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Pakistan’s foreign currency reserves increase to $4.3 billion

Latest NewsPakistan's foreign currency reserves increase to $4.3 billion

The State Bank of Pakistan (SBP) reports that the receipt of a $500 million commercial loan from China caused the country’s foreign exchange reserves to rise to $4.3 billion in the week ending on March 3. The country’s entire liquid foreign reserves are currently $9.75 billion, according to the SBP. The reserves, according to Arif Habib Limited, have climbed by $1.4 billion since February 3 and are sufficient to fund imports for around a month. Pakistan’s Finance Minister, Ishaq Dar, claimed that last week’s approval of a $1.3 billion loan rollover by the Industrial and Commercial Bank of China Ltd will help increase the nation’s diminishing foreign exchange reserves. The loan will be paid back in three installments, with the central bank already receiving the first installment of $500 million. Pakistan is under pressure to take actions that will allow it to achieve a deal with the International Monetary Fund despite its financial woes (IMF). The agreement would release inflows from friendly nations and result in the disbursement of $1.2 billion, which has been delayed since late last year due to a policy framework. Before presenting its annual budget in June, Pakistan must cut its fiscal deficit in order to comply with the lender’s standards. Most of the other necessary steps, like raising gasoline and energy prices, ending subsidies in the export and power industries, and raising additional funds through new taxes in a supplemental budget, have already been adopted by the nation. The IMF has also asked Pakistan to make sure that it fully finances its balance of payments deficit for the remainder of the IMF programme. The Pakistani government has been urged by the US State Department to work with the IMF on changes that will improve the nation’s economic climate and attract high-quality investment. Ishaq Dar, Pakistan’s finance minister, stated in a recent seminar that he and his team were totally committed to finishing the IMF programme and that Pakistan was about to sign the staff-level agreement. Dar remained upbeat despite the delay in the 9th review procedure and expressed his hope that the deal would be completed within the following two days.

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