Twirp: Terrorist Wahabi Islamic Rep Pakistan 4

[Naresh]

<b>Mudy Ji :</b>

Terroristan's "Problemo Numero Uno" is a "Phailing" Economy - Here is "Phurther" Progress :

<b>Foreign exchange outflows rise sharply</b>

KARACHI : The country has been witnessing a massive outflow of foreign exchange reserves since the beginning of the current fiscal year owing to increased foreign debt servicing.

The State Bank of Pakistan on Wednesday reported that the country paid $3.714 billion during the first nine months (July-March) of the current fiscal year, which is even higher than $3.161 billion paid in whole 2007-08.

The mounting volume of debt servicing could negate the impact of higher remittances being sent by the overseas Pakistanis and foreign direct investment.

According to the State Bank latest data <b>the external debt registered a sharp increase during the first nine months of this fiscal year and rose to $50.139 billion from $46.284 billion on June 30, 2008.</b>

This massive surge in foreign debt has started sucking up forex reserves as increased debt servicing has been creating serious problems to maintain dollar reserves equivalent to at least three months imports of the country.

The two tranches from the International Monetary Fund (IMF) under the $7.6 billion standby deal helped the government to improve its reserves position, but the climbing debt servicing could even jeopardise this strategy.

<b>The government hopes to get over $5 billion from Friends of Pakistan that will further increase the country’s external debt.</b>

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