Latest News-Foreign Exchange: SBP Reserves Fall $748MN TO $8.24BN

KARACHI: Reserves in foreign currency of the State Bank of Pakistan (SBP) decreased by $748 million in the week that ended on the 17th of June. ARY News reported on Thursday.

In a breakdown of the reserve position of foreign currency, the central bank announced that the reserves of State Bank of Pakistan stand at $8,237.7 million.

According to information released from the SBP, total reserves of foreign currency that are liquid by the country, which also includes net reserves of banks that were not part of the SBP totaled $14,210.4 million. Banks’ net reserves were $5,972.7 million.

The central bank stated that the decline was due primarily to the repayment of external debt. The bank also stated the following “SBP reserves are expected to increase in coming days on realization of proceeds of CDB (China Development Bank) loan.”

Pakistan, China ink $2.3bn loan deal

Federal Minister of Finance and Revenue Miftah Ismail Wednesday announced that Pakistan has signed an RMB 15 billion ($2.3 billion) loan facility agreement with a Chinese bank consortium.

The minister of finance announced the news via his personal Twitter handle.

“Inflow is expected to occur within some days. We are grateful to China for facilitating this transaction.” Chinese government for their assistance in facilitating the transaction” said the official in tweet.

IMF deal

Pakistan and the International Monetary Fund (IMF) Tuesday struck a deal on an IMF release of $1 billion tranche, after the latter approved the adjustments to the budget for the fiscal year 2022-23.

According to officials from the ministry of finance The Fund has ratified the budgetary estimates that are set for the fiscal year to come as well as the economic policies of the country.

“The IMF will soon issue a handout confirming the staff agreement between the two sides,” he said.