Foreign exchange reserves held by the State Bank of Pakistan (SBP) recorded a marginal improvement as they increased $36 million on a weekly basis to reach $10.89 billion, revealed central bank data on Thursday.

Last week, the central bank's reserves fell to $10.85 billion, the lowest reserve-level since June 2020.

SBP's reserves fall another $470mn, now stand at $10.85bn

Meanwhile, total liquid foreign reserves held by the country stood at $17.05 billion as of April 16, said the SBP. Net foreign reserves held by commercial banks stood at $6.16 billion, data showed.

Facing depleting foreign exchange reserves, the South Asian economy is looking to revive the International Monetary Fund’s (IMF) Extended Fund Facility (EFF) and get a rollover of a major syndicated loan facility from China.

Falling reserves have put pressure on the currency that lost value for the fourth successive time against the US dollar on Thursday.

Finance Minister Miftah Ismail, prior to his departure to Washington DC, said that the IMF has sought an increase in the prices of petroleum products as well as taxes on levy, withdrawal of industrial amnesty scheme, reducing circular debt, increasing electricity tariffs, and fiscal saving from the present government for revival of the EFF programme.

In the event of successful negotiations with the international lender, Pakistan is expected to receive $1 billion in funds, while paving way for access to other lending.

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