Business

Debt payments dent SBP-held foreign exchange reserves

Published

1 year ago

Farwa

SBP’s forex reserves decrease by $36 million to $4.2 billion.
Reserves enough for less than a month’s worth of imports.
IMF funding is critical for Pakistan to shore up its reserves.

The State Bank of Pakistan (SBP)-held foreign exchange reserves fell further as the cash-strapped nation met its debt obligations to avoid a possible default, with the financing avenues contracting amid a stalled International Monetary Fund (IMF) programme.

In its weekly bulletin, the SBP said that its foreign exchange reserves have decreased by $36 million to $4.2 billion as of the week ended March 31, which will provide an import cover of less than a month.

The net forex reserves held by commercial banks stand at $5.51 billion, $1.3 billion more than the SBP, bringing the total liquid foreign exchange reserves of the country to $9.75 billion, the statement mentioned.

Pakistan’s $350 billion economy continues to dwindle amid financial woes and the authorities struggle to strike a staff-level agreement with the IMF.

The Washington-based lender has been in talks with the Pakistani authorities since end-January to resume the $1.1 billion loan tranche held since November, part of a $6.5 billion Extended Fund Facility (EFF) agreed upon in 2019.

The IMF funding is critical for Pakistan to unlock other external financing avenues to avert a default on its obligations.

The IMF has asked Pakistan to secure assurances on external financing from friendly countries and multilateral partners to fund its balance of payment gap for this fiscal year, which ends in June.

In this regard, Saudi Arabia has assured the Washington-based lender that it would provide $2 billion in additional deposits to Pakistan, according to a report published in The News.

The assurance from Saudi Arabia helped the Pakistan rupee recover from a historic low and boosted investors’ confidence in the stock market, sending it above the 40,000 points mark.

Minister for Finance and Revenue Ishaq Dar also held a meeting with US Ambassador to Pakistan Donald Blome, which, according to sources, has assured America’s support for Pakistan to unlock the stalled IMF programme.

However, World Bank and Asian Development have projected Pakistan’s GDP to fall below 1% in the ongoing fiscal year, while warning that the non-completion of the IMF programme, failure to secure financing from key bilateral partners and political instability may result in an eruption of a major macroeconomic crisis.

Business

Islamic Sukuk Bonds: Government Is Expected To Begin Bond Auction Next Week

Published

3 days ago

Farwa

There is now more positive economic news for the people of Pakistan. The government is anticipated to begin the Sukuk Islamic Bond auction next week, after the central bank’s announcement of a large drop in the policy rate.

Business

SIFC Encourages Green Tourism: Reforming Visas to Increase Investment

Published

3 days ago

Farwa

Enhancing investment in the tourism sector, Green Tourism Pakistan’s initiative has received backing from the Special Investment Facilitation Council.

Visa-On-Arrival for 126 countries, Visa-Free Entry for Gulf Cooperation Council nations, and 24-hour expedited visa processing are some of the main features of the Green Tourism Visa Policy.

It is anticipated that these endeavors will draw in about 80 million dollars in foreign direct investment and 8.3 billion rupees in domestic investment.

Green Tourism Private Limited has introduced hunting resorts in Naltar, Hunza, and Skardu, along with four- and five-star city hotels, to improve the tourism experience.

In the first phase of the project, 17 of the 78 areas have seen the start of development activity.

Approved is a central authority for Green Tourism that will supervise the growth of Air Operations.

To promote Religious Tourism, extra precautions have been taken to guarantee the security of visitors from all religions, including Sikhs and Buddhists.

Furthermore, in order to improve the quality of the tourist experience, the green guide quality program has been introduced to supply top-notch tour guides.

There is now a deluxe bus excursion from Islamabad to Peshawar that promotes local culture.

Business

July 2024 export data from Pakistan shows a significant rise.

Published

3 days ago

Farwa

The Strategic Investment Facilitation Council (SIFC) has been instrumental in improving Pakistani products’ access to international markets, as seen by the significant surge in exports from the country at the start of the 2024–25 fiscal year.

With a 7.26% rise over the same month the previous year, July 2024 exports to the US were $476.017 million. After increasing by 7.74% annually, the United Arab Emirates emerged as the second-largest export destination.

The third and fourth places were occupied by exports to the UK ($183.303 million) and China ($60.100 million). A substantial increase in exports to Afghanistan was recorded in July of this year, rising from $46.262 million to $88.065 million, largely due to successful anti-smuggling efforts.

With a combined export volume of $553.951 million, more important export destinations included Germany, the Netherlands, Italy, Spain, Saudi Arabia, and Turkey.

A bright future for the national economy is suggested by the growing confidence major international markets have in Pakistani exports. Through the efforts of SIFC and the government, this greater access to global markets has been made possible.

Pakistan’s economy is predicted to remain stable as a result of the export growth that SIFC has enabled.