Import Restrictions.

In the absence of any dollar inflows from the IMF or friendly countries, the foreign exchange reserves of the State Bank of Pakistan (SBP) have dropped to $4.34 billion. This dire situation is resulting in the restriction of the import of essential food items and industrial raw materials. Based on foreign exchange reserve levels, it is reported that the country does not have sufficient dollars to cover even one month of average imports. Based on the current economic trajectory, analysts are anticipating high inflation and low industrial output in the months ahead as production is being stalled due to the unavailability of imported raw materials. The situation is such that banks are not willing to process even $1,500 payments for the import of spare parts, bringing the entire supply chain to a standstill. Of course, the large debt repayments have a lot to do with the current scenario, but the government has not helped with its poor decision-making. In particular, the controlled exchange rate policy has been roundly condemned by the business...

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