ISLAMABAD – SBP Governor reveals good news about Pakistan Foriegn ExchangeReserves, Media Report has revealed.
Governor State Bank of Pakistan Reza Baqir has stated that Pakistan’sforeign exchange reserves are not increasing due to foreign loans butthrough other inflows thanks to the improving sentiments of investors.
Addressing a media briefing, he said that foreign exchange reserves werebuilt up using foreign loans by the previous governments, however, thecurrent government won’t be doing it. This was also recognized recently bystaffers of the International Monetary Fund.
The sentiments of foreign and local investors are getting better due toimprovements in the microeconomic indicators and economic reforms.
The participation of local banks and foreigners in government papers isincreasing, showing the confidence of investors in the Pakistani market aspreviously they were only investing in foreign bonds. It’s a good sign thatforeign investors are also investing in debt securities. In addition, thestock market has also attracted massive foreign investment.
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Not only has the current account deficit improved, but the fiscal deficithas also been contained by the government due to initiatives taken a fewmonths ago. The government did not borrow a single rupee from the centralbank 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 recordedhealthy 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.
