Pakistan on Tuesday received the second tranche worth $553.5 million from International Monetary Fund (IMF) under extended fund facility (EFF) that would help in building depleting foreign exchange reserves of the country at some extent. ”Pakistan received the second tranche from IMF under the ongoing EFF programme on 23 Dec 2013 amounting to $553.5 million equivalent to SDR 360 million“, spokesperson of the State Bank of Pakistan (SBP)) said in a statement. The IMF’s executive board has approved to release second tranche worth of $553.5 million for Pakistan under extended fund facility (EFF) on December 19 2013. The total liquid foreign reserves held by the country stood at $8.526.3 billion on December 13th, 2013 . The break-up of the foreign reserves position is as, foreign reserves held by the State Bank of Pakistan : $3.467 billion and net foreign reserves held by banks (other than SBP) $ 5,058.5 billion . The reserves have once again crossed $9 billion benchmark following the release of $553.5 million from IMF. It is worth mentioning here that State Bank of Pakistan’s held foreign exchange reserves had declined to the lowest level $2.9 billion on December 6 , which was lowest since 2001 and were sufficient to cover less than three weeks imports. However, later, the reserves held by the central bank enhanced to over $3 billion . The increase in the Central Bank reserves is mainly attributed to $430 million inflows from multilateral and bilateral sources; which include $144 million from Department for International Development (DFID), $137 million from Islamic Development Bank (IDB) and $149 million accounted for receipts from other multilateral institutions. However, economic experts are of the view that reserves would remain under pressure during the ongoing financial year 2013-14, as still Pakistan had to make huge repayment to IMF. Pakistan’s foreign exchange reserves had been on the decline since July 2011 when reserves stood at $14.8 billion . Pakistan had lost $12.0 billion reserves in just 29 months by end-November 2013 . The main reasons behind declining foreign exchange reserves of the country are declining foreign inflows and rising debt repayments in last two and half years. Pakistan had lost $2.2 billion reserves in just four months (since July 2013 ) and $1.7 billion since signing the IMF programme. Now Pakistan will have to repay $300 million in ongoing month and another $1.2 during Jan-June period.
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