Pakistan Foreign Exchange Reserves register massive rise

Pakistan Foreign Exchange Reserves register massive rise

ISLAMABAD - The foreign exchange reserves of the country have risen by $1.18 billion due to financial assistance received from International Monetary Fund.

According to statistic issued by State Bank of Pakistan, the liquid foreign reserves of the country surged to $18.463 billion as of April 24.

The country received an amount of $1.39 billion from IMF under the Rapid Financing Instrument (RFI) to address the economic impact of the Covid-19 shock.

The central bank has also made government external debt repayments amounting to $234 million.

Overall, the SBP reserves increased by $1.181 billion to stand at $12.07 billion. The foreign exchange reserves maintained by commercial banks stand at $6.39 billion. It is pertinent to mention here that IMF’s financial assistance is not an aid and to be paid back by the availing country in later years.

According to IMF, the RFI provides rapid and low-access financial assistance to member countries facing an urgent balance of payments need, without the need to have a full-fledged program in place.

It can provide support to meet a broad range of urgent needs, including those arising from commodity price shocks, natural disasters, conflict and post-conflict situations, and emergencies resulting from fragility.