SBP-held foreign exchange reserves rise $533mn, stand at $4.07bn
- Increase comes on back of realisation of $300 million proceeds of government of Pakistan’s commercial loan
Foreign exchange reserves held by the State Bank of Pakistan (SBP) surged $533 million, clocking in at nearly $4.07 billion as of June 23, data released on Monday showed.
The overall number stands at a critical level at around a month of import cover.
Total liquid foreign reserves held by the country stood at $9.34 billion. Net foreign reserves held by commercial banks clocked in at $5.27 billion.
“During the week ended on June 23, 2023, SBP reserves increased by $533 million to $4,069.9 million,” said the SBP. “This is mainly attributed to realisation of $300 million proceeds of government of Pakistan’s commercial loan.”
Last week, the foreign exchange reserves held by SBP decreased $482 million to nearly $3.54 billion.
On Friday, the International Monetary Fund (IMF) announced that its staff and Pakistani authorities have reached an agreement on policies to be supported by a $3-billion, nine-month Stand-By Arrangement (SBA).
The staff-level agreement is subject to approval by the IMF Executive Board, with its consideration expected by mid-July.
“The new SBA builds on the authorities’ efforts under Pakistan’s 2019 EFF-supported programme which expires end-June,” Nathan Porter, IMF Mission Chief to Pakistan, was quoted as saying in the press release on the day the Extended Fund Facility expired.
The development acted as a much needed relief for Pakistan and improved market sentiment.
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