The State Bank of Pakistan (SBP) reported a decline in its foreign exchange reserves, which fell by $127 million to $8.03 billion in the week ended January 12. This reduction in reserves was mainly due to repayment of external debt.
The country's total liquid foreign reserves, which include holdings of commercial banks, currently stand at $13.15 billion. Of this, commercial banks have $5.12 billion.
The decrease follows a previous decrease of $66 million in central bank reserves. However, in an important financial development, Pakistan received substantial funds from the International Monetary Fund (IMF). The SBP on January 16 confirmed receipt of the $705.6 million installment from the IMF, following the success of the first review under the IMF's Standby Arrangement (SBA).
SBP has received SDR 528 million from the IMF, which is equivalent to $705.6 million. This is a direct result of the approval of the IMF Executive Board under the SBA programme,” the central bank said.
The latest IMF disbursement for the week ending January 19 is expected to be reflected in the SBP's reserves, offering a possible boost to Pakistan's foreign exchange reserves amid ongoing fiscal challenges.
