An All-Time Low for Forex; the Crisis Deepens

An All-Time Low for Forex; the Crisis Deepens

Conducted in September-October 2022, the survey by the Overseas Investors Chambers of Commerce and Industry (OICCI) shows that the overall business confidence in Pakistan has fallen to an all-time low of -4%. What are the impacts of this shortage? What steps are being taken by the government to overcome the shortage? How you can survive this crisis? Let’s have a look at that.

• The main reason behind the decline is economic instability that roots in political volatility. After the recent announcement by PTI to dissolve the assemblies and change in military command, the political and thus economic stability depends upon the further steps taken by the respective political parties.
• Meanwhile, the economy is facing crises of every type. Imports including food items such as garlic, soybean, and onion are stuck at Port Qasim as the banks deficient in Forex are unable to retire their import letters of credit.
• All other departments including Pakistan Railway are equally affected because of the crisis. Even the Ministry of Defence has been directed to consult the Ministry of Finance to ensure the availability of forex before importing any defense equipment.
• Since April 2022, the rupee has lost 22% of its value against the US Dollar, while our forex reserves equal only five weeks of merchandise imports. SBP’s reserves hit the rock bottom from 11.425bn dollars in March 2022 to 6.715bn dollars in December.
• As the external financial gaps are increasing, our exports from July-November 2022 accounted for 11.932bn dollars only, while our imports bill totaled 26.338bn dollars.
• Home remittance also fell short of making up for the deficit, expectedly generating 12.4bn dollars at maximum. To make both ends meet, Pakistan has asked Saudi Arabia for a loan of 3bn dollars while efforts are also undermined to secure 1.2bn dollars from Riyadh in an oil import facility.
• Despite all the recent economic and political turmoil in the country, real estate is one of the few industries to thrive. It has not only thrived but also has bloomed generating an income stream for many while yielding millions as profit for others.

Want to know how you can survive in this economic uncertainty through real estate? Contact us now at our UAN at 03041112631.

An All-Time Low for Forex; the Crisis Deepens

Conducted in September-October 2022, the survey by the Overseas Investors Chambers of Commerce and Industry (OICCI) shows that the overall business confidence in Pakistan has fallen to an all-time low of -4%. What are the impacts of this shortage? What steps are being taken by the government to overcome the shortage? How you can survive this crisis? Let’s have a look at that.

• The main reason behind the decline is economic instability that roots in political volatility. After the recent announcement by PTI to dissolve the assemblies and change in military command, the political and thus economic stability depends upon the further steps taken by the respective political parties.
• Meanwhile, the economy is facing crises of every type. Imports including food items such as garlic, soybean, and onion are stuck at Port Qasim as the banks deficient in Forex are unable to retire their import letters of credit.
• All other departments including Pakistan Railway are equally affected because of the crisis. Even the Ministry of Defence has been directed to consult the Ministry of Finance to ensure the availability of forex before importing any defense equipment.
• Since April 2022, the rupee has lost 22% of its value against the US Dollar, while our forex reserves equal only five weeks of merchandise imports. SBP’s reserves hit the rock bottom from 11.425bn dollars in March 2022 to 6.715bn dollars in December.
• As the external financial gaps are increasing, our exports from July-November 2022 accounted for 11.932bn dollars only, while our imports bill totaled 26.338bn dollars.
• Home remittance also fell short of making up for the deficit, expectedly generating 12.4bn dollars at maximum. To make both ends meet, Pakistan has asked Saudi Arabia for a loan of 3bn dollars while efforts are also undermined to secure 1.2bn dollars from Riyadh in an oil import facility.
• Despite all the recent economic and political turmoil in the country, real estate is one of the few industries to thrive. It has not only thrived but also has bloomed generating an income stream for many while yielding millions as profit for others.

Want to know how you can survive in this economic uncertainty through real estate? Contact us now at our UAN at 03041112631.