SBP Reserves Fall by 87 Million Dollars to $7.8 Billion
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According to data issued by the State Bank of Pakistan (SBP) on Thursday, the central bank"s foreign exchange reserves declined by 1.1 percent on a weekly basis.
The SBP"s foreign exchange holdings were valued at $7.809 billion on August 19, down $87 million from $7.897 on August 12.
The government has $13.521 billion in total liquid foreign currency reserves, including net savings held by banks other than the SBP. Banks" net holdings were $5.712 billion, down $4 million from the previous day.
According to Arif Habib Limited, the central bank reserves are barely enough to meet the import bill for 1.1 months.
Despite encouraging news that one of the largest sovereign funds in the world, the Qatar Investment Authority, is considering investing $3 billion in Pakistan, the rupee fell against the US dollar for the fourth straight day on Thursday.
But during its Executive Board meeting on August 29, the International Monetary Fund (IMF) is most likely to approve a tranche of $1.17 billion for Pakistan. The upcoming weeks will see an increase in the nation"s reserves thanks to the loan tranche and contributions from other friendly nations.
