Worrisome: ICCI expresses concern over dwindling reserves

Pakistan’s total liquid foreign exchange reserves dropped to $18 billion from $23 billion

ISLAMABAD: The Islamabad Chamber of Commerce and Industry (ICCI) has expressed concern over the dwindling foreign exchange reserves of the country that would create new problems for the economy and force the government to resort once more to foreign borrowing for running affairs of the country.

Pakistan’s total liquid foreign exchange reserves were over $23 billion in 2015-16 that have dropped to around $18 billion in March 2018, showing a decrease of over 21% during this period, said ICCI President Sheikh Amir Waheed.

He said that if net reserves with banks were deducted from this total, the amount of net reserves with the State Bank of Pakistan (SBP) was less than $12 billion, which was insufficient to foot the import bills of even a few months. The dwindling reserves reflected the weakening position of the economy, he added.

Waheed said the main reasons for falling reserves were rising debt servicing and surging trade deficit.

Published in The Express Tribune, March 25^th, 2018.

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