Foreign exchange reserves held by the State Bank of Pakistan (SBP) decreased another $241 million in the period between June 3 to June 10 to stand at $8.99 billion, said the central bank on Thursday, with the level staying at much less than 1.5 months of import cover.

This is the lowest level of SBP-held foreign exchange reserves since November 2019, and raises questions on Pakistan's ability to meet its needs going forward.

In the week ending June 3, the level had decreased by $497 million to $9.23 billion.

Alarm bells: SBP-held foreign exchange reserves fall to $9.23bn

Meanwhile, foreign reserves held by the country stood at $14.94 billion as of June 10, the SBP said in a statement. Reserves held by commercial banks clocked in at $5.96 billion.

The development comes as the government desperately seeks revival of the stalled International Monetary Fund (IMF) programme to prop up its reserves and escape a liquidity crunch.

In its bid to satisfy the IMF, the government announced a third hike in the prices of petroleum products in less than three weeks, as the lender emphasised upon termination of energy subsidies to revive its bailout programme.

3rd time's a charm?: Govt hikes price of petrol by Rs24.03, diesel by Rs59.16

The increase came after the country unveiled a Rs9.5-trillion budget for 2022-23 aimed at tight fiscal consolidation. However, following the announcement, Finance Minister Miftah Ismail said that the IMF expressed concern about the country’s budget.

Reports indicate the government is currently looking to make changes to appease the IMF.

At the same time, reserves held by the SBP have been on a declining trend for several months with a high import bill, increasing oil prices, and a widening current account deficit adding pressure. This has taken a toll on the country's currency as well, which has hit record lows this week, closing at 207.67 against the US dollar on Thursday.