SBP Reserves Increase Marginally to Stay Above $7 Billion

The foreign exchange reserves held by the State Bank of Pakistan (SBP) increased marginally on a weekly basis according to data issued by the central bank on Thursday. On December 8, the foreign currency reserves held by the SBP were recorded at $7.041 billion, up $21 million compared to $7.020 billion on December 1. Overall liquid foreign currency reserves held by the country, including net reserves held by banks other than the SBP, stood at $12.206 billion, up $99 million over the previous week. The net reserves held by banks stood at $5.166 billion, registering an increase of $79 million during the week. Yesterday, Fitch Ratings affirmed Pakistan’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘CCC’. The rating agency said that the ‘CCC’ rating reflects high external funding risks amid high medium-term financing requirements, despite some stabilization and Pakistan’s strong performance on its current Stand-by Arrangement (SBA) with the IMF. Importantly, the IMF Executive Board is set to meet on January 11 to consider the staff-level agreement on the first review under Pakistan’s SBA. Upon approval, Pakistan will have access to SDR 528 million (around $700 million).