SBP reserves plunge 16pc to $3.09bn

The rupee touched another all-time low on Thursday and the central bank’s reserves fell close to a precariously low level of $3 billion as the country continues to reel from economic and political turmoil. According to State Bank of Pakistan (SBP) data, its reserves dropped 16 per cent to $3.09bn — barely enough to cover less than three weeks of imports — in the week ending Jan 27 due to external debt repayments. The reserves are at their lowest since February 2014 and can only cover 18 days’ worth of imports, the lowest the import cover has been since 1998, according to local investment firm Arif Habib Ltd (AHL). Reserves held by commercial banks stood at $5.65bn, taking the country’s total liquid reserves to $8.74bn, the SBP said. “The country is in dire need of fresh inflows and the resumption of the IMF programme as soon as possible to avoid the crisis,” Reuters quoted Tahir Abbas, head of research at AHL said, as saying. Pakistan is locked in negotiations with the International Monetary Fund (IMF) to release much-needed money under a stalled bailout programme. A successful outcome with the IMF would also help to release money from other platforms that are looking for a green light from the lender.