SBP’s forex reserves rise to $4.3 billion after marginal increase

Undated photo of a man holding a stack of $100 bills. — AFP/File

Conducted by State Bank of Pakistan (SBP). currency reserves For the second session in a row, it maintained its upward trend and stood above the $4 billion mark.

Reserves rose slightly above $18 million, but this amount is still barely enough to cover one month’s worth of imports.

The central bank said in its weekly bulletin that foreign exchange reserves rose by $18 million to $4,319.1 million for the week ended March 10, enough to cover imports for about a month.

The net foreign exchange reserves of commercial banks amount to 5,527.7 million dollars, which is 1,208.6 billion dollars more than the National Bank of Ukraine, which brought the country’s total liquid foreign reserves to 9,846.8 million dollars.

Trend curve of foreign exchange reserves and import coverage.  — Arif Habib Limited
Trend curve of foreign exchange reserves and import coverage. — Arif Habib Limited

The central bank did not say the exact reason for the increase in the reserves in TMKKK.

Facing Pakistan Recession risk renewed amid a deepening political and economic crisis and a delay in reviving the International Monetary Fund (IMF) bailout program.

Bloomberg the survey showed that according to the median forecast of 27 economists, the probability of the economy entering a recession is at the level of 70%.

Over the past few months, the cash-strapped country has failed to meet several deadlines to secure funds to avoid default, raising concerns that Pakistan could default on debt.

To sway the IMF, the government of Prime Minister Shehbaz Sharif has raised taxes, cut energy subsidies and raised interest rates to 25-year highs to lower prices, but some issues remain unresolved.

Pakistan needs funds to rebuild its $350 billion economy, ease its widespread deficit and restore its foreign exchange reserves. The country’s dollar reserves have dwindled to a month’s worth of imports, limiting its ability to finance overseas purchases, leaving thousands of shipping containers stranded at ports, forcing factories to shut down and putting tens of thousands of jobs at risk.

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