Considering the scale of Pakistan’s external borrowing, obligations related to debt payments, profit repatriation, and the overall external financing landscape, the decline of $ 152 million in the State Bank of Pakistan’s (SBP’s) weekly foreign exchange reserves is neither unusual nor shocking.

Nevertheless, net foreign reserves have increased by $206.7 million.

The primary challenge lies in making payments on their due dates. In this context, balancing the maintenance of high foreign exchange reserves with boosting economic activity is quite difficult.

This is why excessive spending can disrupt economic balance and exert pressure on current account balances.

We owe gratitude to Pakistani expatriates for their significant contributions, which have driven remittances to record levels.

While exports have yet to increase significantly, achieving this requires commercial banks to extend credit to the private sector.

A decline in tax revenue collection is yet another indicator of reduced economic activity, primarily due to banks lending at their lowest levels, which is also contributing to a downturn in GDP growth.

A positive........

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