3. Foreign exchange reserves is the foreign
currency that a country keeps to make
payments to other countries, mostly for
importing things.
Introduction:
4. Need For Foreign Reserves?
• For meeting international payment
obligations.
o Sovereign and commercial debts
o Financing of imports
• For intervention in the foreign currency.
• It helps to boost the confidence of the
market.
• Helps to absorb any unforeseen external
shocks.
8. Reasons for Increase
i. The State Bank of Pakistan (SBP) received $706
million from the World Bank
ii. Low oil prices in the international market helped
the country save a substantial amount on account
of import bill
iii. Remittances from overseas Pakistanis grew by
16pc year-on-year to $16.63bn during the 11
months through May
9. Conclusion
• Due to an Increase in Our Foreign
Reserve Pakistan will be able to stabilize
its currency more effectively.
• A large foreign exchange reserve is that
it has lots of room for absorbing external
shocks that may arise in the markets.