SBP Governor reveals good news about Pakistan Foriegn Exchange Reserves: Report
ISLAMABAD - SBP Governor reveals good news about Pakistan Foriegn Exchange Reserves, Media Report has revealed.
Governor State Bank of Pakistan Reza Baqir has stated that Pakistan’s foreign exchange reserves are not increasing due to foreign loans but through other inflows thanks to the improving sentiments of investors.
Addressing a media briefing, he said that foreign exchange reserves were built up using foreign loans by the previous governments, however, the current government won’t be doing it. This was also recognized recently by staffers of the International Monetary Fund.
The sentiments of foreign and local investors are getting better due to improvements in the microeconomic indicators and economic reforms.
The participation of local banks and foreigners in government papers is increasing, showing the confidence of investors in the Pakistani market as previously they were only investing in foreign bonds. It’s a good sign that foreign investors are also investing in debt securities. In addition, the stock market has also attracted massive foreign investment.
Not only has the current account deficit improved, but the fiscal deficit has also been contained by the government due to initiatives taken a few months ago. The government did not borrow a single rupee from the central bank and did not print extra currency notes, added the SBP Governor.
The exchange rate of rupee against the US dollar has also stabilized. Export volumes in different sectors such as textile and leather recorded healthy growth in the last few months, which is a good omen for the economy.
The inflation rate is unlikely to go beyond the level set by SBP either.