Pakistan’s foreign reserves fall to $5.8bn; on verge of default

Foreign exchange reserves of Pakistan decreased by $327 million

KARACHI: Pakistan’s foreign reserves have fallen to eight-year low, standing at $5.8 billion at the moment. With no IMF loan tranche in sight, the country could be in serious trouble of defaulting on its foreign loans.

It is pertinent to mention here that the country has to service $8bn in lieu of foreign debt by March and the country roughly has $6bn in its reserves with the numbers falling as days pass by. The country’s foreign reserves stood at $10.5bn when the PTI government left in April earlier this year, the number has dropped to $5.8bn in eight months.

According to economic experts, the reassurances by Finance Minister Ishaq Dar are not enough either for investors who remain wary of the country’s ever-instable political conditions. Some experts are predicting that the country will default if the International Monetary Funds does not come to its rescue.

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