WORLD NEWS | Pakistan: SBP foreign exchange reserves fall to a month’s worth of imports

Islamabad [Pakistan]March 30 (ANI): The Central Bank of Pakistan said on Thursday that its foreign exchange reserves fell by US$345 million to US$4.2 billion, leaving the country with barely a month of import reserves, Geo News reported.

The State Bank of Pakistan (SBP) said in its weekly report that its foreign exchange reserves fell in the week ended March 24, which would provide import protection for less than a month.

Read also | HIV-positive adults, children face stigma in Pakistan.

The statement mentioned that commercial banks held net foreign exchange reserves of $5.6 billion, $1.3 billion more than SBP, bringing the country’s total liquid reserves to $9.8 billion, Geo News reported.

Pakistan has struggled to secure external financing to emerge from its economic crisis. Pakistan’s $350 billion economy continues to shrink amid financial woes as authorities struggle to reach a staff-level agreement with the International Monetary Fund (IMF).

Read also | Japanese high-tech toilet company takes aim at Europe.

The Washington-based bank has been in talks with Pakistani authorities since late January to restore a $1.1 billion loan held since November, part of a $6.5 billion expansion fund loan agreed in 2019, Geo News reported. (EFF) part.

IMF funding is crucial for Pakistan to open up other sources of external financing to avoid default on its debt.

Meanwhile, IMF Director of Strategic Communications Julie Kozak said timely financial assistance from external partners was critical to support the authorities’ policy efforts and ensure the successful completion of the review with Pakistan, Geo News reported.

Elsewhere, gold prices rose in Pakistan after investors decided to stay on the sidelines to gauge market direction.

According to data released by the All Pakistan Salafa Gem and Jewelers Association (APSGJA), the price of gold (24 carats) rose by Rs 100/Thora and Rs 85/10 grams to close at Rs 208,000 and Rs 208,000 respectively, Geo News reported. 178,326 rupees.

Investors remained cautious as the International Monetary Fund wanted friendly countries to meet external funding commitments before releasing bailout funds; however, the delay had a negative impact on currency markets, boosting demand for gold. (Arnie)

(This is an unedited and auto-generated story from a Syndicated News feed, the body of content may not have been modified or edited by LatestLY staff)