Pakistan Foreign Exchange Reserves Drop to Lowest since 2014
The State Bank of Pakistan (SBP) released the figure, adding that commercial banks have $5.8bln, totaling nearly $10.1bln.
Pakistan is hoping to end the deadlock as the International Monetary Fund (IMF) is expected to release a $1.1bln loan, which is part of the $7bln loan programme the country entered in 2019. It is also seeking immediate financial assistance from its close bilateral partners amid the economic crisis.
The announcement comes at the back of Prime Minister Shehbaz Sharif’s visit to the United Arab Emirates where it was disclosed that the Persian Gulf state pledged to roll over $2bln of existing loans while providing an additional loan of $1bln.
In August last year, the IMF released a tranche of $1.17bln, but the next round of funding has been in the doldrums as Pakistan has so far not agreed to the lender’s various conditions such as increasing energy prices and expanding the tax base.
Pakistan also suffered from catastrophic floods last year which resulted in the death of more than 1,700 people, affected 33 million people, and caused a loss of more than $30bn to the country.
Earlier this week, Pakistan hosted an international donors’ conference in Geneva with the United Nations, in which the global community pledged more than $10bln over the next three years.
Experts, however, have painted a gloomy picture saying the government must reconsider its priorities from finding short-term solutions to more sustainable reforms.
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