SBP’s foreign exchange reserves rise $393m to $4.46bn

KARACHI: The foreign exchange reserves of the State Bank of Pakistan (SBP) increased by $393 million to $4.46 billion, ARY News reported, quoting the central bank.

“On June 30, 2023, SBP’s reserves increased by $393 million to $4.46 billion” the central bank said in a statement.

Meanwhile, the total liquid foreign reserves held by the country stood at $9.74 billion, , whereas net foreign reserves with commercial banks stood at $5.28 billion.

The increase in foreign exchange reserves came after Pakistan signed $3 billion staff-level agreement with the International Monetary Fund (IMF).

International Monetary Fund (IMF) announced that a “Stand-By Arrangement” between the global money lender with Pakistan reached successfully. The staff-level agreement has been concluded between Pakistan and the IMF, valuing $3 billion for 9 months.

IMF Mission Chief Nathan Porter said that the staff-level agreement with Pakistan made under a Stand-By Arrangement for 9 months.

The final approval of this agreement will be given by the IMF’s executive board, which is expected to take place in mid-July. After this approval, Pakistan can receive a loan of $3 billion.

Nathan Porter further stated that Pakistan’s parliament played an important role in achieving economic goals and took significant steps to increase tax revenues. The parliament has increased funds for Benazir Income Support Program and limited exemptions in taxes.

IMF Mission Chief stated that the increase in tax revenues can result in a primary surplus of 0.4 per cent for Pakistan’s economy and the additional funds generated through increased tax revenues can be allocated to social sectors.