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Pakistan's foreign exchange reserves reaches over six billion

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    Pakistan's foreign exchange reserves reaches over six billion

    If you live abroad please send your money through offical channels and not through hawala system. This one way expats. can help Pakistan.
    http://www.brecorder.com/story.php?c...511133&m=0&s=0

    KARACHI (June 15 2002) : Pakistan's foreign exchange reserves reached six billion dollars after the country received a loan from the World Bank to help boost the economic growth, following the war in neighbouring Afghanistan.

    "We have received 510 million dollars from the World Bank, pushing the reserves past the $6 billion mark," said chief spokesman of the State Bank of Pakistan (SBP) on Friday.

    The reserves rose to 6.1 billion dollars on Friday from 5.6 billion dollars for the week ended June 8, the central bank said. It held 4.214 billion dollars of this, while the other banks held the remaining 1.910 billion, the central bank said.

    Pakistan needs foreign exchange to help repay its 36 billion dollars overseas debt and revive an economy hurt by the war in neighbouring Afghanistan. Pakistan pays about four billion dollars a year in interest on its overseas debt.

    The World Bank Structural Adjustment Credit loan, to be repaid over 35 years, will charge 0.75 percent, with no payments due until 2012.

    The payment will provide "balance of payments support and is triggered by a number of reforms already under implementation, including governance improvements and increased expenditures on social service delivery, such as education," the World Bank said in a statement posted on its web-site.

    The SBP bought 1.23 billion dollars in the three months to March 31 to keep the rupee from rising and boost exports, the central bank said in its quarterly report on Wednesday.

    Since the September 11 terrorist attacks in the US, the rupee has strengthened 10.6 percent to 60.30 against the dollar in

    the open market and by six percent to 60.15 in the inter-bank market.

    The country's foreign exchange reserves also improved because of the increased inflow from the overseas Pakistanis. The remittances, according to analysts, will cross 2.1 billion dollars during the current fiscal year.

    Copyright 2002 Business Recorder (http://www.brecorder.com
    All people are equal, but some are more equal than others. We call these "corporations."

    #2
    That is great news...
    Even though most of it is foreign loans, still they came at a good time..
    Also check out this article from bbc. http://news.bbc.co.uk/hi/english/bus...00/2044798.stm

    Comment


      #3
      Loans won't work!

      "We have received 510 million dollars from the World Bank, pushing the reserves past the $6 billion mark,"
      said chief spokesman of the State Bank of Pakistan (SBP) on Friday


      TAKE YOUR BEST SHOT AT ME

      Comment


        #4
        Originally posted by Pakistani Tiger:
        Loans won't work!

        "We have received 510 million dollars from the World Bank, pushing the reserves past the $6 billion mark,"
        said chief spokesman of the State Bank of Pakistan (SBP) on Friday


        TAKE YOUR BEST SHOT AT ME
        I agree loans are not the best option but it's a start. Not that there are many options at the moment. You know and I know that the real solution is a South Asian Free Trade Zone (India, Pakistan, Sri Lanka, Bangla Desh, Nepal, Afganistan, may be China, may be Singapore, Malaysia, may be even Myanmar). The combined market (with or without China) is so vast, the combined labor and mineral power so immense that the middle east and Russia will walk behind us; The world will be gradually reordered as North America, South Asia, Europe, Australasia, Russia and MiddleEast. Too bad Africa seems to be still out of this race.

        Comment

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