‘Pakistan needs $10-12bn inflows urgently’

KARACHI: Pakistan is in a dire need of external finances to rebuild its foreign reserves amid fears of rising trade deficit that threatens to weaken the rupee further and deteriorate the country’s economy, forex association said on Wednesday.

“Pakistan needs $10-12 billion foreign currency inflows on immediate basis as the trade gap is surging day by day and it is expected to increase to $50 billion in next two months,” said Malik Mohammad Bostan, Chairman Forex Association of Pakistan.

“It is feared that a huge trade gap can bring down Pakistan's rupee and the country's economy,” Bostan added.

Bostan said the politicians have to work prudently to save the country at the crucial time. “Politicians should be guiding instead of fighting.” He said the former PM Imran Khan's long march announcement might cause chaos in the country, which would repeat the history of Iraq, Syria, Egypt, and Libya, he feared.

Bostan expressed his deep concerns over the rise of political confrontation in the country, and back to back rallies from political parties against each them. The situation had created an environment of both political and economic uncertainly in the country, he added.

“In last two months, foreign investors did not buy T-bills and their investment is coming to zero. If the political uncertainty continues, no foreign investor will come to Pakistan to invest, which is a sign of danger for the country.”

Bostan said the International Monetary Fund (IMF) meeting in Qatar on May 18 stipulated that the government should first increase prices of petroleum products, but PM Shehbaz Sharif government did not want to increase the prices.

“The government wants further expansion to fulfill its pledge. It also wants the $6 billion IMF loan programme ending September 22 to be extended , not only by one year but to $8 billion.”