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SBP-held foreign exchange reserves rise $61mn, stand at $4.52bn

  • Receipts from IMF, Saudi Arabia, UAE to be reflected in next week’s data
Published July 13, 2023

Foreign exchange reserves held by the State Bank of Pakistan (SBP) surged $61 million, clocking in at nearly $4.52 billion as of July 7, data released on Thursday showed.

Total liquid foreign reserves held by the country stood at $9.84 billion. Net foreign reserves held by commercial banks clocked in at $5.31 billion.

“During the week ended on July 7, 2023, SBP reserves increased by $61 million to $4,524.0 million,” cited SBP statement.

“Subsequently, during the current week, SBP received inflow of $2 billion from the Kingdom of Saudi Arabia, $1 billion from United Arab Emirates and around $1.2 billion from IMF. These inflows will be reflected in SBP’s forex reserves for the week ending on July 14, 2023.”

Last week, SBP reserves surged $393 million to $4.46 billion.

Earlier on Thursday, Finance Minister Ishaq Dar announced the receipt of $1.2 billion from the International Monetary Fund (IMF). The development gave a much-needed boost to the economy reeling from dollar shortage and runaway inflation.

“I would like to share the information that the IMF has deposited $1.2 billion upfront payment in the account of SBP,” said Dar in a news briefing.

“Last night, the IMF Executive Board approved the Stand-By Arrangement (SBA).”

On Wednesday, United Arab Emirates (UAE) deposited $1 billion in Pakistan’s central bank while on Tuesday, Saudi Arabia extended assistance worth $2 billion to Pakistan.

In total, $4.2 billion have been received by Pakistan over the past 3 days.

These additions to the reserves will be reflected in next week’s data. Dar expects Pakistan’s reserves to close at $14 billion next week.

Comments

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Az_Iz Jul 13, 2023 08:45pm
Use this money wisely. Instead of going on importing and consuming spree. And then be back to more begging and borrowing.
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KhanRA Jul 13, 2023 09:09pm
Never forget that in october 2016 Pakistan had $24 billion in forex reserves. This is why CPEC caused so much excitement - Pakistan was in a good place. And then Dar 1.0 squandered it all by pegging the Rupee to an exchange rate of 105 to the dollar. In September 2021, we had recovered to $20 billion. Dar 2.0 played the same games, and squandered it all away again. This man should be in jail, and dynasty parties and their Rishtedar politics must be completely eliminated.
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SAd Jul 13, 2023 09:52pm
@KhanRA, bhai jhoot bolne ki b had hti h. Oct'16 k baad to dar ko exile kr dya gya tha because he was talking about fiscal discipline at that time and in Sep 21 it was pti gov and at the end of their tenure in mar'23 there were only $10b deserves in the sbp and we have to make $41b payments. We were seeing default and then Dar 2.0 came in Sep'22 when we had only $7.8 in sbp reserves and were losing $1b each month due to current account deficit and were potentially facing default. It was through his sheer hard work and efforts you and your friends propaganda failed and Pakistan avoided default. Although he has not still completed one year on his post and Pakistan reserves have exceed $8.7b. $1b more than he was given. Some people feel shame when their propaganda fails and they lose but you and tulu are one of a kind. :) As Khawaja Asif once said Koi sharam hti h koi haya hti h
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Builder Jul 13, 2023 10:29pm
@KhanRA it's not just about pegging the rupee to USD at some rate - it's about fundamentals. Extremely low tax base, extremely large trade deficit, subsidies, extraordinary government expenditure, low crop yield, slow industrial growth due to corruption, extremely volatile political environment etc. It's a ton of issues.
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