Governor State Bank of Pakistan (SBP) Jameel Ahmad has provided assurances that Pakistan will pay all its debts “on time” and that foreign exchange reserves are expected to increase during the second half of the financial year. In the latest episode of the SBP podcast series, governor SBP clarified that during the next seven months only a debt of $4.7 billion is payable allaying concerns of the country defaulting on international financial obligations. However, on December 2, the foreign currency reserves held by the SBP were recorded at $6,714.9 million, down by $784 million compared with $7,498.7 million on November 25. He also revealed that Pakistan had returned loans worth $1.2 billion to commercial banks and therefore “these banks are expected to re-lend the same amount”. Also Read Default talk dismissed as ‘PTI propaganda’During the interview, the central bank governor made note of the global challenges that the economy is faced with but expressed confidence in the government’s measures to overcome them.

Source: The Express Tribune December 09, 2022 16:43 UTC