Pakistan's foreign reserves crisis spreads
3 Feb 2023 14:39 reported by Ranny Fang
The foreign exchange reserves crisis of the State Bank of Pakistan has restricted banks from issuing letters of credit, causing the country's steel industry to face a difficult situation, with many steel mills closing down and many layoffs.
Not only that, but the Pakistani rupee (PKR) has lost 35 rupees to 267.9 rupees to the US dollar in just one week. In addition, inflation has risen to a 48-year high.
The International Monetary Fund (IMF) delegation is currently visiting Pakistan for urgent negotiations. As the currency's value shrinks, domestic steel prices rise to an unprecedented high. A few steel mills have announced the suspension of rebar sales and bookings due to an unprecedented shortage of raw materials and the inability to issue letters of credit.
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