The Pakistani rupee resumed its upward journey for the fourth successive day against the US dollar on Friday, appreciating by 0.09 percent in the internet market. According to the information extracted from the money dealers, the local currency went up by 23 paisas against the greenback and was currently being traded at Rs286.50. On Thursday, the Pakistani rupee appreciated against the US dollar by 25 paisas and settled for the day at 286.73. In a worrying development, foreign exchange reserves held by the State Bank of Pakistan (SBP) plunged by massive $482 million, clocking in at nearly $3.54 billion as of June 16. The overall number stands at a critical level at around a month of import cover, the data showed.b Total liquid foreign reserves held by the country stood at $8.86 billion. Net foreign reserves held by commercial banks clocked in at $5.33 billion.  “During the week ended on June 16, 2023, SBP reserves decreased by $482 million to $3,536.9 million due to external debt repayment,” said the SBP.

“During the current week, SBP has received $300 million in proceeds from the government of Pakistan commercial loan. These inflows will be incorporated in the reserves position to be published as of June 23, 2023.” Last week, the foreign exchange reserves held by SBP increased to $4.02 billion. The critical level of foreign exchange reserves underscores the need for the revival of the stalled programme with the International Monetary Fund (IMF). Earlier, Islamabad was severely criticised by the IMF with Esther Perez Ruiz, the lender’s Resident Representative for Pakistan, expressing dissatisfaction with the budget proposals announced by Finance Minister Ishaq Dar for fiscal year 2023-24, calling them a missed opportunity to broaden the tax base while criticising the new amnesty scheme that “creates a damaging precedent”.

Credit : Independent News Pakistan-INP