Islamabad: State Bank of Pakistan (SBP)’s foreign exchange reserves fell to record low of $ 3.7 billion as country grapples with severe economic crunch, striving to revive International Monetary Fund’s (IMF) bailout programme to avoid looming debt default.

In statement, SBP said as of January 20, its reserves fell to $ 3,678.4 million due to external debt repayments, which will now provide an import cover of less than month 0.73 month to be exact. Net foreign reserves held by commercial banks have also fallen to $ 5,774.8 million, bringing total liquid foreign reserves to $ 9,453.2 million, central bank’s statement mentioned. Inflows have virtually come to grinding halt despite assurances from friendly nations, as lenders seem reluctant to release funds before Pakistan completes IMF’s stalled programme.

As coalition government desperately seeks to revive ninth Extended Fund Facility review, it had requested Fund to send delegation for visit. In response, IMF Resident Representative in Pakistan Esther Pérez Ruiz told that an in-person Fund mission is scheduled to visit Islamabad from January 31-February 9 to continue discussions under ninth EFF review.

Published in The Daily National Courier, January, 27 2023

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