Managing the Balance of Payments The financing strategy is recommended to be as follows: PUBLIC • Multilaterals 1 • Bilaterals 2 • Commercial Loans • Euro/ Sukuk Bonds • Foreign Exchange Liabilities 3 • Short-term Borrowing • Borrowing by PSEs PRIVATE Private Sector/ Banks/ Others Direct Investors 1 including the World Bank, ADB, IDB and the IMF 2 Paris Club, from China and Others 3 Swap funds, Deposits of other Central Banks Share of Source of Borrowing(%) 80.0 27.5 12.5 15.0 10.0 5.0 5.0 5.0 20.0 15.0 5.0 The projected level of foreign exchange reserves is given in Table 18.6. Table 18.6: Projected Level of Foreign Exchange Reserves 2020-21 2021-22 2022-23 Level of Foreign Exchange Reserves 17.3 18.8 20.3 Months of Import Cover 3.5 3.4 3.4 Source: Estimated 2023-24 22.3 3.5 ($ million) 2024-25 24.8 3.6 Based on the realization of the external financing projections, the level of foreign exchange reserves could reach$25 billion by the end of 2024-25. This will be adequate to provide import cover of over 3.5 months. Pakistan should emerge as and remain an attractive location for foreign investment and lending if the BOP targets of the Charter of the Economy are adhered to. 181