Pakistan's foreign exchange reserves have risen to nine-month high of $17.29 billion as the State Bank of Pakistan (SBP) received $1.3 billion from the Asian Development Bank (ADB)
ISLAMABAD (Pakistan Point News / Online - 10th December, 2019) Pakistan's foreign exchange reserves have risen to nine-month high of $17.29 billion as the State Bank of Pakistan (SBP) received $1.3 billion from the Asian Development Bank (ADB).The central bank's reserves have expanded to $10.41 billion, whereas the reserves of commercial banks are $6.88 billion.In the current financial year, foreign exchange reserves have increased by $3.10 billion.
Financial experts are of the view that despite the country's foreign exchange have swelled, but that still does not meet the standards of the International Monetary Fund (IMF), which considers that the reserves of any country should be equal to imports for at least three months.Yesterday, the ADB and Pakistan struck a loan agreement of $1.3 billion for budgetary support and reforms of the country.This will help stabilise the foreign exchange reserves of the country, and strengthen Pakistan's slowing economy.
Under the agreement, the ADB has committed to providing $1 billion towards the Economic Stabilisation Programme which aims to improve exchange rate management, strengthen public financial management, restore allocative efficiency of scarce public resources and reduce the social impacts of macroeconomic stability measures, said the press release.Out of the total $1.3 billion loan, $300 million have been earmarked for reforms in the energy sector and the Financial Stability Programme. This aims to address energy shortfalls as well as policy related shortcomings in the country's energy sector.In a report issued in Sept, the ADB reaffirmed that the country's economy is expected to grow slower than last year, with GDP growth projected at 2.8 per cent in the fiscal year 2020.
