SBP Reserves Increase by $271 Million to Reach $4.5 Billion

According to figures issued by the State Bank of Pakistan (SBP) on Friday, the central bank’s foreign exchange reserves climbed by 6.3 percent on a weekly basis.

The SBP’s foreign exchange holdings were valued at $4.590 billion on March 17, up $271 million from $4.319 billion on March 10.

The nation’s total liquid foreign currency holdings, which include net reserves held by institutions other than the SBP, were $10.130 billion, an increase of $283 million over the previous week. The net reserves held by banks were $5.541 billion, down $13 million from the previous week.

Topline Securities estimates that the existing reserves are sufficient to cover imports for 1.17 months.

In this context, it is important to note that China has approved the one-year rollover of $2 billion in SAFE (State Administration of Foreign Exchange) deposits. The Industrial and Commercial Bank of China (ICBC) sent the central bank $1 billion in two installments over the past several weeks, with the third and final transfer of $300 million anticipated in the near future.
Despite these inflows, Pakistan has not yet received any financial assistance from other friendly nations, which is a requirement set down by the International Monetary Fund (IMF) for the staff-level agreement.

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