Pakistan's actual forex reserves are all time low, stood at eight billion dollars
Muhammad Arshad
IslamabadThe Pakistan Economy Watch (PEW) on Monday said financial chaos could transform Pakistan into one of the poorest country in the region.
A single-minded focus on economy with a dedicated economic team having homegrown agenda can secure relief to masses.
Pakistan has ability and finances to overcome damages inflicted by floods without foreign assistance, said Dr. Murtaza Mughal, President Pakistan Economy Watch.
Government has earmarked Rs124 billion for other developmental expenditures in the budget that should be diverted to rehabilitation, he said.
He said that Pakistans forex reserves stood at 13.3 billion dollars when the current government took charge. The exchange rate was Rs 62.60; stock market had crossed 13300 points while inflation stood at 14 per cent.
Now, he said, exchange rate is around Rs 86, inflation is at 25 per cent and estimated to grow, while forex reserves stands at $16.07 billion.
Our actual reserves minus IMF money are eight billion dollars which can be described at uncomfortable level at best, he said.
He said that rupee is at record low; exchange rate could not stabilise through borrowed money; it needs financial discipline as well as enabling policies aimed at boosting confidence.
Stock market remained closed for more than a month during the current government, which is a sign of mismanagement. Receding confidence is a very dangerous indicator, warned Dr. Murtaza Mughal.
He said that situation has reached to a level when bankers are advising accountholders to convert their deposits in dollars.
Rulers should immediately turn their attention to economy to reduce sufferings of masses and rescue economy, he demanded.
Pak Observer:
Financial indiscipline can hurt poor, economy
Muhammad Arshad
IslamabadThe Pakistan Economy Watch (PEW) on Monday said financial chaos could transform Pakistan into one of the poorest country in the region.
A single-minded focus on economy with a dedicated economic team having homegrown agenda can secure relief to masses.
Pakistan has ability and finances to overcome damages inflicted by floods without foreign assistance, said Dr. Murtaza Mughal, President Pakistan Economy Watch.
Government has earmarked Rs124 billion for other developmental expenditures in the budget that should be diverted to rehabilitation, he said.
He said that Pakistans forex reserves stood at 13.3 billion dollars when the current government took charge. The exchange rate was Rs 62.60; stock market had crossed 13300 points while inflation stood at 14 per cent.
Now, he said, exchange rate is around Rs 86, inflation is at 25 per cent and estimated to grow, while forex reserves stands at $16.07 billion.
Our actual reserves minus IMF money are eight billion dollars which can be described at uncomfortable level at best, he said.
He said that rupee is at record low; exchange rate could not stabilise through borrowed money; it needs financial discipline as well as enabling policies aimed at boosting confidence.
Stock market remained closed for more than a month during the current government, which is a sign of mismanagement. Receding confidence is a very dangerous indicator, warned Dr. Murtaza Mughal.
He said that situation has reached to a level when bankers are advising accountholders to convert their deposits in dollars.
Rulers should immediately turn their attention to economy to reduce sufferings of masses and rescue economy, he demanded.
Pak Observer:
Financial indiscipline can hurt poor, economy
