The present forex reserves position or situation brings to one's mind the "controversial" remarks of Asian Development Bank's director Werner Liepach that he made in the first weak of last month. According to him, Pakistan needs nine billion dollars from the International Monetary Fund to shield its economy from a crisis.
The ADB country director showed a kind of reluctance to accept a particular or strict definition of a crisis. But he was one hundred percent right when he pointed out that Pakistan is already in a crisis as its forex reserves can cover only two months of imports. Indeed, the outgoing government, which inherited a profound economic situation in 2008, bequeathed to the caretaker set-up a profoundly profound state of economy as an over 8 percent fiscal deficit for 2012-13 appears to be a strong reality.
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