Pakistan’s foreign currency reserves are anticipated to increase by $1.5 billion to $13.7 billion by June 30, 2021, with a notable improvement in receipt of workers’ remittances and export earnings, according to AHL Research. The improvement in foreign currency reserves will, however, not extend all-out support to the rupee this time around mainly due to likely surge in imports. Tawfik predicted that imports were estimated to increase by 2% and exports and remittances by 3% each during FY21. Moreover, the financial account is expected to show improvement on account of hot money flow into debt markets. However, pressure on the rupee is expected as the overall external account remains in a state of jeopardy.

Source: The Express Tribune November 12, 2020 03:33 UTC