Pakistan’s foreign exchange reserves fell below $10 billion, threatening to spillover into a fullblown economic crisis unless policy makers secure a loan from the International Monetary Fund. The stockpile decreased by $366 million in the week ended May 27 to stand at $9.72 billion, the central bank said in a statement on its website Thursday. That’s roughly a 50% drop from August and enough to pay for less than two months of imports. The shortage of dollars could worsen as the nation forecasts its trade deficit will widen to a record $45 billion in the year ending June. Authorities have raised fuel and electricity prices, a key condition to unlock the remaining $3 billion of an existing loan by the multilateral lender. The cost of insuring Pakistan’s debt against the risk of default remains elevated […]