Karachi: Pakistan’s foreign exchange reserves held by the State Bank of Pakistan (SBP) increased by about 20%, reaching $8 billion for the first time in 15 weeks.
The SBP’s foreign currency reserves decreased by $157 million from October 21, $7,439.9 million to October 28’s $8,912.9 million, according to figures issued by the SBP on Thursday.
SBP has received $1.5 billion in loans from the Asian Development Bank (ADB) for the Government of Pakistan.
The country’s total liquid foreign currency reserves, comprising net reserves held by banks other than the SBP, amounted to $14,678,9 million.
The total amount of banks’ net reserves was $5,766 million. The central bank mentioned receiving $1,500,000,000 from the ADB.
With its foreign exchange reserves, Pakistan has less than 1.29 months of import coverage. Pakistan, which has been frantically seeking dollar inflows to cover its balance-of-payments demands, is in a precarious reserve situation.
A crucial level of reserves has exerted intense pressure on the Pakistani rupee, resulting in its continual depreciation. Due to dwindling foreign exchange reserves and political uncertainty, the Pakistani economy confronts significant hurdles.
Due to a spike in imports, foreign exchange reserves were declining every week. They had dropped below $8 billion, which was an unsettling position. However, multilateral partner contributions will improve the situation.