Karachi: As Pakistan struggles to secure external financing to pull country out of economic crisis, foreign exchange reserves held by State Bank of Pakistan (SBP) reversed their course, snapping their six-week winning streak.

In its weekly bulletin, SBP said that its foreign exchange reserves have decreased by $ 354 million to $ 4.2 billion as of week ended March 24, which will provide an import cover of less than month.

Net forex reserves held by commercial banks stand at $ 5.6 billion, $ 1.3 billion more than SBP, bringing total liquid foreign exchange reserves of country to $ 9.8 billion, statement mentioned. Pakistan's $ 350 billion economy continues to dwindle amid financial woes and authorities struggle to strike staff-level agreement with International Monetary Fund. Washington-based lender has been in talks with Pakistani authorities since end-January to resume $ 1.1 billion loan tranche held since November, part of  $ 6.5 billion Extended Fund Facility agreed upon in 2019. Several friendly countries including Saudi Arabia, China and UAE have made commitments to help Pakistan fund its balance of payments as nation tries to avert possible default.

Published in The Daily National Courier, March, 31 2023

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