Pakistan Gold
Pakistan govt planning to borrow people's gold to increase gold reserve
Islamabad: Pakistan, a nation which is facing tough economic challenges for the past several years, is planning a proposal to borrow gold biscuits and bars from the people to increase foreign exchange reserves that remain on a sliding path despite taking over $5 billion loans in the past three months from bilateral and multilateral creditors, media reports said on Monday.
The proposal has been discussed in the Economic Executive Council (EEC) – the body comprising all economic ministers and the State Bank of Pakistan (SBP) governor, according to the sources in the Ministry of Finance as quoted by The Express Tribune.
According to the proposal, the commercial banks will issue a negotiable discounted instrument to the gold owner and pay an interest rate on the precious metal.
The commercial bank will deposit the gold with the SBP that can monetise it to increase the foreign exchange reserves –already largely built by taking expensive foreign loans.
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