Pakistan’s total foreign exchange reserves declined by $51.9 million in a week, bringing the country’s total reserves down to $15.87 billion, according to the latest figures.
Despite the overall decline, the State Bank of Pakistan (SBP) recorded an increase in its dollar reserves. The SBP’s reserves rose by $27.1 million, reaching $11.2 billion.
However, the reserves held by commercial banks saw a significant decrease. Banks’ dollar deposits dropped by $79 million, reducing the total to $4.62 billion.
The fluctuation in foreign reserves comes amid ongoing economic challenges, with external debt repayments and import expenses putting pressure on Pakistan’s foreign exchange holdings.
Also Read: No mini-budget needed to meet tax shortfall, Pakistan assures IMF
Meanwhile, the Federal Board of Revenue (FBR) has assured the International Monetary Fund (IMF) that the tax shortfall of Rs605 billion will be addressed without the need for a mini-budget, as economic review talks between Pakistan and the IMF continue.
According to officials, a plan has been presented to the IMF, under which the shortfall will be met through the settlement of pending tax cases.
The IMF has been informed that the revenue target is expected to be achieved by June; otherwise, expenditure cuts will be made to compensate for any remaining deficit.
The FBR is hopeful of securing Rs 157 billion through the Supreme Court’s upcoming decision on super tax. The apex court is set to hold a crucial hearing on the matter on March 10, with Rs 57 billion expected from the Supreme Court ruling and the remaining Rs 100 billion from the High Court’s verdict.
