Govt looking at friendly countries for deposits amid foreign reserves crunch.

The government is mulling approaching friendly countries, especially Saudi Arabia, for additional deposits on an immediate basis in a bid to bridge financing until things are finalised with the International Monetary Fund (IMF), sources told The News.

Government sources said that Saudi authorities are "studying" the prospect of further deposits to Pakistan amid the foreign exchange reserves crunch. A senior official at the Finance Ministry said that the uncertain political situation was impeding the decision-making process, making it difficult for policymakers to make hard choices needed for the revival of the IMF programme.

Official sources told the publication that the government does not have much time to act as foreign exchange reserves held by the State Bank of Pakistan (SBP) are depleting at a rapid pace. As of January 6, the foreign exchange reserves held by the SBP stood at just $4.3 billion.

Commercial banks' foreign currency reserves stood at $5.8 billion, taking the country's cumulative reserves to around $10.18 billion. SBP's reserves have dropped by $12.3 billion in the last 12 months; from $16.6 billion on January 22, 2022, to $4.3 billion on January 6, 2023.

Experts say there is a lack of understanding on moving ahead; the situation has reached a point where only action with a clear-cut vision can avert the crisis. There is no time of luxury of months, so there is a need for immediate action, they added.

A few days back, Prime Minister Shehbaz Sharif hinted that the IMF review mission might visit Pakistan, but it is yet to happen. Sources said the PM requested the...