SBP's reserves fall another $75mn, now stand at $10.09bn

Foreign exchange reserves held by the State Bank of Pakistan (SBP) decreased by $75 million in the period between May 13 to May 20 to stand at $10.09 billion, said the central bank on Thursday, with the level staying at less than 1.5 months of import cover.

In the week ending May 13, the level had decreased by $145 million to $10.16 billion.

Total liquid foreign reserves held by the country stood at $16.15 billion as of May 20, the SBP said in a note. Reserves held by commercial banks clocked in at $6.06 billion.

Reserves held by the SBP have been on a declining trend, with Pakistan desperately seeking revival of the International Monetary Fund (IMF) programme, hoping it will pave the way for lending from other sources as well.

SBP-held foreign exchange reserves plummet by $145mn to $10.16bn

On Wednesday, the IMF mission concluded its talks with Pakistan authorities without a word on reviving the stalled Extended Fund Facility (EFF).

In its statement, the IMF mission said deviations from the policies agreed in the last review, partly reflecting the fuel and power subsidies announced by the authorities in February, require urgency of concrete policy actions, including in the context of removing fuel and energy subsidies and the FY2023 budget, to achieve programme objectives.

IMF to continue ‘close engagement with Pakistan’ as Doha talks conclude without programme revival

"The mission has held highly constructive discussions with the Pakistani authorities aimed at reaching an agreement on policies and reforms that would lead to the conclusion of the pending seventh review of the authorities’ reform program, which is supported by an IMF EFF arrangement," said the IMF in its statement at the conclusion of talks.