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Pakistan almost out of foreign exchange funds.
[AsiaTimes] Pakistan curbs imports amid a foreign exchange crisis.The economy faces a potential collapse as foreign currency reserves fall below $9.5 billion. The State Bank of Pakistan (SBP) has moved to curb the country’s bulging import bill to ease pressure on its dwindling foreign exchange reserves. Reserves have tumbled to US$9.5 billion, less than enough to pay for one month’s worth of imports, representing a major crisis for South Asia’s second largest economy. Faced with a current account deficit of US$16 billion, the SBP on Monday slapped a 100% cash margin on 131 “non-essential” items to arrest the deterioration in the reserves position. The move will discourage imports as many will find it difficult with liquidity constraints to make the 100% advance payments needed for opening a letter of credit. Posted by: 3dc 2018-07-20 |
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