January 26, 2023 (MLN): Foreign exchange reserves held by the State Bank of Pakistan (SBP) dropped by $922.8 million to $3.68 billion during the week ended on January 20, 2022, according to the data released by the central bank on Thursday.
Reserves held by the commercial bank decreased by $67.6mn to $5.77bn.
Meanwhile, the total reserves held by the country shrank by $990.4mn to $9.45bn.
It is important to note that the current level of foreign currency reserves is barely enough to cover 0.71 months of import bills.
To avoid, the persistent decrease in foreign exchange reserves, and major economic crunch the country needs foreign funding from IMF and other friendly countries.
During a virtual talk with IMF officials on Tuesday, Finance Minister Ishaq Dar assured them that Pakistan will comply with all conditions for the revival of the ninth review.
Also, Pakistan presented a draft of a mini-budget as part of efforts to complete the ninth review of the $7 billion Extended Fund Facility (EFF).
Furthermore, to continue the discussion on the pending ninth review the IMF team will be visiting Islamabad from January 31, 2023, to February 09, 2023.
The IMF's funding of pending $1.2bn will reduce the uncertainty in the country and increase inflows from other countries as well.