KARACHI: The State Bank of Pakistan`s (SBP) foreign exchange reserves have remained around $9 billion since the IMF`s $1.1 billion arrival in April, reflecting no other inflows.

The central bank reported on Thursday that its reserves increased by a meagre $16 million to $9.109bn during the week ended May 31 without mentioning the source of this inflow.

However, the reserves of the commercial banks fell by $116m to $5.1bn during the week, bringing the country`s total down by $100m to $14.2bn.

Alarmingly, sources in the financial circle revealed that Pakistan is facing a daunting challenge. The country is expected to pay up to $10bn in debt servicing till July 31, which is more than the SBP`s overall forex holding. This dire situation underscores the country`s urgent need for immediate assistance to bolster its reserves.

Earlier, there were widespread reports in the media about a potential loan package from the IMF in July.

While sources have indicated the possibility, it`s important to note that the amount required is significantly larger than the current reserves, which could pose a challenge for the country.

However, it was also observed that the financial experts were hopeful for yet another rollover of Chinese loans. Pakistan owes about $26bn to China. The prime minister, finance minister and foreign minister are in China just before the budget. Speculations about the rollover of loans were stronger due to the visit.