Cumulative forex reserves of Pakistan rise above $10 billion

forex reserves Pakistan

Islamabad: As the country’s attempts to unlock the IMF tranche with additional financing continue, the net forex reserves of Pakistan rose above $10 billion, the State Bank of Pakistan (SBP) reported on Thursday.

According to its weekly report on the status of forex reserves, during the week that ended on April 20, 2023, the SBP-held forex reserves increased by $30 million to clock in at $4.462 billion.

During the period under review, the forex reserves held by commercial banks also increased by $29 million, clocking in at $5.56 billion.

Cumulatively, the net reserves increased by $60.3 million to settle at $10.024 billion during the period under review.

Although the central bank did not specify the reason behind the increase, there was a $300 million rise in the reserves last week — which was due to the loan provided by the Industrial and Commercial Bank of China.

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, part of a $6.5 billion Extended Fund Facility (EFF) agreed upon in 2019.

Though the country has avoided default, it has been unable to make payments for imports. Pakistan’s external payments (mostly debt servicing) are the real cause of concern for both the country and the IMF.