DefinePK

Abstract

This research is regarding the “Impact of foreign exchange reserves on Pakistan’s economy”. In the research it is mentioned that for countries such as Pakistan maintaining foreign reserves is necessary. The research questions and objectives are also outlining the importance of maintaining high foreign reserves in a country in terms of economic development, resilience and social development. research was qualitative and thus the data collection is done by means of secondary data sources. Six case studies are included to understand the impact of maintaining foreign exchange reserves in a country. Case studies for India, China, Switzerland, Saudi Arabia, Russia and Australia outlines that economies believe that maintaining high reserves will help them not only in economic progression but they will also be capable of dealing with economic crisis. Four themes are also  identified from the case studies that reflects that economies do realize that the economic volatility can be managed through having enough reserves. Research thus concludes that the impact of having high foreign reserves will significantly impact on the economy of Pakistan and for future research it is recommended to focus on pilot foreign reserves program and cross-country comparison should also be conducted for better understanding.