Foreign exchange: SBP reserves fall $748mn to $8.24bn

KARACHI: Foreign exchange reserves of the State Bank of Pakistan (SBP) declined by $748 million during the week ended on June 17, ARY News reported on Thursday.

Sharing a break-up of the foreign reserves position, the central bank said that the reserves held by the State Bank of Pakistan stand at $8,237.7 million.

According to details shared by the central bank, the overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $14,210.4 million. Net reserves held by banks amounted to $5,972.7 million.

The central bank said the decrease came mainly due to external debt repayments. However, it added that “SBP reserves are expected to increase in coming days on realisation of proceeds of CDB (China Development Bank) loan.”

Pakistan, China ink $2.3bn loan deal

Federal Minister for Finance and Revenue Miftah Ismail Wednesday said Pakistan signed a RMB 15 billion ($2.3 billion) loan facility agreement with a Chinese consortium of banks.

The Chinese consortium of banks has today signed the RMB 15 billion (~$2.3 billion) loan facility agreement after it was signed by the Pakistani side yesterday. Inflow is expected within a couple of days. We thank the Chinese government for facilitating this transaction.

— Miftah Ismail (@MiftahIsmail) June 22, 2022

The finance minister announced the development on his official Twitter handle.

“Inflow is expected within a couple of days. We thank the Chinese government for facilitating this transaction,” he wrote in a tweet.

IMF deal

Pakistan and International Monetary Fund (IMF) Tuesday reached a deal for the release of a US$1 billion tranche after the latter gave its nod to the budgetary adjustments for fiscal year 2022-23.

According to officials of the finance ministry, the Fund has agreed to the budgetary estimates set for the next fiscal year and the economic policies of the country.

“The IMF will soon release a handout confirming the staff level agreement between the two sides,” they said.