May 12, 2023 (MLN): The foreign exchange reserves held by the State Bank of Pakistan (SBP) decreased by $74 million or 1.65% WoW to $4.38 billion during the week ended on May 05, 2023, according to the data released by the central bank on Thursday.
Similarly, the country's total reserves decreased by $52.8mn or 0.52% WoW to $9.99bn.
On the other hand, the reserves held by commercial banks moved up by $21mn or 0.37% WoW to $5.60bn.
The plummeting reserves indicate the urgency of funds which is required to run the economy as the country is already suffering from the economic slowdown amidst the delay in the IMF deal.
Earlier this week, Moody’s Investor Service warned that Pakistan could default without an IMF bailout as its financing options beyond June are uncertain.
However, Federal Minister for Finance and Revenue Senator Ishaq Dar rebutted the rumors of default, saying that Pakistan can survive without even an IMF deal if friendly countries come ahead.
On the forex front, the political turmoil and deteriorating law and order situation have shoved the Pakistani rupee (PKR) into a dark tunnel, plunging by 8.7 rupees against the US dollar in today's interbank session.
Accordingly, the local unit touched a historic low and settled the trade at PKR 298.93 per USD, against yesterday's closing of PKR 290.22 per USD.
