According to information made public by the State Bank of Pakistan (SBP) on Thursday, the foreign currency reserves held by the central bank remained basically steady on a weekly basis after weeks of continuous drop.
The SBP’s foreign exchange holdings were valued at $7.597 billion on October 14 as opposed to $7.596 billion on October 7. Due to the minor adjustment, reserves are still at their lowest point since July 2019.
A total of $13.25 billion in liquid foreign currency was kept by the nation, including net reserves held by institutions other than the SBP. The number of net reserves maintained by banks increased by $4 million to $5.653 billion.
According to Arif Habib Limited, the present amount of reserves is sufficient to fund imports for only 1.1 months.
Pakistan has been having financial problems, and the significant expense of relief and reconstruction has stoked worries that the nation may go into debt. As a result, Pakistan’s Finance Minister Ishaq Dar has repeatedly promised the nation won’t fail. His most recent assurance came on Wednesday when he declared that “there was no chance of Pakistan falling into default, as the danger has been avoided.”
Pakistan will get around $4 billion in post-flood relief and loans from organizations including the World Bank, Asian Development Bank, and United Nations. Pakistan is already a participant in an International Monetary Fund (IMF) program.
According to a report published on Wednesday by JPMorgan’s analysts, “Pakistan’s debt and fiscal dynamics highlight mounting solvency risks.”