[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]The State Bank of Pakistan (SBP) reported on Thursday that Pakistan’s foreign exchange reserves held by the central bank increased by $276 million to $3.2 billion in the week ending February 10. The overall amount of the country’s liquid foreign reserves, according to the national bank, was $8.7 billion. Commercial banks maintained net foreign reserves of $5.5 billion.
Total liquid foreign #reserves held by the country stood at US$ 8.70 billion as of February 10, 2023.
For details https://t.co/WpSgomnd3v pic.twitter.com/Bg7WJUryJy— SBP (@StateBank_Pak) February 16, 2023
Liquid Foreign Exchange Reserves: 10-Feb-2023
Total: $ 8.7bn, up by $ 163mn
SBP: $ 3.2bn, up by $ 276mn
Banks: $ 5.5bn, down by $ 114mn
Import cover: 0.64 months
@StateBank_Pak #SBP #FXReserves #Pakistan #Economy #AHL pic.twitter.com/iJPtQo3Uvi— Arif Habib Limited (@ArifHabibLtd) February 16, 2023
Due to the servicing of external debt, the nation’s foreign exchange reserves last week fell below Rs3 billion. The government is rushing to enact new tax policies and come to a deal with the IMF (IMF). The conclusion of the ninth review of a $7 billion loan programme, as agreed upon with the Fund, would result in the disbursement of $1.2 billion as well as the opening of inflows from friendly nations.From January 31 to February 9 in Islamabad, Pakistan underwent ten days of intensive negotiations with a delegation from the IMF, but no agreement could be reached.
The IMF later clarified, however, that both parties had consented to maintain communication and that “virtual conversations will continue in the next days to clarify the implementation specifics” of the measures negotiated in Islamabad.
The agency Fitch Ratings has also lowered Pakistan’s long-term foreign-currency issuer default rating (IDR) from “CCC+” to “CCC-” as a result of deteriorating liquidity, political unpredictability, and a sharp fall in foreign-exchange reserves. There is a very high level of default risk indicated by a CCC minus rating. Fitch noted in a note outlining its course of action that the downgrading takes into account both the critically low levels of foreign exchange reserves as well as the dramatic worsening of external liquidity and funding circumstances.
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