{"id":16468,"date":"2023-05-25T19:47:01","date_gmt":"2023-05-25T14:47:01","guid":{"rendered":"https:\/\/dailyausaf.com\/en\/?p=16468"},"modified":"2023-05-25T19:47:01","modified_gmt":"2023-05-25T14:47:01","slug":"sbps-reserves-drop-to-4-2-billion","status":"publish","type":"post","link":"https:\/\/dailyausaf.com\/en\/business\/sbps-reserves-drop-to-4-2-billion\/","title":{"rendered":"SBP\u2019s reserves drop to $4.2 billion"},"content":{"rendered":"

SBP\u2019s reserves drop to $4.2 billion. The State Bank of Pakistan<\/a> (SBP)-held foreign exchange reserves dropped to $4.2 billion as the cash-strapped nation fails to secure external financing despite attempts to resume a stalled bailout programme.<\/p>\n

In its bulletin, the SBP said its reserves have fallen $119 million as of the week ended May 19, and currently stand at $4.19 billion, with Arif Habib Limited saying the reserves would provide an import cover of less than a month.<\/p>\n

The net foreign reserves held by commercial banks stand at $5.53 billion, $1.34 billion more than the central bank, taking the total liquid foreign exchange reserves to $9.7 billion.<\/p>\n

This is the fourth weekly drop in the foreign exchange reserves, with Pakistan seeing no signs of securing external financing any time soon amid political instability \u2014 which has had a huge impact on the deteriorating economy.<\/p>\n

Read more:\u00a0SBP reminds citizens to encash withdrawn prize bonds by June 30<\/a><\/strong><\/em><\/p>\n

The $350 billion economy is in turmoil amid financial woes and the delay in an agreement with the International Monetary Fund (IMF) that would release much-needed funding crucial to avoid the risk of default.<\/p>\n

The government has been in talks with the Washington-based lender since end-January to resume the $1.1 billion loan tranche that has been on hold since November, part of a $6.5 billion Extended Fund Facility (EFF) agreed upon in 2019.<\/p>\n

A deal with the IMF will also unlock other bilateral and multilateral financing avenues for Pakistan to shore up its foreign exchange reserves.<\/p>\n

The ninth review was due in November 2022 but the two sides have not yet reached consensus.<\/p>\n

The IMF has been insisting that the government needs to secure “significantly more financing” for a successful bailout review, but the local authorities remain adamant they have already met the requirements.<\/p>\n

Federal Minister for Finance and Revenue Senator Ishaq Dar said Wednesday all technical formalities and prior actions had been completed but, unfortunately, the IMF programme was facing a structural delay.<\/p>\n

Dar expressed his belief that Pakistan would not default and the coalition government was committed to completing the 9th Review of the IMF programme.<\/p>\n","protected":false},"excerpt":{"rendered":"

SBP\u2019s reserves drop to $4.2 billion. The State Bank of Pakistan (SBP)-held foreign exchange reserves dropped to $4.2 billion as the cash-strapped nation fails to secure external financing despite attempts to resume a stalled bailout programme. In its bulletin, the SBP said its reserves have fallen $119 million as of the week ended May 19, […]<\/p>\n","protected":false},"author":8,"featured_media":16469,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[3756,1247,572,599,160,138,181],"class_list":["post-16468","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-extended-fund-facility","tag-international-monetary-fund","tag-sbp","tag-state-bank-of-pakistan","tag-imf","tag-pakistan","tag-washington"],"_links":{"self":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts\/16468","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/comments?post=16468"}],"version-history":[{"count":0,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts\/16468\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/media\/16469"}],"wp:attachment":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/media?parent=16468"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/categories?post=16468"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/tags?post=16468"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}