New measures to stabilise Pakistan economy: Official

October 18th, 2008 - 9:21 pm ICT by IANS  

Islamabad, Oct 18 (Xinhua) Pakistan is taking new measures to increase foreign exchange reserves and stabilise its economy within a month, a senior official said Saturday, ruling out reports of possible financial default.”We are planning to build our reserves and the situation will improve within a month,” Shaukat Tareen, financial advisor to Pakistan’s prime minster, said at a press conference here.

Pakistan’s foreign exchange reserves hit a record low recently. At present, the reserves stand at $7.75 billion, down from $8.32 billion a week earlier.

Earlier this month, rating agency Standard & Poor’s, which evaluates lending risk, downgraded its credit rating for Pakistan to CCC-plus from B, saying the thinning reserves cast doubt on the country’s ability to make debt payments.

Analysts said the foreign exchange reserves can only afford one or two months imports for the country.

The Pakistan rupee has shrunk about 21 percent this year.

Pakistan is considering loans from other countries and financial institutions to meet its payment crisis.

The World Bank will provide $1.4 billion support for the country during the next nine months.

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