Pakistan’s foreign exchange reserves hit a 15-week high.
Pakistan’s foreign exchange reserves hit a 15-week high. Pakistan’s foreign exchange reserves held by the State Bank of Pakistan (SBP) surged nearly 20 percent to a 15-week high – crossing the crucial $8 billion mark.
On October 28, foreign currency reserves with the SBP were recorded at $8,912.9 million, down $157 million from $7,439.9 million on October 21, data released by the SBP showed on Thursday.
State Bank has received $1.5 billion from the Asian Development Bank (ADB) as disbursement of loans to the Government of Pakistan.
Read more: ADB deposits $1.5 billion in SBP’s account, says Dar
The country’s total liquid foreign currency reserves, including net reserves with banks other than the State Bank, stood at $14,678.9 million.
Net deposits held by banks were $5,766 million. The central bank cited a $1,500 million recovery from ADB.
With the current position of foreign exchange reserves, Pakistan’s import cover is less than 1.29 months. The reserves position is critical for Pakistan which is desperately seeking dollar inflows to meet its balance of payments needs.
A critical level of reserves has put severe pressure on the Pakistani rupee and the local unit continues to depreciate. Pakistan’s economy is facing serious challenges due to dwindling foreign exchange reserves and political instability.
Foreign exchange reserves were declining earlier on weekly basis due to rise in imports and fell below $8 billion which was a worrying situation. However, funds from multilateral partners will improve the position.