Karachi: Foreign exchange reserves held by State Bank of Pakistan (SBP) decreased $ 170 million, clocking in at $ 4.04 billion as of April 7, data released showed. Overall number stands at critical level at around month of import cover. Total liquid foreign reserves held by country stood at $ 9.56 billion. Net foreign reserves held by commercial banks clocked in at $ 5.53 billion.

“During week ended on April 7, 2023, SBP’s reserves decreased by $ 170 million to $ 4,038.3 million due to external debt repayments,” said statement from SBP. Last week, foreign exchange reserves of SBP decreased $ 36 million. On Wednesday, an official of International Monetary Fund (IMF) expressed confidence that staff-level agreement (SLA) will be signed soon followed by IMF Board’s approval.

According to Finance Division, IMF Director of Middle East and Central Asia Jihad Azour hoped Pakistan would continue its progress on reforms in various sectors.

Cumulatively, Pakistan has received $ 1.7 billion from Chinese institutions with another $ 300 million expected. Moreover, China has also rolled over  $ 2-billion loan. Shortage of foreign currency reserves has added pressure on economy that relies heavily on imports to run its engines.

Published in The Daily National Courier, April, 14 2023

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