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Pakistan’s foreign exchange reserves in a free fall– drop by $555 million in a week

Pakistan's foreign exchange reserves depleting fast

Pakistan’s foreign exchange reserves has further fallen. According to the State Bank of Pakistan, the foreign exchange reserves held by the central bank stood at $7.83 billion as on August 5 down from $8.38 billion from the previous week. This is a fall of $555 million or 6.6 per cent on a weekly basis.

This will cause worry for the country's policymakers.

The total liquid foreign currency reserves in the country, which includes net reserves available with banks other than the SBP, stood at $13.56 billion.

Pakistan is hoping to get the much-needed financial assistance from the International Monetary Fund (IMF) by this month.

“The situation is precarious though the IMF is expected to come to the country’s rescue,” an analyst told India Narrative.

In January, it was $16,607 million.

Pakistan’s military chief, General Qamar Javed Bajwa has also stepped in. Last month, Bajwa spoke to Deputy US Secretary of State Wendy Sherman on the issue.

The Shehbaz Sharif government has implemented most of the recommendations thrashed out by the International Monetary Fund but sources said that there could be a few still pending. Pakistan Finance Minister Miftah Ismail has said that the IMF loan would come by August end though earlier he had expressed hope of receiving the package by June.

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