ISLAMABAD – Pakistan is facing a shortage of dollars because our importsare more than double our exports. For every dollar earned, we spend two,which leaves us with fewer reserves to pay for essential imports (oil, rawmaterials, machinery etc), and to repay its foreign loans (more than $90billion).
To address this balance of payment crisis, the government has beenexploring all options from seeking a loan from the International MonetaryFund to taking help from friendly countries.
So far, we have secured back-to-back aid packages worth $6 billion fromSaudi Arabia and UAE. We have already received $2 billion from the Saudis,which provided temporary stability in the exchange rates by increasing ourdollar reserves.
However, the country needs more dollars to continue payment of essentialimports and foreign loan because its reserves stand at $7.4 billion, notenough to sustain even two months of imports.
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The talks with the IMF have delayed already and there are reports we cannotjoin the IMF program until March 2019. Market analysts say the dollar maygo further up in case of a further delay in talks with the IMF.
Prior to the recent increases, some analysts predicted it would cross Rs140level but a few even said it might touch Rs150 by June 2019.
