Pakistan's economic crisis has reached a critical juncture as the nation's foreign exchange reserves held by the State Bank of Pakistan (SBP) have dropped to an all-time low of $4.343 billion, sufficient only to cover three weeks of imports.

WION Dispatch: Pakistan left with only three-weeks of forex cover

To safeguard the country's dwindling reserves, Pakistan's central bank recently placed restrictions on access to foreign currency. This as per recent reports has resulted in the emergence of a black market for dollars.

Pakistan's foreign reserves have reportedly plunged to a four-year low of $6.7 billion.&nbsp;

As per Bloomberg, on the surface, this hasn't impacted the exchange rates, but once you delve deeper you come face to face with the reality.

The markets still have the current exchange rates on display but the money-changing firm reports that they have no dollars. However, if you're prepared to pay 10 per cent more than the going rate, you can get a greenback.&nbsp;

According to Asmat Ullah, CEO of Lahore-based money exchange company Ravi Exchange Company, "a third market has now developed", with the interbank foreign currency market and money-changing businesses being the first two.

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/us-blacklists-pakistani-companies-for-supporting-islamabads-un-safeguarded-nuclear-activities-541399">US blacklists Pakistani companies for supporting Islamabad's 'un-safeguarded' nuclear activities</a>

As the chief executive of Karachi-based financial firm Alpha Beta Core Solutions, Khurram Schehzad, puts it whenever restrictive measures are implemented, "the grey economy picks up”.&nbsp;

With the alleged black market,&nbsp;Pakistan joins other developing nations like Nigeria, Argentina, and Lebanon that have experienced parallel exchange rates.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/senior-pak-journalist-arshad-sharifs-murder-was-a-planned-assassination-and-not-mistaken-identity-report-540972">Senior Pak journalist Arshad Sharif's murder was 'planned assassination' not 'mistaken identity' case: Report</a>

While a 10 per cent&nbsp;premium may not seem like much, the black market's formation could force the conventional authorities to relinquish control of the foreign exchange, which would hurt foreign investment and the business&nbsp;climate.&nbsp;Additionally, the dollar premium on the black market may indicate further rupee depreciation in the future.

The lack of foreign currency and the emergence of a parallel market only add to Pakistan's lengthy list of problems. The South Asian nation has already been plagued by disastrous floods, an economic crisis, and political unrest that has even descended into violence.

(With inputs from agencies)

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To safeguard the country's dwindling reserves, Pakistan's central bank recently placed restrictions on access to foreign currency. This as per recent reports has resulted in the emergence of a black market for dollars.

To safeguard the country's dwindling reserves, Pakistan's central bank recently placed restrictions on access to foreign currency. This as per recent reports has resulted in the emergence of a black market for dollars. Pakistan's foreign reserves have reportedly plunged to a four-year low of $6.7 billion. As per Bloomberg, on the surface, this hasn't impacted the exchange rates, but once you delve deeper you come face to face with the reality. The markets still have the current exchange rates on display but the money-changing firm reports that they have no dollars. However, if you're prepared to pay 10 per cent more than the going rate, you can get a greenback. According to Asmat Ullah, CEO of Lahore-based money exchange company Ravi Exchange Company, "a third market has now developed", with the interbank foreign currency market and money-changing businesses being the first two. Also read | US blacklists Pakistani companies for supporting Islamabad's 'un-safeguarded' nuclear activities As the chief executive of Karachi-based financial firm Alpha Beta Core Solutions, Khurram Schehzad, puts it whenever restrictive measures are implemented, "the grey economy picks up”. With the alleged black market, Pakistan joins other developing nations like Nigeria, Argentina, and Lebanon that have experienced parallel exchange rates. Also read | Senior Pak journalist Arshad Sharif's murder was 'planned assassination' not 'mistaken identity' case: Report While a 10 per cent premium may not seem like much, the black market's formation could force the conventional authorities to relinquish control of the foreign exchange, which would hurt foreign investment and the business climate. Additionally, the dollar premium on the black market may indicate further rupee depreciation in the future. The lack of foreign currency and the emergence of a parallel market only add to Pakistan's lengthy list of problems. The South Asian nation has already been plagued by disastrous floods, an economic crisis, and political unrest that has even descended into violence. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

As Pakistan's foreign exchange reserves dwindle a dollar black market emerges: Report

An economic crisis is brewing in Nepal. India's neighbour is currently witnessing massive surge in its import rate and a depleting foreign reserve. WION's Saloni Murarka had an exclusive conversation with Nepalese finance minister Janardan Sharma, who spoke about the current economic situation in the country.

WION Exclusive: Nepal's foreign reserve will only last 6-7 months, says Janardan Sharma

The Nepal government on Tuesday imposed a ban on the import of 10 luxurious goods to ease the crisis of depleting foreign exchange reserves.

In the notice, the Ministry of Industry, Commerce and Supplies said the ban will not apply to those who have completed the banking process before April 30.&nbsp;

The ban has come into effect starting Tuesday and will last until mid-July 2022, the end of the current fiscal year.&nbsp;

As per the notice, cigarettes and tobacco-related products, diamonds have been banned.&nbsp;

Additionally, mobile phone sets, TVs with screens bigger than 32 inches, automobiles like jeeps, cars, vans except for ambulances and hearses, and motorcycles above 250cc are also banned.&nbsp;

Import of toys, alcohol, playing cards and snacks like Lays and Kurkure have also been prohibited.&nbsp;

According to Nepal Rastra Bank statistics, during the eight months of 2021-22, imports increased 38.6 per cent to Rs1.30 trillion compared to an increase of 2.1 per cent a year ago.&nbsp;

The current account deficit remained at Rs.462.93 billion compared to Rs.151.42 billion in the corresponding period of the previous year.&nbsp;

Watch |&nbsp;Low tourism in Nepal during COVID impacts foreign exchange

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The gross foreign exchange reserves also decreased by16.3 per cent to Rs.1171 billion in mid-March 2022 from Rs.1399.03 billion in mid-July 2021.&nbsp;

“In the US dollar terms, the gross foreign exchange reserves decreased 18.5 per cent to 9.58 billion in mid-March 2022 from 11.75 billion in mid-July 2021,” according to the central bank.&nbsp;

The balance of payments (BOP) remained at a deficit of Rs258.64 billion in the review period against a surplus of Rs.68.01 billion in the same period of the previous year.

Earlier, the government had imposed restrictions on the import of other luxury items.&nbsp;

Following this, the traders were told to keep a 100 per cent margin amount to open a letter of credit to import alcoholic drinks, tobacco, silver, furniture, sugar and others.&nbsp;

Nepal heavily relies on remittances, which have also decreased by 3 per cent.

At the same time, the year-no-year consumer price inflation stood at 7.14 per cent in the eighth month of 2021-22 compared to 3.03 per cent a year ago.

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The Nepal government on Tuesday imposed a ban on the import of 10 luxurious goods to ease the crisis of depleting foreign exchange reserves. In the notice, the Ministry of Industry, Commerce and Supplies said the ban will not apply to those who have completed the banking process before April 30.

The Nepal government on Tuesday imposed a ban on the import of 10 luxurious goods to ease the crisis of depleting foreign exchange reserves. In the notice, the Ministry of Industry, Commerce and Supplies said the ban will not apply to those who have completed the banking process before April 30. The ban has come into effect starting Tuesday and will last until mid-July 2022, the end of the current fiscal year. As per the notice, cigarettes and tobacco-related products, diamonds have been banned. Additionally, mobile phone sets, TVs with screens bigger than 32 inches, automobiles like jeeps, cars, vans except for ambulances and hearses, and motorcycles above 250cc are also banned. Import of toys, alcohol, playing cards and snacks like Lays and Kurkure have also been prohibited. According to Nepal Rastra Bank statistics, during the eight months of 2021-22, imports increased 38.6 per cent to Rs1.30 trillion compared to an increase of 2.1 per cent a year ago. The current account deficit remained at Rs.462.93 billion compared to Rs.151.42 billion in the corresponding period of the previous year. Watch | Low tourism in Nepal during COVID impacts foreign exchange The gross foreign exchange reserves also decreased by16.3 per cent to Rs.1171 billion in mid-March 2022 from Rs.1399.03 billion in mid-July 2021. “In the US dollar terms, the gross foreign exchange reserves decreased 18.5 per cent to 9.58 billion in mid-March 2022 from 11.75 billion in mid-July 2021,” according to the central bank. The balance of payments (BOP) remained at a deficit of Rs258.64 billion in the review period against a surplus of Rs.68.01 billion in the same period of the previous year. Earlier, the government had imposed restrictions on the import of other luxury items. Following this, the traders were told to keep a 100 per cent margin amount to open a letter of credit to import alcoholic drinks, tobacco, silver, furniture, sugar and others. Nepal heavily relies on remittances, which have also decreased by 3 per cent. At the same time, the year-no-year consumer price inflation stood at 7.14 per cent in the eighth month of 2021-22 compared to 3.03 per cent a year ago. WATCH WION LIVE HERE

Nepal bans import of luxury items amid depleting forex reserves

Amid its dwindling foreign reserves, Sri Lanka has signed a deal for an oil barter with Iran, to settle $251 million in oil import dues.

Sri Lanka to settle $251 million oil import dues through barter system

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