SBP’s foreign exchange reserves continue to decline

KARACHI: The foreign exchange reserves held by State Bank of Pakistan (SBP) decreased by $36 million to $4.2 billion, ARY News reported on Thursday, citing data issued by the central bank.

In its weekly statement, the central bank stated that its foreign exchange reserves have decreased by $36 million to $4.2 billion as of the week ended March 31, which will provide an import cover of less than a month.

Meanwhile, the net forex reserves held by commercial banks stand at $5.51 billion, $1.3 billion more than the SBP, bringing the total liquid foreign exchange reserves of the country to $9.75 billion.

Pakistan is eyeing to reach an agreement with the International Monetary Fund (IMF) that would not only lead to a disbursement of $1.2bn but also unlock inflows from friendly countries.

Earlier in March, it was reported that the International Monetary Fund (IMF) tabled another condition for the revival of $7 billion Extended Fund Facility (EFF), seeking ‘written assurance’ of financing from friendly countries to Pakistan by June 30.

Sources told ARY News that IMF has sought a written assurance of financing to Pakistan from friendly countries, including Saudi Arabia, Qatar and the United Arab Emirates (UAE) by June 30.

Meanwhile today, the International Monetary Fund (IMF) confirmed that it has received confirmation from Saudi Arabia on $2 billion in additional deposits to Pakistan.

Sources within the finance ministry confirmed that the lender had informed the Pakistani authorities about the development.

They further said that the Saudi authorities are all set to make a public announcement, probably during the upcoming visit of Prime Minister Shehbaz Sharif to the kingdom.