SBP\u2019s reserves decrease by $170 million due to external debt repayments, says central bank
\n Islamabad
\nThe State Bank of Pakistan (SBP)-held foreign exchange reserves fell below $3 billion to a nine-year low as the cash-strapped nation faces hurdles in shoring up its economy amid a stalled International Monetary Fund (IMF) programme.
\nThe coalition government is desperately trying to unlock the IMF deal, with the lender\u2019s mission in Islamabad to negotiate the terms for resuming the Extended Fund Facility (EFF), which will pave for Pakistan to get more than $1 billion from the institution.
\nIn a statement, the central bank said, as of the week ended February 3, its foreign exchange reserves slipped to $2,916.7 million after a fall of $170 million due to external debt payments.
\nThe net forex reserves held by commercial banks stand at $5,622.9 million, $2.745 billion more than the SBP, bringing the total liquid foreign reserves of the country to $8,539.6 million, the statement mentioned.
\nThe government and the SBP were banking on friendly countries, including Saudi Arabia, to help boost the reserves; however, none of the nations has so far delivered on its commitment \u2014 leaving Pakistan in a critical position. As a result of the depleting foreign exchange reserves, imports have been hit hard as commercial banks are reluctant in opening letters of credit (LCs), making it next to impossible for businesses to stay afloat.
\nMajor automobile makers \u2014 Atlas Honda and Pak Suzuki Motors Company \u2014 have repeatedly stopped their car production due to an inventory crunch that\u2019s been created due to a liquidity crunch. The rupee has also fallen to historic lows as the market faces a scarcity of dollars and the grey market is persistently active, but the local currency has gained some ground versus the dollar during the last two trading days as the market is hopeful of the revival of IMF deal .<\/p>\n","protected":false},"excerpt":{"rendered":"
SBP\u2019s reserves decrease by $170 million due to external debt repayments, says central bank Islamabad The State Bank of Pakistan (SBP)-held foreign exchange reserves fell below $3 billion to a nine-year low as the cash-strapped nation faces hurdles in shoring up its economy amid a stalled International Monetary Fund (IMF) programme. The coalition government is […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":{"0":"post-312700","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-top-news"},"yoast_head":"\n