SBP’s foreign exchange reserves soar $556mn to $3.81bn

KARACHI: The foreign exchange reserves held by the State Bank of Pakistan (SBP) increased by $556 million after China Development Bank rolled out a $700 million loan facility, ARY News reported, citing data issued by the central bank.

According to the data issued by central bank, SBP’s foreign exchange reserves have increased by $556 million to $3,814.1 million as of the week ended February 24, which will provide an import cover of around eight weeks.

Total liquid foreign #reserves held by the country stood at US$ 9.27 billion as of February 24, 2023.
For details https://t.co/WpSgomnd3v pic.twitter.com/IjH6eKvVGJ

— SBP (@StateBank_Pak) March 2, 2023

This is the third successive increase in the forex reserves on a weekly basis. Meanwhile, total liquid foreign reserves held by the country stood at $9.26 billion as of February 24, 2023. Net foreign reserves held by commercial banks clocked in at $5.45 billion.

The state bank noted that during the week ended on Feb 24, 2023, it received $700 million as GoP commercial loan disbursement from China.

Last week, foreign exchange reserves held by the SBP increased $66 million to $3.26 billion.

Earlier in February, Finance Minister Ishaq Dar announced that the Board of the China Development Bank (CDB) has approved a loan facility of $700 million for Pakistan.

“This amount is expected to be received this week by State Bank of Pakistan which will shore up its forex reserves” tweeted Finance Minister Ishaq Dar.

Pakistan was 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.

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.

However, sources told ARY News that the Fund has asked the incumbent government to implement demands before reaching a staff-level agreement. Pakistan was facing a ‘tense situation’ like 1998 to revive the stalled programme, they claimed.