KARACHI: State Bank of Pakistan (SBP) Acting Governor Dr Murtaza Syed on Friday said that Pakistan is “over-financed,” thanks to the recently secured $4 billion of additional financing commitments from friendly countries.

In a meeting with the top management of the Pakistan Stock Exchange (PSX), Dr Syed said the International Monetary Fund programme has ensured that the country’s financing needs will be fully met over the next 12 months. “This will provide an additional boost to Pakistan’s foreign exchange reserves in 2022-23,” said a press release by the PSX.

Dr Syed emphasised that extreme pressures on Pakistan’s foreign exchange reserves, currency and current account are temporary in nature. “The rupee came under significant pressure during June and July, primarily due to a stronger dollar worldwide, a deterioration in the current account deficit and domestic political uncertainty,” he said.

The acting governor said imports were expected to decline in the coming months owing to some ease in global commodity prices as well as domestic demand moderation due to policy initiatives.

Published in Dawn, August 20th, 2022