The overall national foreign exchange reserves increased by $660 million to $8.73 billion. With the completion of the deal with the IMF and the release of $1.20 billion, friendly nations and international organisations have shown a desire to assist Pakistan financially. It is nevertheless a source of worry that the IMF is attempting to take additional measures after the government of Pakistan has agreed to the preconditions for the debt rehabilitation programme. According to economic commentators, if the government meets the IMF’s demand, the interest rate would rise. The State Bank’s basic interest rate is currently 17 per cent, and it will rise to 19 per cent if the IMF’s demand is satisfied. According to the IMF, Pakistan’s monetary policy should be tightened when inflation rises. On the other hand, the commercial banks’ portion of the national foreign exchange reserves is $5.468 billion; by removing them, the State Bank saves 3 billion 2585 million dollars, which is actual money that would reveal the peculiarities of the national economy.
To appreciate this, consider that this volume is at its lowest in South Asian countries. Pakistan needs billions of dollars to promptly clear the imported products and commodities stranded at its ports, and the reserves available after paying imports and external loan payments are largely insufficient. The administration has begun the implementation of a nationwide austerity programme. The IMF’s requirements would be met with the collection of Rs170 billion in taxes, but the government’s resources are insufficient to manage the economy. The agricultural and industrial sectors are falling short of their expectations, with export volumes continuing to fall and the cotton industry taking a hit. The government’s difficulties are exacerbated by an unusual drop in remittances. The goals established by austerity must be significantly increased and modified. Analysts believe that there are still many places in agriculture, manufacturing, and commerce, as well as other sectors, where more than the intended efficiency and output results may be attained and the economy can be nurtured.