SBP reserves stay above $8bn despite $1bn repayment

KARACHI: The foreign exchange reserves held by the State Bank of Pakistan (SBP) rose by 14.4 million to $8.055 billion in the week ending April 12, the State Bank of Pakistan said on Thursday.

“During the week, SBP has executed the repayment of US$ 1 billion maturing Pakistan’s International Bond (principal plus interest),” it said in a weekly statement.

However, the country’s total reserves fell by $68 million to $13.374 billion. Similarly, the reserves of commercial banks decreased by $82 million to $5.319 billion.

It is worth mentioning here that Pakistan and the IMF last month reached a staff-level agreement on the second and last review of the $3 billion stand-by arrangement, which, if cleared by the global lender’s board, will release about $1.1 billion to the country.

The IMF’s board is expected to review the matter in late April, but no firm date has been set, a spokesperson said.

Separately, Finance Minister Muhammad Aurangzeb, who is currently in Washington to attend the spring meeting of 2024 of the World Bank Group and IMF, said in an interview that Pakistan has initiated discussions with the IMF over a new multi-billion-dollar loan agreement to support the economic reform program.