The foreign exchange reserves of the central bank decreased by $190 million to $10,308 during the week ending on May 6 – the lowest level since December 2019.
According to data released by the State Bank of Pakistan on Friday, the country’s total liquid foreign exchange reserves have fallen to $16.38 billion.
The State Bank holds $10,308,7 billion in foreign exchange reserves, while other commercial banks hold $6,067 billion in net reserves, for a grand total of $16,375.7 billion.
Pakistan is currently facing a dire economic situation as its currency continues to lose steam and plummet in value relative to the dollar.
According to foreign exchange dealers, the new value of the US dollar during Friday’s morning interbank trading session was Rs193 – a record high.
The benchmark PSX 100-index on the Pakistan Stock Exchange fell by 500 points or 1.16 percent, and the index fell to 42,358 points.
The investors are cautious as a result of the alarmingly rising inflation, which has also become a headache for the new government.
The delay in the revival of the International Monetary Fund’s $1 bailout programme and the absence of funding pledges from friendly nations are exerting pressure on Pakistan’s foreign reserves and currency.
The new government is embroiled in the current economic crisis and is attempting to secure external funds to bolster its reserves and prevent currency devaluation.
Thursday, the Asian Development Bank hinted at providing an additional $2 billion to the government so that its balance of payments could be strengthened in order to assist it on the economic front.
Minister of State for Finance Dr. Aisha Ghous Pasha and ADB Country Director in Islamabad Yong Ye, along with their respective teams, provided the assurance during a meeting. The meeting addressed “additional funding avenues for Pakistan, including ADB’s programme loans and countercyclical support facility (CSF)” — a relatively new mechanism for financing oil imports in the face of unprecedented global prices.
