In yet another setback, Pakistan foreign exchange reserves suffer massive blow
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*Foreign exchange reserves held by the State Bank of Pakistan (SBP) decreased by $366 million in the period between May 20 to May 27 to stand at $9.72 billion, said the central bank on Thursday, with the level staying at less than 1.5 months of import cover.*
This is the lowest level since December 6, 2019. In the week ending May 20, the level had decreased by $75 million to $10.09 billion.
Meanwhile, liquid foreign reserves held by the country stood at $15.77 billion as of May 27, the SBP said in a note. Reserves held by commercial banks clocked in at $6.05 billion.
“During the week, SBP reserves decreased by $366 million to $9,722.9 million due to external debt repayment,” the central bank said.
Reserves held by the SBP have been on a declining trend, with Pakistan desperately seeking revival of the International Monetary Fund (IMF) programme, hoping it will pave way for lending from other sources as well.
During the day, Finance Minister Miftah Ismail had announced that the government reached a refinancing agreement worth $2.3 billion with Chinese banks, a move that would ease pressure on the external front and shore the country's dwindling foreign exchange reserves.
