SBP reserves increase by $280mn to reach $4.6bn

March 24, 2023 (MLN): The foreign exchange reserves held by the State Bank of Pakistan (SBP) increased by $280 million or 6.74% WoW to $4.6 billion during the week ended on March 17, 2023, marking the fifth consecutive increase on a weekly basis as SBP received $500 million in terms of GoP commercial loan disbursement, according to the data released by the central bank on Friday.

Similarly, the country's total reserves rose by $292.4mn or 2.96% WoW to $10.13bn.

The reserves held by commercial banks also moved up by $12.8mn or 0.23% WoW to $5.54bn.

On March 19, 2023, the central bank received $500mn from the Industrial and Commercial Bank of China (ICBC) as Pakistan completed the necessary documentation for disbursement.

Pakistan had earlier received $500mn from ICBC as the first of three disbursements approved for rollover, and the completion of documentation for the second disbursement of $500mn was announced by Dar on Thursday.

The Chinese bank had approved a rollover facility of $1.3bn, which Pakistan had repaid in recent months. The country is also expecting another $800mn from ICBC after renewing its $1.3bn facility, which it had repaid earlier.

However, the IMF tranche is still pending, and due to longer-than-expected delays, economic uncertainty is increasing. 

On the other hand, the fund is emphasizing the critical need for timely financial assistance from external partners to support Pakistan's economic policy efforts to ensure the successful completion of the review.

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