SBP Reserves Decrease by $190 Million to Sink Below $8.5 Billion

Foreign exchange reserves recorded at $8.385 billion on July 29, down $190 million from previous week. Decline mainly due to external debt and other payments, according to State Bank of Pakistan’s (SBP) figures. The reserves fell 2.2 percent on a weekly basis.

The country has been desperately seeking dollar inflows but the much-awaited loan tranche from the IMF remains elusive for now.

The head of the International Monetary Fund (IMF) has said that all prior actions for the combined 7th and 8th review have been met. He mentioned that the board meeting is tentatively planned for late August once “adequate financing assurances” are confirmed.

The dangerously low level of reserves has resulted in severe pressure on the country’s currency market with July proving to be the rupee’s worst month since 1989.