In positive economic development, Pakistan Foreign Exchange Reserves hit 3 years high

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In positive economic development, Pakistan Foreign Exchange Reserves hit 3 years high

The year 2020 was a rollercoaster ride for Pakistan’s foreign exchange reserves as they hit a concerning low in June, diving below the $10 billion mark and bouncing back to a three-year high of $13.4 billion in November despite the ongoing Covid pandemic.

Pakistan’s depleting foreign reserves has been a major challenge for the Pakistan Tehreek-e-Insaf (PTI) government that had to sign a $6 billion bailout with the International Monetary Fund (IMF) after the first six months of the regime saw reserves fall to a level that was barely enough to pay for two months of imports.

The IMF programme had multiple benefits as the international agency said the programme would open up further funding of $38 billion from multilateral donors and sure enough, other world agencies like the World Bank, ADB and AIIB also pledged their support to the country in its time of need.