KARACHI: The foreign exchange reserves, held by State Bank of Pakistan (SBP), continued to decline for the third consecutive week as the country struggles to secure deal with International Monetary Fund (IMF), ARY News reported on Thursday.
According to a statement issued by the central bank, the foreign exchange reserves had decreased $72 million to $4.31 billion, as of May 12, due to external debt payment — which will be enough for less than a month’s worth of imports.
Meanwhile, net foreign reserves held by commercial banks stand at $5.62 billion, $1.01 billion more than the central bank, bringing the total liquid foreign reserves held by the country to $9.93 billion.
Pakistan’s economy is in turmoil amid financial woes and the delay in an agreement with the International Monetary Fund (IMF) that would release much-needed funding crucial to avoid the risk of default.
Earlier on May 11, the foreign exchange reserves held by the State Bank of Pakistan (SBP) declined $74 million to $4.38 billion in a week.
As per details, the net foreign reserves held by commercial banks stood at $5.6 billion.
Earlier, it was reported that the International Monetary Fund (IMF) still showing a lack of confidence and asking Islamabad to ‘do more’ to unlock loan programme despite the assurances from friendly countries about external funds to Pakistan.
According to sources, Pakistan has been asked to present a repayment plan for a $3.7 billion loan to the IMF in June as well as need to demonstrate stronger support from friendly nations in order to meet the commitment.
However, the IMF has reportedly not agreed to a proposal to exchange reserves equal to two months’ revenues, which would be valued between $11 to $12 billion.
Sources within Ministry of Finance revealed that the government has imposed Rs. 170 billion in taxes through the mini-budget in a bid to secure a staff-level agreement with the IMF, which was originally scheduled for February 9.
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