Pakistan Defies IMF Pressure To Sell Its Gold Reserves

April 8th, 2014 by

pakistan-flags

An International Monetary Fund report has revealed that the IMF pressured Pakistan to sell its gold reserves in order to boost its foreign currency reserves, but the government in Islamabad refused, citing that their gold played an important role in Pakistan’s national security.

Pakistan, which holds 64.4 metric tons of gold worth approximately $2.7 billion, is ranked 40th in world gold holdings (discounting the three trans-national entities of the European Central Bank, Bank for International Settlements, and the International Monetary Fund)

Pakistan and the IMF agreed to a $7.6 billion bailout of the troubled nation last year, and one of the conditions was that Pakistan build up its foreign currency reserves (i.e., buy dollars). It has been doing so, but is still under the level the IMF wants to see. The world’s central banks have been net buyers of gold for the last four years, and after the recent emerging market currency meltdown, EM nations have become the largest buyers. Iraq more than doubled its gold reserves last month, by purchasing 36 tonnes.