KARACHI: Foreign exchange reserves held by the State Bank of Pakistan (SBP) fell by $6 million to $4.46 billion during the week ending on April 28, announced the central bank on Thursday.

Currency experts believe a meagre fall in SBP reserves helped the exchange rate to remain stable for more than a couple of weeks.

However, bankers maintain that the current account surplus of $654m in March was the real support for the exchange rate.

In an interview, former finance minister Miftah Ismail said that April would also bring a surplus that would help to bring some stability to the economy.

Pakistan has massive curtailed imports, which badly hit the economic growth but improved the balance of payment situation.

What is more concerning for the government is an inordinate delay in signing a staff-level agreement with the International Monetary Fund to unlock a $1.1bn tranche.

Pakistan needs another IMF programme for its future economic stability, as it requires a huge amount of about $35bn for external debt servicing in FY24.

However, the central bank has yet not received the promised inflows from Saudi Arabia and the UAE.

The country’s overall foreign reserves were $10.043bn including $5.586bn of commercial banks during the week.

In the preceding week, the SBP reserves had fallen by $30m.

Published in Dawn, May 5th, 2023

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

Opinion

Editorial

Mercury rising
27 May, 2024

Mercury rising

SHOULD we expect a political heatwave this summer? The climate seems to be rather conducive to it. The two largest...
Antibiotic overuse
27 May, 2024

Antibiotic overuse

ANTIMICROBIAL resistance is an escalating crisis claiming some 700,000 lives annually in Pakistan. It is the third...
World Cup team
27 May, 2024

World Cup team

PAKISTAN waited until the very end to name their T20 World Cup squad. Even then, there was last-minute drama. Four...
ICJ rebuke
Updated 26 May, 2024

ICJ rebuke

The reason for Israel’s criminal behaviour is that it is protected by its powerful Western friends.
Hot spells
26 May, 2024

Hot spells

WITH Pakistan already dealing with a heatwave that has affected 26 districts since May 21, word from the climate...
Defiant stance
26 May, 2024

Defiant stance

AT a time when the country is in talks with the IMF for a medium-term loan crucial to bolstering the fragile ...