Foreign Exchange reserves on ‘ventilator’

The State Bank of Pakistan (SBP) reported that its foreign exchange reserves fell to a record low of $3.7 billion as the country struggles with a severe economic crisis and works to revive the International Monetary Fund's (IMF) bailout program to avoid a looming debt default. According to the SBP, as of January 20, its reserves fell to $3,678.4 million due to external debt repayments, providing an import cover of less than one month. The net foreign reserves held by commercial banks have also fallen to $5,774.8 million, bringing the total liquid foreign reserves to $9,453.2 million. The coalition government is desperately seeking to revive the ninth Extended Fund Facility review and has requested that the IMF send a delegation for a visit. An in-person IMF mission is scheduled to visit Islamabad from January 31 to February 9 to continue discussions under the ninth EFF review.