Karachi: The forex reserves of Pakistan dipped by another $170 million to settle at $4.03 billion — not even enough to cover one month’s imports — the State Bank of Pakistan (SBP) reported Thursday.
According to the latest figures released by the central bank, as of April 7, 2023, the SBP-held forex reserves fell sharply by $170 million. Similarly, those held by commercial banks also witnessed a slight fall of $25.7 million to clock in at $5.526 billion.
Cumulatively, the net reserves plunged $195.3 million to settle at $9.564 billion during the period under review.
Total liquid foreign #reserves held by the country stood at US$ 9.56 billion as of April 07, 2023.
For details https://t.co/WpSgomnKT3 pic.twitter.com/Tihc59704Q— SBP (@StateBank_Pak) April 13, 2023
Pakistan’s economy continues to dwindle amid financial woes, with the authorities struggling to strike a staff-level agreement with the International Monetary Fund (IMF).
The Washington-based lender has been in talks with the Pakistani authorities since end-January to resume the $1.1 billion loan tranche held since November as part of a $6.5 billion Extended Fund Facility (EFF) agreed upon in 2019.
Riyadh signals funding of $2b to Pakistan on IMF demand
Saudi Arabia has already promised $2 billion in funding, and insiders claim the United Arab Emirates (UAE) will soon reassure the global lender that it will give Pakistan $1 billion by this week. These developments bring Pakistan closer to obtaining the loan.
A day earlier, IMF Director Middle East and Central Asia Department Jihad Azour expressed confidence that an agreement would be reached soon.
The agreement will also open up additional bilateral and multilateral funding options for Pakistan, helping it to increase its foreign exchange holdings.
