Pakistan’s foreign exchange reserves held by the central bank rose by $276 million to $3.2 billion in the week ending on February 10, the State Bank of Pakistan (SBP) said on Thursday.

According to the state bank, net foreign reserves held by commercial banks stood at $5.5bn, bringing the country’s total liquid foreign reserves to $8.7bn.

Arif Habib Ltd calculated that the current reserves would cover a little more than two weeks of imports.

Last week, the country’s foreign exchange reserves had fallen below Rs3bn on account of external debt payments.

The government is racing to implement new tax measures and reach an agreement with the International Monetary Fund (IMF). The agreement with the Fund on the completion of the ninth review of a $7bn loan programme would not only lead to a disbursement of $1.2bn but also unlock inflows from friendly countries.

Pakistan held 10 days of intensive talks with an IMF delegation in Islamabad — from Jan 31 to Feb 9 — but could not reach a final deal.

The IMF, however, later said that both sides have agreed to stay engaged and “virtual discussions will continue in the coming days to finalise the implementation details” of the policies discussed in Islamabad.

Meanwhile, Fitch Ratings agency has also downgraded Pakistan’s long-term foreign-currency issuer default rating (IDR) to ‘CCC-’, from ‘CCC+’ due to worsening liquidity, political volatility and decline of foreign-exchange reserves to critically low levels. A CCC minus rating denotes a very high level of default risk.

In a note defining its action, Fitch explained that the downgrading reflects further sharp deterioration in external liquidity and funding conditions and the decline of foreign exchange reserves to critically low levels.

Now you can follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Free, fair & timely
Updated 01 Jun, 2023

Free, fair & timely

The stakeholders need to take a step back and let democracy take its course.
Virtual SCO summit
01 Jun, 2023

Virtual SCO summit

HOSTING multilateral summits is a matter of great prestige for states, as world leaders gather at the same table to...
Missing anchorperson
01 Jun, 2023

Missing anchorperson

IT gives insight into the obduracy of those in whose custody Imran Riaz Khan is being held that multiple appeals ...
Constitutional courts
Updated 31 May, 2023

Constitutional courts

While the idea may not be without its merits, the establishment of a constitutional court cannot be done without national consensus.
Hunger pangs
31 May, 2023

Hunger pangs

A RECENTLY released report by two UN agencies should serve as a wake-up call to the ruling elite — that is, if ...
No-Tobacco Day
31 May, 2023

No-Tobacco Day

DESPITE successive governments’ efforts, tobacco use continues to remain a significant public health challenge for...