The State Bank of Pakistan’s (SBP) foreign exchange holdings increased by $533 million as of June 23, reaching around $4.07 billion.
SBP-held foreign exchange reserves rise: Around one month’s worth of import cover puts the total number at a critical level. The nation’s total holdings of liquid foreign exchange were $9.34 billion. The total amount of net foreign reserves held by commercial banks was $5.27 billion.
The SBP said that its reserves rose by $533 million to $4,069.9 million during the week that ended on June 23, 2023. This is primarily attributable to the $300 million in revenues from the commercial loan taken out by the government of Pakistan.
The SBP’s foreign exchange holdings fell by $482 million last week to just under $3.54 billion.
On Friday, the International Monetary Fund (IMF) announced that its staff had reached an agreement with the Pakistani government regarding the measures supported by a $3 billion, nine-month Stand-By Arrangement (SBA).
The staff-level agreement requires approval from the IMF Executive Board, and this decision is expected to be reached by mid-July.
Additionally, Nathan Porter, the IMF Mission Chief in Pakistan, stated on the day the Extended Fund Facility expired, “The new Stand-By Arrangement (SBA) builds on the authorities’ efforts under Pakistan’s 2019 EFF-supported programme, which expires at the end of June.”
However, The event provided Pakistan with much-needed reprieve and enhanced market morale.