SBP’s foreign exchange reserves inch up by $18m

KARACHI: The foreign exchange reserves held by State Bank of Pakistan (SBP) increased by $18 million to $4.319 billion, ARY News reported on Thursday, citing data issued by the central bank.

In a statement, the State Bank of Pakistan (SBP) stated that its foreign exchange reserves increased by $18 million to $4.319 billion as of the week ended March 10, which will provide an import cover of around a month.

Total liquid foreign #reserves held by the country stood at US$ 9.85 billion as of March 10, 2023.
For details https://t.co/WpSgomnKT3 pic.twitter.com/oHyP6aBnM0

— SBP (@StateBank_Pak) March 16, 2023

Meanwhile, the net forex reserves held by commercial banks stand at $5.527 billion, $1,208.6 billion more than the SBP, bringing the total liquid foreign reserves of the country to $9.846 billion.

This is the fifth successive increase in the forex reserves on a weekly basis. However, the central bank did not mention any reason behind an increase in SBP-held reserves.

In the previous week ended on March 03, the total liquid foreign reserves held by the country was $9.754 billion. Among them, the foreign exchange reserves held by the SBP were $4.301 billion while net foreign reserves held by commercial banks were $5.453 billion.

The statement noted that the central bank received $500 million from the Industrial and Commercial Bank of China (ICBC) as part of the institution’s $1.3 billion facility.

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.

Read More: Pakistan completed implementation of IMF pre-conditions: officials

The International Monetary Fund (IMF) had asked Pakistan to implement demands before reaching a staff-level agreement for the revival $7 billion Extended Fund Facility (EFF) stalled for months.

‘Pakistan to seek US help’

Following the delay in the staff-level agreement with the International Monetary Fund (IMF), Pakistan has decided to seek US help for the revival of the stalled loan programme, it emerged.

Sources within the Finance Ministry familiar with the development said that the incumbent government has decided to seek Washington’s help as the majority of the demands of the fund have been completed. “There is no need for further delay in the staff-level agreement.”

They further say Finance Minister Ishaq Dar will talk with the US envoy this week. It has been leanrt that there are chances of a staff-level agreement between Pakistan and the IMF this week.