- The central bank’s foreign exchange reserves fell to $245 million.
- State Bank’s total reserves now stand at $5.57 billion.
- Deposits of commercial banks are $5.84 billion.
Foreign exchange reserves held by the State Bank of Pakistan (SBP) fell further as the country paid down external debt and tried to stay afloat amid a severe economic crisis.
During the week ended December 30, 2022, the central bank’s foreign exchange reserves fell by $245 million to $5.57 billion, the central bank said in a statement on Thursday, down from the previous week’s reserves of $5.821 billion. .
The statement said net foreign reserves held by commercial banks stood at $5.84 billion, out of total reserves of $11.42 billion.
Reserves, which have hit their lowest level since April 2014, will now provide only 1.06 months of import cover, as the country tries to reduce imports amid a weakening greenback.
The National Security Committee (NSC) earlier this week agreed to take concrete steps to strengthen the economy, including rationalizing imports as well as curbing illegal currency outflows and hawala business.
Amid the crisis-like situation, Pakistan will have to pay around $8.3 billion in external debt repayments during the next three months (January to March) of the current fiscal year.
The government is trying to pass the International Monetary Fund’s (IMF) ninth review to secure a $1.7 billion bailout package, but the two sides have not made substantial progress in recent days.
In this regard, Finance Minister Senator Ishaq Dar said that despite the difficult task, the country will fulfill its international obligations and not default.
Dar also saw Saudi Arabia and China increasing their reserves in Pakistan “within days” and claimed that the current fiscal year will see a gradual increase in foreign exchange reserves.
The country aims to raise funds from the International Conference on Climate Resilient Pakistan as despite Pakistan being one of the lowest carbon emitting countries, the devastating floods devastated the nation and caused $30 billion in damages.
“Perhaps our friendly countries are waiting for the donors’ conference so that they can help us [and provide loans]Planning and Development Minister Ahsan Iqbal said Geo News Shahzeb Khanzada last month…