The writer, Mir Mohammad Alikhan, reflects on the cause of plunging foreign reserves in Pakistan. Is it because of businesses’ proclivity for imports, like many believe it to be? That truly isn’t the case. Multinational corporations are actually the ones sending shock waves to the foreign reserves by importing a considerable amount of raw materials for their products and then selling them at prohibitive prices. Naturally, huge profits are made, which are declared as dividends before being converted into dollars and sent abroad to a parent company.
Mir Mohammad Alikhan
Mr Mir Mohammad Alikhan is a Wall Street trained investment banker and an author of 4 books and several hundred articles. His full bio can be found on MirMak.Pk.