After the receipt of the first episode of the much-awaited and discussed IMF’s bailout package worth 6 billion USD, reserves of State Bank of Pakistan (SBP) have raised by 12.9% on weekly basis, as stated by the data published by SBP. The bank received a sum of 991.4 million on 9 July 2019, which caused the upward progression. The official statement of the bank said, “After taking into account outflows relating to external debt and other official payments, the SBP reserves increased by $918 million during the week,”
SBP had recorded a sum of 8,001.3 million USD on 12 July 2019 as compared to the prior week’s sum of 7,083.6 million USD. The net increase in funds was recorded by 917.7 million USD and accumulated liquid foreign currency reserves including net reserves held by banks other than the SBP were recorded at 15,249.2 million USD.
Earlier, the downward trend of the bank’s reserves had caused much resentment in the market, and reserves went below the 7 billion USD mark, which incredibly elevated the concerns over the repayment of the debts by the country. The reserves were then rescued and upheaved by the support of UAE and Saudi Arabia. They were further strengthened by the receipt of 2.5 billion USD from China, 622 million USD from Asian Development Bank (ADB), 106 million USD from World Bank, and 350 million USD under Coalition Support Fund (CSF).
Governor SBP Reza Baqir had earlier said that he is satisfied with the current economic growth of the country and believed that anticipated financial arrangements would balance out the circumstances, which will prompt higher and comprehensive development, at last passing the advantages to center and lower classes. He had also mentioned that unlike the previous practices, this government will not be borrowing from SBP.