A report by brokerage house and economic think tank Topline Securities Ltd said that Pakistan has made arrangements to repay its loans to the United Arab Emirates.
The government is considering various options to meet foreign payment obligations, the report said. Despite repayments of $3.5 billion in loans and $1.3 billion in bonds, the economy is expected to remain stable.
The report added that Pakistan’s total reserves stand at a four-year high.
"The foreign exchange market remains calm, with a sufficient buffer in reserves. The State Bank of Pakistan holds $16.3 billion, while commercial banks possess reserves worth $5.4 billion," the Topline Securities Ltd said.
The report added: "Pakistan’s gold reserves are valued at $10 billion. A request has been made to convert a $5 billion Saudi deposit into a long-term deposit. An extension in deferred oil payments is also under consideration as an option."
The report highlighted that Pakistan’s largest vulnerability remains its reliance on short-term borrowing. It added that securing long-term financing from friendly countries would be a positive development.
In the short term, the dollar exchange rate is expected to remain under control.
