ISLAMABAD - Pakistan's foreign exchange reserves reached highest ever level of $18.5 billion on Wednesday.
"Finance Minister Senator Mohammad Ishaq Dar has extended felicitations to Prime Minister, Nawaz Sharif and the whole Pakistani nation on this important achievement", said a brief statement issued by the Finance Ministry here. Pakistan received seventh installment worth $506.4 million from the IMF that took the country's foreign exchange reserves to the highest ever benchmark of $18.5 billion. Previously, the country's forex reserves had touched $18.29 billion mark in July 2011.
Pakistan had received about $4.05 billion from the IMF in seven installments since September 4, 2013, when the Executive Board approved the three-year extended arrangement under the Extended Fund Facility (EFF) in the amount of SDR 4.393 billion (about $6.18 billion, or 425 per cent of Pakistan's quota at the IMF).
Country's foreign exchange reserves fell down below the level of $8 billion in December 2013 wherein State Bank of Pakistan's reserves were only $2.96 billion. However, the reserves have enhanced to $18.5 billion in one and a half years due to rapid foreign inflows in the form of Eurobond, Sukuk bond, tranches of IMF, loans of WB, ADB, IDB, privatization of public sector entities and financial help from Saudi Arabia.
PEW says forex reserves increased due to soaring loans INP: The Pakistan Economy Watch (PEW) on Wednesday said Pakistan has no future in absence of meaningful reforms in FBR and some other critical institutions. Pakistan is not a failing state, it can sustain and flourish for which wealthy class parasitic upon the labour of the masses must be made to pay taxes, said Dr. Murtaza Mughal, President PEW.
He said that nobility enjoyed tax exemptions worth Rs4.7 trillion in 2014 which was almost double than the exemptions grants in 2013. Dr. Mughal said that masses are being systematically exploited to benefit the aristocracy which has increased gulf between poor and rich.
He said that development requires capacity building of institutions, broaden tax base, ensuring justice and just distribution of resources, and provision of enabling environment to the business community. He said that peace cannot be achieved unless policymakers revisit internal and foreign policies as peace is linked economic activities including investment by local and foreign businessmen.
He said that widespread corruption in the FBR has damaged its credibility therefore only one person out of two hundred file returns. He said that rulers as well as masses are happy over increased forex reserves without realising that it is not result of positive policies but loans.
Pakistan has secured loans worth $70 billion from US since 1951 while it has signed 12 loan agreements with IMF since 1988 which has added to the wealth of moneyed class while crippled the poor.
Culture of fake democracy must be brought to an end which continues to hurting economy while the conflicting definition of national interests forged by different political parties is only dividing the nation.