Pakistan foreign exchange reserves register increase

Pakistan foreign exchange reserves register increase

Although Pakistan's economic situation remains a cause of concern for a vast majority of its people, Pakistan’s foreign exchange reserves rose by $276 million to $3.2 billion in the week ending on February 10, the State Bank of Pakistan (SBP) said on Thursday.

According to SBP, net foreign reserves held by commercial banks stood at $5.5 billion, bringing the country’s total liquid foreign reserves to $8.7 billion.

Arif Habib Ltd calculated that the current reserves would cover a little more than two weeks of imports.

Last week, Pakistan's foreign exchange reserves fell below $3 billion due to external debt payments.

The Pakistani government is racing to implement new tax measures and reach an agreement with the International Monetary Fund (IMF).

The agreement with IMF on completion of the ninth review of a $7 billion loan programme would not only lead to a disbursement of $1.2 billion but also unlock inflows from friendly countries.

Pakistan held 10 days of intensive talks with an IMF delegation in Islamabad from Jan 31 to Feb 9, but could not reach a final deal.

The IMF, however, said later that both sides have agreed to stay engaged and “virtual discussions will continue in the coming days to finalise the implementation details” of the policies discussed in Islamabad.