Pakistan rejects IMF advice to sell its gold reserves
Duncan Richardson, News Editor
4 Apr 2014, 10:21 a.m.
Pakistan has rejected advice from the International Monetary Fund (IMF) to convert its gold into cash in an attempt to bolster its foreign currency reserves. Pakistan rejected the advice citing security concerns according to a report issued today by the IMF.
The report confirmed the State Bank of Pakistan (SBP) holds over 2 million ounces of gold, with a market value of $2.7 billion. The gold is not included in the SBP’s foreign reserves as it is not deemed liquid, confirmed the IMF.
The IMF wants this to change and has been pushing the SBP to sell its gold bullion at a time when other central banks are increasing their reserves. Analysts are suggesting one reason behind the IMF’s insistence could be Pakistan’s inability to accumulate foreign reserves despite the IMF’s $6.7 billion arrangement.