SBP’s reserves rise to $7.9bn

KARACHI: The central bank’s foreign exchange reserves slightly increased by $67 million or 0.9 percent during the week ended August 12, it reported on Thursday.

The foreign reserves held by the State Bank of Pakistan (SBP) stood at $7.9 billion, compared with $7.8 billion in the previous week.

Pakistan’s total liquid foreign reserves rose by $52 million or 0.4 percent to $13.6 billion. The reserves of commercial banks, however, fell 0.3 percent to $5.7 billion.

The reserves available with the SBP are enough to cover 1.13 months of imports.

Analysts see resumption of the IMF programme and the expected lower current account deficit amid falling imports to help shore up dwindling foreign reserves and appreciate the local currency.

Finance Minister Miftah Ismail told a news conference on Thursday that Pakistan’s foreign reserves would rise with funding expected from the IMF. He said the IMF board would hold a meeting on August 29 to decide whether to approve the seventh and eighth reviews, which would pave the way for the disbursement of more than $1.1 billion to Pakistan.