Now, in order to supplement its dwindling foreign exchange reserves, the Pakistani government is looking to its citizens’ walls, and what’s interesting is that Pakistan appears to be planning a scheme that would convert the gold held by Pakistani households and citizens into foreign currency, thereby increasing the country’s foreign exchange reserves.
Now according to estimates, it is being said that Pakistanis in their homes have as much as about 5,000 tons of gold bars and biscuits the Pakistani prime minister Imran Khan is looking for ways to in fact borrow gold biscuits and bars from the citizens to shore up its own foreign exchange reserves.
That is already built by taking some pretty expensive foreign loans at this point of time remember and at this point of time, Pakistan has taken a loan of about five billion dollars in the last three months from bilateral and multilateral creditors.
The government has taken a three billion dollar loan from its good friend and Saudi Arabia has also received another billion-dollar loan from the international monetary fund but the Pakistan central bank already has almost two million fine toy ounces of gold reserves that are valued at almost about 3.8 billion dollars.
But the central bank’s foreign exchange reserves have constantly been declining and they reportedly have now slid to just about 17 billion dollars.
The reports say that the proposal to borrow gold from the households and also citizens have already been discussed in the economic executive council and according to which the banks will issue a negotiable discounted instrument to the gold owner and will pay an interest rate for depositing the precious metal with the government.
Now, the commercial banks in turn will deposit the gold with the central bank that can then monetize it to increase the foreign exchange reserves of Pakistan and now the Pakistani government is also considering another scheme to facilitate OC’s Pakistanis to invest in real estate in Pakistan through the foreign exchange to shore up its foreign reserves and all of this is, of course, being done to bring in more money into Pakistan.
(Image Source: Zameen.Com)