By Muzzammil Aslam
The Foreign reserves dropped by USD 228 million during the last two weeks out of which commercial banks reserves dipped USD 83 million. Adjusted SBP reserves declined came in at USD 145 million.
This is very important to consider, assuming no foreign flows poured in the last two weeks, should we assume current account deficit took a huge fall? In my opinion this is likely. Post devaluation and interim budget already markets witnessed a massive slowdown and sales number are not encouraging.
Sentimentally, this is bad and good news. The good news is obviously slowdown in reserves leakage, but bad news is slowdown in economic growth and may spark shortfall in tax revenues, as import slowdown may be the factor behind this.
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