According to Abdul Ghaffar Chaudhry the acting president of Islamabad Chamber of Commerce and Industry the fact of the decreasing foreign exchange reserves led to new opportunities and the next actions of the government will surely get back the confidence of investors and other businessmen in the economy of the country.
Trading session closed with another fall of the Pakistani stocks. The reason was the intention of the investors to find out the result of the meeting to know the floor of the index. The floor was defined in August 28 at the point of 9.144 and this was the one of the measures undertaken by the government with the intention to protect share prices.
Due to official data issued the forex reserves of the Pakistan decreased to new lows during this week that were not witnessed throughout the last 6 years. According to the numbers provided by the Central Bank of the country September 13 showed us the decrease of the totally liquid forex reserves to the point of $8.912 billion that was last reached only in the 2002-03 year. As for the forex reserves related to the State Bank of the Pakistan its reserves reached $5.524 billion. But the net foreign reserves related to other banks of the country increased up to $3.387 billion. Thus the forex reserves of the country still decreasing sharply because of imports growth, stagnation of the exports and outflow of the foreign investments from the domestic stock markets. Furthermore such decrease of the forex reserves made the central bank almost impossible to affect the market of the country somehow and provide any maintenance for the local currency. So the current situation made central bank to purchase dollars instead of selling them.