Pak Tanks: Forex Reserves Plunge Threatening Imports, Scarcity of Meds, Firms Halt Ops | Exclusive

In a sign of bleak times ahead for Pakistan, the foreign exchange reserves held by the country’s central bank — State Bank of Pakistan (SBP) — fell to $4.5 billion, after the country returned over $1 billion loans of two foreign commercial banks, hardly enough to finance 25 days of import. Meanwhile, companies are halting their operations in Pakistan.

Reserves are expected to fall further after repayment of loans worth $1.2 billion to UAE’s banks.

LIFE-THREATENING TURN

The ongoing dollar shortage in the country has now taken another threatening turn, as there is a scarcity of life-saving drugs and equipment in hospitals.

ALSO READ | Over 30,000 Gather in Pakistan Stadium for Police Recruitment Test

Fujifilm Pakistan CEO Syed Haider Ali Naqvi said the segment, which his company specializes in, has been unable to open Letters of Credit (LCs) as per its usual banking cycle and this development might trigger a severe shortage of X-ray, CT and MRI films for the first time in the country’s history.

PRODUCTION SUSPENDED

Millat Tractors has notified the Pakistan Stock Exchange (PSX) that it will suspend production activities on January 6, in perpetuity. Millat has cited a reduced demands for tractors in conjunction with the company’s own cash flow constraints as the reason for its decision.

Crescent Fibres Ltd is curtailing production by up to 50% owing to “widespread demand destruction,” it told shareholders on Tuesday. Suraj Textile Mills Ltd announced it was bringing down its production by 40%. Nishat Chunian Ltd also announced its partial shutdown because of poor business conditions. Similarly, Kohinoor Spinning Mills Ltd temporarily shut down production partly because of a high production cost and low demand.

ALSO READ | Watch | Energy Crisis Forces Pakistanis in KP Region to Fill Cooking Gas in Plastic Bags

Frontier Ceramics Limited (FRCL), the makers of ceramic tiles, sanitary wares and related ceramic products, announced in a notice to the Pakistan Stock Exchange (PSX) that it has shut down its floor tile production plant for an “uncertain period”.

The management of Baluchistan Wheels Limited (BWHL) informed the PSX that it had decided to temporarily close or stop production activity due to depressed demand of autos in the market.

The Islamabad Chamber of Commerce and Industry (ICCI) expressed concern over the reports that the commercial banks are resisting the opening of LCs of edible oil importers.

Indus Motors Company (IMC), the maker of Toyota vehicles, has already shut down its production plant in the country from December 30, citing a delay in import approvals from the SBP.

US GAVE HELP

The United States (US) provided about USD 60 million in humanitarian assistance for Afghan refugees in Pakistan and Pakistani host communities during 2022, the US ambassador said on Thursday.

“In Fiscal Year 2022 alone, the US provided nearly USD 60 million (more than Pak Rs 13 billion) in assistance to the refugees and their host communities,” the US embassy said in a statement, quoting ambassador Donald Blome.

ALSO READ | Pakistan’s Energy Woes Continue as Kazakhstan Rejects TAPI Proposal: Report

He also said that the United States has provided more than USD 273 million (nearly Pak Rs 62 billion) since 2002 for the Afghan refugees and thanked Pakistan for “generously hosting Afghan refugees for more than four decades.” This US assistance is increasing school enrolment for Afghan and Pakistani children in Khyber Pakhtunkhwa and Balochistan; improving Pakistani healthcare services and boosting nutrition programs in areas hosting Afghans; promoting livelihood activities for refugees and host communities; improving water, sanitation, and hygiene infrastructure; and supporting recovery from the health and economic effects of the COVID-19 pandemic, according to the embassy statement.

Pakistan has been hosting nearly 3 million Afghan refugees, almost half of them living illegally while the other half have special cards to live and work. Most of the Afghan refugees were displaced in the 1980s during Russian intervention in the country.

With PTI Inputs

Read all the Latest News here