SBP reserves fall to $4bn in a week

April 13, 2023 (MLN): The foreign exchange reserves held by the State Bank of Pakistan (SBP) decreased by $169.6 million or 4% WoW to $4.02 billion during the week ended on April 07, 2023, according to the data released by the central bank on Thursday.

Similarly, the country's total reserves decreased by $195.3mn or 2% WoW to $9.56bn.

The reserves held by commercial banks moved down by $25.7mn or 4.6% WoW to $5.52bn.

This was the third consecutive week wherein the foreign exchange reserves started shrinking again. 

On the upside, Mr. Jihad Azour Director of IMF, Middle East and Central Asia Department (MCD) said on Wednesday that the Staff Level Agreement (SLA) will be signed soon followed by the IMF Board’s approval.

"Pakistan would continue towards its progress on the reforms in various sectors and complete the IMF Programme in time and IMF will play its positive role in bringing economic stability to Pakistan," he stated during IMF/World Bank Spring meetings which were virtually attended by Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar. 

The two sides discussed the progress made with the ongoing IMF program, particularly talks held with the IMF Mission during their visit to Pakistan and the implementation of prior actions, the statement issued by Finance Division read. 

Since January, the government has been in talks with the IMF to secure the release of $1.1bn from a $6.5bn bailout package agreed upon in 2019.

Nonetheless, the agreement has been postponed due to commitments from friendly countries to provide further financial assistance.

The anticipated inflows from Saudi Arabia and UAE will shore up foreign exchange reserves in days to come. 

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