Saturday that while he relies on friendly nations for inflows, Pakistan’s foreign exchange reserves will “strengthen” in the coming days.
The finance minister told media channels that the country’s reserves totaled $10 billion, with the State Bank of Pakistan holding $4 billion and private banks holding $6 billion.
According to the finance minister, Pakistan is making timely loan repayments, and soon, the foreign exchange reserves will also increase.
After repaying loans to United Arab Emirates (UAE) banks totaling $1.2 billion, the SBP’s foreign exchange reserves dropped to just $4.5 billion, and sources informed Stayconnecting News on Saturday.
Sources claim that this leaves Pakistan experiencing a severe economic crisis and a lack of dollars, with an import cover of only a little more than a month.
Sources claim that a breakdown reveals Pakistan paid back $420 million to the Dubai Islamic Bank while returning $600 million to the Emirates Bank.
The finance minister announced that an IMF delegation would soon be in the nation and that he would also see IMF representatives at the Geneva meeting.
The coalition administration plans to seek money at the International Conference on Climate Resilient Pakistan on January 9 in Geneva, Switzerland, to recover from the disastrous floods.
Dar informed the media outlet that he would travel to the United Arab Emirates (UAE) for a three-day official tour after his visit Geneva ended.
The finance minister, who told media earlier this week that he anticipates inflows from the Kingdom and China “in a few days,” said: “Funds from Saudi Arabia and other friendly countries will shortly be received.”
During a crisis, Pakistan will have to pay back almost $8.3 billion in external debt servicing over the ensuing three months (Jan.-March.
The administration hopes to obtain a $1.7 billion bailout package through the IMF’s ninth review, but neither party has made significant progress recently.
According to PM Shehbaz, an IMF group would arrive in Pakistan in two to three days to “take up and finalise” the ninth economic assessment and free up a $1.1 billion bailout tranche that Pakistan desperately needs.
The National Security Committee (NSC) recently decided to take proactive measures to rebuild the economy in light of the economic crisis, including rationalizing imports and blocking hawala and illegal currency outflows.