KARACHI: The total liquid foreign reserves of Pakistan stood at US$ 9,378.2 million while reserves held by the central bank reached US$ 4,018.7 million. Few weeks before the reserves at central banks were dropped to settle under $ 4 billion. This was the first increase in the reserves after six weeks
According to a statement issued by the State Bank of Pakistan (SBP) on Thursday, the foreign reserves of the central bank increased by US$ 107 million to US$ 4,018.7 million in the week ending on June 09, 2023. In addition, net foreign reserves held by commercial banks in the country stood at US$ 5,359.5 million, the statement added.
In the previous week ending on June 02, 2023, total liquid foreign reserves held by Pakistan was US$ 9,334.8 million comprising US$ 3,912.2 million reserves held by the central bank and US$ 5,422.6 million reserves held by commercial banks.
A Challenge to Pakistan’s Foreign Reserves
Pakistan is facing problems of shrinking reserves for the last couple of year. The IMF also showed its reservation and urged Pakistan to take its reserves above double digits.
The recent increase in reserves happened after Pakistan received $300 million from the Industrial and Commercial Bank of China Ltd (ICBC), as the final phase of the last three disbursements.
Meanwhile, the country received $2 billion from Chinese institutions. This includes $1.3 billion from ICBC and $700 million from the China Development Bank.
In addition, China also rolled over a $2-billion loan, lending further backing to Pakistan’s faltering dollar reserves.
