A decrease in sub-held foreign exchange reserves by $190m

 Thursday 04 August 2022

A Mini Changir Counts V.S. Dollar notes at the currency exchange office on November 11, 2021 in Ankara, Turkey. — Reuters/File

1. State Bank says the shortfall is due to external debt repayments.
2. Net deposits held by banks are $5,823.3 million.
3. Pakistan's import cover is less than 1.5 months.

KARACHI: The domestic foreign exchange reserves held by the State Bank of Pakistan (SBP) continue to decrease weekly.

According to data released by the State Bank of Pakistan (SBP) on Thursday, on July 29, foreign currency reserves held by the SBP were recorded at $8,385.4 million, up $190 million from $8,575.16 on July 22. Dollars are low.

According to the central bank, this decrease was due to external debt and other payments.

The country's total liquid foreign currency reserves, including net reserves with banks other than the State Bank, stood at $14,208.7 million.

Net deposits held by banks were $5,823.3 million.

It should be noted that with the current position of foreign exchange reserves, Pakistan's import cover is less than 1.5 months.

However, China has lent $2 billion in State Administration of Foreign Exchange (SAFE) reserves for one year to Pakistan's cash-strapped economy.

Potential for improvement in reserves

"China advances three safe deposits. The first deposit of $500 million matures on June 27, 2022, the second of $500 million matures on June 29, 2022, and the third of $1 billion is due on July 23, 2022. Sal," Finance A senior official of the division told The News.

In total, China has borrowed $4.3 billion so far, including $2.3 billion in commercial loans and now $2 billion in safe deposits, giving Islamabad a total of $35.9 billion for the current fiscal year. It has become possible to bridge the external financing gap. . The year

Meanwhile, Pakistan is expected to receive $1.17 billion in funds from the International Monetary Fund (IMF) by the end of this month as the Washington-based lender confirmed that Pakistan has agreed to an executive board meeting on August 28. have completed all their preliminary operations before .