KARACHI (Kashmir English): The foreign exchange reserves held by the State Bank of Pakistan (SBP) have decreased by $540 million during the week ended on March 21, 2025, the State Bank of Pakistan (SBP) reported on Thursday.
According to the data, the country’s total liquid foreign reserves decreased by $464.8m, or 2.90% WoW, to $15.55 billion. Meanwhile, the reserves held by commercial banks were reported at $4.94 billion, having increased by $75.2 million.
A significant drop in the central bank’s holdings was attributed to external debt servicing
Despite the dip, SBP’s reserves remain above the crucial $10 billion mark, providing an import cover of over two months.
In the current fiscal year, SBP-held reserves have increased by $1.22bn or 12.96%. Meanwhile, the current calendar year has seen a decrease of $1.1bn or -9.42 %.
Earlier, the International Monetary Fund (IMF) staff reached a deal with Pakistan for a new $1.3 billion arrangement and also agreed on the first review of the 37-month Extended Fund Facility (EFF).
Islamabad secured the $7 billion EFF last summer to help claw its way out of an economic crisis, with an immediate disbursement of about $1 billion.
Pending board approval, Pakistan can unlock the $1.3 billion under a new climate resilience loan programme spanning 28 months. It will also free $1 billion for the South Asian nation under its $7 billion bailout programme, which would bring those disbursements to $2 billion.
“The strong implementation of the EFF-supported program continues, and the authorities remain committed to advancing a gradual fiscal consolidation to sustainably reduce public debt, maintaining a sufficiently tight monetary policy to keep inflation low, accelerating cost-reducing energy sector reforms to enhance its viability, and implementing Pakistan’s reform agenda to accelerate growth, while strengthening social protection and health and education spending,” the IMF said in a statement as it announced the staff-level agreement.
