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May 2, 2002
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Thursday
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Safar 18, 1423
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A surfeit of forex reserves
After the apex court’s decision
Undue water charges
Honouring Dr Khan
Le Pen and discontentment
A rare breed of officers
Power supply in Turbat
The Aiwan-i-Riffat project
Illiteracy and referendum
From Jinnah to Musharraf
No need for women’s seats
A society where men dominate
A surfeit of forex reserves
THIS is with reference to your editorial (Apr 29) under the caption ‘A surfeit of forex reserves’.
The editorial gives an impression that the country’s forex reserves have been built up due to extraordinary circumstances only. This is not true. The reserves have gradually been built over a period of two-and-a-half years with some acceleration since Sept 11, 2001.
The factual position is that foreign exchange reserves of a country are accumulated when the current account and capital account together generate a surplus. This has been the case in the first nine months of the current fiscal year.
In developing countries, exports normally do not exceed imports as the country’s own needs are always higher than what it can sell abroad. During the first nine months, though Pakistan’s major exports increased in volume, the impact has not been obvious in value due to decrease in international prices as a result of global economic slowdown.
Pakistan’s current account deficit bet
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